Italy: Government reduces IRAP rate and enacts other tax measures
Law Decree no. 66 published in the Official Gazette on 24 April 2014 confirms certain tax changes that were previously announced on 12 March 2014. The measures include a reduction of the regional tax on productive activities (IRAP) from a standard
See MoreUS: ATR finds that Obama has proposed 442 tax hikes
The organization known as Americans for Tax Reform (ATR) has calculated that since 2009 President Obama has proposed 442 tax increases. This figure results from a survey of the budgets for the fiscal years 2010 to 2015. In addition to these tax
See MoreUS – IRS issues 2014 foreign housing tax deduction limits
In the US the Internal Revenue Service (IRS) has issued Notice 2014-29. The Notice sets out the inflation-adjusted limitations in respect of foreign housing expenses for tax year 2014. The figures included in the Notice show that Hong Kong, Moscow,
See MoreUS: Budget proposals for 2015 have implications on inbound investors
In March 2014, the Obama Administration (the Administration) released its fiscal year 2015 Budget proposals (the Budget). In addition to the transfer pricing rules the earnings stripping rules also apply to transactions with foreign related parties
See MoreSpain Introduces New Tax Measures
Tax reforms published in Spain include a number of changes intended to boost employment and growth. The changes announced on 25 February 2014 include an increase in family allowances and the allowances for older people; an exemption from income tax
See MorePakistan Needs to Chase Non-Taxpayers
Currently Pakistan has one of the world’s lowest ratios of tax to gross domestic product (GDP). The ratio in Pakistan is 9 percent compared to India’s tax to GDP ratio of 16 percent, Indonesia’s ratio of 14 percent, and Malaysia’s 15 percent
See MoreUS: IRS Gives Bonuses to Tax-Delinquent Employees
In the US the Treasury Inspector General for Tax Administration (TIGTA) provides independent oversight of the activities of the Internal Revenue Service (IRS). TIGTA aims to ensure economy and efficiency of administration within the IRS and is
See MoreEgyptian Government to widen the income tax base and introduce VAT
Egypt’s Finance Minister has announced that the interim Government is in the process of drawing up amendments to the tax law aimed at widening the tax base and to dealing with the problem of tax evasion and avoidance. Egypt intends to broaden the
See MoreAustria Focuses on Income Tax Reform
The Austrian Government intends to go ahead with proposals to simplify the income tax system by the second half of 2014, the Finance Minister has announced. He commented that payroll taxes in Austria are too complex and place a compliance burden on
See MoreUS: IRS Should Improve Efficiency to Counteract Reduced Funding
The United States Government Accountability Office (GAO) is an independent agency that reports to the Congress and is often referred to as the congressional watchdog. The organization is headed up by the Comptroller General of the United States and
See MoreLuxembourg – Real Estate CGT Deferral Abolished
Luxembourg has issued draft legislation to scrap the regime permitting the deferral of the taxation of real estate capital gains provided that these are reinvested in another property within Luxembourg. The draft legislation takes account of the
See MoreItaly: New Risk-based System of Tax Enforcement
The Italian Revenue Agency is attaching great importance to its examination of taxpayers in certain areas under a newly devised risk-based system. The risk-based approach is designed to take into account the area of the country where the taxpayer
See MoreItaly Confirms Tax Cuts
The Italian Government has issued a three-year Economic and Financial Document (DEF), which includes both individual and corporate income tax reductions. The individual income tax reductions will benefit lower income taxpayers. With effect from 1
See MoreIreland – Online Portal to Administer Home Tax Break
Ireland’s revenue agency is using an online portal to manage a new property improvement tax relief called the Home Renovation Incentive (HRI). This provision is intended to give value-added tax (VAT) relief, but the HRI is to be managed through an
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 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 More