US : Persons holding PFIC stock through tax-exempt organizations or accounts will be exempt from Form 8621 filing requirements
In the US the definition of a shareholder for the purpose of the Section 1291 regulations has been amended by Notice 2014-28. Under this section a special tax and interest charge is levied on a US person has shares in a passive foreign investment
See MoreUS – More taxpayers e-filing from home computers
An internal report issued by the Treasury Inspector General for Tax Administration (TIGTA) indicates that more US taxpayers are using e-filing to submit their tax returns and that more tax refunds are being issued. By 7 March 2014 more than 90
See MoreUS: Annual study shows heavy tax compliance burdens
According to the US National Taxpayers Union (NTU) the US has lost billions of hours of productivity owing to the burden of compliance with the complex tax code. The NTU has computed the total cost of tax compliance at USD224.3bn a year. This
See MoreOECD official suggests alternatives to arm’s length standard may be needed
As part of the action plan on base erosion and profit shifting consideration is being given to ways to improve the transfer pricing rules. According to an official of the Organization for Economic Cooperation and Development (OECD), the arm’s
See MoreJapan – Corporate income tax rate reduction effective April 2014
Following the enactment of Japan’s 2014 tax reform a decrease of the effective corporate income tax rate is in force from April 2014. The fall in the effective tax rate is a result of the repeal of the special reconstruction surtax. This surtax
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 MoreAustralia: Draft ATO guidance on new transfer pricing rules
New draft tax Rulings and draft Practice Statements outline the Australian Tax Office’s approach to transfer pricing and the standards that are required from taxpayers. Businesses need to urgently consider these publications in order to manage tax
See MoreSaudi Arabia issues new Ministerial Resolution amending tax by-laws
Saudi Arabia issued Ministerial Resolution No 1776 on 19 March 2014 to give effect to changes in some of the implementing regulations of the tax law. The resolution is effective from the date of issue and will apply to all tax cases including those
See MoreSingapore Sees More Taxpayers Filing Earlier
According to the Inland Revenue Authority of Singapore (IRAS) a greater number of taxpayers have filed their tax returns early this year. Statistics issued by the IRAS show that 75 percent of taxpayers managed to submit their returns by April 1,
See MoreJapanese Panel Looks For Gradual Corporate Tax Cuts
There has for some time been concern in Japan that the relatively high effective corporate tax rate is making the country less competitive. There has therefore been pressure for the rate to be lowered to a level more in line with those of other
See MoreChinese Tax Break Compliance for Small Businesses
On April 8, 2014, China’s State Administration of Taxation (SAT) published the details of simplified arrangements for micro and small enterprises that are looking to gain access to additional tax reductions made available by the Ministry of
See MoreOECD – VAT guidelines for cross-border trade approved
The Organization for Economic Co-operation and Development (OECD) has indicated that 86 countries have signed up to the new set of OECD guidelines relating to value added tax (VAT) or goods and services tax (GST) regulations. The guidelines cover
See MoreUS: IRS Assists Taxpayers on Estimated Tax Payments
In the US the IRS has given some assistance to taxpayers who are due to make estimated tax payment. This group of taxpayers includes individuals who are not subject to tax withholding tax source from wages, such as self employed persons, and people
See MoreUS Congress Examines Small Business Tax Problems
The burden of tax compliance is often much greater for small businesses than for larger enterprises. A new National Small Business Association (NSBA) tax survey indicates that a majority of small businesses spend around 40 hours preparing their tax
See MoreIreland – Corporate Tax Rate Effectively Below 11 Percent
A recent technical note issued by the Department of Finance indicates that Ireland has maintained an effective corporate tax rate of about 11 percent since 2003. Enterprises operating in Ireland are liable to corporation tax at 12.5 percent on
See MoreCyprus – Company incorporated, but not tax resident of Cyprus
Circular 2014/3 of March 2014 gives guidance in respect of the tax return requirements in the situation where a company is incorporated in Cyprus but is not tax resident in the country. According to the Circular companies in this position must be
See MoreChile proposes tax reform
Chile is embarking on a tax reform that will affect both direct and indirect taxes. A Bill is under discussion in the National Congress and this covers important changes to the existing tax laws. The Bill aims to raise the corporate tax rate from
See MoreUkraine Increases Tax and Slashes Spending
Ukraine has approved tax reforms that will allow the country to access increased financial aid from the IMF. Ukraine requires the IMF funding to ensure the stability of its finances. For this reason some planned tax cuts will not be implemented and
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