AlgeriaIncentives on industry/manufacturing: On 30 December 2021, the Finance Ministry Officially published the 2022 Finance Law. Accordingly, qualifying manufacturing companies are granted a reduced corporate tax rate of 10% on profits reinvested in the acquisition of fixed assets related to the company’s operations or invested in the acquisition of shares or other securities representing at least 90% ownership of the capital another manufacturing, construction or service company if certain conditions are met.
Withholding tax rate on dividends: Under the Finance Act, a 5% withholding tax rate is introduced on the income of resident legal persons from the distribution of profits (dividends) that have been subject to corporate income tax or expressly exempted.
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BulgariaCFC rules: On 20 January 2022, the Bulgarian Parliament passed the draft law amending and supplementing the Corporate Income Tax Act (CITA). The draft law provides for the correction of the Bulgarian implementation of the ATAD-CFC rules which will be applied to all Bulgarian taxable persons that are subject to corporate income tax in the country and have CFCs regardless of their form of taxation subject to approval in the second and final reading.
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ColombiaFiling return: On 20 December 2021, the Colombian Ministry of Finance and Public Credit has issued Decree 1778 specifying the deadlines for filing and payment of the tax return (declaration) in 2022. Some of the key deadlines for companies depend on the last digits of the taxpayer’s tax number (NIT).
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Costa RicaMain corporate tax rate: On 22 December 2021, the Costa Rican government and the Ministry of Finance posted Decree No. 43375-H updating the corporate income tax thresholds for the tax year 2022.
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Hong KongSubmission of returns: On 14 January 2022, the Inland Revenue Department of Hong Kong decided to extend the due date for filing Income Tax Returns 2020/21 for loss events with accounting date code “M” from 31 January 2022 to 28 February 2022.
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IndiaFiling return: On 11 January 2022, the Central Board of Direct Taxes has extended the filing of income tax returns and various audit reports for the 2021-22 tax years. According to the CBDT press release, the due date of furnishing the Income Tax Return for the Assessment Year 2021-22, which was 31 October 2021 and 30 November 2021, has been further extended to 15 March 2022.
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LithuaniaCorporate tax rate-special: On December 7, 2021, the Lithuanian Parliament passed several important amendments to the Law on Corporate Income Tax of the Republic of Lithuania. Accordingly, from 1 Jul 2022, the additional corporation tax of 5% on profits of banks and cooperative banks over EUR 2 million will apply indefinitely. The additional tax is charged in addition to the corporate tax rate of 15%.
Incentive: The law also proposed changing the conditions for applying for a corporate tax exemption for a period of up to 20 years for companies undertaking large investment projects.
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MalaysiaLosses-Carry forward: On 31 December 2021, the Finance Law 2021 was published in the Official Gazette and extended the period for carrying forward unabsorbed business losses from 7 to 10 years. In addition, the period for carrying forward and using special reinvestment allowances has been extended by a further two years, starting in 2025.
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NigeriaTaxation of capital gains tax: On 31 December 2021, the President signed the Finance Bill 2021 into Law at an event in the State House. The bill introduced a rate of 10% capital gains tax on gains on disposals of shares in a Nigerian company where the gross proceeds from such sales exceed ₦100million for 12 consecutive months.
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PeruFiling return: On 30 December 2021, the Peruvian tax authorities (SUNAT) have issued Resolution No. 000195-2021/SUNAT in the official gazette regarding the deadlines for corporate tax (CIT) returns for 2021. The Resolution states that Virtual Form No. 710 (applicable for CIT return) is available from 3 January 2022.
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South AfricaSanctions for non-compliance: On 18 January 2022, the South African Revenue Service (SARS) published updated interest tables. The South African Reserve Bank changed the “repo rate” on 27 January 2022. The table includes Interest rates on outstanding taxes and interest rates payable on certain refunds of tax on successful appeals and certainly delayed refunds, which is increased from 7.0% to 7.25% with effect from 1 March 2022.
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SpainIncentives: On 29 December 2021, the Spanish budget bill for the fiscal year 2022 was published in the Spanish Official Gazette. The bill introduces a minimum corporate tax rate of 15% of the tax base for certain taxpayers from 2022. For start-ups that benefit from the reduced rate of 15%, this minimum rate will be reduced to 10%.
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UAE Main corporate tax rate: On 31 January 2022, the United Arab Emirates (UAE) Ministry of Finance announced the introduction of a corporate tax rate. The new regime, which is set to be introduced from 1 June 2023, introduces standard statutory tax rate of 9% and a 0% tax rate for taxable profits up to AED 375,000 to support small businesses and startups.
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UkraineInterest on late payment: On 20 January 2022, the National Bank of Ukraine has decided to increase its key policy rate from 9% to 10% per annum with effect from 21 January 2022. The interest rate has a tax effect on the late tax payment interest and penalties which is equal to 120% of the National Bank rate and also increases in the penalty interest rate from 10.8% to 12% per annum.
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