Czech Republic: Corporate tax liability is affected by regional aid rules
An essential fact that may impact indirectly the tax liability of Czech companies is the end of the seven-year (2007-2013) period for taking regional aid via EU programs and the starting of a new one, which will be related to new rules in this area
See MoreTax treaty between India and United Kingdom – Indian decision on taxability of fees for technical services
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
See MoreFrance – “Abridged” transfer pricing documentation to be filed annually
On 12 December 2013 it was reported that recently enacted transfer pricing legislation includes a new requirement for large taxpayers to file annually an “abridged” version of their transfer pricing documentation. The requirement to file the
See MoreCroatia Proposed to change VAT Rates
The Croatian Government has drawn a draft bill that was reported on 12 December 2013, which proposed multiple modifications to the Croatian Value Added Tax Act to substantially change provisions regarding the nation’s concessionary VAT rates. The
See MoreColombia: CREE Fair Tax Decree Issued
“Fair tax” is introduced by the Decree 2701 of 2013. “Fair Tax” is a tax which is payable by resident companies and non-resident companies deriving their income through a permanent establishment in Colombia. The decree was issued by the
See MoreSweden: Social security contributions for employees in R&D has been reduced
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
See MoreVietnam: VAT regime is to be increased
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. •
See MoreIndia: Determines guarantee rates on loans are arm’s length
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
See MoreLuxembourg: PM presented details of future Tax Reform
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
See MoreJapan – Tax reform proposals for 2014
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
See MoreHungary: Summary of changes to the tax law provisions
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
See MoreCanada: Legislation sanctioning Manitoba’s 2013 budget
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
See MoreBulgaria- Amendments in VAT Act 2014
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
See MoreTrade Policy Review of Peru by WTO
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
See MoreVietnam – published an official letters on Investment projects and severance allowances
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
See MoreUS: IRS Under Further Pressure Over Erroneous Tax Refunds
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
See MoreUS Report Examines Distribution of Tax and Spending Policies
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
See MoreUK: Shares issued under interest free loan agreement are taxable income
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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