| Argentina | Incentive for small business: On 26 January 2021, the Federal administration of Public Revenue published General Resolution regarding the extension of tax payment facility for small and medium enterprises from 31 January 2021 until 31 March 2021. This includes taxpayer’s preferential instalment terms and interest rates for pending tax and social security obligations. See the story in Regfollower |
| Australia | Treatment of losses carry back: Recently, the Australian Taxation Office has published guidance on claiming loss carry back for early balancers and claims for partial years. See the story in Regfollower |
| Austria | Advance payment due: Recently, the Austrian Parliament made a discussion regarding 2nd COVID-19-StMG. According to this, the deadline for the expiry of the general tax payments deferrals is to be postponed from 31 March 2021 until 30 June 2021. See the story in Regfollower |
| Costa Rica | Withholding tax rates: The Costa Rican Legislative Assembly has approved a bill considering increasing withholding tax rates on various types of income paid to non-residents by 5%. The bill provides the 20% withholding tax rates for dividends and interest, 30% for royalties and technical fees. See the story in Regfollower |
| El Salvador | Interest due: On 29 January 2021, the Ministry of Finance has issued a notice regarding interest rates for late tax payments during the period 1 February to 31 July 2021. This includes an annual interest rate of 6.77%, which is increased to 10.77% after 60 days following the expiration of the due date for the tax obligation. See the story in Regfollower |
| Greece | Thin capitalization rules: On 11 January 2021, the Greek Public Revenue Authority published a Circular which describes the application of the rule of limitation of interest as amended from 1 January 2019. According to the Circular, the new rule contains a 30% of EBITDA restriction with a standard safe harbor threshold of EUR 3 million in line with the EU Anti-Tax Avoidance Directive (ATAD). See the story in Regfollower |
| Ireland | CFC: On 12 February 2021, the Irish Revenue issued eBrief No. 027/21, which provides updated guidance regarding controlled foreign company (CFC) rules. On the similar day, the Revenue also published a Tax and Duty Manual, providing guidance of how to reflect amendments to Controlled Foreign Company (CFC) rules that were introduced by Finance Act 2020. See the story in Regfollower |
| Hong Kong | Corporate tax rate: On 24 February 2021, Hong Kong Financial Secretary presented the 2021-22 Budget measures. The budget proposed a one-off reduction of profits tax. The tax reduction will only be applicable to the final tax for the year of assessment 2020/21, but not to the provisional tax of the same year. See the story in Regfollower |
| Luxembourg | Filing return: On 9 February 2021, the Luxembourg Parliament has adopted a draft law which was announced in December 2021 regarding the tax return filing deadline extension for 2019 and 2020 due to the COVID-19 pandemic. The deadline for filing corporate income tax (CIT) returns for the year 2020 is set at the end of June 2021 instead of 31 March 2021. The same applies to the trade tax. See the story in Regfollower |
| Malta | E-filing: On 22 February 2021, the Commissioner for Revenue extended the deadlines for the electronic filing of corporate income tax return. These extensions apply only to the electronic filing of tax returns, and not to tax payments. See the story in Regfollower |
| Singapore | Central management and control: The Inland Revenue Authority of Singapore issued updated guidance on the tax residence status of companies and permanent establishments in light of the Covid-19 pandemic. See the story in Regfollower Computation of taxable income: On 29 January 2021, the Inland Revenue Authority of Singapore (IRAS) issued an updated e-Tax Guide on Research and Development (R&D) Tax Measures (6th Edition). The Guide sets out the relevant R&D tax measures as announced in Budgets 2008 to 2020. It clarifies the existing definition of R&D and its qualifying criteria. The guide helps taxpayers self-assess if their R&D activities are qualifying R&D activities for tax purpose. See the story in Regfollower |
| South Africa | Main corporate tax rate: On 24 February 2021, the Finance Minister presented the budget speech for 2021 in the Parliament. Accordingly, the corporate income tax rate will be reduced to 27% for companies with years of assessment commencing on or after 1 April 2022. See the story in Regfollower |
| Turkey | Incentive on Industry/manufacturing: On 3 February 2021, Turkey has published Law No. 7263 in the Official Gazette on an amendment to the Law on Technology Development Zones and some other Laws. The Law is effective from the day of its publication. See the story in Regfollower |
| Uruguay | Advance payment due: On 10 February 2021, the Directorate General of Taxation (DGI) of Uruguay has declared Resolution No. 209/2021 regarding advance payment deadline extension for the month of January 2021 until March 2021 (generally due in February) in response to the Covid-19 pandemic. See the story in Regfollower |
| Vietnam | Advance payment due: On 17 February 2021, the Vietnamese Ministry of Finance (MoF) has issued a press release regarding the extension of certain tax payment deadline due to the COVID-19 pandemic. The MoF proposes an extension of 3 months for the quarterly corporate tax payments for the first quarter and second quarter of 2021. See the story in Regfollower |
World Tax Brief: March 2021
March 16, 2021
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