Get an immediate FREE trial of Orbitax's International Tax Research & Compliance Expert (ITRCE) software for 7 days.

The Tax Hub

Daily Tax Newsletter

Worldwide Tax News

Approved Changes (3)

Puerto Rico

Responsive image

Puerto Rican House of Representatives Shoots Down VAT Plan

The Puerto Rican House of Representatives on 30 April 2015 voted against the implementation of the VAT regime proposed by the government to help resolve Puerto Rico's budget issues, including mounting debt and difficulty raising needed funds. The initial proposed VAT rate was 16%, but later reduced to a 13% rate plus a 1% municipal tax. The VAT regime would have replaced Puerto Rico's 7% sales and use tax.

In response to the rejected measure, the government has announced government spending cuts, and will develop a new revenue proposal.

Romania

Responsive image

Romania Enacts Tax on Tips

Much to the chagrin of wait staff, bellhops, valet attendants and other tip earners throughout Romania, Emergency Ordinance No. 8, which includes provisions for the taxation of tips (gratuities), was published in Romania's Official Gazette on 28 April 2015.

Beginning 10 days following the publication of the Ordinance, tips paid in addition to the basic price of goods and services that are kept by the employer will be subject to a flat tax of 16% of profit, or 3% of income in the case of small enterprises. If the tips go to the employee, a 16% flat tax would apply on the income. VAT and social contributions do not apply.

Uruguay

Responsive image

Uruguay Announces Automatic Exchange of Tax Information in 2017

According to a notice published by the Uruguayan government, Uruguay will implement the automatic exchange of information in tax matters in 2017. Although Uruguay has committed to the implementation of the automatic exchange of information, it did not sign the OECD multilateral competent authority agreement to automatically exchange information, which has been signed by over 50 countries/jurisdictions.

Proposed Changes (1)

European Union

Responsive image

EU Commissioner Speaks on Agenda for Taxation in the Single Market

EU Commissioner for Economic and Financial Affairs, Taxation and Customs Pierre Moscovici recently spoke on his taxation agenda for the EU focused on "fairness, transparency and a truly single market from a taxation point of view." The two key actions discussed include:

  • The introduction of the automatic exchange of information on tax rulings by EU Member States in order to increase transparency and reduce harmful tax rulings; and
  • The launch of an action plan by mid-2015 that will build on the OECD Base Erosion and Profit Shifting (BEPS) Project to ensure that profits are taxed where the value is created, including the relaunch of the Common Consolidated Corporate Tax Base in the EU

Click the following link for a copy of Moscovici's speech published on the EU Commission website.

Treaty Changes (4)

Czech Rep-Iran

Responsive image

Tax Treaty between the Czech Republic and Iran Signed

On 30 April 2015, officials from the Czech Republic and Iran signed an income tax treaty. The treaty is the first of its kind between the two countries.

Taxes Covered

The treaty covers Czech tax on the income of individuals and the tax on the income of legal persons. It covers Iranian income tax.

Service PE

The treaty includes the provision that a permanent establishment will be deemed constituted if an enterprise furnishes services in a Contracting State through employees or other engaged personnel for a period or periods aggregating more than 6 months within any 12-month period.

Withholding Tax Rates

  • Dividends - 5%
  • Interest - 5%, however, an exemption is provided for interest paid in connection with the sale on credit of any merchandise or equipment, and on any loan or credit of whatever kind granted by a bank
  • Royalties - 8%

Capital Gains

The following capital gains derived by a resident of one Contracting State may be taxed by the other State:

  • Gains from the alienation of immovable property situated in the other State;
  • Gains from the alienation of movable property forming part of the business property of a permanent establishment in the other State; and
  • Gains from the alienation of shares or other interests in a company resident in the other State

Gains from the alienation of other property by a resident of a Contracting State may only be taxed by that State.

Double Taxation Relief

Both countries apply the credit method for the elimination of double taxation.

Entry into Force and Effect

The treaty will enter into force once the ratification instruments are exchanged, and will apply in the Czech Republic from 1 January of the year following its entry into force, and in Iran from 21 March of the year following its entry into force.

Ethiopia-Poland

Responsive image

Tax Treaty between Ethiopia and Poland under Negotiation

According to a recent announcement by the Polish government, negotiations are underway for an income tax treaty with Ethiopia and are expected to be concluded in the near future. The treaty will be the first of its kind between the two countries, and must be finalized, signed and ratified before entering into force.

Italy-Taiwan

Responsive image

Italy Approves the Negotiation of a Tax Treaty with Taiwan

On 15 April 2015, the Italian Chamber of Deputies approved a bill authorizing the negotiation if an income tax treaty with Taiwan. Any resulting treaty will be the first of its kind between the two countries, and must be finalized, signed and ratified before entering into force.

Netherlands-United Kingdom

Responsive image

Bank Double Taxation Agreement between the Netherlands and the UK Enters into Force

The double taxation agreement with respect to bank taxes between the Netherlands and the UK entered into force on 30 April 2015. The agreement, signed 12 June 2013, covers the Netherlands bank tax set out in the Law on bank tax, and the U.K. bank levy set out in Schedule 19 of the Finance Act 2011.

Under the agreement, when an entity resident in one country is a subsidiary of an entity resident in the other country, the first mentioned country will allow a credit against its domestic bank tax for the bank tax applied on the subsidiary by the other country. However, the credit will not be allowed if the head/parent of the group is an entity resident in the first mentioned country. The same method and restriction applies for permanent establishments.

The agreement applies retroactively from 1 January 2011.

Sitemap

Powerful Tax Tools

NEW

FX Rates

Global FX Rates including Tax Year Average FX Rates and Spot Rates for all Reporting Currencies.

NEW

Corporate Tax Rates

Corporate tax rates, surtaxes, and effective tax rates for the current year, as well as historical rates and approved future rates.

NEW

Country Analysis

Detailed tax guidance for companies doing business in over 100 countries, including summaries and snapshots of key tax facts and issues.

NEW

Cross Border Tax Calculator

Calculate total tax costs and benefits of a cross border transaction including withholding tax, participation exemption and foreign tax credit rules.

NEW

Cross Border Tax Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment streams.

NEW

OECD BEPS Project

Complete overview of the OECD BEPS Project, including daily BEPS news, country adoption of BEPS measures, and an overview of the 15 BEPS Actions.

NEW

Tax Calendar

Customizable calendar tool that tracks corporate income tax, value added tax and transfer pricing obligations by country or entity.

NEW

Tax Forms

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.

NEW

Worldwide Tax Treaties

Repository including thousands of tax treaties (in English), OECD, UN and US Models, relevant EU Directives, Technical Explanations, and more.

NEW

Worldwide Tax Planner

Calculates the worldwide tax cost of what-if scenarios based on legal entity structure, taxable income, and cross border transactions.

NEW

Certified Rates Report

Customizable Certified Rates Report providing updated corporate and withholding tax rates at the end of each month for over 100 countries.

NEW

Withholding Tax Minimizer

Enables quick calculation of tax costs and benefits of cross border transactions considering all possible transaction combinations and optimal routes.

NEW

VAT Rates

Provides value added tax (VAT) rates, goods and services tax (GST) rates and other indirect tax rates for over 100 countries.

NEW

NOL Calculator

Country specific calculator to determine how net operating losses can be utilized in carryback and carryforward years.

NEW

Transfer Pricing Calculator

Calculates TP ratios under various TP methods and calculates the difference between target ratios and actual ratios.

NEW

Individual Income Tax Rates

Individual tax rates for over 100 countries.

Play of the Day

Crosss Border Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment Streams.

Get Started with Orbitax Today

With Orbitax, you get reliable and comprehensive solutions for international tax research, compliance and planning. Contact us today to get started with Orbitax.

We’re here to help

We’re here to answer any questions you have about the Orbitax products and services.

Send us a message

Who’s behind Orbitax?

We’re committed to providing high value, low cost tax research and management solutions.

Learn More