Germany: To focus on tax reforms in G7

June 30, 2014

As per German media report of 29 June 2014, Germany wants to focus on tax reform after taking over the presidency of the Group of Seven (G7) next week. Germany emphasized the need for sound public finances to achieve effective growth in the G7

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Poland: Proposal for single VAT rate

June 30, 2014

The Finance Ministry of Poland revised its standard and reduced rate of VAT for creating a single rate to simplify the VAT procedure. Poland’s current VAT rate is 23%; this rate will decrease in between 8% to5%. From 2016 this rate will further

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Vietnam: Regulation on VAT and Other measures

June 30, 2014

Recently, Vietnamese authorities have issued following new regulation: -Value added tax (VAT) on imported animal feed and with respect to unprocessed or semi-processed food products. -Foreign contractor tax and application of rules under the income

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Czech Republic: Amendment of VAT Law has submitted to parliament

June 30, 2014

The government has submitted a VAT Law amendment to the parliament initiating changes to supply rules in telecommunications field, broadcasting and electronic services. The changes would generally apply with effect from January 1, 2015. The main

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Canada: Guidance of FATCA clarifies IGA reporting obligations

June 30, 2014

The guidance confirms that Canadian entities could be subject to the U.S. Foreign Account Tax Compliance Act (FATCA), which takes effect from July 1, 2014 and will be interested in the CRA’s new guidance on Canada’s intergovernmental agreement

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Russia: Application on Participation exemption in case the subsidiary is reorganized

June 30, 2014

The Ministry of Finance has issued Letter No. 03-03-РЗ-15941 on April 8, 2014 clarifying the application of the participation exemptions in the case where the subsidiary is subject matter to reorganization. Pursuant to general rule, for qualifying

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Bangladesh: The 2014-15 Budget will provide for legalization of undisclosed income as in previous budgets

June 29, 2014

The move comes as no surprise not only because such opportunities were provided in previous budgets but also because powerful lobbies have been active to push for such provisions. AMA Muhith on Saturday told in the Parliament that undisclosed income

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Japan: Planning to introduce B2B e-commerce tax

June 29, 2014

The Japanese International Taxation Discussion Group has suggested following methods for pick up “Consumption Tax” which are: Submission of VAT reverses charge so that the local Japanese Company reports the acquisition and supply in its

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Austria: planning for Restructuring Tax Administration

June 29, 2014

Austrian Finance Minister planning for greater fiscal sovereignty for the federal states and municipalities, to decrease administrative costs and finance tax cuts for low earners. He also said that, “tax sovereignty should pass from Government to

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New Zealand and United States signs FATCA IGA to share tax information

June 29, 2014

On 12 June, New Zealand signed an intergovernmental agreement with U.S to improve international tax compliance and to implement the Foreign Account Tax Compliance Act.  According to the IGA, New Zealand financial institutions will disclose account

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FATCA agreement between US and Latvia signed

June 29, 2014

Latvia and the United States signed a Foreign Account Tax Compliance Act (FATCA) Agreement, on June 27, 2014. Under the agreement, Foreign Financial Institutions (FFIs) in Latvia will report the information required under FATCA about U.S. accounts

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Thailand Government agrees to keep 7% VAT rate for one more year

June 29, 2014

The government of Thailand has announced to keep the country’s VAT rate on 7% for one more year. The Previous Thai governments had planned to raise the VAT to 10% but now this has been postponed for one more

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Mexico: Tobacco tax rate increase rejected

June 29, 2014

The health secretary has rejected the tax proposal to increase tax on tobacco and it has been decided that tax will remain same as previous years.  In the Special Tax on Production and Services (IEPS) a pack of 20 cigarettes is taxed at 160% of

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Japan: Corporate tax rate will be lowered below 30%

June 28, 2014

Japan’s Prime Minister announced on 24 th June 2014, that the government will lower Japan's corporate tax rate from 35% to below 30 %. The Government targets to return to a principal fiscal balance in 2020. However the final corporate tax rate

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Saudi Arabia: Simplifying Expat Worker Fees

June 28, 2014

The Council of Ministers of Saudi Arabia revealed a decision to ease the levy on employer of expat workers. According to the new measures companies with nine or fewer employees will be able to employ up to four expat workers without paying the

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EU Signs Historic Trade Pacts with Eastern States

June 27, 2014

The European Union (EU) and three of Russia’s neighbors signed sweeping trade-and-political agreements that will ultimately eliminate tariff barriers to trade. The deals with Ukraine, Georgia and Moldova which will provide for a deep and

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Brazil: Reduces Different Import Tax Rates

June 27, 2014

The Foreign Trade Chamber (CAMEX) of Brazil has declared that the 10% import duty will be cut from wheat, capital and electronic goods till 15 August 2014, and this decision came into effect from 24 June 2014. CAMEX also introduced, 2 Resolutions-

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Canada: Report of MAP program during 2013-2014

June 27, 2014

The Canada Revenue Agency (CRA) has issued an annual report regarding Mutual Agreement Procedure (MAP) Program that gives an outline of the MAP Program during April 1, 2013 to March 31, 2014. The CRA inspires taxpayers to focus on double taxation or

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