Armenia Incentives-Industry/manufacturing: The Armenian parliament has approved a law for the extension of tax incentives for start-ups of information technology (IT) industry. The incentives include a 100% corporate income tax exemption and a 10% income tax rate for employees. Previously, the incentives were extended to 31 December 2022 and now it will be extended to 31 December 2023.
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Bulgaria Rates-Special tax rate: The National Assembly of Bulgaria has approved a law regarding a temporary solidarity contribution of 33% on oil, gas and coal companies in line with the Council Regulation (EU) 2022/1854 on an emergency intervention to address high energy prices. The law enters into force on 1 January 2023.
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Colombia Rates-Surcharge: The Colombian Congress has approved Law 2277 of 2022, which amended the current tax regime. The financial institutions will be subject to surtax at the rate of 5% (increased from 3%) for a period of 5 years from the fiscal year 2023 to 2027. The surcharge is applicable for the taxpayer with taxable income equal to or more than USD 1.1 million (approximately).
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Costa Rica Rates-Main corporate tax rates: Costa Rican Ministry of Finance has published Executive Decree No. 43852-H, which sets the corporate and individual income tax thresholds and rates for 2023. Corporate income tax rates apply ranges between 5% and 30% on the basis of income thresholds.
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Germany Rates-Special tax rate: On 23 December 2022, Germany published the Law in the official gazette to introduce an electricity price break for purpose of change other energy law provisions. It provides for several electricity-related relief measures and the introduction of a windfall tax on power generation sector. The tax is applied by “skimming” off the surplus revenue of electricity producers through a 90% tax on revenue exceeding prescribed rates per kilowatt hour.
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Greece Computation of taxable income: Greece published Law No. 5005 in the Official Gazette on 21 December 2022, which extended the application of the 30% special deduction for advertising expenses to the tax year 2023 as well as 2022.
Incentives: As per the enacted legislation, advertisements to content providers of local TV services will be exempt from the special TV advertising tax until 31 December 2023. Previously, the exemption applied up to 31 December 2022.
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Luxembourg Compliance calendar-Filing return: The Luxembourg Parliament approved the budget law 2023 on 15 December 2022. The budget law sets the new deadline for filing tax returns, which is 31 December as of 2023. The extension will apply to corporate tax returns, individual, and municipal business tax from the tax year 2022, and net wealth tax returns from the tax year 2023.
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Papua New Guinea Rates-Main corporate tax rates: The Papua New Guinean treasury department has published the 2023 National Budget, that increased the corporate income tax rate to 45% from 30% for commercial banks, effective from 1 January 2023.
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Saudi Arabia Incentives: Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) has announced the extension of tax penalty relief measures in response to the COVID-19 pandemic. Accordingly, the taxpayers can be exempted from fines and financial penalties for additional 6 months from 1 December 2022 to 31 May 2023.
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Slovak Republic Rates-Special tax rate: The Slovak parliament has approved a law for the introduction of a windfall tax on electricity companies. The windfall tax applies the period from 1 December 2022 to 31 December 2024 with an installed capacity exceeding 0.9 megawatts, as well as by energy suppliers. The windfall tax applies at a rate of 90% on the price per megawatt hour exceeding a specified range of EUR 50 to EUR 250 per megawatt hour. Electricity producers using hydropower or biomass are exempt from windfall tax.
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Spain Rates-Special tax rate: On 27 December 2022, the Spanish government issued Law 38/2022, which introduces the windfall profit taxes on the energy and banking sectors. Under this law, large energy companies will be charged at the rate of 1.2% of net turnover derived from activity in Spain and Banking companies will be levied at the rate of 4.8% of net interest and commission fee income. Both windfall tax will come into force temporarily for 2023 and 2024.
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Rates-Reduced rates: The Spanish Congress of Deputies has approved the Startups Law for the promotion of the emerging company ecosystem. Under the law, the corporate income tax rate and foreign income tax rate are reduced from the general tax rate of 25% to 15% for the first four financial years after the initial recognition of taxable income.
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Sri Lanka Rates-Main corporate tax rates: The IRD has published the Inland Revenue (Amendment) Act No. 45 of 2022 and also issued notices to taxpayers regarding significant tax changes. The income tax rates applicable to Trusts – 30%, Companies – 30%, Unit trusts and mutual funds – 30%, and Non-Governmental Organizations – 30%, effective from 1 October 2022.
Rates-Withholding rates: The Deduction of Withholding Tax (WHT), Advance Income Tax (AIT) and Advance Personal Income Tax (APIT) has been made mandatory with updated rates, effective from 1 January 2023.
Computation of taxable income: Additional 100% deduction of Marketing and Communication Expenditure (granted subject to the provisions of the IRA) is not available for the year of assessment 2023/2024.
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UAE Compliance calendar-Filing return: The UAE Ministry of Finance (MoF) has released the Federal Decree-Law No. 47 of 2022 on business taxation to enact a new Corporate Tax Law in the UAE. Corporate Tax is imposed on an annual basis and the Tax Period will normally be the Gregorian calendar year (i.e., from 1 January to 31 December). The corporate tax return will generally be due within 9 months following the end of the Tax Period.
Mode for Filing-E-filing: Where companies cannot form a Tax Group, they will each be required to file a corporate tax return on a standalone basis. Corporate tax returns will need to be filed electronically.
Rates-Main corporate tax rates: Zero percent corporate tax rate applies for taxable income up to AED 375,000 and 9% for taxable income exceeding AED 375,000.
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