Botswana Withholding tax rates: On 30 June 2021, the Minister of Finance and Economic Development enacted the budget for 2021/22. Accordingly, the general withholding tax rate increased from 7.5% to 10% on dividends paid to both resident and non-resident effective as from 1 July 2021. Withholding tax applies to directors’ fees at a rate of 10% on payments to resident directors and 15% on payments to nonresident directors effective as from 1 July 2021.
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Colombia Incentives for industry/manufacturing: On 4 August 2021, Colombia passed Law 2133, which introduced new tax incentives for maritime transport. Accordingly, income from the international maritime transport service, which they carry out ships or naval vessels registered in Colombia, will be taxed at the 2% income tax rate.
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Cyprus Filing return: On 30 July 2021, the Ministry of Finance issued various decrees providing an extension for the payment of the final tax due (as per the relevant income tax return) for the tax year 2020 for companies with the turnover that exceeds EUR 70,000 and with an obligation to prepare audited financial statements. Accordingly, the settlement date for companies to pay the final amount of tax for the year 2020 is 30 September 2021.
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KoreaIncentives for industry/manufacturing: On July 26, 2021, the South Korean Ministry of Economy and Finance published an outline of the proposed Tax Revision Bill 2021. According to the bill, R&D on technologies such as carbon emissions reduction and phase 3 clinical trials for biosimilars will be eligible for a tax reduction of up to 40%. A tax reduction of up to 10% is available for investments in intellectual property equipment.
Incentive for small business: Under the bill, eligible startups will be entitled to a 50% to 100% tax reduction through 2024.
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LuxembourgSanctions for non-compliance: On 28 July 2021, the Luxembourg tax authorities issued circular on the setting of fines and penalties in cases of tax fraud, criminal fraud and cooperation between the tax administration and the judicial authorities. For inaccurate or incomplete tax returns and involuntary tax evasion, the fine is between 5% and 25% of the tax evaded. In the case of simple tax evasion, the fine is 10 to 50% of the tax evaded.
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Losses carry forward: On 10 August 2021, the Luxembourg Tax Authorities has published a Circular which clarifies the application of the loss carry-forward under the municipal business tax. Losses incurred with effect from 1 January 2017 are available for carry-forward (with the possibility of a 100% offset of annual profits) for a period of 17 years. Unlimited loss carry-forward applies between 1 January 1991 and 31 December 2016.
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MalaysiaFiling return: On 19 August 2021, the Inland Revenue Board of Malaysia has announced an additional one-month extension of time to file income tax returns for 2021.
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Peru Incentives for others: On 14 August 2021, Peru has issued a Law in the official gazette which created a new tax-free zone in Northern Peru. Accordingly, some specified activities will not be subject to corporate income tax, value-added tax, customs duties, excise tax, and any other taxes imposed by the federal government and local governments.
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PolandCentral management of control: On 26 July 2021, the Government of Poland has announced draft legislation proposed to amend the definition of place of management for corporate taxation. Accordingly, the new definition of the place of effective business management aimed at limiting situations in which Polish residents set up businesses in foreign jurisdictions while they are not doing any real business in that foreign jurisdiction.
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Qatar E-Filing: On 4 August 2021, the General Tax Authority (GTA) of Qatar is reminding all taxpayers to file their monthly withholding tax returns through online. In addition, the GTA no longer accepts paper filing.
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RussiaComputation of taxable income: On 26 July 2021, the Russian Ministry of Finance recently issued a guidance letter stating that R&D expenses in the reporting period (tax period) in which this R&D was completed are deductible as other expenses, unless otherwise stated Article 162 of the Tax Code.
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Taiwan PE rules: On 12 August 2021, the Ministry of Finance has announced the amendments to the tax treaty rules and PE rules. The amended regulations have come into effect since the date of the announcement.
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Thailand Filing return: The Thai Ministry of Finance has extended the deadlines for electronic filing of corporate income tax (CIT) return in response to the Covid-19 pandemic. The CIT return (PND 50, 52 and 55), is extended to 23 September 2021. The half-year corporate income tax return (PND. 51) for 2021 is extended to 23 September 2021.
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VietnamIncentives for small business: On 5 August 2021, the Ministry of Finance (MoF) published a draft resolution for further tax cuts for 2021 due to the COVID-19 pandemic. Accordingly, a 30% reduction in corporate income tax for SMEs is planned for the tax year 2021. A reduction in income tax of 50% for entrepreneurial households and private individuals in all sectors is also planned for the third and fourth quarters of 2021.
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