July2019


UK Summarizes Digital Services Tax

Posted on July 26th, by Global Tax Weekly in E-commerce. No Comments

The UK Government has released a summary of the feedback that it had received on its consultation on the new Digital Services Tax and set out amendments to its proposals to ensure the regime functions effectively and as intended.

Plans to introduce the levy were confirmed in the 2019 Budget, and are broadly in line with moves in other countries in this area. The Government has proposed that the tax will apply to revenue generated by search engines, social media platforms, and online marketplaces, to revenues from those activities that are linked to the participation of UK users. It will apply only to groups that generate global revenues from in-scope business activities in excess of GBP500m per year. Businesses will not have to pay tax on their first GBP25 million of UK taxable revenues.

According to the Government, with regard to the … 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 »


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


New Zealand Enacts New GST Legislation

Posted on July 10th, by Global Tax Weekly in Sales Tax. No Comments

New Zealand has enacted the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act. I honestly don’t know how they come up with these catchy names, I really don’t.

The legislation will introduce new GST collection obligations for low-value imported goods, and will make a number of “fairness changes” to the tax regime; one of the biggest changes will require offshore businesses that supply low-value goods (those worth NZD1,000 (USD667) or less) to New Zealand to collect GST. From December 1, offshore businesses who supply more than NZD60,000 of services and low-value goods per year will pass on GST directly to Inland Revenue.

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


Irish Government Plans Carbon Tax Raise

Posted on July 2nd, by Global Tax Weekly in Carbon Taxes. No Comments

The Irish Government recently announced plans to quadruple the carbon tax rate by 2030, as part of a major new package of policies aimed at combating climate change.

According to the Government’s new Climate Action Plan, “taxation policy can play a central role in incentivizing the behavioral change necessary to reduce greenhouse gas emissions.” The Plan commits the Government “to having in place a taxation framework, which plays its full part in exerting, along with other available policy levers, the necessary leverage to reduce our emissions.”

The carbon tax is currently charged at EUR20 per ton of CO2 equivalent. The charge is paid by the importer or the extractor on the content of fossil fuels. The rate has not changed since 2014.

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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