The Tax Hub

Daily Tax Newsletter

Worldwide Tax News

Approved Changes (4)

Italy

Responsive image

Italy Amends Decree on CbC Reporting

Italy has published the Ministerial Decree of 8 August 2019 in the Official Gazette, which amends the Ministerial Decree of 23 February 2017 on Country-by-Country (CbC) reporting. The Decree amends Article 7 on the use of CbC reports to provide that further to being used by the Italian Revenue Agency for the assessment of transfer pricing and BEPS risks, CbC data may also be shared with the Department of Finance upon request for the purposes of economic and statistical analysis. Other provisions of Article 7 are unchanged, including that information from CbC reports may be used to further investigations concerning transfer pricing, which may result in suitable adjustments to the tax base.

08-23-2019

Nigeria

Responsive image

Nigeria Holding Directors and Other Management Personally Liable for Company Tax Debts

On 19 August 2019 Nigeria's Federal Inland Revenue Service (FIRS) issued a notice that directors and other management of companies with outstanding tax debts will be held personally liable if not resolved within 30 days. The text of the notice reportedly includes the following:

This is to notify all companies, which had their bank accounts placed under lien by the Federal Inland Revenue Service pursuant to Section 31 of the Federal Inland Revenue Service Establishment (FIRSE) Act, but are yet to regularize their tax status with the FIRS, that if they fail, refuse or neglect to pay the tax due within 30 days of this Notice, the FIRS shall in accordance with Section 49 (2) (a-d) of the FIRSE Act proceed and enforce the payment of the said tax against all the Directors, Managers, Secretaries and every other person concerned in the management of the companies and recover the said tax from such persons without further notice.

For the avoidance of doubt, the above Section authorises the FIRS to proceed against and punish every officer, manager, director, secretary or any person concerned with the management of the company in like manner as if he/she had committed the offense.

08-23-2019

Russia

Responsive image

Russian Tax Service Provides Instruction on Beneficial Ownership for Holding Companies Under Tax Treaties

Russia's Federal Tax Service has published Letter No. ED-4-13/15696@ of 8 August 2019, which provides instructions to tax authorities on the determination of the actual right of holding companies to income from sources in Russia under a tax treaty (i.e. beneficial ownership).

The letter notes that the FTS continues to develop uniform approaches in the framework of tax control measures concerning the unlawful application of taxpayers and tax agents of the preferential treatment provided under tax treaties. In this respect, it has been found during a review of control measures that the tax authorities have taken the approach that where the declared activities of a foreign company are in the nature of holding activities, it is concluded that such companies have no independent entrepreneurial activity and do not qualify as having an actual right to income.

In the letter, the FTS clarifies that the mention of holding activities among the declared activities of a foreign recipient of income does not itself indicate a lack of independent entrepreneurial activity and cannot be an independent and sufficient criterion in favor of the presence or absence of an actual right to income. Instead, when forming a position regarding the fact that a recipient of income has an actual right to the income, it is necessary in each case to analyze for signs of artificial activity of the holding company, including signs of a lack of independence regarding decisions made with respect to the company’s asset and in relation to the source income in Russia.

The letter instructs the tax authorities to follow this approach when verifying the correct application of the preferential treatment of a tax treaty (reduced rates, tax exemptions).

08-23-2019

Singapore

Responsive image

Singapore Publishes New Guidance on GST Registration for Overseas Entities

The Inland Revenue Authority has published new guidance on its website on GST Registration for Overseas Entities.

---

GST Registration for Overseas Entities

An overseas entity is defined as one that is not a resident in Singapore and/or does not have an established place of business in Singapore.

The same rules on GST registration apply for both local and overseas entities. To find out if you, as an overseas entity, must register for GST, refer to Do I Need To Register.

If you are registering for GST, you must appoint a local agent in Singapore, known as a Section 33(1) agent, who will act on your behalf for all your GST matters. This agent is responsible for the accounting and payment of GST.

Please follow the GST registration process to apply for GST registration. In addition, you need to provide a letter to appoint a local agent (refer to last page of Document Checklist (117KB)).

Alternatives for Overseas Entities that Import Goods for Supply in Singapore

If you import goods for supply in Singapore, you have the following alternatives:

  1. You can import goods into Singapore and supply them in your business name. If your taxable supplies exceed the threshold, GST registration is compulsory. Otherwise, you may choose to register for GST voluntarily so that you can claim GST paid on imports.
  2. You may appoint a GST-registered Singapore agent who will import and supply goods on your behalf. This agent, known as a Section 33(2) agent, is responsible for the goods as if he is the principal. He will import goods into Singapore in his name and claim GST paid on imports. Subsequent supply of the goods will be treated as his taxable supplies and he has to account for GST on the supplies. You do not need to register for GST.

For Overseas Suppliers and Overseas Electronic Marketplaces Registering for GST under Overseas Vendor Registration Regime

If you are an overseas supplier or overseas electronic marketplace operator registering for GST under the overseas vendor registration (OVR) pay-only regime, please submit an application using the OVR form.

You are not required to appoint a local agent to handle your tax matters in Singapore but you may be required to provide a security deposit if you are voluntarily registering for GST.

08-23-2019
Proposed Changes (2)

Germany

Responsive image

German Cabinet Approves Draft Law for Phasing Out Solidarity Surcharge

Germany's Ministry of Finance has announced that the Federal Cabinet has approved the draft law for a phased reduction of the solidarity surcharge. Under the draft law, the surcharge exemption limit is increased for individuals so that approximately 90% of current surcharge payers will be exempt from 2021. Further, for taxpayers with income exceeding the exemption limit, the solidarity surcharge will not immediately be charged in full (i.e., 5.5%), which will result in a reduction of the surcharge for approximately 6.5% of current surcharge payers.

08-23-2019

Ghana

Responsive image

Ghana 2019 Mid-Year Budget Proposed Tax Measures

Ghana's Minister of Finance Ken Ofori-Atta reportedly delivered the 2019 Mid-Year Budget to parliament on 29 July 2019, including certain proposed tax measures. These include:

  • the introduction of a five-year tax holiday for companies under the government's One-District-One-Factory program, including an exemption from duties, taxes, and levies on machinery, equipment and parts, and selected raw materials not already exempted;
  • an increase in the Communications Service Tax from 6% to 9%;
  • the repeal of the new luxury vehicle tax introduced in 2018; and
  • an increase in energy sector levies by GHp 20 per liter of diesel or petrol and the introduction of an additional levy of GHp 8 per kilogram of liquefied petroleum gas.

Note - Ghana's 'One-District-One-Factory' program is aimed at establishing, at least, one factory or enterprise in each of the 216 districts of Ghana as a means of creating economic growth that would accelerate the development of those areas and create jobs.

08-23-2019
Treaty Changes (4)

Australia-Latvia

Responsive image

Australia and Latvia Considering Tax Treaty

Officials from Australia and Latvia met on 19 August 2019 to discuss certain issues, including the negotiation of an income tax treaty. Any resulting treaty would be the first of its kind between the two countries and must be finalized, signed, and ratified before entering into force.

08-23-2019

Cape Verde-Spain

Responsive image

Cape Verde Ratifies Pending Tax Treaty with Spain

On 19 August 2019, Cape Verde President Jorge Carlos Fonseca ratified the pending income tax treaty with Spain. The treaty, signed 5 June 2017 (previous coverage), is the first of its kind between the two countries and will enter into force three months after the ratification instruments are exchanged and will generally apply from the date of its entry into force.

08-23-2019

Ecuador-United Kingdom

Responsive image

Ecuador Announces Negotiations for Tax Treaty with the UK

Ecuador's Ministry of Foreign Affairs announced on 19 August 2019 that officials from Ecuador and the UK have met and agreed to the negotiation of an income tax treaty, with negotiations to begin in October. The treaty will be the first of its kind between the two countries and must be finalized, signed, and ratified before entering into force.

08-23-2019

Slovak Republic-Finland-Georgia-Ireland-Malta-Singapore

Responsive image

Slovak Republic Publishes Notices on Impact of BEPS MLI on Tax Treaties with Finland, Georgia, Ireland, Malta, and Singapore

The Slovak Republic has published five notices from the Ministry of Foreign and European Affairs in the Official Gazette on the impact of the BEPS MLI on the tax treaties with Finland, Georgia, Ireland, Malta, and Singapore. The notices include the amendments made by the MLI to the respective treaties and their effective date.

Notice 255/2019

The MLI applies for the 1999 Finland-Slovak Republic income tax treaty:

  • in respect of taxes withheld at source from amounts paid or credited to non-residents, where the event giving rise to such taxes occurred on or after 1 January 2020; and
  • in respect of all other taxes imposed by a Contracting State, for taxes imposed in respect of tax periods beginning on or after 1 December 2019.

Notwithstanding the above, Article 16 of the MLI (Mutual Agreement Procedure) applies in respect of a case presented to the competent authority of a Contracting State on or after 1 January 2020, except for cases that were not eligible to be presented as of that date under the treaty prior to its modification by the MLI, without regard to the taxable period to which the case relates.

Notice 256/2019

The MLI applies for the 2011 Georgia-Slovak Republic income and capital tax treaty:

  • in respect of taxes withheld at source from amounts paid or credited to non-residents, where the event giving rise to such taxes occurred on or after 1 January 2020; and
  • in respect of all other taxes imposed by a Contracting State, for taxes imposed in respect of tax periods beginning on or after 1 January 2020.

Notice 257/2019

The MLI applies for the 1999 Ireland-Slovak Republic income and capital tax treaty:

  • in respect of taxes withheld at source from amounts paid or credited to non-residents, where the event giving rise to such taxes occurred on or after 1 January 2020; and
  • in respect of all other taxes imposed by a Contracting State, for taxes imposed in respect of tax periods beginning on or after 1 November 2019.

Notwithstanding the above, Article 16 of the MLI (Mutual Agreement Procedure) applies in respect of a case presented to the competent authority of a Contracting State on or after 1 January 2020, except for cases that were not eligible to be presented as of that date under the treaty prior to its modification by the MLI, without regard to the taxable period to which the case relates.

Notice 258/2019

The MLI applies for the 1999 Malta-Slovak Republic income tax treaty:

  • in respect of taxes withheld at source from amounts paid or credited to non-residents, where the event giving rise to such taxes occurred on or after 1 January 2020; and
  • in respect of all other taxes imposed by a Contracting State, for taxes imposed in respect of tax periods beginning on or after 1 October 2019.

Notice 259/2019

The MLI applies for the 2005 Singapore-Slovak Republic income tax treaty:

  • in respect of taxes withheld at source from amounts paid or credited to non-residents, where the event giving rise to such taxes occurred on or after 1 January 2020; and
  • in respect of all other taxes imposed by a Contracting State, for taxes imposed in respect of tax periods beginning on or after 1 October 2019.

08-23-2019
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

FX Rates

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

Get Started with Orbitax Today

With Orbitax, you get reliable and comprehensive solutions for international tax research, law change tracking, compliance and planning. Contact us today for more information and 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