This e-newsletter gives you an overview of international corporate tax developments being reported globally by KPMG member firms in the Europe and Africa regions between 1 January and 31 January 2013.
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Tax area concerned |
Relevant date/case reference |
Description of measures and publication link
(Considerations in italic where necessary) |
| Belgium |
| Tax legislation adopted and regulatory update |
Corporate income tax |
1 January 2013 |
New tax law enacted at the end of 2012 provides, among other items, for a new tax on capital gains on shares. This measure will be effective as from assessment year 2014.
Read more |
| Corporate income tax/VAT |
New tax measures affecting business taxpayers apply as from assessment year 2013 (i.e. financial year/income year 2012) and are effective 1 January 2013 (or will become effective during the course of 2013). These business tax measures include:
| • |
Notional interest deduction |
| • |
Thin capitalization |
| • |
New rules on invoicing and chargeability of VAT. |
Read more |
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| Bulgaria |
| Tax legislation adopted and regulatory update |
VAT |
1 January 2013 |
Amendments to Bulgaria’s VAT law include new invoicing rules. The new rules are effective 1 January 2013.
Read more |
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| Czech Republic |
| Tax legislation adopted and regulatory update |
Financial Update |
January 2013 |
KPMG in the Czech Republic published the first Financial Update of 2013. Topics discussed in this report include:
| • |
Bill on taxation of immovable property acquisition |
| • |
Unreliable VAT payers |
| • |
Status of directors after re-codification of private law from 2014 |
| • |
Case law |
| • |
Increase of corporate income tax rate from 19% to 23%. |
Read more |
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| Denmark |
| EU |
Exit tax |
January 2013 |
The European Commission formally requested Denmark to amend its rules concerning exit tax on shares held by an individual.
Read more |
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| European Commission |
| Tax legislation adopted and regulatory update |
Customs |
January 2013 |
The European Commission posted a list of EU Member States’ customs offices and contact information for those seeking to submit applications for action by the customs authorities for suspected infringements of intellectual property rights.
Read more |
| VAT |
14 January 2013 |
The European Commission published the VAT rates imposed in the EU Member States, as of 14 January 2013.
Read more |
| Financial transaction tax |
January 2013 |
The Economic and Financial Affairs Council adopted a decision authorizing 11 EU Member States to proceed with the introduction of a financial transaction tax through enhanced cooperation.
Read more |
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| France |
| Tax legislation adopted and regulatory update |
Finance act 2013 |
January 2013 |
In France, tax legislation was passed in December 2012, and then considered by the Constitutional Court on 29 December 2012, when certain tax measures were found to be invalid. Fidal prepared an overview that summarizes the main measures enacted following the decision of the Constitutional Court.
Read more |
| VAT |
1 January 2013 |
Recently enacted tax provisions change the VAT registration rules for non-EU taxable persons conducting transactions in France.
Read more |
Measures contained in EU Directive 2010/45/EC—with respect to rules on electronic invoicing—have been transposed into French law and will be effective 1 January 2013.
Read more |
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| Germany |
| Administrative and case law
|
VAT |
January 2013 |
KPMG in Germany published a VAT newsletter. Topics discussed in this newsletter include:
| • |
Case law from the Court of Justice of the European Union |
| • |
Case law from Germany’s federal tax court. |
Read more |
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| Greece |
| Tax legislation adopted and regulatory update |
Corporate income tax/Withholding tax/Capital gains tax/VAT |
1 January 2013 |
The Greek Parliament passed legislation that affects the income and indirect taxation of legal entities and partnerships, and also the taxation of individuals. The changes include:
| • |
An increase in the corporate income tax rate |
| • |
Withholding tax rate on certain dividends and profits |
| • |
Capital gains tax |
| • |
VAT. |
The changes are effective as of 1 January 2013.
Read more |
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| Hungary |
| Tax legislation adopted and regulatory update |
Insurance premium tax |
1 January 2013 |
Hungary introduced an insurance premium tax which is effective as of 1 January 2013.
Read more |
| Wage tax |
1 November 2012 |
Hungary’s tax and customs administration adopted a new ’economic employer approach’ for employee assignments beginning from 1 November 2012 to determine who is the economic employer.
Read more |
| VAT/Corporate income tax/Financial transaction tax/Insurance premium tax |
1 January 2013 |
KPMG in Hungary published an overview called Year end: Tax law refinements. The overview includes:
| • |
VAT changes |
| • |
Changes regarding corporate income tax (accrued but undistributed dividends are not included in the minimum tax base) |
| • |
Financial transaction tax provisions |
| • |
Rules concerning the insurance premium tax. |
Read more |
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| Iceland |
| Tax legislation adopted and regulatory update |
VAT |
1 January 2013/1 July 2013/September 2013 |
The Icelandic parliament approved changes to the rate of VAT on hospitality services, movie tickets, and certain personal use items. Changes are effective as of 1 January 2013, 1 July 2013 and 1 September 2013.
Read more |
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| Italy |
| Tax legislation adopted and regulatory update |
IRAP |
2007-2011/1 January 2013 |
New legislation aims to reduce the tax burden resulting from rules that previously did not allow Italian companies and branches to deduct certain personnel costs from the IRAP — Imposta regionale sulle attività produttive — or Italy’s regional tax on productive activities. For companies whose fiscal year coincides with the calendar years, the refund claim can look back to include taxes paid from FY 2007 to FY 2011 (inclusive).
Read more |
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| Luxembourg |
| Tax legislation adopted and regulatory update |
Withholding tax |
January 2013 |
The French tax authorities announced an initial decision to issue a refund of withholding tax on dividends distributed to a Luxembourg SICAV.
Read more |
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| Mauritius |
| Tax legislation adopted and regulatory update |
Treaties |
January 2013 |
Mauritius and Nigeria signed an income tax treaty. The treaty provisions will enter into force once ratified by both countries. The treaty has already been ratified by Mauritius.
Read more |
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| The Netherlands |
| Tax legislation adopted and regulatory update |
Treaties |
1 January 2013 |
The Dutch Ministry of Finance published an overview of the Netherlands’ tax treaties network as of 1 January 2013.
Read more |
| Wage Tax |
January 2013 |
Foreign employees with specific expertise that is scarce in the Dutch labor market will, subject to certain conditions, be eligible for tax relief under the so-called ‘30% ruling’.
Read more |
| Administrative and case law |
Corporate income tax |
January 2013 |
The Amsterdam Court of Appeals requested a preliminary ruling from the Court of Justice of the European Union as to whether Dutch rules that prevent a fiscal unity for corporate income purposes from being established between sister companies of a foreign parent corporation — or between sister companies and the foreign parent — are in accordance with European law (in particular, the freedom of establishment).
Read more |
| Other |
Corporate income tax |
January 2013 |
During debate in the Lower House of Parliament on Dutch tax policy from an international perspective, the Deputy Minister of Finance gained broad support for the government’s position (as set out in a reply to parliamentary questions) concerning the role of the Netherlands with regard to intermediary companies. KPMG in the Netherlands published an overview that briefly discusses the letter as well as the explanation given by the Deputy Minister during the debate and that considers possible next steps.
Read more |
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| Norway |
| Tax legislation adopted and regulatory update |
Corporate income tax |
Spring 2013 |
The Norwegian government announced that this spring, it will issue a discussion document to start the process for tax law changes that would address a perceived erosion of the Norwegian tax base.
Read more |
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| Poland |
| EU |
VAT |
January 2013 |
The European Commission formally requested Poland to amend its VAT law provisions that allows a reduced VAT rate to be applied with respect to medical equipment and pharmaceutical products, at rates beyond the scope of those allowed under EU law.
Read more |
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| Romania |
| Tax legislation adopted and regulatory update |
VAT |
1 January 2013 |
Beginning 2013, there will be no difference between paper invoices and electronic invoices for VAT purposes in Romania. Both will be considered to be original documents for tax purposes.
Read more |
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| Serbia |
| Tax legislation adopted and regulatory update |
Cash based transactions |
25 December 2012 |
The Serbian Parliament passed the following laws:
| • |
Penalty interest law |
| • |
Law on deadlines for settlement of cash liabilities. |
Both laws entered 25 December 2012 into force.
Read more |
| Social security |
1 January 2013 |
New rules established new requirements to file forms that specify the amounts of social security insurance contributions for each employee/insured person along with tax returns PP OD and PP OD-1. The new rules mandating the filing of the social security forms had an effective date beginning January 2013.
Read more |
| VAT |
21 January 2013 |
New provisions amend the criteria by which the payer of VAT can attain ’predominant exporter’ status and thus receive expedited refunds of VAT (i.e. within 15 days of the date of the return’s filing). The provisions are effective 21 January 2013.
Read more |
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| Slovakia |
| Tax legislation adopted and regulatory update |
Corporate income tax/Personal income tax/Withholding tax |
1 January 2013 |
Changes to Slovakia’s corporate and individual income tax include:
| • |
Increase in the corporate income tax rate |
| • |
Second individual (personal) income tax rate |
| • |
For certain types of income, the withholding tax rate remains at 19% |
| • |
Only taxpayers with foreign sourced income can apply to extend their tax return filing and tax payment deadlines. |
Read more (refer to page 9 for Slovakia) |
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| Slovenia |
| Tax legislation adopted and regulatory update |
Financial services tax |
January 2013 |
A new tax on financial services in Slovenia was enacted in late 2012.
Read more |
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| South Africa |
| Tax legislation adopted and regulatory update |
Incentives |
1 October 2012
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South Africa's government is providing an incentive for increased research and development spending in the energy and natural resources sector.
Read more |
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| Spain |
| Administrative and case law |
VAT |
Commission v. Spain, C-360/11 (17 January 2013) |
The Court of Justice of the European Union released its judgment concluding that because Spain applied reduced rates of VAT to a broader range of goods than provided for under the VAT Directive in the field of pharmaceutical products and medical equipment, Spain had not fulfilled its obligations under the VAT Directive.
Read more |
| Tax legislation adopted and regulatory update |
VAT |
31 October 2012 |
Spain’s tax authority issued guidelines to clarify measures included in Law 7/2012 that amend the VAT rules concerning a reverse-charge mechanism applicable to real estate projects. The binding ruling specifies certain requirements that must be satisfied for the reverse charge mechanism to be applied retroactively as of 31 October 2012.
Read more |
| Corporate income tax/VAT/ Transfer Tax |
January 2013 |
New laws in Spain include various tax measures aimed at consolidating public finances and promoting economic activity. Among the tax provisions enacted are measures affecting almost all taxes in Spain—including the corporate income tax, individual income tax, net wealth tax, non-resident income tax, VAT, transfer tax, stamp tax, excise taxes, and local taxes.
Read more |
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| Switzerland |
| Tax legislation adopted and regulatory update |
Treaties |
1 January 2013/1 April 2013 |
An income tax treaty between Switzerland and Hong Kong entered into force. The income tax treaty provisions are effective for taxes in Switzerland as of 1 January 2013 and in Hong Kong as of 1 April 2013.
Read more |
| Other |
M&A |
January 2013 |
KPMG in Switzerland published a report that summarizes the M&A activity in 2012 and provides an outlook for 2013.
Read more |
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| Turkey |
| Tax legislation adopted and regulatory update |
Corporate income tax/Stamp tax/Withholding tax |
January 2013 |
Changes to Turkish tax law, published at the beginning of 2013, include measures that affect foreign investors in relation to investments in Turkey.
Read more |
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| Ukraine |
| Tax legislation adopted and regulatory update |
Registration real estate |
January 2013 |
Beginning in2013, the registration of interests relating to real estate and to encumbrances on real estate are now performed by state registrars and notaries.
Read more |
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| United Kingdom |
| Tax legislation adopted and regulatory update |
FATCA |
December 2012 |
HM Revenue and Customs in December 2012 released draft regulations and guidance with respect to the FATCA inter-governmental agreement signed with the United States in September 2012.
Read more |
| Incentives |
December 2012 |
A late December 2012 announcement from the Intellectual Property Office revealed that it would introduce a 90-day patent in 2013. Under the new 90-day patent process, in return for a premium processing fee, the Intellectual Property Office would endeavor to complete the patenting process within 90 days from application to grant.
Read more |
| Proposed legislation |
Finance bill |
6 February 2013 |
The UK government issued further draft clauses intended for inclusion in this year’s Finance Bill. HM Revenue and Customs have requested comments by 6 February 2013.
Read more |
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