France Announces SME Scheme

Posted on August 31st, by Global Tax Weekly in SMEs. No Comments

The French authorities have been looking to bolster the country’s small business sector, and have announced a scheme to allow small companies to request a specific settlement plan for the payment of their taxes.

The scheme, unveiled by the General Directorate of Public Finance is aimed at micro-, small- and medium-sized firms and sole traders particularly affected by the economic consequences of COVID-19, and covers VAT and withholding tax due for the months of February to April 2020, which should have been paid from March to May 2020. It also covers balances of corporate tax and contribution on added value (CVAE), which was due to be paid between March and May 2020.

Tax debtors will be allowed up to 36 months to pay the tax debts.

Those claiming the relief must have started their business activity no later than December 31, 2019, and … Read More »

Calls For Clarity On US Payroll Tax Deferral

Posted on August 26th, by Global Tax Weekly in Compliance. No Comments

In the United States, while all eyes are on the forthcoming Presidential election, behind the bluster and bombast there are attempts to keep the business of doing business running smoothly, with the US Chamber of Commerce joining calls for the Treasury Department to issue clear guidance on the recently announced payroll tax deferral.

Earlier this month, President Trump signed an executive order requiring Treasury to defer the collection and payment of employee payroll taxes for the period September 1, 2020, until December 31, 2020. The deferral is available to employees whose wages or compensation was less than USD4,000 during any bi-weekly pay period, calculated on a pre-tax basis, or the equivalent amount with respect to other pay periods.

Trump signed the order, bypassing Congress, after talks between Republicans and Democrats on a new COVID-19 tax bill stalled. Trump said in comments alongside … Read More »

Costa Rica Introduces VAT On Digital Services

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

Costa Rican Ministry of Finance had confirmed plans to introduce VAT at 13 percent on cross-border digital services rendered by foreign businesses to Costa Rican consumers from August 1. The move was designed to bring the country into line with the BEPS Action 1 recommendations of the OECD on tackling the tax issues of the digitalized economy.

Either digital services providers or payment processing firms are responsible for collecting and remitting VAT on services rendered to Costa Rican consumers. The delay, announced on July 31, is so that financial entities can finalize the necessary computer system changes, the Finance Ministry explained.

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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:


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