ArmeniaIncentives on industry and manufacturing: On 26 May 2021, the Parliament of Armenia has approved a bill on extending the tax incentives for exporters to 31 December 2029. The provided incentive was scheduled for 31 December 2021 for resident companies that are exclusively engaged in exports of goods and services.
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AustriaInterest on late payment: On 4 June 2021, the Government published a Decree providing updates regarding late payment interest, suspended tax payment and others. According to the update, from 1st July 2021 to 30 June 2024, the interest rate for late corporate tax payment is subject to 2% plus the base rate. But, before 1 July 2021, the interest rate is 4.5% plus the base rate where the late tax payment due more than EUR 750.
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Colombia Payment of tax: On 4 June 2021, the Colombian Ministry of Finance and Public Credit has published a decree extending corporate tax payments by micro and small businesses amid the COVID-19 pandemic.
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Costa Rica Compensation for overpaid tax and refunds: On 16 June 2021, the Costa Rican Ministry of Finance has published a Resolution providing a reduction of interest rate from 10.31% to 10.20% for late tax payments and refunds of overpayments. The rate is effective from 1 July 2021 and is based on the average commercial lending rate of Costa Rica’s national banks.
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FranceLosses-carry back: On 2 June 2021, the Government published the amended draft Finance Bill 2021 in the National Assembly. According to the Bill, companies will be officially allowed to carry back, on the profits recorded for the three previous financial years and without any other cap, the deficit that may be recorded for the first financial year ended from 30 June 2020 until 30 June 2021.
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IrelandSurcharge: On 10 June 2021, the Irish Revenue published an eBrief 114/21 and a manual regarding updated guidance on the surcharge on undistributed income of service companies.
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KenyaSubmission of return: On 1 June 2021, the Kenya Revenue Authority published a public notice with information on the updated corporate income tax return for residents. The Kenyan Revenue Service would like to inform the public that the Tax Return for Resident Corporations (IT2C) on iTax has now been updated with the most recent changes.
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LithuaniaLosses-utilizations rules: On 26 May 2021, the Lithuanian government has approved the revised draft State budget for 2021 including certain support tax measures due to COVID-19 pandemic. A business that incurred losses in the period 2020 can utilize losses to offset taxable profit for the 2019 tax period. The budget also allows further extension of tax deferral payment of taxes without incurring interest until 31 August 2021.
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NetherlandsTreatment of losses: On 4 June 2021, the Netherlands published the Decree of 21 May 2021 in the Official Gazette, which provides for the implementation of the net operating loss carry forward changes. According to the new legislation, loss carry back period will remain 1 year and the carry forward period will be unlimited.
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PolandWithholding taxes due: On 25 June 2021, the Polish Ministry of Finance has published a decree providing further postponed the introduction of the withholding tax pay and refund system until 31 December 2021. The obligation was originally deferred until the end of June 2019 and was subsequently rescheduled several times, with the previous effective date planned as 30 June 2021.
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Foreign income exemption: On 14 June 2021, the Polish announced a new package of measures to encourage foreign investment in Poland. Accordingly, 95% tax exemption for dividends received by Polish holding companies after a one-year holding period, regardless of whether the recipient is a resident of an EU or non-EU state. The proposed changes should generally apply from 2022.
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Portugal Submission of return: In accordance with Regulation 191/2021-XXII of 15 June 2021, Portugal has extended the tax compliance deadlines in response to the Covid-19 pandemic. The annual filing of the corporation tax return (Modelo 22) and the respective payment deadline for the taxation period 2020 will be extended to 16 July 2021.
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TanzaniaPE rules: On 12 June 2021, the National Assembly published the Finance Bill 2021, which contains the measures of Budget for 2021/22. The bill expanded the definition of the term “permanent establishment”.
Withholding tax rate: The Bill has also proposed a 2% withholding rate on payments by resident companies dealing with agricultural, livestock and fishery products.
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UKMain corporate tax rate: On 10 June 2021, the Finance Act 2021 received royal assent and published in the Official Gazette. Accordingly, the corporate tax rate will increase to 25% from April 2023 on profits over ÂŁ250,000. The rate for small profits under ÂŁ50,000 will remain at 19% and there will be a relief for businesses with profits under ÂŁ250,000. In line with the increase in the main rate, the Diverted Profits Tax rate will rise to 31% from April 2023.
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USLocal tax rate: On 26 May 2021, the Nebraska Government signed a Legislative Bill which provides for a reduction of top corporate income tax rates over the next two years. Accordingly, for tax years beginning on or after 1 January 2022, the rate will reduce from 7.81% to 7.50% on taxable income over USD 100,000. The rate will be further reduced to 7.25% for tax years beginning on or after 1 January 2023.
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Compensation for overpaid tax and refunds: On 27 May 2021, the Internal Revenue Service announced that interest rates will remain the same for the 3rd quarter beginning from 1 July 2021. Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis.
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