Budgets


Zambia Cuts Corporate Tax Rate

Posted on November 23rd, by Global Tax Weekly in Budgets. No Comments

The latest Zambian Budget is full to bursting with tax reforms, including a cut to the headline corporate tax rate and mining tax regime amendments.

The Budget featured a cut to the standard corporate tax rate from 35 percent to 30 percent, with the rate for telecommunications companies remaining at 40 percent and the 15 percent concessionary corporate tax rate for the hospitality sector to be extended until the end of 2022. A corporate tax waiver is to be introduced for manufacturers of ceramics during 2022 and 2023, and the period for disallowed interest deduction carry forward will be increased to 10 years from five years.

For the mining sector, the Budget proposed making mineral royalties again deductible for corporate tax purposes, and to broaden the tax base, it proposed extending property transfer tax to transfers of mineral processing and other mine … Read More »


Kenyan Budget Has BEPS Focus

Posted on June 18th, by Global Tax Weekly in Budgets. No Comments

On June 10, Kenya unveiled its 2021-22 budget, which had a BEPS focus, and contained a number of changes to the country’s international tax and value-added tax rules.

The Budget confirmed the introduction of new country-by-country (CbC) reporting requirements, based on the OECD BEPS Action Plan framework, for multinational groups. Reporting will be required for financial periods beginning from January 1, 2022, with a CbC report due within 12 months of the end of the relevant fiscal period.

The legislation also looks to amend the country’s permanent establishment provisions, introduces new provisions to deny treaty benefits in inappropriate circumstances, and allows companies to carry forward their losses indefinitely.

There will be considerable changes also for digital marketplaces and their business users. Those selling goods via marketplaces or digital platforms to Kenyan consumers will be required to obtain a tax identification number, and VAT … Read More »


UK Announces Tax Changes

Posted on March 11th, by Global Tax Weekly in Budgets. No Comments

Following the UK’s exit from the European Union earlier this year, and with the economy in the COVID doldrums, the UK Chancellor, Rishi Sunak, made a number of attention-grabbing announcements in his March 3 speech, including a hike to the headline corporate tax rate, new value-added tax and property tax relief measures for businesses, and the creation of a number of new freeports.

The Chancellor revealed that the corporate tax rate will be hiked to 25 percent from April 2023. Businesses with profits of GBP50,000 (USD69,800) or less will continue to benefit from the 19 percent rate, while a tapered rate will be introduced for profits above this ceiling such that only businesses with profits of GBP250,000 or more will be fully subject to the new 25 percent rate.

The Government has also announced that the rate of VAT for the tourism and hospitality … Read More »


Hong Kong Releases Budget

Posted on March 8th, by Global Tax Weekly in Budgets. No Comments

Hong Kong’s 2021-22 budget has been announced, in which the Government will waive up to HKD10,000 of profits tax, salaries tax, and tax under personal assessment, subject to a ceiling of HKD10,000 per case, and to certain provisos and conditions.

The Budget further also included a waiver of business registration fees for 2021-22 and an increase to the rate of ad valorem stamp duty from 0.1 percent to 0.13 percent of the consideration or value of each transaction of Hong Kong stock, payable by buyers and sellers.

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


Australia Announces Budget Measures

Posted on October 15th, by Global Tax Weekly in Budgets. No Comments

The Australian Government announced in its Budget that it would be bringing forward personal tax cuts that had been scheduled for 2022.

The Australian authorities additionally unveiled new reliefs for businesses, announcing that from October 6, 2020, until June 30, 2022, businesses with turnover up to AUD5bn will be able to deduct the full cost of eligible depreciable assets of any value in the year they are installed. The cost of improvements to existing eligible depreciable assets made during this period can also be fully deducted.

The Government also outlined plans for enhanced incentives for research and development, and revealed that companies with turnover up to AUD5bn will be allowed to offset losses against previous profits on which tax has been paid, to generate a refund.

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


UK Announces Budget

Posted on March 19th, by Global Tax Weekly in Budgets. No Comments

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 Announces 2020 Budget

Posted on October 17th, by Global Tax Weekly in Budgets. No Comments

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 »


Irish Budget Prepares For No-Deal Brexit

Posted on September 23rd, by Global Tax Weekly in Budgets. No Comments

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 »


Indian Budget Announced

Posted on August 12th, by Global Tax Weekly in Budgets. No Comments

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 »


Indian Budget Released

Posted on July 15th, by Global Tax Weekly in Budgets. No Comments

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





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