October2020


Ireland Announces New COVID Measures

Posted on October 30th, by Global Tax Weekly in Business. No Comments

In Ireland, which is currently stepping back up the COVID restriction ladder, the Government announced changes to the Employment Wage Subsidy Scheme (EWSS) and the COVID Restrictions Support Scheme (CRSS).

EWSS has been in place since September 1, 2020. EWSS provides a flat-rate subsidy to qualifying employers based on the number of paid and eligible employees on the employer’s payroll. The employer must have tax clearance to be eligible to join the EWSS and remain “tax clear” in order to receive the subsidy.

The Government said that, broadly, the EWSS rates will be aligned with the rates of payment available under the Pandemic Unemployment Payment, up to EUR350 per week, effective from the next payroll date after October 19. The maximum weekly subsidy rate per employee was previously EUR203.

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


Poland Ponders Corporate Tax Reform

Posted on October 23rd, by Global Tax Weekly in Corporation Tax. No Comments

Two bills currently before Poland’s parliament would bring about sweeping changes to the country’s corporate tax rules. Some of the proposed changes were consulted on over the summer.

The legislation under discussion would establish an “Estonian-style” corporate tax regime. Under Estonia’s corporate tax system, tax is generally due only when profits are distributed. According to the Polish Ministry of Finance, the planned moves aim to encourage companies to retain profits and reinvest them into the economy, in order to help the country to recover from the COVID-19 crisis. In the tabled bill, the Polish Government has proposed to expand access to the concessionary tax regime, by enabling access for companies whose revenues do not exceed PLN100m (USD26.6m), up from PLN50m under the original plans.

If approved, the amendment to the corporate income tax act would enter into force from January 2021.

The second … Read More »


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 Clarifies VAT Rules

Posted on October 9th, by Global Tax Weekly in Sales Tax. No Comments

In the UK, while things are gearing up to get more complicated on pretty much all fronts, the tax authority sought to provide clarity certain aspects of the VAT rules, including with regard to the new reverse charge regime for the building and construction industry, now set to come into force in March 2021. (Originally due to be in place from October 2019, the measure had been postponed to October 2020. But now here we are, so…)

HM Revenue and Customs released three publications offering in-depth guidance on the introduction of the VAT reverse charge mechanism on the supply of building or construction services.

Under the new regime, in order to remove the possibility of “missing trader” fraud, a VAT-registered business which supplies certain construction services to another VAT-registered business for onward sale will be not be required to account for VAT, … Read More »


Australia Focussing On COVID-19 Compliance

Posted on October 2nd, by Global Tax Weekly in Government. No Comments

In Australia, the ATO is highlighting non-compliance by some businesses with the rules regarding eligibility for providing JobKeeper payments.

The JobKeeper Payment scheme is a temporary wage subsidy for businesses significantly affected by COVID-19. The ATO explained that although the majority of large businesses are doing the right thing, a small number have been identified that may have manipulated their projections or financial positions to access JobKeeper payments they aren’t entitled to receive.

The tax authority went on to reveal that it has also found that some businesses have not kept adequate records to support their enrolment in the scheme. The ATO therefore stated that it was encouraging businesses to review its guidance on eligibility for JobKeeper payments and on the records that should be maintained, and urged them to contact it for assistance if they have made an honest mistake or … Read More »





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