| Spain | Main Corporate tax rate: The corporate income tax rate will be reduced from 28% to 25% from January 2016. Following Companies also are not required to file tax returns for taxable periods commencing on or after 1 January 2016 if: i) their total annual income does not exceed EUR 75,000; ii) their exempt annual rental income does not exceed EUR 2,000;and iii) any rental income which is exempt from income tax must already have been subject to withholding tax. See the Story in Regfollower |
| Czech Republic | Tax evasion and measures: The Finance Ministry held a conference on 18th November 2015 regarding tax evasion and measures taken to counter it. It was reported that because of increasing the fight against tax evasion and avoidance, public revenues had increased. Therefore, Tax evasion is considered for non-declared income approximately CZK 160 billion each year. See the Story in Regfollower |
| India | Main Corporate tax rate: The Finance Minister in his Budget Speech for 2015 indicated that the rate of corporate tax will be reduced from 30% to 25% over the next four years along with the corresponding phasing out of exemptions and deductions. The Central Board of Direct Taxes on 20th November, 2015 issued a press release, announcing this would be a step towards the simplification of tax laws, thus bringing about transparency and clarity. See the Story in Regfollower |
| Nigeria | CFC rules: Nigeria currently does not have controlled foreign corporation (CFC) rules, but it is expected such rules may be implemented soon. Thin capitalization rule: Nigeria may introduce thin capitalization rule sooner than expected, thereby addressing base erosion involving interest deductions and other financial payments. See the Story in Regfollower |
| Italy | Main Corporate tax rate: The Italian draft budget law for 2016 is currently under discussion. It is expected to be approved by 31 December 2015. However, the new Budget confirms that the corporate tax rate will be cut from 27.5 percent to 24 percent in 2017. The Government may seek approval from the Commission for a more relaxed fiscal stance to enable it to phase in this cut starting in 2016, by cutting the rate to 26 percent. See the Story in Regfollower |
| Israel | Main Corporate tax rate: The Ministry of Finance published a draft amendment to the Income Tax Ordinance (ITO) on 22 November 2015 providing that, the corporate income tax rate will be reduced from 26.5% to 25% as of 2016. See the Story in Regfollower |
| Mexico | Tax Incentives: The tax reform package for 2016 was published in the Official Gazette on 18 November 2015. According to the tax reform package an instant deduction will be offered for new fixed asset investments in the energy, infrastructure and transportation sectors of 2016 and 2017, if the income up to MXN 100 million. See the Story in Regfollower Withholding tax on Interest: For the year 2016, the withholding tax rate regarding interest payments made by banks to residents will be 0.50%. Also, the WHT rate of 4.9% will be applicable on interest paid to non-resident banks, when the beneficial owner of the interest and is resident in a country with which Mexico has a tax treaty in force Penalty-Interest on late payments: Interest charged at 0.75% per month on the outstanding balance and installment payments for 1.00%, 1.25% and 1.50% per month with respect to, depending on the number of allowed installments. See the Story in Regfollower |
| Slovenia | Tax Incentives: The Ministry of Finance on 10 November 2015 proposes that, decrease of tax allowances for research and development from 100% to 50% of the amount invested. Also, Capital gains from the disposal of own shares are no longer exempt. See the Story in Regfollower Participation relief: The amendments to the Corporate Income Tax Law were published on 3 November 2015, in the Official Gazette No. 83/2015. According to the amendments, implementation of Council Directive 2014/86/EU amending the Parent-Subsidiary Directive (recast) (2011) (PSD). The exemptions under the PSD will no longer be granted when the main purpose or one of the main purposes of the arrangement is to obtain tax advantages. See the Story in Regfollower |
| Romania | Late payment Penalties:Romania’s government in October 2015 issued an “emergency ordinance” that allows for the “cancellation” of penalties and “interest” imposed for the late payment of taxes. The Emergency Ordinance no. 44/2015 supports the general interest of supporting economic growth by helping taxpayers in distress. The legislative act provides for the cancellation of the late payment penalties and a 54.2% share of the interest related to the main payment obligations, outstanding as at 30 September 2015, inclusive, if several conditions are fulfilled cumulatively. See the Story in Regfollower |
| UK | GAAR-Penalty: The Autumn Statement was delivered on 25 November 2015 and the following tax measures were announced: In the case of any tax due where a case has been challenged successfully under the general anti abuse rule (GAAR) a penalty of 60% of tax due will be charged. Tax evasion penalties: There will be a new criminal offense for corporate taxpayers who do not prevent their agents from facilitating tax evasion, either onshore or offshore. Capital gains: A payment on account of capital gains tax due is to be required within 30 days of completion of the disposal. This will not affect properties where no capital gains tax is due, owing to principal private residence relief. See the Story in Regfollower |
| Peru | Incentives on R&D: In Peru, Supreme Decree No. 326-2015-EF (the Decree) was published in the Official Gazette on 16 November 2016. The Decree accepts the maximum deductible amounts as provided in article 6 of the Law No. 30309. The Law also provides an additional deduction of expenses related to scientific and technological research projects and technological innovation projects. Incentives on SME: For micro and small companies, the minimum deductible amount is equal to 10% of the maximum deductible amount for the respective fiscal year. See the Story in Regfollower |
| Indonesia | Capital Gains Tax: On 15 October 2015, the Ministry of Finance (MoF) issued Regulation No. 191/PMK.010/201, under PMK-191, final income tax will be imposed on the capital gain at different rates depending on when the companies submit the FAR application, as follows: -3% for submissions between 20 October 2015 and 31 December 2015; -4% for submissions between 1 January 2016 and 30 June 2016; and -6% for submissions between 1 July 2016 and 31 December 2016. See the Story in Regfollower |
| Ukraine | Corporate income tax: The draft Law No. 3357 (the Law) providing amendments to the Tax Code and submitted to the parliament. The principal proposed amendments are– Corporate income tax is substituted by distributed profit tax. Resident companies and permanent establishments of foreign entities are subject to tax only in respect of distributed profits at a rate of 15%. Also, the thin capitalization rules will introduce. |
| Colombia | Withholding tax on Technical service fees: If the payments considered Colombian-source income are made to foreign taxpayers, they will be subject to income tax at a general rate of 33%, or, in the case of technical services or technical assistance services, at a rate of 10%.
See the Story in Regfollower |
| Egypt | Dividend: Dividends distributed by resident companies to other resident companies are subject to a final withholding tax. The dividends are excluded from the taxable base at the level of the recipient entity. Capital Gains Tax:Withholding taxes already levied with respect to capital gains on listed shares derived by non-resident companies, during the tax year ended after 17 May 2015, are refundable. Inter-corporate dividend: The exclusion of inter-corporate dividends from the taxable base applies to distributions received during the tax year ending after the publication of Decree Law No. 96 for 2015, irrespective of whether the dividends are received before or after the entry into force of the Decree Law. See the Story in Regfollower |
| Croatia | Interest from bank: National Bank of Croatia has recently reduced bank interest rate from 7% to 3% per annum and was effective from 31 October 2015. This rate will be also decreased for the purposes of corporate profit tax law. See the Story in Regfollower |
World Tax Brief: November 2015
06 December, 2015
Share This
