New Zealand: Government drafting amendments to transfer pricing rule
On 14th February 2018 government announced that it will recommend a change to transfer pricing provisions in a bill designed to lessen tax avoidance by multinationals. This bill concerns the new rule to limit the rate of deductible interest on
See MoreCzech Republic: Proposed amendments to income tax for 2019
Recently, Finance Ministry has published the first draft copy of the amendment to the Income Tax Act for comments. These amendments are supposed to be started from year 2019. The proposed personal income tax rate of 19% is 1.1% less than the present
See MoreSweden: Special rules apply to the taxation of certain shares and interests
Recently, the Swedish Tax Agency published a Guidance (No. 202 466593-17/111) provides that dividends and capital gains on unlisted shares in a foreign legal person are taxed at a reduced rate only if the taxpayer is a tax resident. Special rules
See MoreCanada: British Columbia issues draft budget 2018-19
The Finance Minister of British Columbia, Carole James, presented the province’s fiscal budget 2018-2019 on February 20, 2018. The summary of this budget is given below: A new child care program that makes care effectively free for some
See MoreCanada: CRA announces prescribed interest rates for 2018
The Canada Revenue Agency (CRA) has announced the recommended annual interest rates for the first quarter (Q1) on December 15, 2017. It will apply to any amounts owed to the CRA and to any amounts owed by the CRA to individuals and corporations. The
See MoreItaly: Detail Explanation of the New Regulation on Patent Box Regime
On the 6 February, 2018 the Italian Ministry of Economic Development and Ministry of Economy and Finance published its Official Gazette on the new patent box regime. The regulation explains the criteria for qualified tax payers, qualified IP,
See MoreEcuador publishes coefficients for presumptive assessment
On 26 January 2018, the Internal Revenue Service (SRI) of Ecuador has published a Resolution No. NAC-DGERCGC18-00000018 to commence the coefficients for presumptive tax assessments for the tax year 2017. The coefficients for 2017, which vary by
See MoreIreland updates rates of Corporation Tax
On 12 February 2018, the Revenue department of Ireland has published an eBrief No. 019/18, amendment to Revenue Tax and Duty Manual Part 02-02-02 - The charge to and rates of Corporation Tax - has been amended as follows: To provide guidance
See MoreAustralia: ATO releases draft PCG on diverted profits tax
On 7 February 2018, the Australian Taxation Office (ATO) publicly released a draft practical compliance guide PCG 2018/D2 concerning Diverted Profits Tax (DPT). The draft PCG has been released for public consultation and submissions close on
See MoreIndia: CBDT Issues FAQs on the Introduction of a 10% Tax on LTCG
On 4 February 2018, the Central Board of Direct Taxes (CBDT) has published Frequently Asked Questions (FAQs) on the introduction of a 10% tax on long-term capital gains (LTCG). The CBDT has issued a detailed FAQ and it addressed numerous questions
See MoreSwitzerland: Federal Council set the parameters for the dispatch on tax proposal 17
The Swiss Federal Council announced that it has set the parameters for the dispatch on the country's tax reform proposal (tax proposal 17) on 31st January 2018. The Federal Council's parameters that will be contained in the dispatch on tax proposal
See MoreSouth Africa: SARS issues draft guide on understatement penalties for public comment
On the 22 January 2018, the South African Revenue Service (SARS) released a draft guide on understatement penalties for public comment by 12 February 2018. The aim of the guide is to provide taxpayers with an understanding of understatement
See MoreDenmark increases research and development deduction from 2019
The Danish Government announced on 2 February 2018 that corporate income tax deductions for research and development (R & D) expenses will increase from 100 to 101.5% in 2019. It is expected that the deduction of R & D spending in 2026 will
See MoreJapan: Cabinet approves tax reform plans for 2018
Japan's Cabinet has approved a tax reform plan for the next fiscal year and includes a move to cut the corporate tax rate to 25% for companies that raise their employees' wages by 3%. For companies investing in improving their productivity or
See MoreNigeria: House of Representatives passes Petroleum Industry Governance Bill
The House of Representatives of Nigeria has passed the Petroleum Industry Governance Bill (PIGB) 2017 on January 17, 2018. The PIGB now awaits harmonization by the two Legislative Houses and the assent of the President before it is signed into law.
See MoreIndia: Union Budget introduces the digital permanent establishment rule
On 1 February 2018, the Finance Minister has released India’s 2018-19 budget and finance bill. The budget proposes to update the definition of a permanent establishment (PE) to tax non-resident digital firms operating in India. According to the
See MoreIndia: Budget introduces the digital permanent establishment rule
On 1 February 2018, the Finance Minister has released India’s 2018-19 budget and finance bill. The 2018 budget proposed to amend the definition of a permanent establishment for the taxation of non-resident digital companies operating in India.
See MoreWorld Tax Brief: January 2018
Belgium Corporate income tax rate: On 29 December 2017, the Belgian corporate tax reform law was published in the official gazette. Under this reform, as from 1 January 2020, the corporate income tax rate will be reduced to 25% from 29.58%.
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