OECD Releases BEPS Reports

Posted on July 30th, by Global Tax Weekly in Base Erosion and Profit Shifting (BEPS). No Comments

As part of the ongoing BEPS project, the OECD released new BEPS Action 14 peer review reports on eight territories’ efforts to improve tax dispute resolution, for Argentina, Chile, Colombia, Croatia, India, Latvia, Lithuania and South Africa.

Under BEPS Action 14, jurisdictions have committed to implement a minimum standard to improve the resolution of tax-related disputes between jurisdictions. The OECD has released new Stage 2 reports for the territories. These evaluate the progress made by these eight jurisdictions in implementing any recommendations resulting from their Stage 1 peer review.

The BEPS Action 14 minimum standard covers a number of areas: dispute prevention, access to Mutual Agreement Procedure dispute resolution, how effectively MAP cases are resolved, implementation of MAP agreements, MAP guidance, and MAP data reporting.

According to the OECD, there has been positive change in all eight jurisdictions. Not all territories are making … Read More »

Italy Announces Social Security Exemptions

Posted on July 23rd, by Global Tax Weekly in Individual Taxation. No Comments

In Italy, it was announced that the European Commission has approved a EUR2.5bn Italian scheme to support self-employed individuals and certain healthcare professionals in the context of the coronavirus outbreak, by partially exempting them from social security contributions.

The scheme involves exempting self-employed individuals and certain healthcare professionals from social security contributions for the year 2021, up to a maximum annual amount of EUR3,000 per person, and will be open to self-employed individuals who have suffered a decrease in turnover or professional fees of at least one third in 2020, compared with 2019, and whose 2019 overall income subject to such social contributions did not exceed EUR50,000.

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

Liechtenstein Voices Concerns Over OECD Plans

Posted on July 15th, by Global Tax Weekly in OECD. No Comments

Following the OECD’s announcement that 130 (subsequently revised upwards to 131) countries and jurisdictions had signed up to an international agreement on an overhaul to tax rules for the digitalized economy and for large multinational businesses, a number of lower tax and smaller financial centers expressed concerns.

For example, the Government of Liechtenstein stated that: “Liechtenstein’s position remains that everything must be done to find a global solution that does not interfere even more with the sovereignty of the individual states, does not hinder economic development, and leads to the lifting of unilateral measures. In particular, the positions of small and competitive countries must also be taken into account. Intensive work is still necessary to translate the global consensus into a globally implementable solution. The next meeting of the Inclusive Framework is scheduled for October 2021. Liechtenstein is coordinating intensively with various states … Read More »

Canada Announces GST/HST Changes

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

New goods and services tax and harmonized sales tax (GST/HST) obligations were introduced on Canada, on July 1, for overseas providers of digital goods and services, who are now required to collect and remit GST/HST on:

video or music streaming services;
platform-based short-term accommodation, like homestays or vacation rentals; and
goods supplied through fulfillment warehouses in Canada.

Affected businesses are required to register for, charge, collect, and remit GST/HST on these products and services. Once registered, businesses are to be listed on an online registry, available on the Canadian Government’s website.

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

IMF Encourages Dutch Caribbean Islands to Introduce VAT

Posted on July 5th, by Global Tax Weekly in Sales Tax. No Comments

The IMF has urged Dutch Caribbean territories, Curacao and Sint Maarten to look to value added taxes to secure their financial futures, in its annual tax policy report on their economies.

For Curacao, the IMF said while the turnover tax planned by the new government in Curacao will be a step towards a value-added tax, significant deviations persist. The IMF suggested that, while Curacao must broaden the tax base and streamline the tax system and make it growth friendly, “Curacao would benefit from moving to a full-fledged VAT with parameters calibrated to increase government revenue.”

On tax reform in Sint Maarten, the IMF observed that: “The planned tax policy reforms would benefit from more specificity and incorporating the advice from recent IMF technical assistance.” It stated that: “The turnover tax ought to be maintained unless [the southern, Dutch side of the island] … Read More »


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