China: Announces the extensionof employment-boosting tax breaks
The Ministry of Finance and the State Administration of Taxation (SAT) has jointly issued an announcement that tax breaks to increase employment are to be extended until 31 December 2016. The tax relief applies to companies that increase employment
See MoreEstonia: Announces the corporate income tax rate
The government has announced its intention to reduce the corporate tax rate to 20% in
See MoreRomania’s Government approves tax exemption on reinvested profit
Under an emergency ordinance an exemption from tax on reinvested profits is to be put in place in July 2014 and remain until December 2015. The measure aims to increase the amount of company profits that are ploughed back into the business in the
See MoreMexico Provides Oil Tax Reform Framework
A bill recently introduced by the government contains more detail of the new tax regime in respect of oil companies. This aims to encourage further exploration with the aim of increasing oil production in the future. The state oil and gas company
See MoreItaly – Reduced rates of IRAP regional tax
Decreto-Legge n 66/2014 which was published on 24 April 2014 reduces the rates of the regional tax on productive activities (IRAP). This amendment is awaiting ratification from parliament within 60 days but could be subject to further alterations
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 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 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 MoreJapan: 2014 tax changes
Some changes to Japan’s tax law announced on 1 October 2013 were passed on 20 March 2014. The “attributed income principle” in respect of the profits of permanent establishment, as set out in the authorized OECD approach, will be adopted. The
See MoreItaly: Italian 2012 Tax Returns Suggest Compliance Gap
Italian statistics in respect of tax returns suggest that Italians on average declared income of around EUR19,750 (USD27,200) in the 2012 fiscal year. Although the government has been encouraging more tax compliance, the number of taxpayers sending
See MoreIreland: IBEC calls for Tax Cuts to Support recovery
Ireland’s business and employers’ confederation IBEC has requested a reduction in the marginal individual income tax rate to bring it below 50 percent and has suggested that the income level at which the top rate of tax begins should also be
See MoreHong Kong considers how to maintain Low-Tax Regime
According to a recently published report by the Working Group on Long-Term Fiscal Planning the government will need to find additional tax revenue at some point in the future to close a gap in the finances. The government has emphasized that fiscal
See MoreFrance – President offers Token Tax Cut for Households
The French is to announce some tax cuts for families in France, according to reports, but the amount of the tax cuts has not been decided and may depend on further reductions in government expenditure. The President also plans to lower labor costs
See MoreFinland decides against VAT increase as taxes rise
On 25 March 2014 Finland is to put through some tax rises and benefits cuts in an attempt to lower the budget deficit. Other Scandinavian countries have VAT rates as high as 25%, and Finland has for some time been considering an increase in VAT.
See MoreGermany: Finance Minister Indicates Tax Cuts Will Come
The German Finance Minister has suggested that tax cuts could be made in the next few years. Various commentators have pointed out that the personal income tax thresholds have not increased in line with inflation, leading to the phenomenon of
See MoreUkraine Seeks Tax from Bank Depositors
The Ukrainian Ministry of Finance has announced that it is to introduce a tax on interest received from bank deposits above UAH 100,000. This tax is expected to apply to only 1.5 percent of bank deposits in Ukraine but these deposits account for
See MorePortugal: Personal Income Tax System Reform
Portugal has appointed an expert committee to consider improvements to the personal tax system. Simplification of the individual income tax could improve social mobility and encourage tax compliance, according to the government. The tax system needs
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