Switzerland | Main corporate tax rate: On June 17, 2016, The Swiss Corporate Tax Reform III (CTR III) introduces a gradual reduction of corporate tax rate over a period of five years from the current maximum rate of 20.7% to approximately 14% (including federal tax). Incentives: Introduced a Cantonal patent box: The cantons can exempt from the cantonal CIT the qualifying income derived from patents and similar intangibles property rights up to a maximum of 90%. Optional Cantonal research and development (R&D) deduction: An optional cantonal deduction of up to 150% with respect to R&D expenditures incurred in Switzerland is introduced. Also, the benefits derived from the patent box, the special R&D deduction, the NID and the depreciation deductions for the disclosed hidden reserves (step up) can reduce the taxpayer’s total cantonal CIT only by up to 80%. See the story in Regfollower |
Malaysia | Main Corporate tax rate: The Budget for 2017 proposed to reduce the corporate tax for the year of assessment 2017 and 2018. As per the proposal, the reduce tax rate will be between 1 and 4 percentage points for companies with the significant increase in taxable income for the year of assessment 2017 and 2018. Reduce tax rate from 19% to 18% will be applicable for SMEs with taxable income up to first RM500, 000. See the story in Regfollower |
Norway | Main corporate tax rate: The Norwegian Government plans to cut corporate income tax and increase the tax contribution of the finance industry as part of its 2017 Budget. In line with a governmental agreement on tax reform, the Government announced on 6 October 2016 that, corporate tax will be cut from 26% this year to 24% in 2017. See the story in Regfollower |
Poland | Main corporate tax rate: As per the draft Budget Law for 2017 submitted to the parliament, a lower rate of corporate income tax of 15% will be applied to small taxpayers. GAAR: The draft Budget Law for 2017 also introduced the General Anti-Avoidance Rule (GAAR) which will prevent the obtaining of tax advantages regarding artificial transactions or structures aimed mainly or solely at avoiding taxation. See the story in Regfollower |
Slovenia | Main corporate tax rate: The Slovenian parliament adopted a tax reform and according to which the corporate income tax rate will increase from 17% to 19% and will enter into force on 1 January 2017. See the story in Regfollower |
Italy | Main Corporate tax rate: The Council of Ministers of Italy approved the draft Budget Law for 2017 on 15 October 2016. According to the approved draft budget Law, the corporate income tax rate will be decreased to 24%. Incentives: For start-up companies, tax credits for R&D activities and increased depreciation for qualifying assets, will be extended and enhanced. Also, a new voluntary disclosure procedure will be introduced. See the story in Regfollower |
France | Main Corporate tax rate: Â The government of France presented the Finance Bill for 2017 on 28 September 2016. According to article 6 of the Bill, the standard corporate income tax rate will be reduced progressively to 28%. See the story in Regfollower |
Slovak Republic | Corporate Income Tax: A governmental package of proposed amendments to tax law was submitted to the parliament. Accordingly, the corporate income tax rate will be reduced from 22% to 21%. Also, dividends from foreign sources will be taxed at the rate of 35% for domestic companies if the distributing entity is based in a jurisdiction that does not have a tax treaty in force with the Slovak Republic. See the story in Regfollower |
Spain | E- Filing: Recently the Spanish government has issued an order addressing several tax filing obligations. Large Companies will have to file tax documents such as returns, declarations or reimbursement requests electronically as from 1 July 2016. See the story in Regfollower |
Austria | Incentives: The Budget Bill was submitted to the lower house of the parliament on 12 October 2016. According to the budget bill tax incentives will be introduced for investments in entities established for the financing of small and medium-sized enterprises (SMEs) and companies carrying out research and development (R&D) activities. The incentives will be in line with the EU rules on State aid. See the story in Regfollower |
Australia | Participation exemption: On 12 October 2016, the Australian Taxation Office (ATO) released for comment Draft Taxation Ruling TR 2016/D2 that provides guidance on applying the participation test in Subdivision 768-A when working out whether an equity distribution received by an Australian corporate tax entity from a foreign company is not assessable and not exempt (NANE) income. Accordingly, the participation exemption makes distributions from foreign company’s non-assessable, non-exempt income if the distribution is received by an Australian corporate entity that has a direct or indirect participation interest in the foreign company of at least 10%. The Draft Ruling addresses the time at which the Australian entity must hold the direct interest of at least 10%. See the story in Regfollower |
Malta | Incentives: The Budget for 2017 was presented to the parliament on 17 October 2016. Accordingly, several tax incentives will be available for investments on the Malta Stock Exchange, as follows: A Risk Investment Scheme will be introduced for investors in Small or Medium Enterprises (SMEs) or in funds administered by SMEs on the Malta Stock Exchange Alternative Trading Platform, under which such investors will benefit from a maximum tax credit of EUR 250,000. Also, an exemption for capital gains derived from the sale of shares to the public through a listing on the Malta Stock Exchange will be available. See the story in Regfollower |
Belgium | Withholding tax rates: On 15 October 2016, in a press briefing details of several tax measures were presented by the government. The most important measures include an increase in the standard rate of withholding tax on dividends, interest and royalties from 27% to 30%. See the story in Regfollower |
Colombia | Late payment interest: According to a recently published administrative regulation 1233 of 2016, the Financial Supervisory Authority of Colombia provided the effective annual interest rate applicable in the case of late payment of taxes. The late payment interest rate is 32.99%. See the story in Regfollower |
Ireland | Withholding tax: On 20 October 2016, Finance Bill 2016 was published. According to the bill, a 20% withholding tax (WHT) deduction on property distribution to non-resident investors will be imposed on IREFs. The WHT will not apply to certain categories of investors, such as pension funds. See the story in Regfollower |
Greece | Incentives: Ministerial Decree No. 106688 was published in the Official Gazette on 14th October 2016 regarding the determination of the maximum amount of aid per investment project tendered in 2016 under the new investment law. This decree refers Mechanical Equipment Aid, General Entrepreneurship, New Independent SMEs, and other major investments. See the story in Regfollower |
Turkey | Incentives: Turkey’s R&D Reform Package increases with the Turkish Law no. 6676. Companies that carry out R&D activities in Turkey may benefit from the R&D incentives and aids for R&D activities with this reform package. See the story in Regfollower |
Uruguay | Corporate Income Tax: The Chamber of Deputies of Uruguay approved the accountability bill on 5 October 2016 after it was modified by both the deputies and the senators’ chambers. According to the approved accountability bill, the adjustment for inflation for corporate income tax (CIT) purposes will apply only when the variation in the Consumers Price Index accumulated over the 36-month period previous to the current fiscal year-end exceeds 100%. See the story in Regfollower |
World Tax Brief: October 2016
06 November, 2016