The EU’s VAT E-Commerce Reform package is set to come into force on July 1, 2021.
Various of the EU member states – including most recently Poland, which saw its Council of Ministers sign off on the adoption of the new measures – have said that they are good to go with regard to the package, which aims to level the playing field between online and ‘bricks and mortar’ providers of goods and services, in addition to ensuring that the right amount of VAT gets collected, and in the ‘right’ places, by steering things towards the destination principle of taxation.
However, a number of business associations in the EU, including those most likely to feel the impact of the measures as they will be required to administer certain aspects of it, have argued that the EU as a whole may not be … Read More »
President Biden fleshed out his forthcoming tax direction for businesses, with the publication of “The Made in America Tax Plan”.
The report, released by the US Treasury, provided in-depth detail on the announcements made by Biden’s Administration at the beginning of April and the objectives behind the policies.
As well as hiking the rate of corporate tax to 28 percent from 21 percent, Biden’s Administration has announced the following changes to measures introduced by the former administration in 2017:
The rate of tax on global intangible low-taxed income (GILTI) will be doubled to 21 percent and it will be calculated on a per-country basis;
Tax on GILTI will apply from the first cent, rather than on the portion of income that exceeds a notional 10 percent rate of return on an investment in a foreign country;
The Administration has said it intends to “repeal the … Read More »
In Spain, the Government has decided to pump the brakes on the administrative requirements relating to the new Financial Transactions Tax, with the tax authority announcing a further extension to compliance deadlines for taxpayers liable to the country’s new financial transactions tax.
Spain’s financial transactions tax applies to the shares of Spanish companies with a market capitalization of EUR1bn or more. It features a 0.2 percent rate, and bonds and derivatives are excluded from its scope. The tax was introduced in Law 5/2020 of October 15, 2020, on the Tax on Financial Transactions, which became effective on January 16, 2021.
Financial transaction tax returns are to be due monthly. Typically, the return will be due between the 10th and the 20th of the month following the relevant month.
Previously, the tax agency had stated that taxpayers would not be required to submit their … Read More »
In the United States, it emerged that the US is still considering introducing taxes on six countries’ exports in response to their digital services tax regimes.
On March 26, 2021, the US Trade Representative (USTR) announced the next steps in its Section 301 investigations of digital services taxes adopted or under consideration by 10 US trading partners.
In June 2020, USTR initiated investigations into digital services taxes proposed or introduced in Austria, Brazil, the Czech Republic, the EU, India, Indonesia, Italy, Spain, Turkey, and the UK.
In January 2021, the USTR concluded that the digital services taxes adopted in Austria, India, Spain, Turkey, and the UK were discriminated against US digital companies, were inconsistent with principles of international taxation, and burdened US companies. It considered these are actionable under Section 301 of the Trade Act of 1974, which gives the USTR broad authority … Read More »