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International Tax

Newsletter

 

This e-newsletter gives you an overview of international tax developments being reported globally by KPMG member firms in the Europe and Africa regions between 1 January and 31 January 2014.

Albania Gibraltar Netherlands Spain
Belgium Greece OECD Switzerland
Bulgaria Ireland Poland Turkey
Czech Republic Italy Romania Ukraine
Estonia Liechtenstein Serbia United Kingdom
European Union Luxembourg Slovakia  
France Mauritius South Africa  


For a full summary of global tax developments, visit kpmg.com/TaxNewsFlash.

To contact the International Tax Group email internationaltax@kpmg.com.

  Tax area concerned Relevant date/case reference Description of measures and publication link
(Considerations in italic where necessary)
Albania
Tax legislation adopted and regulatory update Corporate income tax/ VAT December 2013 The Albanian Parliament in late December 2013 approved an increase in the rate of corporate income tax to 15 percent (up from 10 percent). Other changes affect the VAT with respect to hydrocarbon operations and medicines and medical supplies.
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Belgium
Tax legislation adopted and regulatory update VAT January 2014 The Belgian VAT authorities issued guidance that describes and comments on the conditions and application of a “self-billing” system.
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Proposed legislation Expatriates taxation January 2014 The Belgian government has proposed legislation to amend the rules for determining the non-resident individual income tax as applicable to expatriates.
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Other Taxation of credit institutions January 2014 The European Commission requested that Belgium amend its law on the taxation of transactions in certain securities. The Belgian law only allows credit institutions established in Belgium to operate settlement systems with tax clearing. The settlement systems in question are those that permit the holding and transfer of fixed-interest securities.
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Bulgaria
Tax legislation adopted and regulatory update Tax avoidance 1 January 2014 A new law in Bulgaria (effective 1 January 2014) aims to counter tax avoidance by preventing companies located in “preferential tax regime jurisdictions” (and persons related to such companies) from acquiring public funds, participating in privatization transactions, or managing financial resources.
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Renewable energy sector 1 January 2014 Changes to Bulgaria’s renewable energy law are effective 1 January 2014 and include:
limited volume of produced electricity purchased via feed-in tariff
a fee relating to electricity produced by solar PV and wind power plants.
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Czech Republic
Tax legislation adopted and regulatory update Real estate tax 2014 Certain taxpayers in the Czech Republic must file real estate tax returns in 2014, even if they neither acquired nor sold real estate. Yet, there may be a decrease in the amount of the tax liability for some of these taxpayers.
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Estonia
Treaties DTT 1 January 2014 Six new income tax treaties joined Estonia’s income tax treaty network beginning 1 January 2014. The six new agreements that entered into force are with Bahrain, Thailand, Cyprus, Mexico, Turkmenistan, and Uzbekistan.
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European Union
Tax legislation adopted and regulatory upd VAT   June 2013 The European Commission announced that the EU VAT Forum extended for another year a pilot project aimed at improving legal certainty for SMEs in their cross border VAT transactions.
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Custom duties October 2013 The European Commission issued a press release announcing that a major joint customs operation, which targeted smuggled cigarettes, diesel fuel, and vodka, prevented a significant potential loss to the budgets of the European Union and its Member States. According to preliminary estimates, this would have amounted to about €9 million in the form of evaded customs duties and taxes.
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1 January 2014 The new Generalized System of Preferences regime in the European Union was effective 1 January 2014.
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January 2014 The European Commission has prepared a manual with guidelines explaining how holders of intellectual property rights can file applications for customs departments to protect the rights at customs borders.
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1 January 2015 As of 1 January 2015, imports of goods originating from China, Ecuador, the Maldives, and Thailand will no longer benefit from a zero or reduced EU customs duty rate, unless these countries enter into free trade agreements with the European Union.
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VAT 2014 The European Commission released a report listing the VAT rates applicable in the EU Member States for 2014.
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Proposed legislation Digital taxation 14-15 January 2014 The European Commission's "high level expert group on digital taxation"—which is considering how best to tax the digital economy, particularly in light of measures to address corporate tax avoidance—held its second meeting on 14-15 January 2014.
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Taxation of mobile EU citizens 2014 The European Commission announced a targeted initiative to consider whether EU citizens residing in an EU Member State, other than their own, are penalized and taxed more heavily as a result of their mobility.
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Customs duties 1 May 2016 The customs treatment of royalties and license fees is a crucial part in the development of new EU customs legislation—known as the Union Customs Code (UCC). The UCC and its implementing provisions are scheduled to be effective 1 May 2016, and would replace the current Community Customs Code and its implementing provisions.
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France
Tax legislation adopted and regulatory update VAT 1 January 2014 The rates of VAT in France, effective 1 January 2014, are as follows:
The standard 19.6 percent VAT rate is increased to 20 percent.
The intermediary 7 percent VAT rate (applicable to the food service industry, work performed on residential properties, domestic passenger transport, hotel industry, drugs authorized for marketing but not covered by social security, etc.) has been increased to 10 percent.
The 8 percent rate applicable in Corsica (construction work, etc.) has been increased to 10 percent.
While initially, there was legislative action that would have lowered the “reduced VAT rate” of 5.5 percent to 5 percent, that change was not enacted. Consequently, the “reduced VAT rate” of 5.5 percent is still effective.
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Finance Act 2014 2014 Tax legislative packages in France—known as the “Finance Act for 2014” and the “Corrective Finance Act for 2013”—were approved by the French Parliament on 19 December 2013; scrutinized by the Constitutional Court on 29 December 2013; and eventually enacted into law on 30 December 2013.
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Gibraltar
Tax legislation adopted and regulatory update Royalties taxation 1 January 2014 In Gibraltar, recently enacted legislation amends the income tax treatment of royalties. The changes are effective 1 January 2014.
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Greece
Tax legislation adopted and regulatory update Real estate tax December 2013 Legislation concerning real estate tax was passed by the Greek Parliament in late December 2013.
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Ireland
Tax legislation adopted and regulatory update FATCA 25 April 2014 The Irish Revenue Commissioners have confirmed that there will not be a separate Irish registration process for Irish financial institutions pursuant to FATCA, and that Irish financial institutions will only need to register for a Global Intermediary Identification Number (GIIN) with the IRS. The next major milestone in the road to FATCA compliance will be to register online via the IRS portal to obtain a GIIN by 25 April 2014 in order to be included on the first list of approved foreign financial institutions to be published by the IRS on 2 June 2014.
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Tax compliance 31 March 2014 The deadline for filing information returns for 2013 concerning employee-share participation schemes (plans) is 31 March 2014.
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Italy
Treaties FATCA 10 January 2014 Representatives of the governments of Italy and the United States signed an intergovernmental agreement to implement provisions of U.S. law known as FATCA.
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Liechtenstein
Treaties TIEA 26 January 2014 A tax information exchange agreement between Liechtenstein and Canada entered into force on 26 January 2014.
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Luxembourg
Treaties DTT December 2013 An income tax treaty between Kazakhstan and Luxembourg entered into force in December 2013.
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Mauritius
Treaties TIEA/FATCA January 2014 Representatives of the governments of Mauritius and the United States signed a tax information exchange agreement and an intergovernmental agreement to implement provisions under U.S. law known as FATCA.
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Netherlands
Tax legislation adopted and regulatory update Labor market rules 1 January 2014 New law in the Netherlands (known as the “Foreign Nationals Employment Act” and effective 1 January 2014) concerns changes to the current labor market rules.
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VAT 2014 Entrepreneurs not established in the Netherlands but subject to VAT can appoint a fiscal representative to fulfill their VAT obligations.
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2013 A “taxable person”—for VAT purposes—with company cars that are also used by employees for private purposes will need to make a VAT adjustment (generally, an adjustment of 2.7 percent of the catalog price of the car).
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Proposed legislation Pension plans 2014 A proposal, presented on 20 January 2014, would amend pension accrual rates and would impose a limit on “pensionable” income.
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Treaties FATCA 18
December 2013
A memorandum of understanding provides certain relief and clarifications concerning the intergovernmental agreement for the automatic exchange of data between the tax authorities of the Netherlands and the United States, implementing the U.S. legislation known as FATCA.
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OECD
Tax legislation adopted and regulatory update BEPS 23 January 2014 The OECD on 23 January 2014 presented a webcast, BEPS action plan: update on 2014 deliverables.
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Proposed legislation BEPS 23 February 2014 The OECD released an initial draft of revised guidance on transfer pricing documentation and country-by-country reporting pursuant to Action 13 under the BEPS Action Plan.
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Poland
Proposed legislation VAT March 2014 A draft of changes to the rules for input VAT deduction for vehicles has been published, and is likely to be effective from March 2014.
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KPMG publications Government grants/ Financing programs 2014 KPMG in Poland has produced reports concerning government grants or financing programs.
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Romania
Tax legislation adopted and regulatory update Indirect taxes   Beginning of 2014 KPMG in Romania prepared reports on the following changes that generally are effective beginning in 2014:
Ordinance no. 111/2013 was published in the official journal in December 2013, and contains tax law changes for the VAT cash accounting system and for postponing a planned increase in excise tax duties for certain energy products.
Order no. 3713/2013 was published in the official journal in December 2013 and concerns rules for filing the form for application of the VAT reverse-charge mechanism on trades of electricity.
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Serbia
Tax legislation adopted and regulatory update Individual income tax/ Tax compliance 15 May 2014 The due date for individual income tax returns for the 2013 tax year is 15 May 2014. Filing extensions may be allowed, provided that certain conditions are satisfied.
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Treaties DTT 1 January 2014 Serbia added four new income tax treaties—treaties with Canada, Georgia, Tunisia, and Vietnam—to its income tax treaty network as of 1 January 2014.
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Slovakia
Tax legislation adopted and regulatory update Various tax issues 1 January 2014 Changes to the income tax law of Slovakia, effective 1 January 2014, include a reduced rate of corporate income tax to 22 percent; a clarification that PEs are not required to maintain double-entry accounts; a user fee for APAs; and a narrowed definition of a non-treaty partner country.
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South Africa
Tax legislation adopted and regulatory update Various taxes 2014 The tax implications in relation to the assumption of contingent liabilities in partial settlement of the purchase price of assets acquired as part of a going concern have been addressed by South African Revenue Service.
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Proposed legislation Budget 2014 South Africa’s 2014 budget speech will be presented on 26 February 2014.
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Spain
Tax legislation adopted and regulatory update VAT 1 January 2014 Changes to Spain’s VAT law—made by Law 14/2013, Royal Decree 828/2013, Order 2214/2013, Royal Decree 1042/2013, and Law 22/2013—generally were effective beginning 1 January 2014.
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Switzerland
Tax legislation adopted and regulatory update Financial regulations January 2014 Swiss companies that are not in the financial services sector need to be aware of effects of certain rules that, at first glance, only appear to affect the financial services industry.
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FATCA January 2014 Although the primary focus of FATCA is on foreign financial institutions, Swiss non-financial groups and entities also may be subject to FATCA in their role as a U.S. payor/withholding agent or as a foreign payee/recipient of payments subject to FATCA.
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Turkey
Tax legislation adopted and regulatory update Transfer pricing 2014 New guidance issued by Turkey’s Capital Markets Board (Sermaye Piyasasi Kurulu) requires additional information reporting about controlled transactions of listed companies and, thus, may affect the transfer pricing disclosures by these companies.
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Consumption tax 1 January 2014 Changes to Turkey’s special consumption tax rates are effective beginning 1 January 2014.
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Ukraine
Tax legislation adopted and regulatory update Transfer pricing December 2013 The Ukraine Cabinet of Ministers in late December 2013 approved a resolution identifying jurisdictions where the corporate income tax rate is five or more percentage points less than the rate applied in Ukraine—a list of countries to be used in identifying which “controlled transactions” between Ukrainian taxpayers and foreign entities are subject to the transfer pricing rules.
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United Kingdom
Tax legislation adopted and regulatory update Various tax issues January 2014 Recent tax developments in the United Kingdom include updates to tax dispute resolution policy, guidance concerning CFC financing arrangements, and draft regulations expanding the “white list” for certain UK and offshore funds.
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Proposed legislation Finance Bill 2014 10 December 2013 The House of Lords Economic Affairs Committee established a Finance Bill sub-committee to inquire into the draft Finance Bill 2014 (as published 10 December 2013).
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Tax avoidance 24 February 2014 Consultation documents, issued by HM Revenue and Customs, include proposals for taxpayers to make accelerated payment of tax that is in dispute or subject to enquiry and for identifying “promoters” of tax avoidance schemes.
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Administrative and case law Dividend taxation BT Pension Scheme Trustees v HM Revenue & Customs [2014] EWCA Civ 23 The England and Wales Court of Appeal issued a decision concerning the time limits for making foreign income dividend (FID) claims and “Manninen claims” (i.e., repayment claims for tax credits in respect of FIDs and overseas dividends prior to a change in law introduced by F(No2)A 1997) in a test case for the FID and Tax Credit Group Litigation.
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Treaties DTT Beginning 2014 An income tax treaty between the United Kingdom and China entered into force on 13 December 2013, and is effective beginning 2014. The new tax treaty replaces the 1984 income tax treaty between the United Kingdom and China.
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