The new UK Chancellor, Rishi Sunak, revealed his maiden budget on March 11. In it, Sunak pledged to waive business rates on small retailers, to introduce a new tax on plastics, and to remove value-added tax on electronic publications.
The Chancellor announced that any eligible retail, leisure, or hospitality business with a rateable value below GBP51,000 (USD65,670) would, over the coming financial year, pay no business rates, the UK’s commercial property tax. Further, he revealed that the government will provide support for businesses struggling with paying their tax dues, by “scaling up” the Time to Pay service.
It also emerged in the budget that the UK Government had decided to reduce the lifetime limit for Entrepreneurs’ Relief to GBP1m (USD1.25m) from GBP10m, affecting qualifying disposals on or after March 11, 2020. Entrepreneurs’ Relief reduces the amount of capital gains tax paid on … Read More »
Malaysia has set out its plans for new tax incentives in its 2020 Budget, which are intended to attract investment from multinationals and innovative firms. It also confirmed plans for a digital services tax from next year, and announced a new top personal income tax rate.
The Government revealed that it is undertaking a comprehensive revamp of its existing tax incentive framework, with new regimes to be in place from January 1, 2021. For instance, MYR1bn (USD238m) worth of incentives will be granted to large multinationals in high-tech, manufacturing, creative, or “new” industries. To qualify, companies would need to invest at least MYR5bn and create 150,000 jobs over five years. Further, the Government is to offer another MYR1bn in tax breaks to export-focused businesses.
Companies engaged in the electrical and electronics industry that will support Malaysia’s transition to 5G technology and other … Read More »
In Ireland, on September 11, the Irish Finance Department revealed that given the lack of clarity regarding the timing and format that the UK’s exit will take, and with the Budget just four weeks away, the Government has decided to formulate the Budget on the basis of a disorderly Brexit.
The Irish authorities have reported that they are committed to a budgetary package of EUR2.8bn, EUR2.1bn of which has been pre-committed to spending measures. This leaves about EUR700m for tax-side measures.
The Department said that the Government is taking a “twin-track” approach to the Budget. This involves funding services and making progress on particular policy areas and supporting sectors and regions most exposed to Brexit-related disruption.
Finance Minister Paschal Donohoe explained that: “A no-deal Brexit will have profound implications for Ireland on all levels. These include macroeconomic, trade, and sectoral challenges, both immediately … Read More »
At the start of August, the Indian authorities published in the country’s official Gazette the measures announced in the July 5 budget, which have since received Presidential Assent. Among the key measures contained in the budget were provisions to ensure that the scope of the lower 25 percent corporate income tax rate will be expanded to cover the vast majority of Indian businesses, with a figure of 99.3 percent having been mooted.
Previously, the lower 25 percent rate is levied on those businesses with turnover not exceeding INR2.5bn (USD36.5m), and on manufacturing firms. This threshold is being raised to INR4bn.
Other salient tax measures in the Budget, in addition to measures impacting individual taxpayers, included the launch of a new dispute resolution service to resolve legacy service tax and excise duty-related disputes; confirmation that there will be a single monthly GST return … Read More »
The Indian Government announced in the recent Budget that the scope of the lower 25 percent corporate income tax rate would be expanded to cover 99.3 percent of Indian businesses.
Currently the lower 25 percent rate is levied on those businesses with turnover not exceeding INR2.5bn (USD36.5m), and on manufacturing firms. This threshold will be raised to INR4bn.
The Budget also confirmed a number of administrative simplifications, including the introduction of a single monthly GST return. The Budget also proposes to extend, until March 31, 2021, the exemption from capital gains tax on gains arising from the sale of a residential house where the capital is used to invest in a start-up. The Government said it would also relax the eligibility conditions.
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
Barbados recently announcing sweeping changes to its personal income tax and VAT regimes. Effective July 1, 2019, Barbados will remove the 16 percent lowest income tax rate and the second rate of 33.5 percent. Instead, the lowest tax rate on income up to BSD50,000 will be 12.5 percent. The rate on income above this threshold will fall from 40 percent to 33.5 percent, between July 1, 2019, and December 31, 2019, and from January 1, 2020, the rate will fall to 28.5 percent.
However, while this sounds, on the surface of it, to be good news for Barbadians, from May 1, a new obligation has been introduced for foreign suppliers to charge VAT on supplies to consumers in the jurisdiction, in addition to the introduction of a 20 percent withholding tax on gambling winnings from lotteries and betting, new limits on … Read More »
Chancellor of the Exchequer Philip Hammond has apparently acquired the nickname in parliamentary circles of “Spreadsheet Phil.” This is suggestive of a man who likes to play around with numbers. A lot. Not the best company at parties, perhaps. A meticulous planner maybe, not given to spontaneous policy announcements. Except that he kind of is. His first Budget as Chancellor was marked by dramatic about-turn on self-employment taxation, and his latest Budget, announced October 30, by a digital services tax, set to commence in 2020. Incidentally, Hammond moved Budget day forward by one day so it wouldn’t be announced on October 31 – Halloween – and suffer a pun-fest at the hands of the media. As it turned out, the 2018 Budget was largely free from tax horrors. But many businesses will surely have been a least a little bit … Read More »
Italy’s tax regime leaves a lot to be desired. Although, there are some disagreements, and principally how bad things are. The Tax Foundation ranks Italy 34th out of 35 OECD economies, so it’s safe to say that there’s room for improvement there. PwC, on the other hand, places the country in 112th place globally. That means it’s (albeit marginally) easier for a business to pay its taxes in Lesotho (111th), the Federated States of Micronesia (110th), and the West Bank and Gaza (109th), which is hardly a ringing endorsement of the Italian tax system. In other words, opinions of Italy’s tax regime range from dire to disastrous.
However, for all its controversial policies, one thing that Italy’s populist coalition Government is trying to achieve is to give business taxpayers something of a break. For small firms and the self-employed, there’s a … Read More »
India’s 2018 Budget barely registered a blip of the excitement scale. But it is still worth mentioning for a number of reasons. Not least because Finance Minister Arun Jaitley has managed to upset pretty much everybody with some unpopular – some observers say misguided – measures. I thought it was in the politician’s DNA that, as a minimum, they at least attempt to please some of the people, some of time, so this could be considered something of a rate feat.
For a Government that has prioritized foreign investment and improving its “doing business” ratings, this is a strange Budget indeed. Investors have immediately seized upon the proposal to reintroduce a tax on long-term capital gains, which was replaced by a securities transactions tax back in 2004. However, the latter tax remains in place, increasing the prospect of cascading taxation for … Read More »
Perhaps one ray of light exists for taxpayers attempting to make sense of the United Kingdom’s chaotic political backdrop – there won’t after all be yet another “emergency” summer budget. Taxpayers have no doubt had quite enough of summer budgets, autumns statements, and spring announcements, and therefore the decision by Chancellor of the Exchequer Philip Hammond to forgo a post-election fiscal statement in favor of waiting for the scheduled Budget towards the end of this year could be interpreted as a sensible move, allowing time for the dust storm to settle.
On the other hand, it could be argued that if there was ever a need for an emergency budget, it is now. For if attempting to leave the European Union with a weak Government wrought with internal divisions, and with a leader who in political terms looks increasingly like a dead woman … Read More »