Japan – Possible BEPS-related implications under foreign dividend exclusion rule
In Japan the Cabinet Office has published a discussion paper setting out current tax issues for consultation. This paper concerns the developments in respect of base erosion and profit shifting (BEPS) and the implications of the issues for the
See MoreMexico – VAT certification by maquiladoras
The maquiladora regime provides some favorable tax provisions but caution is needed with administrative procedures in respect of VAT. As a result of changes introduced in the 2014 tax reform maquiladoras must take certain actions to ensure they are
See MoreTurkey: threatens 38% VAT on Twitter ads
Turkey’s Finance Ministry suggests that VAT on domestic advertising should be doubled from 18% to 36%. This would recover some local tax revenues from non-resident social networking sites that otherwise pay little tax in the country. Other
See MoreTanzania: Reconsiders gas windfall tax proposal
Tanzania may decide against a windfall tax on production, which had been considered as part of the National Natural Gas Policy (NNGP). It is now considered that a windfall tax might not be appropriate in the initial stages of natural gas extraction,
See MoreSwitzerland – New VAT registration requirements on foreign companies
Switzerland is planning to require non-resident companies that provide services in Switzerland to charge Swiss VAT on the services at a rate of 8%. There is a need for all foreign service providers to comply with this requirement so that Swiss
See MorePoland – Reduction of VAT by 2017
In Poland the government intends to raise the standard rate of VAT again by 2017. The standard rate has already been raised to 23% from January 2011 as a consequence of the financial crisis. Although Poland did not undergo a recession after the
See MorePhilippines May Exempt Humanitarian Relief from VAT
Bill 4054 in the Philippines would provide for a VAT exemption for medical and educational goods that are imported into the country as a result of donations from abroad, and would also introduce a similar VAT exemption for goods donated from abroad
See MoreEuropean Commission Asks Hungary to End Excise Restrictions
Hungary has been asked by the European Commission to change the excise rates currently charged on liquor and tobacco products. The structure of alcohol duties within the EU has been harmonized by an EU Directive and member states must therefore
See MoreEU Joint TP Forum Publishes Member States’ Profiles
The European Union Joint Transfer Pricing Forum (JTPF) has issued descriptions of the transfer pricing systems of European Union (EU) member states in a standardized form, giving relevant information on aspects of the transfer pricing rules and tax
See MoreChinese exporters gain VAT refund
The Chinese State Administration of Taxation (SAT) has given more time to exporters to make an application for a VAT refund. Enterprises that export goods from China may apply for permission to make input tax reclaims to obtain a VAT refund. An
See MoreNigeria: Managing Transfer Pricing risks
The Nigerian transfer pricing rules are still relatively new, as detailed implementation of the transfer pricing law effectively began only with the release of the Transfer Pricing Regulations in 2012. Taxpayers must therefore make sure that they
See MoreEuropean Union: JTPF presents transfer pricing profiles of EU Member States
The EU Joint Transfer Pricing Forum (JTPF) has presented the transfer pricing profiles of all EU Member States. The profiles contain information about domestic transfer pricing frameworks, competent authorities’ contact details and other useful
See MoreEU Parliament Considers Change to EU Funding
The members of the European Parliament have given their support to planned measures to lower the share of VAT receipts of member states that go towards the funding of EU projects. According to plans adopted on 16 April 2014, the amount of funds
See MoreTax Freedom Day Comes Later For US Taxpayers
An organization known as the Tax Foundation (TF) computes the date of a day called Tax Freedom Day each year. This date is found by applying the average tax burden, expressed as a percentage, to the number of days in the year. The Tax Freedom Day is
See MoreUS: IRS Confirms Deductibility of Puerto Rican Excise Tax
The IRS has confirmed in a document published recently (Letter 2014-0006) that the IRS will not challenge the claim that Puerto Rico’s manufacturers excise tax is a tax that can be credited against United States federal income tax. In October
See MoreSpanish Tax Cuts to Favor Low Income Workers
The Spanish government has emphasized its intention to lower the personal income tax for all individuals and in particular for lower income groups. The Spanish government is to raise the tax incentives in respect of savings and investment and will
See MoreOECD releases discussion drafts on hybrid mismatch arrangements
On 19 March 2014, the Organization for Economic Cooperation and Development (OECD) published for consultation two Public Discussion Drafts in relation to Action 2 on hybrid mismatch arrangements under the Action Plan on Base Erosion and Profit
See MoreOECD releases discussion draft on tax challenges of the digital economy
On 24 March 2014, the Organization for Economic Cooperation and Development (OECD) published a discussion draft relating to addressing the tax challenges of the digital economy. This is Action 1 of the Action Plan on Base Erosion and Profit Shifting
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