Latvia: IMF Backs Retention of Flat Tax Rate
According to a statement by the International Monetary Fund (IMF) Latvia should not change the flat rate of personal income tax. As in previous years the IMF has recommended that Latvia should adjust the tax thresholds rather than change the rate.
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 MoreSwitzerland – Committee rejects IHT and VAT changes
A Swiss government committed has rejected an inheritance tax proposal from the Socialist Party and has also rejected a suggestion to introduce a consumption tax on energy in place of the VAT. The inheritance tax suggested by the Socialists would
See MoreIreland – Taxation of Termination Payments Challenged
European Commission has requested Ireland to change its legislation on termination payments paid to individuals when their employment contracts end, as the Commission is of the opinion that the Irish rules are a restriction on the free movement of
See MoreSpain’s Prime Minister Considers Cultural VAT Cut
The Prime Minister of Spain has suggested that the standard rate of value added tax (VAT) applied to goods and services could be reduced as part of a general tax reform. The Spanish government has recently raised the VAT rate on the cultural sector
See MoreFrance – Employers demand Corporate Tax Cuts
Anxious to kick-start talks on a reform of corporation tax, the President of the French employers' federation Medef, has called on the Government to lower the corporate social solidarity contribution (C3S) together with the headline rate of
See MoreUS: IRS has released its annual report for 2013 on APAs
The annual report on the advance pricing and mutual agreement (APMA) program was issued by the IRS on 27 March 2014. The APMA program takes place as part of the work of the Large Business and International Division of the IRS. The report shows that
See MoreRussia: Condition related to Financial Services
According to the transfer pricing rules, interest that is not disallowed may be subject to the thin capitalization provisions. Certain specialized provisions may apply where one of the parties to a transaction is a
See MoreCanada expand Commercial Ties with China
The Canadian Minister of State (Foreign Affairs and Consular) has recently concluded a four-day visit to Hong Kong, Guangzhou and Beijing, China, where she met with government and business leaders. The visit aimed to help position Canada as a
See MoreAsia Pacific – ASEAN single market in 2015 and tax incentives
Beginning in 2015, the 10 member countries of ASEAN intend to form a common market—the ASEAN Economic Community (AEC)—based on the free flow of goods, services, investment, and skilled labor and the free flow of capital. The member states of
See MoreOECD – Revised timeline for BEPS discussion drafts and public consultations
The Organization for Economic Cooperation and Development (OECD) has released a revised timeline for action relating to base erosion and profit shifting (BEPS) discussion drafts and public consultations. The first outputs under the BEPS project are
See MoreIndonesia Considers Tax Breaks for Corporate Bond Investors
Indonesia is considering help for investors in corporate bonds and is also planning to make it easier for local companies to sell shares to the public. Indonesia plans to set up tax incentives for investors in corporate bonds and also plans to
See MoreEU: European Commission presents Working Paper on Thin Capitalization Rules
The European Commission has recently published working paper N.42, entitled "Thin Capitalization Rules and Multinational Firm Capital Structure" This paper examines the impact of thin capitalization rules (that limit the tax deductibility of
See MoreRussia- Financial Services
Under Federal Law 39-FZ and 420-FZ, from 1 January 2015 interest on related party loans should be charged at market rates and documentation should be maintained to demonstrate
See MoreColombia: Thin capitalization provisions
The Colombian government issued Decree No. 3027 on 27 December 2013 to clarify thin capitalization rules under Art. 118-1 of the Colombian Tax Code; the Decree applies from 1 January 2014. Under the thin-capitalization regime, interest generated on
See MoreFrance-Canada DTA protocol approved
In accordance with initial media reports, France's lower house of parliament approved the protocol to the Double Tax Agreement signed with Canada on December 23,
See MoreNew Zealand: Legislation Brings Clarity to Tax Rules
The Government of New Zealand has been published an omnibus tax bill intended to bring significant clarity to the tax rules and make them easier for taxpayers to understand. The changes will restrict how much debt foreign investors are able to place
See MoreUSA – IRS Announces Pension Plan Limitations for 2014
On October 31, 2013, the Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2014. Some pension limitations such as those governing 401(k)
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