Australia | Main corporate tax rate: The government of Australia announced in the 2016–17 Budget that it will reduce the corporate tax rate progressively from 30 per cent to 25 per cent. Incentives for small business: The budget also Increased the small business annual turnover threshold for incorporated small businesses to AUD 10 million (up from the current AUD 2 million) from 1 July 2016. See the story in Regfollower Incentives: From 6 May 2016, entities that acquire newly issued shares in an Australian ESIC (early-stage innovation companies) may receive a tax credit of 20% of the value of their investment. The non-refundable credit will be capped at AUD 200,000. See the story in Regfollower |
Sri Lanka | Main corporate tax rate: According to the Inland Revenue Department’s budget proposal of 2016, the corporate tax rate for banking and financial services, insurance industry and trading activities is 28% and 17.5% for all other sectors. Withholding tax: Under the Budget, withholding tax rate of 2.5% on interest deposits continues to apply. See the story in Regfollower |
Greece | Groups: The Public Revenue Authority issued document for instruction of the tax year for Greek companies in which a foreign entity owns a participation exceeding 50%. Filing returns: The Public Revenue Authority also published Circular POL 1049/2016 providing clarifications. The deadline for filing of the 2015 tax return has been set at 30 June 2016. The requirement to file the tax return is electronically. See the story in Regfollower Incentives: According to the new provision which replaces article 22(1) of the Income Tax Law, the actual deductible expenses are increased by 30% and they may include the depreciation of the equipment and instruments used for the purposes of scientific and technological research. Losses arising after the deduction of the aforementioned expenses can be carried forward up to 5 years. See the story in Regfollower |
Panama | Tax return: Panama tax authorities announced an extension of the deadline to file income tax returns until 3 May 2016. See the story in Regfollower |
Argentina | Filing returns: In Argentina according to the General Resolution 3874 (AFIP),the deadlines for filing the 2015 Income Tax, Minimum Deemed Income Tax and Net Worth Tax returns by companies and certain individuals, as well as the payment of the resulting balance that was established by General Resolution 3820 has been extended. See the story in Regfollower Incentives: Argentina also amended article 4, chapter I, title III of Law 23966, which provides exemptions to pure biodiesel from tax on liquid fuels and also allows tax on biodiesel used as fuel to be offset against tax paid on other taxed components used in the mix to produce the fuel. See the story in Regfollower |
Pakistan | PE rule: The Federal Board of Revenue (FBR) has proposes to make it mandatory for non-resident companies with or without a permanent establishment (PE) in Pakistan to be registered for tax purposes and to provide their company and business details (including tax registrations or incorporation documents from concerned regulatory authorities of the related foreign country) via issuance of S.R.O. 407(I)/2016 (the Notification) dated 11 May 2016. See the story in Regfollower |
Chile | Incentives: The government has approved a bill on 6 May 2016, to boost output and extending the additional tax exemption to amounts paid abroad for work, engineering and technical services, given that they are used for export of goods or services from Chile. See the story in Regfollower |
France | Groups-participation exemption: For financial years commencing on or after 1 January 2016, dividends qualified for the participation exemption and received by a member company of a tax-consolidated group like from a (French) subsidiary belonging to the same tax-consolidated group will no longer be fully exempt. See the story in Regfollower |
Liechtenstein | Main corporate tax: The government plans to increase minimum corporate income tax from the current CHF 1,200 to CHF 1,800. The report has since been submitted for parliamentary approval. See the story in Regfollower |
Denmark | Tax Appeal: The Ministry of Taxation published a package of measures on 3 May 2016, aimed at increasing the legal certainty for taxpayers. Therefore the length of appeal processes is reduced by granting more resources to the tax appeals board. In addition, a guarantee for the maximum duration of most common appeal cases is introduced and applies in respect of processes involving small and medium-sized enterprises. See the story in Regfollower |
India | Incentives: The Finance Bill, 2016 (the Bill) was introduced by the Finance Minister on 29 February 2016 in the Lok Sabha. According to the bill 25% concessional tax rate imply on certain domestic companies engaged in the business of manufacturing or production. Dividends: The Finance Bill, 2016 introduced an additional tax of 10% if the amount of dividend received by a taxpayer exceeds INR10 lakh. Royalty:The Finance Bill, 2016 also proposed to insert a new Section 115BBF to tax royalty income in respect of a patent developed and registered in India at the rate of 10%. See the story in Regfollower |
Malaysia | Incentives: The Inland Revenue Board of Malaysia has issued Public Ruling No. 2/2016 (PR 2/2016) on 9 May 2016 regarding tax incentives in relation to the venture capital industry in Malaysia. See the story in Regfollower |
Ecuador | Withholding rate for Bank: The Administrative Resolution establishes that the 1% withholding rate will apply even if the Central Bank acts as an intermediary to interest and fees incurred in credit transactions between banks and other financial entities subject to the supervision of the Superintendence of Banks. See the story in Regfollower Penalty for late payment: The National Assembly of Ecuador approved the law containing provisional tax measures to help resolve the crisis caused by the natural disaster of 16 April 2016.Generally, the Law establishes that contributions introduced are non-deductible for income tax purposes and 3% penalty of the undue payment is imposed upon late or non-payment of the amounts due as established by the Law. See the story in Regfollower |
China | Incentives: The Ministry of Finance, the State Administration of Taxation, the National Development and Reform Commission, and the Ministry of Industry and Information Technology jointly issued a notice on 4 May 2016 (Cai Shui [2016] No. 49) clarifying the tax incentives for enterprises engaged in software and integrated circuits (IC). See the story in Regfollower |
Colombia | Incentives for small business: According to a recently published ruling, the National Tax Authority of Colombia pronounced on the non-application of tax benefits provided by Law 1429 of 2010 to small enterprises. Accordingly the Decree 545 of 2011 regulates Law 1429 of 2010, providing details on the requirements that must be complied with by small enterprises for applying income tax benefits and cases when such benefits may be lost. See the story in Regfollower |
Guatemala | Other Incentives: The Ministry of Economy of Guatemala issued on 28 April 2016, Ministerial Agreement No. 162-2016, which contains the list of export and maquila companies that are eligible to continue the 10-year income tax exemption period. See the story in Regfollower |
Puerto Rico | Incentives: The Treasury Department released Informative Bulletin No. 16-11 of 6 May 2016 to pronounce that a restriction will be obligatory to the application of the investment, investigation and development tax credit which refers to a tax credit equal to 50% of investment made in Puerto Rico for a qualifying as exempt business. See the story in Regfollower |
Italy | Incentives: The Ministerial Decree of 29 April 2016, issued by the Ministry of Economy and Finance, was published in the Official Gazette No. 110 to enact implementing rules with respect to the tax ruling procedure for new investments recently introduced by Legislative Decree No. 147 of 14 September 2015. See the story in Regfollower |
Guernsey | Corporate rate for Bank: The amended Statement of Practice C22 on taxation of banking businesses was released on 28 April 2016. The company standard rate of income tax on company profits is 0% but a 10% tax rate applies to certain banking profits. See the story in Regfollower |
World Tax Brief: May 2016
06 June, 2016