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 (1)

France

Responsive image

France to Close Tax Regularization Program end of 2017

In a recent interview published in the French publication Libération, France's Minister of Public Action and Accounts Gérald Darmanin announced that the country's tax regularization program will be closed on 31 December 2017. The program was first introduced in 2013 and provides for reduced penalty rates on disclosed assets (previous coverage). The primary reason for the closure of the program is the implementation of the OECD's Common Reporting Standard (CRS) on the automatic exchange of financial account information, which provides France with more powerful means to detect evasion.

Proposed Changes (4)

Australia

Responsive image

Australia Consults on Eligibility for Reduced Corporate Tax Rate

On 18 September 2017, the Australian Treasury launched a public consultation on the Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Bill 2017. The legislation would amend the Income Tax Rates Act 1986 to ensure that a corporate tax entity would only qualify for Australia's reduced corporate tax rate if:

  • The corporate tax entity carries on a business in the income year;
  • The aggregated turnover of the corporate tax entity for the income year is less than the aggregated turnover threshold for that income year; and
  • The corporate tax entity does not have passive income for that income year of 80% or more of its assessable income for that income year (new condition).

Currently, the reduced rate is 27.5% as set by the Treasury Laws Amendment (Enterprise Tax Plan) Act 2017 (previous coverage). The reduced rate is available for smaller companies (base rate entities) meeting an aggregated turnover threshold of AUD 10 million for 2016-17, AUD 25 million for 2017-18, and AUD 50 million for 2018-19. A separate bill, the Treasury Laws Amendment (Enterprise Tax Plan No. 2) Bill 2017, is currently before the House of Representatives and would progressively extend the reduced rate to all companies by 2023-24. If this bill enters into force and commences, the restriction based on passive income would apply accordingly as the turnover threshold increases each year and would be repealed effective 2023-24.

Click the following link for the Treasury consultation page. The closing date for submissions is 29 September 2017.

Austria-Bulgaria-Greece-Portugal-Romania-Slovenia-European Union

Responsive image

Austria, Bulgaria, Greece, Portugal, Romania, and Slovenia Support Equalization Tax on Digital Companies

The Finance Minister of Austria, Bulgaria, Greece, Portugal, Romania, and Slovenia have reportedly signed on to the letter asking the European Commission to develop a proposal for an equalization tax that would be levied on the turnover generated by digital companies in the EU (previous coverage). This and other proposals for the taxation of the digital companies were discussed during an informal meeting of economic and financial affairs ministers (ECOFIN) on 15 to 16 September. A summary of possible solutions is to be prepared by the European Commission for further discussion in the coming weeks.

Netherlands

Responsive image

Dutch Budget and Tax Plan for 2018 Presented

On 19 September 2017, Finance Minister Jeroen Dijsselbloem presented the Dutch Budget for 2018 to Parliament. Some of the main measures of the accompanying Tax Plan for 2018 include:

  • Expanding the dividend withholding tax obligation to qualifying interests in holding cooperatives (rights to at least 5% of the annual profit or the liquidation proceeds), if in the previous year, at least 70% of the actual activities of the cooperative consisted of the holding of participations or the direct or indirect financing of related entities (group financing);
  • Extending the withholding exemption that applies for EU/EEA countries to also apply for third countries that have concluded a tax treaty with the Netherlands that includes dividend provisions;
  • Introducing new anti-abuse provisions with regard to both the EU/EEA dividends withholding tax exemption and the new treaty exemption, which provide that the exemptions will not be available if the participation is held with the main purpose or one of the main purposes for the avoidance of tax, and the participation is part of an artificial arrangement or transaction, or series of arrangements/transactions, that are not put in place for valid commercial reasons reflecting economic reality; and
  • Changing the scope of the non-resident corporate income tax rules for substantial shareholdings in a Dutch company so that a non-resident entity will only be taxed on income from substantial shareholdings if personal income tax of an indirect shareholder of the Dutch entity is avoided (exemption continues to apply where valid commercial reasons exist, but is updated in line with the new anti-abuse rules for dividend withholding exemption).

Other measures of the tax plan include, amendments to the interest restriction rules with respect to parallel funding, rules to avoid double use of losses in fiscal unity situations, abolition of the VAT agriculture regime and tax amnesty scheme, and specific provisions for the acceptance of Country-by-Country reports filed voluntarily in another jurisdiction as meeting the conditions to avoid local filing.

Click the following link for the Tax Plan 2018 package (Dutch language).

Russia

Responsive image

Russian Government Supports Bill to Extend Refund Application Time Limit

The Russian Government has announced its support for draft Bill No. 223287-7, which would extend the time limit for taxpayers to claim a refund of excessively collected taxes, fees, social contributions, penalties, and fines. Currently, taxpayers must submit a refund application within one month of discovering the excessive collection; otherwise, a claim must be filed with the courts within three years. The draft Bill would simplify the process and reduce court cases by just extending the time limit to submit an application to three years.

Treaty Changes (3)

Bulgaria-Morocco

Responsive image

Bulgaria Approves Pending SSA with Morocco

On 7 September 2017, Bulgaria’s National Assembly reportedly approved the pending social security agreement with Morocco. The agreement, signed 21 September 2016, is the first of its kind between the two countries, and will enter into force after the ratification instruments are exchanged.

Jordan-Tajikistan

Responsive image

Jordan and Tajikistan Conclude Tax Treaty Negotiations

According to a release from the Tajikistan Ministry of Finance, officials from Jordan and Tajikistan concluded negotiations with the initialing of an income and capital tax treaty on 14 September 2017. The treaty will be the first of its kind between the two countries, and must be signed and ratified before entering into force.

Poland-Israel

Responsive image

Poland Approves Pending SSA with Israel

On 15 September 2017, the Polish Sejm (lower house of parliament) approved the law ratifying the pending social security agreement with Israel. The agreement, signed 22 November 2016, is the first of its kind between the two countries and will enter into force after the ratification instruments are exchanged.

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

Translate Documents

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

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