| Algeria | Taxation of capital gains: On 31 December 2020, the President signed the Finance Act for the year 2021. The Act introduced a 15% capital gains tax on the real estate and securities transactions and describes calculations and liability for payments. E-filing: Under the Act, new electronic filing obligations are introduced, including a new requirement to submit an annual summary statement containing information to be extracted from tax return by 20 May of each year. See the story in Regfollower |
| Bulgaria | Filing return: On 8 December 2020, the Government Officially published a Law, which provides tax measures included as part of the 2021 Budget. The Law introduced a new deadline for filing annual corporate income tax returns up to 30 June of the following year. Advance payments due: This Law changes the due date for advance corporate tax installments from 15 December to 1 December, for both monthly and quarterly installment taxpayers and it will apply from 2021. See the story in Regfollower |
| Czech Republic | Incentive for small business: On 18 January 2021, the cabinet approved the Government’s request to extend the state of emergency for another 30 days. Accordingly, small and medium-sized enterprises can take out a government-guaranteed loan to cover the statutory insolvency insurance. The support is granted for a single insurance period starting between 1 October 2020 and 31 December 2021. See the story in Regfollower |
| Denmark | Incentive for industry/manufacturing: In late December 2020, Parliament released legislation to temporarily increase the research and development (R&D) deduction to 130% if certain conditions are met. See the story in Regfollower |
| Ecuador | Payment procedure: On 22 December 2020, the Government Officially published a Resolution to describe the rules for income tax payments voluntarily instead of mandatory advance income tax payments. The Tax reform law 2020 repealed this mandatory advance tax payment. According to the new Resolution, companies, branches, and permanent establishments may make a voluntary advance income tax payment equal to 50% of the income tax liability in the previous year. See the story in Regfollower |
| Ghana | Appeal: Ghana’s Parliament has passed the Revenue Administration Act, 2020 as an amendment to the tax procedures and administration rules. The Act establishes an Independent Tax Appeals Board. See the story in Regfollower |
| Greece | Filing return: On 26 January 2021, the Parliament considered a Bill to extend the filing deadlines for the 2019 income tax returns of foreign tax residents up to 30 June 2021 instead of 26 February 2021 due to COVID-19 pandemic. See the story in Regfollower |
| Hong Kong | Incentive on service: On 15 January 2021, the Hong Kong’s Government gazette subsidiary legislation to implement the new profits tax concessions for insurance-related businesses on March 19, 2021. Enacted in July 2020, the Inland Revenue Ordinance 2020 reduces the profits tax rate by 50 per cent (i.e. 8.25 per cent) for all general reinsurance business of direct insurers, selected general insurance business of direct insurers and selected insurance brokerage business. See the story in Regfollower |
| India | Filing return: On 30 December 2020, the government has extended various tax compliance deadlines, including income tax returns and audit reports for FY 2019-20 (AY 2020-21) as a result of the challenges faced by taxpayers due to the COVID-19 outbreak. The due date for furnishing of Income Tax Returns for the Assessment Year 2020-21 has been further extended to 15 February, 2021. See the story in Regfollower |
| Indonesia | Incentive on industry and manufacturing: On December 30, 2020, the Indonesian Ministry of Finance issued an ordinance that offers tax incentives for companies in special economic zones. Accordingly, a 100% reduction in corporate income tax can be granted to companies investing at least IDR 100 billion if certain conditions are met. See the story in Regfollower |
| Ireland | CFC: On 19 December 2020, the President signed the Finance Bill 2020 into Law. The Act provides amendment in the CFC rules by inserting new sections to provide that the potential exclusions from the rules will not apply for CFC resident in jurisdictions included in the EU list of non-cooperative jurisdictions. See the story in Regfollower |
| Kenya | Main corporate tax rate: On 23 December 2020, the President of Kenya signed the Tax Law Amendment Act (No. 2) of 2020 which amends the Income Tax Act. The critical changes include the reintroduction of corporation tax to 30% from 25%. See the story in Regfollower |
| Luxembourg | Filing return: On 21 December 2020, Luxembourg’s Ministry of Finance has issued a press release regarding the extension of filing deadlines for tax returns due to the ongoing COVID-19 pandemic. The deadline for filing corporate income tax returns for the year 2020 is set at the end of June 2021 instead of 31 March 2021. See the story in Regfollower |
| Pakistan | Appeal: On 2 January 2021, the Federal Board of Revenue of Pakistan has published a notice regarding the launch of the e-Filing of Appeals with effect from 1 January 2021. Commissioner Inland Revenue (Appeals) is the first tier of appellate hierarchy provided in the Inland Revenue laws. See the story in Regfollower |
| Peru | Filing return: On 30 December 2020, the Peruvian tax authorities have issued a Resolution in the official gazette regarding the deadlines for corporate tax (CIT) returns for 2020. See the story in Regfollower |
| Portugal | Filing return: Portugal has approved Order no. 314/2021 to update the corporate income tax (CIT) return forms (Modelo 22) considering legislative changes made in 2020 and the need to introduced improvements in the forms. See the story in Regfollower |
| Romania | Tax payment procedure: On 30 December 2020, Romania has further published an Ordinance in the Official Gazette in response to the Covid-19 outbreak. Accordingly, extension of the deadline to March 31, 2021 for companies affected by Covid-19 to apply for a tax payment in up to 12 monthly installments without penalty and interest. See the story in Regfollower |
| Russia | Audits: On 29 December 2020, Russia has published Federal Law No 476-FZ which amended the thresholds for mandatory tax audit with effect from 1 January 2021. The Federal Law increased the turnover threshold in the previous year to RUB 800 million (previously 400 million) and asset value threshold to RUB 400 million (previously 60 million). See the story in Regfollower |
| Saudi Arabia | Late payment of tax due: On 21 January 2021, the General Authority of Zakat and Tax of Saudi Arabia has issued a press release, through which they cancel the fines and exemption from financial penalties for taxpayers until 30 June 2021 in response to the COVID-19 pandemic. Before 21 January 2021, the penalties arising from late filing of tax returns and late payment of taxes that were due will be waived. See the story in Regfollower |
| South Korea | Foreign tax credit: At the end of December 2020, South Korea has enacted a tax revision bill for 2021, which was passed by Korea’s National Assembly on 2 December 2020. The Tax Revision Bill revokes the deduction method in the foreign tax credit regime which is effective for fiscal years beginning on or after 1 January 2021. Foreign tax payments may still be claimed as a tax deduction method if it is not claimed. Losses-carry forward: The Tax Revision Bill extends the net operating losses carry forward period from 10 years to 15 years for the net operating losses reported on or after 1 January 2021. See the story in Regfollower |
| Spain | Participation relief: On 31 December 2020, Spain’s State Budget Bill for Fiscal Year 2021 was published in the Spanish Official Gazette. For tax periods commencing on or after 1 January 2021, the exemption on dividends and capital gains associated with holdings of at least 5% in both resident and non-resident entities is reduced to 95%. However, companies with net sales of less than EUR 40 million in the previous year can still apply the 100% exemption for dividends from subsidiaries, which is available for three years from the date the subsidiary is incorporated. See the story in Regfollower |
| Sri Lanka | Incentive on industry/manufacturing: The Inland Revenue Department (IRD) of Sri Lanka has issued a notice to taxpayers announcing the tax proposals in the 2021 Budget recently presented in parliament. Companies to be listed on the Colombo Stock Exchange before 31 December 2021 will receive a 50% income tax cut for the year 2021/2022 and be subject to 14% for the next 3 years. The tax imposed on dividends of export-oriented multinational companies will be reduced by 25% in 2021 and 50% in 2023 if they increase their exports. See the story in Regfollower |
| Thailand | E- Filing: On 15 January 2021, the Thai Ministry of Finance announced that the deadlines of the e-Filing and electronic tax payment will be extended for 8 more days, after the tax filing deadlines specified by the law. The extension will be effective for 3 more years, starting from 1st February 2021 to 31st January 2024. See the story in Regfollower |
World Tax Brief: February 2021
February 24, 2021
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