Argentina Payment of tax: On 4 September 2023, the Argentine Official Gazette published General Resolution No. 5411/2023, extending integrated tax payment deadlines for small business taxpayers. Based on Categories A, B, C and D tax payment deadlines are 20 March 2024, 22 April 2024, and 20 May 2024.
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Brazil Rates-Withholding rates: Brazil published Provisional Measure No. 1.184 outlining the taxation of investment funds in Brazil and introducing a periodic taxation approach for both closed-end and exclusive funds. Major proposal under the Provisional Measure include income from investment funds will be subject to withholding tax at the rate of 15% on the last working day of the months of May and November. Additionally, the complementary percentage that is necessary to totalize the regressive rates of 22.5% to 15%, on the date of income distribution, amortization, redemption or disposal of quotas.
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Bulgaria Rates-Special tax rate: The Bulgarian Ministry of Finance released a draft law for the implementation of the Pillar 2 global minimum tax rule in accordance with EU Council Directive 2022/2523 of 14 December 2022. The draft law is currently subject to a public consultation and the deadline for comments is 26 October 2023. The Draft Law includes the under-taxed profits rule (UTPR), income inclusion rule (IIR), and the Qualified Domestic Minimum Top-Up Tax (QDMTT).
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China Rates-Reduced rates: China’s Ministry of Finance, State Administration of Taxation, National Development and Reform Commission, and Ministry of Ecology and Environment have collaboratively issued Announcement No. 38 of 2023, that extended a 15% reduced corporate tax rate for third-party companies operating in pollution prevention and control by four years to 31 December 2027.
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Greece Tax Compliance-Submission of returns: The Greek Public Revenue Authority (AADE) issued Decision A.1131, extending the tax return deadline for individuals and businesses in areas affected by the wildfires of August 2023. This includes extending the deadline for submitting annual tax returns for the 2022 tax year to 29 September 2023 for both individuals and legal entities.
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Italy Rates-Special tax rate: The Italian Ministry of Economy and Finance has released a draft law for the implementation of the Global Minimum Tax rule in accordance with EU Council Directive 2022/2523 of 14 December 2022. The draft law is currently subject to a public consultation and the deadline for comments is 1 October 2023.
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North Macedonia Rates-Special tax rate: In a recent announcement, the North Macedonian Public Revenue Administration has declared the enactment of one-time solidarity tax law, published in the Official Gazette on 25 September 2023. The solidarity tax rate is set at 30% on taxpayers whose total income in 2022 exceeded MKD 615 million (EUR 10 million).
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Saudi Arabia Rates-Withholding rates: On 15 September 2023, Saudi Arabia published Resolution No. 25 in the Official Gazette, which updated withholding tax rates. The key change is a reduction in the withholding tax rate on technical or consulting services from 15% to 5% for payments to head offices or associated companies.
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Mitigation of penalties: The Zakat, Tax, and Customs Authority has announced a tax benefit initiative, “Cancellation of Fines and Exemption of Financial Penalties,” available until 31 December 2023. The initiative stipulated that in order to take advantage of it, a taxpayer had to be registered with the tax system and submit all previously unsubmitted returns to the Authority. As well as paying all the principal tax debt associated with the returns that will be submitted or modified to accurately disclose the outstanding tax liabilities, taxpayers have the option of requesting an installment payment plan from the Authority.
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Sweden Rates-Special tax rate: The Swedish Ministry of Finance has introduced a draft bill to implement the Pillar 2 global minimum tax in line with EU Directive 2022/2523. The proposal includes the Pillar 2 income inclusion rule (IIR) and the undertaxed payment/profit rule (UTPR) to establish a minimum tax rate of 15% for multinational enterprises. The draft bill is scheduled to take effect on 1 January 2024.
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Switzerland Sanctions for non-compliance: On 11 September 2023, the Swiss Federal Tax Administration announced updated interest rates for late payment, refund, and advance tax payments. The announcement includes interest rate for late payment and refund is 4.75% (currently 4%) and interest rate for advance tax payments is 1.25% (currently 0%). The increased interest rates will apply form 1 January 2024.
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United Arab Emirates Tax Compliance: On 04 September 2023, the UAE Federal Tax Authority (FTA) renewed its invitation for Public Joint Stock Companies (PJSCs), PriVATe Shareholding Companies (PSCs), limited liabilities companies and priVATe companies resident in the UAE to register for Corporate Tax, in accordance with Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (“Corporate Tax Law”) which applies to financial years beginning on or after 1 June 2023.
See the story in RegfollowerRates-Special tax rate: On 13 September 2023, the UAE Ministry of Finance (MoF), in cooperation with the OECD, hosted the Pillar Two Regional Forum, related to the Global Minimum Tax of Base Erosion and Profit Shifting (BEPS) and the Global Anti-Base Erosion Rules (GloBE). During this forum, the UAE officially announced its decision not to implement the Global Minimum Tax rule before 2025.
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Ukraine Rates-Special tax rate: The Ukrainian Committee on Finance, Taxation and Customs Policy submitted a draft bill to the Parliament, suggesting the implementation of a 5% windfall tax on banks’ net interest income. This windfall tax will be effective starting from 1 January 2024 to 31 December 2026.
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Venezuela Incentives: On 10 August 2023, Venezuela introduced four new special economic zones (SEZs) with tax incentives to boost production and exports. These SEZs are located in Isla La Tortuga, Aragua State, Falcón State, and La Guaira State. In Isla La Tortuga, businesses can enjoy income tax refunds for up to 25 years, accelerated depreciation benefits, and customs duties reimbursement for eligible businesses. In the other SEZs, income tax refunds are provided up to 7 years, accelerated depreciation benefits, and customs duties reimbursement for up to 10 years.
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