India: High Court decision that “royalty” income received under a contract prior to 1 April 1976 is exempt from tax
The High Court (HC) of Mumbai issued its decision on 8 August 2014, in the case of CIT v. Montedison S.p.A. of Italy (ITR 202 of 1993) that "royalty" income arising from contracts for supply of technical know-how prior to 1 April 1976 was exempt
See MoreIndia: Update on GST and management service fees
The Union Cabinet approved the Constitutional Amendment Bill on Goods and Services Tax (GST) on 17 December 2014 and this can be passed to parliament for consideration. The clearance of the Bill by the Cabinet was achieved by a compromise. It was
See MoreFrance: Parliament approves the Finance Bill for 2015
The French Parliament approved the Finance Bill for 2015 and the Second Amended Finance Bill for 2014 On 18 December 2014. The Finance Bill for 2015 provides that for tax audits initiated from 1 January 2015 penalties for inadequate documentation
See MoreSouth Africa: SARS Issues Revised Capital Gains Tax Guide
The South African Revenue Service (SARS) has issued a revised version of its Comprehensive Guide to Capital Gains Tax (CGT). This update includes various changes since the guide was last published in 2011. As before the guide looks at what should be
See MoreItaly: approves fiscal budget for 2015
Italy has approved 2015 fiscal budget with deficit. The budget bill was passed by both houses of parliament when the Chamber of Deputies approved the budget on December 22. Budget implication on Tax & VAT: The Budget includes a cut in the
See MoreBulgaria: Key changes to the tax and social security legislation for 2015
The amendments to the VAT law was released in the State Gazette on 19th December 2014. The National Revenue Agency (NRA) introduced a new electronic services. This is a new opportunity declaring for both corporate and personal taxpayers. It allows
See MoreIndonesia temporarily bans overseas travel by key tax debtors
The Ministry of Finance of Indonesia has banned overseas travel of key tax debtors with total debt amount of IDR3.32 trillion (USD268m) for a temporary period of six months. This step was taken to ensure effective tax administration and compliance.
See MoreUS & Mexico finalize agreement on sugar import investigations
The U.S. Department of Commerce announced on December 19, 2014 that it had finalized agreements with the Government of Mexico and Mexican sugar exporters to suspend antidumping (AD) and countervailing duty (CVD) investigations on imports of sugar.
See MoreJapan: Consumption Tax on nonresident providers of electronic services from 1 October 2015
Japan is moving forward with proposals to subject sales by non-resident providers of electronic services to consumers to the 8% Consumption Tax from 1 October 2015. The change comes as a result of pressure by local providers who are penalized by
See MoreGreece: Released templates and guidelines for APA Negotiations
The Greek Ministry of Finance has recently released template application forms for preliminary consultations and formal negotiations, as well as additional guidelines on the overall APA procedure and changes on corporate income tax. On 6 September
See MoreFinland: Parliament approves Budget Bill For 2015
The Finnish Parliament approved the Budget of around 53.9 billion euros for 2015 on 19 December, 2014. A summary of the Budget is as follows: Total Budget amount is 53.9 billion euros. Deficit of 4.7 billion euros which will be covered by
See MoreEU Parliament approves Budget for 2015
On December 17, 2014, at its plenary session Members of the European Parliament (MEPs) approved the draft EU budget for 2015 and a top-up for the 2014 budget with 443 votes for, 250 against and 43 abstentions in the French city of Strasbourg. The
See MoreLatvia: Parliament adopts the State Budget for 2015
The Latvian Parliament adopted the state budget for 2015 on 17 December, 2014. The state budget for 2015 preserves the existing tax policy and does not envisage an increase in current tax rates. The income gap will be reduced by increasing the
See MoreLithuania Accepts the Amendments to the Law on State Social Insurance
The Lithuanian parliament adopted the amendments to the Law on State Social Insurance on 11 December 2014. If the President approves the amendments, they will enter into force on 1 January 2015. According to the amendments, the taxable base for
See MoreUS: Senate Passes Tax Extenders Bill
The US Senate approved the “Tax Extenders Bill” on 16 December, 2014. The bill, which extends the life of a number of tax breaks through 2014, passed the Senate 76 to 16. Only 60 votes were needed for approval. Dozens of temporary tax breaks,
See MoreUkrainian Cabinet Dissolves DTA With Cyprus
The Cabinet of Ministers of Ukraine approved the draft law on the denunciation of the Cyprus - Ukraine Income Tax Treaty (2012), on December 17, 2014. Prime Minister of Ukraine, Arseniy Yatseniuk said that when the convention was signed in 2012, it
See MoreFrance: Assembly Passes Second Draft Finance Bill For 2014
The draft amending budget for 2014 was passed at first reading by the French assembly on 9 December 2014. The legislation also has been passed by the Senate, and enactment is now expected before the end of 2014. This second draft Finance Amendment
See MoreChina: SAT Regulates the Administration of the GAAR
Recently, the State Administration of Taxation (SAT) issued the Administrative Measures on the General Anti-Avoidance Rule (GAAR) to further regulate and clarify various matters, such as applicable scope, judging criteria, adjustment methods,
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