BelgiumFiling return: On 12 November 2020, the Belgian Minister of Finance announced a further extension of the filing corporate income tax returns to 30 November 2020 for the Assessment Year 2020.
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BulgariaFiling return: On 26 November 2020, the Parliament passed the 2021 Budget Act, which will enter into force on 1 January 2021. Accordingly, the annual corporate income tax return deadline is permanently changed from 31 March to 30 June of the following year.
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CroatiaReduced rates: On 12 November 2020, the Croatian Parliament submitted tax reform laws to parliament. Accordingly, from 1 January 2021, the corporate tax rate of 10% (currently 12%) will apply to SMEs with an annual turnover of less than HRK 7.5 million.
Withholding tax rates-Dividend: The reform bills also contain a reduction in the dividend withholding tax rate from 12% to 10%.
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DenmarkIncentive for industry and manufacturing: On 12 November 2020, the Ministry of Trade and Industry extended the fixed costs compensation scheme to support the companies affected during corona virus pandemic. The compensation is allowed as a contribution to cover fixed costs for companies registered in the Central Business Register (CVR), if the companies are affected by COVID-19-related restrictions.
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Dominican RepublicLiability to tax: On 8 October 2020, the Dominican Tax Authority published General Rule 05-20, which provides implementation of tax amnesty and facility on tax compliances. According to the tax amnesty measures, taxpayers will be allowed to pay an amount equal to 3.5% of the average net operating income declared during the years 2017, 2018, 2019 to settle their tax liabilities.
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HungaryIncentive for small business: On 17 November 2020, the Parliament approved a bill introducing changes to corporate tax. Accordingly, the tax rate for small businesses will be reduced from 12% to 11% from 2021. In addition, a wider range of businesses can choose this type of tax. The income threshold as a condition for eligibility will be raised from HUF 1 billion to HUF 3 billion.
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IndonesiaIncentive for industry and manufacturing: On 9 October 2020, the Indonesian Ministry of Finance published Regulation No. 153 / PMK.010 / 2020 on the super deduction for R&D activities carried out in Indonesia. This regulation specifies the application of the 300% deduction, including the fact that a 100% deduction is made for R&D costs incurred that year and an additional deduction of up to 200% can be made over a certain period of time.
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IrelandIncentive for industry and manufacturing: On 11 November 2020, the Tax Revenue published a Guidance which includes a new paragraph 2.1 in relation to 2020 refunds. Due to COVID-19 pandemic, the Revenue announced the extension of the quick cash refund of R&D tax credits that are due to be paid to companies in 2020.
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IsraelComputation of taxable income: On 9 November 2020, the Finance Committee of the parliament approved regulations regarding depreciation relief in response to the Covid-19 pandemic. The regulations include the straight-line depreciation rates for assets that purchased from 1 September 2020 and 30 June 2021 may be doubled.
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LithuaniaLate payments of interest: On 7 November 2020, the Lithuanian government announces tax relief measures concerning second wave of COVID-19. Accordingly, no late payment interest will be charged on tax liabilities for the period from 16 March 2020 to 31 December 2020 for taxpayers listed in the “List of Taxpayers” who are directly affected by COVID-19-related measures.
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MalaysiaIndustry and manufacturing: On 6 November 2020, the Minister of Finance presented the annual budget for 2021. The following tax measures have been proposed under the budget 2021. A new tax incentive scheme is proposed for companies to benefit from 10% income tax rate for a period of 5 years and renewable for an additional five years.
Incentive for services: Relocation incentives for selected services sector including an income tax rate of 0% for new companies and 10% for existing companies with a new services sector. The scope of tax incentives be expanded to companies in selected service sectors, including companies adapting Industrial Revolution and digitalization technology for certain investments.
Incentive for others: To encourage manufacturers of pharmaceutical products, including vaccines (especially a COVID-19 vaccine), to invest in Malaysia, the Budget 2021 proposes a tax rate of 0% up to 10% for the first 10 years, and a tax rate of 10% for the subsequent period of 10 years.
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Malta Incentive for industry and manufacturing: On 17 November 2020, the Maltese Parliament has issued Research & Development Regulations 2020. Accordingly, the Corporation may provide additional assistance of up to 25% of eligible costs if the undertaking carries out an industrial research project if certain conditions are fulfilled.
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E-filing: On 16 November 2020, Malta’s Commissioner for Revenue has notified that the electronic filing deadline for year of assessment 2020 tax returns is being further extended to 16 December 2020.
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Papua New GuineaTreatment of losses-carry forward: On 17 November 2020, the government of Papua New Guinea has presented Budget for 2021. Under the budget, the tax loss carry forward period will be reduced to 7 years for all taxpayers and applies from 1 January 2019.
Payment procedure: In the 2020 Budget provisional tax payment dates were amended to change the dates to 90 days, 180 days and 270 days from the year end so that the due dates do not clash with the deadline for resource companies to provided estimates of taxable income, which is 31 March.
Withholding taxes due: The Budget amends the withholding tax collection mechanism for the prescribed royalty’s withholding tax.
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Russia Incentive for small business: On 12 November 2020, in response to Covid-19 pandemic the Government of Russia has declared the issuance of Decree No. 1791, which extends certain tax relief measures related to SME sector.
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SingaporeSubmission of returns: On 5 November 2020, the Inland Revenue Authority of Singapore has launched a new, simplified Corporate Income Tax Return which allows smaller companies to save time and file their taxes easily.
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South KoreaTaxation of capital gains: On 3 November 2020, South Korea has decided to postpone the enforcement to lower the standard for large shareholders subject to stock capital gains tax to KRW 300 million.
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Sri LankaIncentive for industry and manufacturing: On 17 November 2020, the Finance Minister of Sri Lanka presented Budget for 2021.  The proposal provides a 50% tax concession for the years 2021/2022 for local companies that list on the Colombo Stock Exchange before 31 December 2021. The budget also provides a tax holiday of 7 years for all renewable energy projects and also reduces tax on dividends of multi-national companies by 25% in 2021.
Main corporate tax rates: The budget proposed following corporate tax rate with effect from 1 January 2020: 14% for Exports, Tourism, Education, Medicare, Construction, and Agro processing; 18% for manufacturing; 24% for trading, banking, finance, etc and 40% for liquor, tobacco, betting and gaming companies.
E filing: An online system will be mandatory for all companies to file their taxes only through an “E-Filing” system with effect from 1 April 2021.
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Tax payment procedures: On 9 November 2020, Inland Revenue Department of Sri Lanka declared the second installment payment of income tax for the assessment year (AY) 2020/2021, which is due on 15 November 2020.
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Mitigation of penalties: On 3 November 2020, in response to the Covid-19 pandemic Inland Revenue Department of Sri Lanka has published a notice declaring penalty relief for late return submission for the assessment year 2019/2020.
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TurkeyReduced rates: On 11 November 2020, the Turkish Parliament approved Law No. 7256 on Restructuring Public Receivables and Amending Certain Laws. The Law reduces the corporate income tax rate to 20% from 22% for 5 years.
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