IMF report comments on the economic policy of Peru
On 13 June 2016 the IMF published on its website a concluding statement following the completion of discussions with Peru under Article IV of the IMF’s articles of agreement. Peru’s economic growth fell in 2014 as a result of declines in
See MoreCosta Rica: Tax authority released draft rules for annual transfer pricing return
The Costa Rican tax authority released a draft rules on 6 June 2016 for taxpayers to apply and follow in filing an annual transfer pricing return. The draft resolution includes a penalty for taxpayers that fail to file a transfer pricing return,
See MoreAustralia: Electronic Local Files template finalized
Taxpayers that fail to adhere to their tax disclosure obligations like submitting local file will be exposed to administrative penalties of AUD 4,500. The Government proposes revised penalties amounting to AUD450, 000 from 1 July 2017 for failure to
See MoreIMF publishes working paper on aid and fiscal policy
On 9 June 2016 the IMF published on its website a paper entitled “What does aid do to fiscal policy? New evidence”. As foreign aid is an important source of funding for some developing countries it is important to look at how aid is allocated
See MoreKenya presents budget for 2016-17
The Cabinet Secretary presented the budget for 2016-17 to the National Assembly on 8 June 2016. Some of the proposed measures as regards direct taxation are given below: Corporate taxation: Corporate tax rate decrease from 30% to 20% for developers
See MoreLuxembourg: Corporate income tax rate proposed by reducing 3%
On 3 June 2016, the Ministry of Finance of Luxembourg published its Stability and Growth Program for 2016-2020. To further economic development, a reduction of the corporate income tax rate from 21% to 18% and an increase of the investment credits
See MoreTanzania: Budget 2016/17 regarding direct taxation
The Finance and Planning Minister has presented the Budget for 2016/17 to the National Assembly on 8th June 2016. The proposed measures related to direct taxation are summarized below: Corporate taxation Withholding tax on payments made to
See MoreRussia: Draft Order for approving CFC notification form published
According to the Russian Tax Code, individuals and companies are needed to notify the tax authority of controlled foreign companies (CFC) of which they are considered controlling persons. Note that, these companies and individuals are considered to
See MoreIMF working paper looks at policy adjustments required in MENA and CCA countries
On 8 June 2016 the IMF published a Middle East and Central Asia departmental paper on “Learning to Live with Cheaper Oil: Policy Adjustment in Oil Exporting Countries of the Middle East and Central Asia”. The paper looks at policy challenges in
See MorePoland: President signs GAAR provisions
The President of Poland has signed the bill amendments to the Tax Code including the General Anti-Abuse Rule (GAAR) requirements on 7 June 2016 and it is likely that GAAR will be introduced in July 2016. GAAR provisions will provide some tax
See MoreIMF report comments on the economic position of Guatemala
The IMF has published its concluding statement following consultations with Guatemala under Article IV of the IMF’s articles of agreement. The IMF notes that the new administration and legislature in Guatemala are focused on increasing
See MoreIMF report comments on tax policy of Sri Lanka
On 5 February 2016 the IMF released a report following the conclusion of discussions by its staff in Sri Lanka under Article IV of the IMF’s articles of agreement. The Sri Lankan economy has been performing positively and real GDP growth was 5.2%
See MoreIMF report comments on the economic position of Uganda
On 6 June 2016 the IMF issued a press release on the completion of the sixth review for Uganda under a program supported by the Policy Support Instrument (PSI) and approval of a one-year extension of the program. The program supports the
See MoreGreece: Transfer pricing obligations of acquiring company in case of merger
The Public Revenue Authority has published a legal document entitled "ΔΕΑΦΒ 1086197 ΕΞ 2016" on 2nd June 2016 for providing clarifications that the acquiring company is responsible for the submission of the relevant transfer pricing
See MoreRussia: MoF clarifications regarding interim dividends
The Finance Ministry (MoF) has issued a letter No. 03-03-06/2/21011 on 13th April 2016 describing the tax treatment of interim dividends paid by a Russian company to its company shareholders in an amount exceeding the net profits of the company in
See MoreAustria: Proposes legislation on Transfer Pricing documentation and CbC reporting
The Austrian Ministry of Finance (MoF) has published draft legislation to implement the Master File in line with the new OECD standard. The legislation includes a requirement to prepare a Master file, Local file(s), and CbCR. The new requirements
See MoreWTO Director General discusses issues in global trade
At the World Trade Symposium of 7 June 2016 on “Trade and Globalization in the Twenty First Century: The Path to Greater Inclusion” the Director-General of the World Trade Organization (WTO) spoke about current progress and remaining issues in
See MoreHong Kong: Amendment ordinance clarifies interest deduction rules and profits tax incentives
The Inland Revenue has gazetted the “(Amendment) (No. 2) Ordinance 2016” on 3 June, 2016. The Amendment Ordinance enables, under specified conditions, the deduction of interest payable on money borrowed by a corporation carrying on in Hong Kong
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