Corporation Tax


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 »


Swiss Corporate Tax Reforms Face Referendum

Posted on March 1st, by Global Tax Weekly in Corporation Tax. No Comments

The Swiss Government has invested a lot of energy and political capital into its efforts to make the Swiss corporate tax regime more internationally acceptable at the same time as appealing. But unlike the vast majority of other countries – perhaps unlike all other countries – on this matter it is answerable not only to parliament, but to the people.

Given recent events, referendums tend to mean one thing for governments, and that’s trouble. The less said about Brexit the better. But Switzerland has had a rather unhappy experience with referendums in the not-so-distant past too. The Government’s previous corporate tax reform legislation, CTR III, was shot down at the last hurdle in a referendum, and the recent news that the reforms proposed as a replacement to CTR III will also be subjected to a public vote couldn’t have filled the Government with … Read More »


Swiss Reforms Face A Difficult Passage

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

Can anything good really come from referendums? It’s the purest form of democracy, but recent history suggests such plebiscites can be more of a hindrance than a help. Enough said about the UK already. But it’s worth remembering how the Irish didn’t vote the way they were supposed to on the Lisbon Treaty back in 2007. Rather embarrassingly for all concerned, Ireland had to go back to the polls until it put enough crosses in the right box.

The Swiss of course love a referendum. It’s ingrained into their unique system of direct democracy. But where taxation is concerned, this system is causing the government a bit of grief. Switzerland is considered a pariah state by some of the world’s anti-avoidance and transparency campaigners. As such, it needs quite urgently to change its corporate tax regime. This is not only to … Read More »


Nike Under Scrutiny By The European Commission

Posted on January 16th, by Global Tax Weekly in Corporation Tax. No Comments

Nike is the latest multinational company to become embroiled in the European Commission’s tax ruling/transfer pricing/state aid investigations. It’s probably unlikely to be the last, either.

It’s my view these investigations aren’t about upholding the state aid rules. They’re about the EU being seen to be doing something about corporate tax avoidance. Because the trouble is it’s highly likely that the tax arrangements in question are perfectly above board. So it’s on shaky legal ground from the off.

For the EU, the probes will have likely damaged its reputation as a place to do business, as for businesses the impact of these cases is less to do with tax breaks and tax avoidance as to do with tax certainty. While we can argue all year long about the rights and wrongs of corporate tax planning, corporations like to know not only what’s … Read More »


Canada In A Tax Quandary

Posted on November 30th, by Global Tax Weekly in Corporation Tax. No Comments

Canada has been studying the US tax reforms and their potential impact on the Canadian business environment, economy, and investment since the start of the year. This indicates that it is clearly worried about the possible erosive effect they will have on Canada’s competitiveness.

However, while it was never likely that a Canadian Government that has accorded a high priority to tax fairness was going to match the US corporate tax cut dollar for dollar, business will be forgiven for not getting very excited about the outcome of the Finance Department’s review: new write-off incentives and an investment incentive.

Under the proposals, the Government will allow the full cost of machinery and equipment used in the manufacturing and processing of goods to be written off immediately for tax purposes. Immediate expensing will apply to qualifying assets acquired after November 20, 2018. It … Read More »





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