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New government tax reform proposals – update — Orbitax Tax News & Alerts

Proposed draft amendments to the Tax Code have been revised, and redistributed to the investment community for further discussion and opinion.

Discarded and excluded proposals

Some of the initially proposed changes have been discarded and excluded from the revised draft bill, namely:

-   introduction of the principle of "constructive dividend";
-   application of the thin capitalization rules with respect to deductibility of interest based on the 3:1 debt to equity ratio;
-   abolition of the "self-assessment" mechanism under Art. 183 Tax Code for taxation of capital gains realized on the sale of securities (shares) by non-residents; and