| Mexico | Incentives-Industry/manufacturing: On 29 April 2019, the Mexican Tax Administration has published the Miscellaneous Tax Code of 2019. Accordingly, the regulations grants special tax incentive decree for interest on corporate debt bonds. The Miscellaneous Tax Code for 2019 states that the withholding tax incentive applies to interest paid on bonds sold on the Mexican stock exchanges under the Securities Market Act. In addition, the bonds must be placed and registered on the licensed stock exchanges under Mexican law. See the story in Regfollower |
| Luxembourg | Main corporate tax rates: On 26 April 2019, the Government has published budget law for the year of 2019 in the Official Gazette. The budget lowered the standard corporation tax rate from 18% for the financial year 2018 to 17% for the financial year 2019. See the story in Regfollower |
| Philippines | Incentive on services: On 12 April 2019, the Philippines Bureau of Internal Revenue has issued revenue regulations which implements the green jobs tax incentive provisions. Accordingly, a qualified business enterprise shall be entitled to a special deduction from tire taxable income equivalent to 50% of the total expense for skills training and research development expenses subject to conditions that deduction shall be availed of in the taxable year in which the expenses have been paid or incurred and that the taxpayer can substantiate the amount and direct connection of expense claimed as deduction with sufficient evidence. See the story in Regfollower |
| France | Computation of taxable income: On 17 April 2019, France published new interest rates for entities whose financial year ended between 31 March 2019 and 29 June 2019, which are used to determine the deductibility of interest payments to shareholders. See the story in Regfollower |
| Germany | Incentives-Industry/manufacturing: On 17 April 2019, the Ministry of Finance published a bill which proposed a new tax incentive for research and development sector. Accordingly, all companies, regardless of their size, are entitled to the incentive of a maximum of € 500,000 per company and year from 2020. See the story in Regfollower |
| Ecuador | Main corporate tax rates: The Ecuadorian Official Gazette on 12 April 2019, published a circular clarifies certain issues relating to income tax following the changes introduced to the Internal Tax System Law and regulations in 2018. Accordingly, the general corporate tax rate applicable during fiscal years 2018 and 2019 is 25%. However, in specific cases, a rate of 28% applies. Incentives: The Circular specifies the requirements for the application of income tax incentives granted under the Internal Tax System Law, including tax exemptions, special tax rates and deductions. See the story in Regfollower |
| China | Incentives-Industry/manufacturing: On 12 April 2019, China’s Ministry of Finance announced the launch of a pilot program to support innovative-driven strategy, which includes incentives for investments in Chinese Depository Receipts issued by innovative Chinese enterprises. The incentives provide a tax exemption on dividends and capital gains derived from qualifying Chinese Depository Receipts. See the story in Regfollower |
| Italy | Main corporate tax rates: The Italian government is considering lowering the corporate tax rate. The corporate tax rate (IRES), which currently stands at 24%, will drop to 20%. See the story in Regfollower |
| Hong Kong | Incentives-Industry/manufacturing: On 11 April 2019, the Inland Revenue Department published its practice note regarding the research and development (“R&D”) tax concession in Hong Kong. Accordingly, starting from the year of assessment 2018/19, capital expenditure incurred for procuring environmental protection installation is deducted in full in one year instead of over five years. The Departmental Interpretation and Practice Notes No. 5 (Revised) DIPN 53 has been updated to set out the Department’s interpretation and practice on the provisions relating to the accelerated tax deduction. See the story in Regfollower |
| Cyprus | CFC & GAAR rules: On 5 April 2019, the Cyprus House of Representatives passed a law that addresses certain provisions of the EU anti-tax avoidance directive (ATAD 1) particularly the interest limitation rule, a general anti-avoidance rule (GAAR) and controlled foreign company (CFC) rules. The law will be applicable from 1 January 2019 if it is published in the Official Gazette to come into force. See the story in Regfollower |
| Australia | Incentive on small business: On 2 April 2019, the Australian Government announced its 2019-20 Budget. The Government has legislated lower tax rates for small and medium‑sized companies with turnovers below $50 million. Small and medium‑sized companies currently facing a 27.5 per cent rate will have a 25% rate by 2021-22, which is five years earlier than previously planned. This compares to the standard company tax rate of 30%. See the story in Regfollower |
| India | Submission of returns: On 1 April 2019, the Central Board of Direct Taxes (CBDT) has issued a Notification No.32/2019 to notify the new Income Tax Return (ITR) Forms for Assessment Year 2019-20. Assessees who earn a taxable income must declare their total income earned by filing an income tax return (ITR) form. The last date for filing income tax returns for a financial year (FY) is July 31 of the assessment year (AY). See the story in Regfollower |
| Japan | Incentives-Industry/manufacturing: On 27 March 2019, Japan’s parliament approved the legislation for the government’s tax reform proposals for 2019. Accordingly, as from 1 April 2019, the tax credit rates will be revised to enhance incentives to increase R&D expenses, and the tax credit ceiling of a certain category of start-up companies will be raised from 25% to 40% of corporate tax. CFC Rules: On 27 March 2019, Japan’s parliament approved the legislation for the government’s tax reform proposals for 2019. Accordingly, as from 1 April 2020, the CFC rules will be amended to provide certain exclusions in relation to paper companies, which are CFCs that fail to meet substance or administration and control tests and are subject to full-inclusion and subject to tax rate below 30%. The new tax reform also proposed to amends the CFC rules by expanding the definition of a “cash box” entity, while narrowing the definition of a “paper company”, among other changes. See the story in Regfollower |
| Vietnam | Incentives on small business: On 26 March 2019, Vietnam’s Ministry of Finance has released a consultation on a draft resolution for the introduction of reduced corporate tax rates for small- and medium-sized enterprises (SMEs). The proposed rates are: 15% for SMEs with annual turnover below VND 3 billion and no more than 10 employees; and 17% for SMEs with annual turnover between VND 3 billion and VND 50 billion and no more than 100 employees. See the story in Regfollower |
| Thailand | Filing Return: The Revenue Department of Thailand, announced that, legal entity that having accounting periods ending on 31st December 2018 are required by law to file annual corporate income tax returns within 150 days from the last day of the accounting period. In 2019, the last date of submission is on 30th May 2019. For those submitting tax returns via the Revenue Department’s website, the last date of submission is extended to 7th June 2019. See the story in Regfollower Incentives: On 26 March 2019, the Thai Cabinet approved three Royal Decrees cancelling all tax incentives provided under the Regional operating headquarters (2010) regime (ROH), International headquarters regime (including Treasury Centres) (IHQ), International trade center regime (ITC). The repeal will become effective as of 1 June 2019 for corporate income tax incentives. See the story in Regfollower |
World Tax Brief: May 2019
May 14, 2019
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