Sweden: Social security contributions for employees in R&D has been reduced

12 December, 2013

A Legislation passed by the Swedish Riksdag which will enable companies with personnel working with research or development (R&D) to reduce their employer social security costs. A potential savings in employer social security costs of

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Vietnam:  VAT regime is to be increased

12 December, 2013

The penalties for infringement of the Vietnamese VAT regime are to be increased.  The new charges were published in Decree 129 which is summarized below: The changes include: • The new maximum fine for VAT reporting infringements is VND 200m. •

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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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Luxembourg: PM presented details of future Tax Reform

12 December, 2013

Xavier Bettel, the new Prime Minister of Luxembourg has presented a Government Declaration outlining details of plans to reform taxation in the Grand Duchy to the country’s Chamber of Deputies. The Government wants to set up a consultative tax

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Japan – Tax reform proposals for 2014

12 December, 2013

Recently, Governments of Japan agreed on “outline” of tax reform proposals for 2014. On 12 December 2013 among the tax measures in the tax reform plan affecting corporations are provisions that would: • Decrease the current corporate tax rate

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Hungary: Summary of changes to the tax law provisions

12 December, 2013

Hungary’s changes to the tax law are likely to become effective from 2014. The changes would comprise of the following corporate tax provisions: Favorable participation exemption rules in case of 10% acquisitions of share have been

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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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Bulgaria- Amendments in VAT Act 2014

11 December, 2013

Amended Bulgarian VAT act have been published by Bulgarian tax office which are in effect since January 1, 2014. The changes are- the reporting point is to be treated as the end of the month for recurring monthly intra-community supplies, free

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Trade Policy Review of Peru by WTO

11 December, 2013

The WTO has given a report on 15 November which showed that that Peru has decreased its trade tariffs from an average of 8 % to 3.2% in 2013. The rate is the lowest rate in Latin America. According to the report Peru has cut the maximum applied

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 Vietnam – published an official letters on Investment projects and severance allowances

11 December, 2013

The Vietnam tax authority’s published an official letters on 15 November 2013 on condition that: Business establishments are not allowed to corporate income tax incentives for an investment project if implementation of the investment project is

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US: IRS Under Further Pressure Over Erroneous Tax Refunds

11 December, 2013

Having recently noted that the United States Internal Revenue Service's (IRS) processes can be ineffective in identifying tax returns claiming improper tax credits and fraudulent tax refunds, a further report from the Treasury Inspector General for

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US Report Examines Distribution of Tax and Spending Policies

11 December, 2013

A Tax Foundation (TF) paper on the distribution of government tax and spending policies in the United States has noted that they combine to redistribute more than USD2 trillion from the top 40 percent of families to the bottom 60 percent by

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UK: Shares issued under interest free loan agreement are taxable income

11 December, 2013

On 15 November 2013, it was reported that the United Kingdom First Tier Tribunal found that the receipt of shares from a borrower in an interest free loan agreement between United Kingdom companies was taxable income. The case in which this decision

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Uganda: Tax reforms recommended by International Monetary Fund

11 December, 2013

Uganda requires applying the tax reforms to lift its revenue collection and it was recommended by The International Monetary Fund (IMF). According to the IMF Uganda’s tax revenue collection is lower than other countries in the region and Ugandan

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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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Spain Plans to Cut Taxes in 2015

11 December, 2013

Spain is planning to cut income taxes in 2015 considering significant changes to its corporate taxes as the economy gradually recovers. A gradually improving economy and an expected fall in unemployment allow the government to bring income tax rates

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