November2019


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 »


Slovenia Announces Tax Changes

Posted on November 21st, by Global Tax Weekly in Individual Taxation. No Comments

In Slovenia, the government recently announced plans to implement sweeping changes to corporate, personal, and capital gains taxes.

Under proposed legislation, a corporate minimum tax of seven percent will be introduced. This is intended to ensure that companies which substantially reduce their tax liabilities by utilizing tax credits and offsets, including loss carryforwards, pay a minimum level of corporate tax.

For personal income tax payers, the amendments increase tax thresholds and reduce the tax rates for the second and third tax brackets by one percent to 26 and 33 percent.

The proposed amendments also include changes to the rate of taxation for capital income, rental income and income from derivatives, which will increase from 25 to 27.5 percent. For capital gains and derivatives income, the tax rate falls depending on the length of time an asset is held. For assets held for between … Read More »


Switzerland Makes VAT Changes

Posted on November 13th, by Global Tax Weekly in Sales Tax. No Comments

In its latest Economic Survey of Switzerland, the OECD called for a rebalancing of the country’s tax mix, recommending shifting that mix towards more growth-friendly sources in order to help prepare the system for the impact of an anticipated wave of aging Swiss citizens.

The OECD observed that Switzerland “relies more on direct taxation and social security contributions than most other OECD countries, at two-thirds of revenues.”

It went on to suggest that government plans, to raise the VAT rate by 0.7 percentage points and reduce disincentives to work for second-earners in families, are steps in the right direction.

The OECD recommended that VAT exemptions and reduced rates should be “wound back” to finance lower personal income taxes, particularly on lower income earners. It added that the cantons could make more use of the recurrent taxation of immovable property and that there is … Read More »


US Considers Beneficial Owner Legislation

Posted on November 7th, by Global Tax Weekly in Compliance. No Comments

The House of Representatives has approved bipartisan legislation that would require certain new and existing small corporations and limited liability companies to disclose information about their beneficial owners.

The bill, known as the Corporate Transparency Act of 2019, was sponsored by Carolyn B. Maloney (D-NY) and co-sponsored by Peter King (R-NY) and Tom Malinowski (D-NJ).

Under the proposed legislation, certain entities applying to form a corporation or limited liability company would have to file beneficial ownership information with the Financial Crimes Enforcement Network (FinCEN). Additionally, certain existing corporations and limited liability companies would have to file this information with FinCEN two years after the implementation of final regulations required under the bill.

The bill defines a beneficial owner as an individual who:

exercises substantial control over a corporation or limited liability company;
owns 25 percent or more of the interest in a corporation or limited … Read More »


Italy Restricts VAT Deductions For Vehicles Expenses

Posted on November 1st, by Global Tax Weekly in Sales Tax. No Comments

On October 16, the European Commission published a proposal for a Council Implementing Decision enabling Italy to continue restricting the right to deduct input VAT on vehicles-related expenses.

On April 12, 2019, Italy had requested an authorization to continue to derogate from the EU VAT Directive by limiting to 40 percent the right to deduct input VAT charged on expenditure related to motorized road vehicles not wholly used for business purposes. The Commission said that the rate of 40 percent appears to reflect adequately the actual business use of such vehicles.

In addition, Italy requested an authorization to continue to derogate from the VAT Directive by exempting from VAT the use for private purposes of vehicles included in the assets of a taxable person’s business, where such vehicles are subject to a restriction of the right to deduct.

Italy was first authorized to … Read More »





RELATED ARTICLES AND INFORMATION

EU Changes Excise Duty Rules On Alcohol

EU member states have reached a provisional agreement on modernized taxation rules for alcohol products, following a meeting held on June 24, at which...

Germany And Bulgaria Announce VAT Reductions

In Germany, the much discussed fiscal stimulus package has been approved by the Federal Cabinet, paving the way for a reduction in the standard...

US Overseas Taxpayers Receive Deadline Extension

The US Internal Revenue Service has reminded overseas taxpayers living and working abroad that they have an extra month to file their 2019 federal...