Bulgaria’s Finance Ministry to draft Tax Fraud Prevention Strategy
Bulgaria is to produce a tax fraud prevention strategy. The Finance Ministry is combining its efforts with those of other government control authorities to look at the most effective strategies for combating illegal behavior. The new rules will be
See MoreAustrian Unions drive for lower income tax rates
The President of the Austrian Federation of Trade Unions (ÖGB) has suggested that the income tax on low income employees should be significantly reduced. He suggested that the government should decrease the starting rate of income tax from the
See MoreSpanish Supreme Court confirms the minimum participation withholding rate for application of Spain-Netherlands tax treaty
The Spanish Supreme Court issued a decision on 6 March in relation to application of the double tax agreement between Spain and the Netherlands signed on 16 June 1971. The Court confirmed that the 5% reduced rate for withholding tax under the DTA
See MoreLuxembourg Confirms 2015 VAT rise
The Luxembourg government is to raise the rate of VAT 15% to 17% on 1 January 2015. The lower VAT rates charged on certain categories of expenditure will also rise from 12% and 6% to 14% and 8%, respectively. The third reduced VAT rate of 3%
See MoreLuxembourg – Capital Flight Expected
Luxembourg’s intention to begin automatic exchange of information from January 1, 2015, is considered likely to have a significant impact on the financial sector. The national statistics agency Statec considers that a proportion of around five
See MoreLithuania – VAT and excise tax updates
Lithuania is supplying additional explanatory notes on the VAT law so as to given guidance to taxpayers involved in mixed activities and to give practical case details on derivatives. If taxpayers refer to notes provided by the tax authorities this
See MoreItaly receives further Financial Transaction Reports
As part of efforts by the Italian Revenue Agency to increase the scrutiny of tax compliance reports by banks and other financial institutions containing statistics of transactions for 2012 were due to be submitted by March 31, 2014. The scrutiny of
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 MoreIreland Launches Tax Relief Review
As part of a review of tax relief the Irish Government has launched public consultations on certain tax relief. The reviews of these tax breaks are to be completed by May 2014 and the findings of the reviews will be taken into consideration by the
See MoreGermany and China sign a DTA and Protocol
Germany and China signed a new double tax agreement (DTA) and Protocol on March 28 2014. The agreement generally follows the provisions of the OECD Model but the definition of a permanent establishment includes the provision of services in the other
See MoreGerman Government under renewed pressure to raise personal income tax bands
Germany is being urged to increase the personal income tax bands to keep pace with inflation following estimates that a sizeable amount of tax will be collected as a result of the effects of inflation rather than real increases in individual income.
See MoreFrance- President Promises to Push Through Tax Cuts
The French President has pledge to put the economy on firmer ground by reducing taxes for households and businesses, with the aim of increasing the consumers’ net income and purchasing power. The President has promised to reduce labor costs for
See MoreEU – VAT guidance for e-services rule changes effective in 2015
The European Commission has issued guidance to help businesses cope with for the new value added tax (VAT) rules for in respect of e-services including telecom, broadcasting, and electronic services. The changes to the place of supply rules are to
See MoreEU Probes French Energy Tax Breaks
The European Commission is looking at the French tax decreases granted to the large energy consumers and consulting other interested parties on the matter. The tax reductions have been granted to reduce the amount of the renewable energy surcharges
See MoreCyprus – Due date for 2012 corporate return extended
According to a recent announcement of the Inland Revenue Department in Cyprus the deadline for electronic filing of corporate tax returns for 2012 has been extended and is not fixed at 30 June
See MoreChina and EU Agree To Work towards FTA
In a meeting between EU leaders and China’s President both sides agreed that they are committed to transparent trade and investment rules. They investigated ways to enhance trade and investment to benefit their economies. When the appropriate
See MoreBelgium: Protocol to tax treaty with Canada
A Protocol amending the double taxation agreement (DTA) between Belgium and Canada has been signed. The Protocol incorporates into the DTA updated provisions in respect of the exchange of tax information. The exchange of information between tax
See MoreUS – Luxembourg and US Sign FATCA Deal
An agreement has been concluded between Luxembourg and the US to ensure that institutions may carry out the provisions of the Foreign Account Tax Compliance Act (FATCA). The two countries reached the agreement on the basis of one of the model
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