India: Hyderabad Tribunal rules on transfer pricing aspects of corporate guarantee
The Hyderabad Income Tax Appellate Tribunal (ITAT) has issued a ruling that concerns certain transfer pricing issues from a corporate guarantee issued to a bank by associated enterprises of a borrower. The case is Four Soft Pvt Lrd. The case
See MoreHong Kong – Urged To Retain Prudent Fiscal Policies
The IMF has expressed support for the work of Hong Kong’s Working Group on Long-Term Fiscal Planning, which is looking at the fiscal strategy in the long term. The Group is investigating the question of balancing government revenues and spending
See MoreFrance’s FTT Experience Should Warn Europe of Risks
France’s financial market regulator AMF has calculated that the introduction of a financial transactions tax (FTT) in 2012 led to a ten percent decrease in the volume of shares traded on the stock market. This study was based on an analysis of the
See MoreFrance Confirms EUR10bn Tax Cuts For Corporates
The French Prime Minister has set out plans for reducing wage costs for businesses in addition to the CICE tax credit that has already been introduced. The CICE tax credit has provided relief through a credit of 6 percent of gross payroll for
See MoreEgypt issues VAT reform plans 2014
Egypt has issued plans to replace the existing general sales tax (GST) with a full Value Added Tax. This move has been expected for some time. Egypt’s current GST law is estimated to be hitting the country’s economy by around 1% of GDP as there
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 MoreBulgaria’s Finance Ministry to draft Tax Fraud Prevention Strategy
Bulgaria is to produce a tax fraud prevention strategy. The Finance Ministry is combining its efforts with those of other government control authorities to look at the most effective strategies for combating illegal behavior. The new rules will be
See MoreBrazil- Taxes on Drinks Ahead Of World Cup Increases
To take full benefit from the large number of visitors to the country this year, Brazil is to increase taxes on certain categories of drink such as beer, energy drinks and some fruit juice before the beginning of the soccer World Cup which is to be
See MoreAustrian Unions drive for lower income tax rates
The President of the Austrian Federation of Trade Unions (ÖGB) has suggested that the income tax on low income employees should be significantly reduced. He suggested that the government should decrease the starting rate of income tax from the
See MoreVietnam – VAT export and invoice changes
Some changes have been made to Vietnam’s VAT regime in respect of VAT invoices and the VAT on exports. The aim of the changes is to require adequate documentation to be maintained in respect of the transaction, including proof of export. There
See MoreUS – Tax Extenders Survive Senate Committee Vote
The United States Senate Finance Committee has been examining the various tax reliefs given to different sectors within the economy. The Committee has now passed the bipartisan Expiring Provisions Improvement Reform and Efficiency Act which
See MoreUS: IRS Told To Tackle Pension Plan Contribution Tax Abuse
A report issued by the Treasury Inspector General for Tax Administration (TIGTA) suggests that the IRS is permitting large deductions to be incorrectly claimed each year in relation to retirement plans for the self-employed. These retirement plans
See MoreUS – IRS Reviewing Tax Exemption For Political Donation
The Commissioner of IRS has suggested that advice on the tax relief for social welfare organisations will not be available before next year. Organizations have to be sure that they are operating within the scope of the relief in areas such as
See MorePeru: Published regulation for advance pricing agreement
The tax authority's Resolution 377-2013/SUNAT, published in the Official Gazette on 29 December 2013.Accordance with the Resolution 377/2013, intention to negotiate an APA should be expressed in writing to SUNAT which must reply within 15 days.
See MoreUS – Corporate Tax Rate has been World’s Highest For Two Years
The RATE Coalition (Reforming America’s Taxes Equitably) has drawn attention to the fact that as from April 1, 2014 the US has for two years had the highest corporate tax rate among OECD countries. The group which demands tax reform to increase
See MoreUS – Businesses Seek Retention of LIFO Accounting
The House Ways and Means Committee Chairman has been requested by the LIFO coalition to reject a proposal for the repeal of last-in, first-out (LIFO) accounting from the tax reforms. The LIFO coalition has 126 members and is an advocacy group on
See MoreUS: Budget Committee Chairman Delivers Republican House Budget For 2015
The House of Representatives Budget Committee Chairman has introduced the 2015 budget calling on Congress to reform the tax code to simplify the provisions; lower the individual and corporate tax rates to a 25% top rate; reform many tax reliefs;
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