Mexico: Tax Reforms bill published

23 December, 2013

According to a media report Mexico reform tax bill on 23 December 2013, which might affect the direct and indirect taxation of corporate taxpayers, has been published in the country’s Official Gazette, completing the approval procedures. The

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US States Cut Taxes in 2013

18 December, 2013

Eighteen US states have cut taxes in the 2013 legislative year, reflecting an emphasis, following the recession, on pro-growth reforms that encourage economic expansion and competition, according to a new report by the Center for State Fiscal Reform

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Tax treaty between India and United Kingdom – Indian decision on taxability of fees for technical services

12 December, 2013

The Indian Income Tax Appellate Tribunal (ITAT) issued its decision on 31 May 2013 in the case of Veeda Clinical Research Private Limited (ITA 1406/Ahd/2009) that the provision of market awareness and development in-house training services to an

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India: Determines guarantee rates on loans are arm’s length

12 December, 2013

The Mumbai Bench of the Income-tax Appellate Tribunal held that bank guarantee rates cannot be mechanically applied in determining the arm’s length price. The tribunal explained the difference between corporate guarantee and bank guarantee, and

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Canada: Legislation sanctioning Manitoba’s 2013 budget

11 December, 2013

By enacting legislation Manitoba’s 2013 budget evaluates took Royal Assent on December 5, 2013. The budget belonging tax measures provisions that: Corporate capital tax rate on financial institutions has to be increased from 4% to 5%; The

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Turkey – CIT relief from certain services

11 December, 2013

A circular provides for the possibility of exempting 50% of the profit provided to non-residents for corporate income tax purposes and earned by Turkish taxpayers from certain types of services. Now, companies who may benefit from the 50% relief

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Tax credits for creating job in South Korea

11 December, 2013

The government of South Korea is planning to give more tax incentives to corporate and personal financing in culture and leisure activities like libraries, museums, art galleries and performance in theaters. An additional tax credit of 3 % will be

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Spanish Bioindustry Welcomes R&D Tax Breaks

11 December, 2013

During a recent event organized by the Spanish Bioindustry Association Asebio, Spain's State Secretary for Finance presented details of the tax incentives introduced within the framework of the Entrepreneur Support Act, which is designed to promote

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Russia–Readjusting the taxable base for transfer pricing purposes may impact on the VAT base

10 December, 2013

The Russian Ministry of Finance has made public Letter No. 03-01-18/19214 clarifying the rights of tax authorities to readjust the taxable base in the case of selling goods and performing of works or services between related parties. Article 105.3

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Russia-Applicable fields for applying thin capitalization rules

10 December, 2013

The Ministry of Finance has published Letter No. 03-08-05/23521 regarding the applicability of the thin capitalization rules to interest payments made by a Russian company on a loan granted by a Russian bank issued on June 21, 2013. For example, a

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India: Determines arm’s length price of share transfers

10 December, 2013

The Income-tax Appellate Tribunal has held that the discounted cash flow method was preferable over the “yield” method or “net asset value” method for purposes of determining the arm’s length price of shares transferred to related parties.

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Switzerland: Tax burden remain stable in 2014

10 December, 2013

According to a media report, the Swiss Federal Department of Finance has issued its tax exploitation index for 2014 on 10 December 2013; it disclosed that the average tax burden in Switzerland will remain same in 2014, compared to 2013. On average,

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Canada -Partnership information return for 2013

09 December, 2013

The Canadian Revenue Agency (CRA) has issued revised guidance for partnership information returns (Guide T4068), Guide for the Partnership Information Return (T5013 Forms) for the year 2013.  The Guide T4068 contains changes to the forms, schedules

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Canada – Making Declaration of proposed tax changes in Ontario

09 December, 2013

The Finance Ministry in Ontario has declared proposed measures to increase the tax rate on “non-eligible dividends” of up to 3.9% which was effective from January 1, 2014. Other proposed measures would include: Certain research and development

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Belgium confirms withholding tax rate changes

09 December, 2013

Belgium has decided to reduce the rate of withholding tax levied on small- and medium-sized enterprise (SME) dividends from 25 percent to 15 percent; and it is a confirmation from The Belgian Prime Minister. In order to encourage entrepreneurs to

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Russia- Court rules for establishing thin capitalization to a sister company loan

09 December, 2013

Russia’s Federal Arbitration Court of the North-West region has issued Ruling No. А52-4072/2012 on September 18, 2013 concerning the establishment by a sister company of thin capitalization rules to a loan issued. Russian court practice already

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Japan – Early repeal of special reconstruction corporation tax

09 December, 2013

The Japanese government has announced an economic stimulus package that includes a statement that “special reconstruction corporation tax (i.e., a 10% additional tax imposed on corporation tax liability) would be repealed a year earlier than

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US: District of Columbia Introduces Prepaid Card Option For Tax Refunds

08 December, 2013

The District of Columbia Office of Tax and Revenue (OTR) has announced a new option taxpayers can choose to receive their local income tax refunds. Beginning next year, a prepaid card will be available as an alternative to paper checks and direct

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