Corporation Tax


Poland’s ‘Estonia Style’ Corporate Tax System Takes Effect

Posted on January 22nd, by Global Tax Weekly in Corporation Tax. No Comments

In Poland, the implementation of the country’s new ‘Estonia style’ corporate tax system continues apace, with the publication of new forms to be completed by companies seeking to avail themselves of the regime.

On January 1, 2021, Poland introduced a new tax regime for companies whose revenues do not exceed PLN100m (USD26.6m), which provides for an exemption from tax on reinvested profits.

On December 10, 2020, the Ministry released draft guidelines on the new regime, in Polish, including step-by-step instructions, over more than 120 pages, on the process for entering, exiting, and complying with the regime.

And earlier this month, the Polish Government published in its Journal of Laws a regulation including two forms that must be filed to opt into the regime, namely to request to join the regime and to disclose details required regarding the company’s shareholders.

For more information on this, … Read More »


New French Finance Law Published

Posted on January 7th, by Global Tax Weekly in Corporation Tax, Sales Tax. No Comments

On December 30, the French Government published the 2021 Finance Law in the Official Journal.

This included numerous recently announced corporate tax reliefs, including increasing the annual turnover threshold for small companies to qualify for the 15 percent concessionary rate of corporate tax to EUR10m, from EUR7.63m, with effect from January 1, 2021.

In addition, new Article 2b set new withholding tax bands and rates for non-resident individuals’ employment income for 2021, as follows:

income up to EUR15,018, zero percent;
income thereafter up to EUR43,563, 12 percent (or eight percent for recipients situated in overseas French departments); and
income above EUR43,563, 20 percent (or 14.4 percent for recipients in overseas French departments).

Additional measures included reducing the burden of three local level taxes, and proposals to introduce a VAT group regime, enabling groups of companies to be represented by a single entity for VAT purposes and … Read More »


Tax Break For Companies On The Turkish Stock Exchange

Posted on November 20th, by Global Tax Weekly in Corporation Tax. No Comments

In Turkey, a corporate tax break for businesses that newly issue their shares on Borsa Istanbul has been approved.

With the exception of certain financial services companies, businesses which list their shares on the stock exchange for the first time will benefit from a reduced rate of corporate tax of 18 percent, down from 20 percent, for up to five years. Law No. 7256, published on November 17, 2020 provides that the measure will be offered for fiscal years beginning on or after January 1, 2021.

At least 20 percent of a company’s shares must be offered in order for the business to avail itself of the reduced rate.

An earlier iteration of the law was to include a provision allowing the president discretion to lower the corporate income tax rate by up to five percentage points. However, this provision was removed from … Read More »


Poland Ponders Corporate Tax Reform

Posted on October 23rd, by Global Tax Weekly in Corporation Tax. No Comments

Two bills currently before Poland’s parliament would bring about sweeping changes to the country’s corporate tax rules. Some of the proposed changes were consulted on over the summer.

The legislation under discussion would establish an “Estonian-style” corporate tax regime. Under Estonia’s corporate tax system, tax is generally due only when profits are distributed. According to the Polish Ministry of Finance, the planned moves aim to encourage companies to retain profits and reinvest them into the economy, in order to help the country to recover from the COVID-19 crisis. In the tabled bill, the Polish Government has proposed to expand access to the concessionary tax regime, by enabling access for companies whose revenues do not exceed PLN100m (USD26.6m), up from PLN50m under the original plans.

If approved, the amendment to the corporate income tax act would enter into force from January 2021.

The second … Read More »


Netherlands Cancels Planned Corporate Tax Reduction

Posted on September 21st, by Global Tax Weekly in Corporation Tax. No Comments

The Dutch Government’s 2021 Tax Plan, unveiled in mid-September, revealed that a planned decrease in the headline corporate tax rate from 25% to 21.7% as of 2021 was being shelved. However, a parallel tax cut for small companies from 16.5% to 15% will still go ahead, applying from 2021 on profits up to EUR245,000, up from EUR200,000 currently (with this threshold increasing further, to EUR395,000, in 2022.)

The plan also includes proposals for a carbon tax from January 1, 2021, at an initial rate of EUR30 per tonne, and on the personal income tax front, contains a planned measure to increase the tax rate on savings and investment income, or “box 3″ income, from 30 to 31 percent from 2021.

For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look


Poland Begins Corporate Tax Consultation

Posted on August 5th, by Global Tax Weekly in Corporation Tax. No Comments

On July 31, 2020, the Polish Ministry of Finance announced the launch of a consultation on plans to introduce an “Estonian-style” corporate tax regime.

Under Estonia’s corporate tax system, tax is generally due only when profits are distributed. The Polish proposals are intended to encourage companies to retain profits and reinvest them into the economy, thereby helping the country to recover from the COVID-19 crisis.

The proposals are aimed at small- and medium-sized companies, and the Ministry previously said that the regime would be subject to certain restrictions on shareholdings, passive vs. active income, the reinvestment of profits, and revenue thresholds. If approved, the new corporate tax rules would enter into force from January 2021.

For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look


Uzbekistan Announces Reforms

Posted on November 28th, by Global Tax Weekly in Corporation Tax, Sales Tax. No Comments

In Uzbekistan, the government confirmed recently announced changes to the country’s corporate income tax and VAT regimes in the 2020 Budget.

In line with an earlier announcement, the Budget included a cut to the VAT rate to 15 percent from 20 percent effective from October 1, 2019. The Budget also confirmed the Government’s plans to remove the flat rate VAT scheme for certain medium-sized enterprises.

Further, the Budget provided for an increase to the headline corporate tax rate from 12 percent to 15 percent.

Other measures included a reduction in the single social payment from 25 to 12 percent for state enterprises, and legal entities in which the state owns at least 50 percent of its authorized capital, and the introduction of a new tax system for individual entrepreneurs, who will newly pay a fixed tax rate based on their actual income.

For more … Read More »


Brexit Causing Distractions

Posted on September 27th, by Global Tax Weekly in Corporation Tax. No Comments

It had been reported that Boris Johnson’s UN General Assembly appearance would be dominated by announcements of “rolling out the red carpet” to investors, particularly from the United States, with a proposed reduction in the corporate income tax rate to 17% planned to set the cat among the European pigeons, post-Brexit, and a trade deal with the US hoped to be on the cards.

However, the major Boris Brexit Blockbuster speech was somewhat derailed by events in the courts back home, and his speech on technology matters (a key planned focus area once freed from European regulatory and tax ‘shackles’) as delivered to the UNGA was – by all accounts – both perplexing and perplexed, taking in limbless chickens, Greek mythology and malevolent household AI.

Matters of tax and economics have remained mostly off the table since the Prime Minister’s earlier than anticipated … Read More »


French Digital Services Tax Approved

Posted on July 22nd, by Global Tax Weekly in Corporation Tax. No Comments

On July 11, 2019, France’s proposed digital services tax received Parliamentary approval, following approval from the Senate.

The three percent turnover tax will be imposed (retrospectively on turnover realized from January 1, 2019) on digital companies providing advertising services, selling user data for advertising purposes, or performing intermediation services. Companies with global revenues of EUR750m (USD852m) or more and French sales of at least EUR25m will be required to pay the tax.

The tax is intended to be a temporary measure until an agreement is reached on international digital tax measures at the OECD. However, in the meantime, I’m sure the additional revenue will be welcomed by the French authorities. (Despite being not as much as one might expect, having been estimated at an additional EUR500m per year, from approximately 30 companies.)

For more information on this, and other topical international tax matters, … Read More »


Irish Government Urged To Reduce Reliance On Corporation Tax Receipts

Posted on June 13th, by Global Tax Weekly in Corporation Tax. No Comments

In early June, the European Union recommended that Ireland broaden its tax base and take further steps to crack down on aggressive tax planning. The EU said that Ireland’s public finances have improved, but suggested that the risks of revenue volatility remain and that the revenue base could be made more resilient. According to the EU, “limiting the scope and number of tax expenditures and broadening the tax base would improve revenue stability in the face of economic volatility.” The Union recommended that Ireland should “continue to address features of the tax system that may facilitate aggressive tax planning, and focus in particular on outbound payments.”

Then, hot on the heels of the EU grumblings, not for the first time, the Irish Fiscal Advisory Council warned the Government about funding spending increases or tax relief with high corporate tax receipts. According … Read More »





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