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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 March and 31 March 2013.

Albania France The Netherlands Sweden
Belgium Germany Nigeria Switzerland
Botswana Hungary Poland Turkey
Bulgaria Iceland Portugal Ukraine
Croatia Isle of Man Romania United Kingdom
Czech Republic Lithuania Russia  
Denmark Luxembourg Serbia  
European Commission Namibia South Africa  

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

To contact the Global International Corporate Tax Group email go-fmglobalict@kpmg.com.

  Tax area concerned Relevant date/case reference Description of measures and publication link
(Considerations in italic where necessary)
Albania
Treaties Convention on Mutual Administrative Assistance March 2013 Albania signed the Convention on Mutual Administrative Assistance in Tax Matters — a multilateral agreement jointly developed by the European Council and the OECD.
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Belgium
Proposed legislation Corporate income tax/Withholding tax March 2013 The Belgian tax authorities announced changes with respect to the tax treatment of dividends distributed to foreign corporate investment funds, and issued guidance for foreign investment funds to use in filing claims for refund of withholding tax.
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Tax legislation adopted and regulatory update Withholding tax 2007-2012 The Belgian tax authorities issued guidance in response to a judgment of the Court of Justice of the European Union concerning refund claims for tax withheld on dividends paid or attributed to non-resident investment companies for the tax periods 2007-2012.
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Botswana
Proposed legislation Budget 2013 Botswana’s annual budget was presented and includes various tax measures. KPMG in Botswana provided an overview of the tax system in conjunction with highlights from the budget speech.
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Bulgaria
Tax legislation adopted and regulatory update Commercial Act 4 March 2013 Amendments to Bulgaria’s Commercial Act, effective 4 March 2013, concern the period for payments under commercial transactions and also the consequences on defaults of payments.
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VAT 28 February 2013 Changes to Bulgaria’s VAT law were implemented by regulations published in the state gazette on 28 February 2013.
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Reporting requirements 1 April 2013 A new return (form) to be filed by certain foreign tax residents has been posted on the website of Bulgaria’s tax administration. The 2012 tax return is due 1 April 2013.
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Croatia
Tax legislation adopted and regulatory update Personal income tax 2013 Amendments to Croatia’s individual (personal) income tax law and rules for social security contributions were effective at the beginning of 2013.
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Czech Republic
Proposed legislation Corporate income tax March 2013 Pending legislative changes in the Czech Republic would amend the company law to limit abuse of anonymous corporate ownership structures, and thus address certain non-transparent uses of corporate funds.
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Tax legislation adopted and regulatory update Corporate income tax March 2013 The rules concerning limited liability companies have been expanded and liberalized:
the new rules establish a minimum contribution amount for registered capital
the director’s consent is sufficient for voluntary contributions outside the registered capital
a limited liability company may serve as a director (i.e. member of a statutory body) of another corporation
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VAT 1 April 2013 Beginning 1 April 2013, new measures are effective concerning the recipient of a taxable supply’s liability for VAT.
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Other Tax facts 2013 KPMG in the Czech Republic prepared a tax guide providing an overview of the Czech tax system.
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Denmark
Tax legislation adopted and regulatory update Corporate income tax 20 March 2013/ 20 November 2013 Corporations had to remit the first installment of income tax for the 2013 tax year by 20 March 2013. The second installment is due 20 November 2013.
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Reporting requirements 2012 Denmark’s tax authority (SKAT) amended the tax return procedures for 2012.
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Other Tax facts 2013 KPMG in Denmark prepared a report providing brief overviews of a range of rules concerning individual (personal) and corporate income tax, VAT, tax rates, transfer pricing and other tax-related information.
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European Commission
Treaties Trade agreement 1 March 2013 A provisional trade agreement between the European Union and Peru, and the EU and Colombia is effective 1 March 2013.
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France
Tax legislation adopted and regulatory update Competitive tax credit 1 January 2013 The French tax authorities issued official comments providing guidance under the “competitive tax credit” (crédit d’impôt pour la compétivité et l’emploi – CICE). The competitive tax credit is effective beginning 1 January 2013.
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Reporting requirements 2014 Multinational enterprises with activities in France that maintain their global accounts based on accounting standards other than those of France (such as U.S. GAAP) need to be aware of new mandatory documentation rules that are effective beginning 2014.
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Administrative and case law Corporate income Société Etudes et Productions Schlumberger, No 347633
(20 March 2013)
The French Administrative Supreme Court “cancelled” administrative guidance and held that the research tax credit — and, more generally, all tax credits — are not to be used in determining the amount of corporate income tax that in turn would apply for purposes of calculating a company’s employee profit-sharing reserve.
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Germany
Tax legislation adopted and regulatory update VAT March 2013 The German finance ministry issued guidelines on the place of supply in relation to property (not supplies of goods), and in particular supplies of work, but only to services that are supplied separately.
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Corporate income tax March 2013 Newly enacted laws in Germany include measures that:
amend the rules with respect to German tax groups (Organschaft) and require that profit-loss transfer agreements must include a provision on the absorption of losses if the controlled company is a GmbH
provide for retroactive refunds of withholding tax with respect to dividends from portfolio investments, and further provide a tax exemption for dividends unless there is a direct shareholding ceiling of less than 10 percent of share capital.
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Proposed legislation Withholding tax March 2013 Because of a judgment of the Court of Justice of the European Union —concerning the German tax treatment of outbound dividends — Germany has taken steps to amend its tax law and repeal the “discriminatory” tax treatment of dividends from portfolio investments distributed to foreign companies.
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VAT 1 July 2013/
1 January 2014
Proposed legislation that would amend the VAT law is pending consideration by the German parliament. Among the changes are measures that would affect the invoicing rules. The changes are intended to be effective (depending on the nature of the amendment) on 1 July 2013, on 1 January 2014, or with respect to a proposed extension of the reverse-charge procedure, on a date after authorization is given at the EU level.
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Administrative and case law Corporate income tax/VAT March 2013 German case law has been published with respect to the following subjects:
re-invoicing the cost of insuring a leased item
consideration as an advance payment in a barter arrangement
commission payments and basis for assessment
VAT treatment of publishers
place of supply in relation to tour management
business allocation and intention with regard to taxable use of buildings.
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VAT GfBk Gesellschaft für Börsen-
kommunikation mbH, C-275-11
(7 March 2013)
The Court of Justice of the European Union issued a judgment that advisory services concerning investment in transferable securities, provided by a third party to an investment fund management company, falls within the concept of “management of special investment funds” and therefore is covered by the VAT exemption under article 135(1)(g) of the Council Directive 2006/112/EC.
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Hungary
Proposed legislation Corporate income tax/VAT/Excise tax /Financial Transaction Tax March 2013 Hungary submitted a package of tax proposals to the Parliament that, if enacted, would amend the tax law concerning:
international assistance rules for tax assessment
programs of additional development assistance with respect to team sports sponsored by corporations
changes to the company car tax provisions, pertaining to leases
VAT changes regarding the sale of automobiles
excise tax
a financial transaction tax measure
a new definition of “public service” under the energy tax.
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Iceland
Other Tax facts 2013 KPMG in Iceland has prepared a report providing brief overviews of a range of rules concerning individual (personal) and corporate income tax, VAT, tax rates and other tax-related information.
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Isle of Man
Other Tax facts 2013 KPMG in the Isle of Man prepared a reference guide that sets forth tax rates for companies and individuals, provisions concerning benefits, VAT, capital allowances and other information.
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Lithuania
Tax legislation adopted and regulatory update Corporate income tax March 2013 The rules in Lithuania for tax loss carryforwards have been amended, to clarify when tax losses may be carried forward for an indefinite period if the entity does not continue its activities.
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VAT March 2013 A recent measure concerns limitations on sponsorships involving charitable donations, and the allowable VAT deduction when the amount is indicated on the import customs declaration.
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Treaties DTT 1 January 2013 Income tax treaties between Lithuania and India and between Lithuania and Mexico entered into force 1 January 2013.
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Luxembourg
Other Personal income tax 2013 KPMG in Luxembourg prepared a reference guide that provides information concerning the taxation of individuals.
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Namibia
Other Tax facts 2013 KPMG in Namibia prepared a reference guide that sets forth tax rates for corporate and individual taxpayers, provisions concerning tax benefits, transfer pricing, income tax treaties, VAT, mining activities, and other information.
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The Netherlands
Tax legislation adopted and regulatory update Healthcare Insurance Act March 2013 Directors/major shareholders who have multiple employment relationships with their own public limited liability companies (BVs) and are not insured under the employee insurances, must pay income-related contributions under the Healthcare Insurance Act for all these employment relationships. However, if in paying such contributions, the individuals exceed the maximum contribution, they will automatically receive a refund for the overpaid amount, according to Dutch Finance Ministry officials.
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VAT 1 March 2013 A decree issued at the end of February 2013 provides guidance concerning the reduced VAT rate of 6 percent, effective 1 March 2013, with respect to the renovation and repair of existing homes.
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Wage tax 1 January 2013 The Deputy Minister of Finance announced that mandatory implementation of the work-related costs rules has been postponed for one year until 1 January 2015.
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Crisis levy March 2013 The Deputy Minister of Finance announced that employers do not have to pay a crisis levy on salary resulting from a withdrawal from the “special leave scheme”. Thus, employees in 2013 can withdraw the balance of their “special leave scheme” at a favorable tax rate — with 20 percent of the program’s balance being withdrawn tax-free and the remaining 80 percent being taxed normally.
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Personal income tax 1 January 2013 The Minister of Housing and Civil Service sent a clarification to the Dutch Lower House concerning mortgage debt in situations when a residence encumbered by a mortgage before 1 January 2013 is rented out for the duration of the homeowner’s foreign secondment that commences after 2012.
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Administrative and case law Motor vehicle and motorcycle tax March 2013 The Dutch Supreme Court held that the private motor vehicle and motorcycle tax (BPM) was properly levied on a private car brought into the Netherlands as part of a person’s relocation, despite the fact that the car was also being used for her daily commute to her place of employment in Germany.
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Nigeria
Other Tax facts 2012/2013 KPMG in Nigeria prepared a reference guide that sets forth tax rates for corporate and individual taxpayers, provisions concerning capital gains tax, transfer pricing, VAT and other information.
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Poland
Tax legislation adopted and regulatory update Incentives 1 March 2013 The 2013 application round for co-financing research and development (R&D) in Poland started 1 March 2013 and ended 14 March 2013.
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2013 Companies in 2013 have an opportunity to apply for governmental co-financing of construction and re-construction of electricity networks for connecting renewable and wind-energy sources, energy and electricity audits, and investments leading to energy savings or improvements of energy effectiveness.
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Treaties DTT March 2013 In February 2013 representatives of the governments of Poland and the United States signed a new income tax treaty. The Poland-United States income tax treaty is subject to ratification procedures in each country. The new treaty, once it enters into force, will replace the existing (1974) income tax treaty between the two countries.
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Portugal
Tax legislation adopted and regulatory update “large taxpayers unit” program March 2013 In early 2012 Poland established a “large taxpayers unit” for purposes of monitoring and auditing large corporations and corporate groups. Recent guidance sets forth the criteria for identifying taxpayers that will be subject to the “large taxpayers unit” program.
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Romania
Tax legislation adopted and regulatory update Corporate income tax 2013 Romania’s Ministry of Public Finance issued an order establishing that the consumer price index for the 2013 tax year, which is used for determining advance/estimated payments of corporate income tax, is 104.3 percent
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Russia
Tax legislation adopted and regulatory update Work permit March 2013 In Russia, there have been developments concerning the legal status of certain foreign workers regarding the remuneration of foreign employees and the Russian language skills which are required for certain foreign work permits.
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Serbia
Tax legislation adopted and regulatory update Reporting requirements for individuals March 2013 New rules in Serbia apply with respect to individuals required to file a tax information declaration. These rules specify how such declarations are to be filed when a related party is also required to file a declaration.
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Reporting requirements taxpayers 30 June 2013 The deadline for taxpayers to file information tax declarations in Serbia has been extended to 30 June 2013. The original due date was 31 March 2013.
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South Africa
Proposed legislation Budget 2013 A summary overview of certain tax proposals in South Africa’s annual budget reveals the following:
no tax increases
a substantial increase in fuel levies
reforms to the tax treatment of retirement savings contributions
no specific mention of tax proposals for the mining
an employment incentive to encourage businesses to employ youth
a VAT liability of “foreign providers” of e-services
a VAT registration obligation for foreign providers of e-services.
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Other Budget 2013 KPMG in South Africa prepared a reference guide for the 2013 budget. The guide sets forth tax rates for corporate and individual taxpayers, as well as provisions concerning VAT, international taxpayers, customs and excise tax and other information.
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Sweden
Administrative and case law VAT Skatteverket v PCF Clinic AB, C-91/12
(21 March 2013)
The Court of Justice of the European Union held that purely cosmetic surgical procedures, serving no therapeutic purposes, generally may be subject to VAT, but that there can be exceptions to this rule.
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Switzerland
Treaties DTT March 2013 The income tax treaty between Switzerland and Germany and the corresponding Switzerland-Germany estate and inheritance tax treaty contain distinctive provisions that taxpayers need to consider in their cross-border dealings.
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Other Real estate March 2013 The Swiss real estate market in recent years has proved to be a fairly safe investment with real estate values being stable or even increasing substantially. This has caught the attention of many Swiss and foreign investors. KPMG in Switzerland published a report on how purchase of Swiss real estate can work tax efficiently.
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Turkey
Treaties Free trade agreement 21 March 2013 Procedures to implement a free trade agreement between Turkey and South Korea have been completed, so that the free trade agreement enters into force with the 21 March 2013 publication of a Council of Ministers decree in Turkey’s official gazette.
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Other Tax facts 2013 KPMG in Turkey prepared a report that examines corporate taxation, transfer pricing rules, indirect taxation (VAT) and trade and customs rules, individual income tax, company law requirements, and rules for mergers, acquisitions and reorganizations.
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Ukraine
Tax legislation adopted and regulatory update VAT March 2013 In Ukraine, there are new registration processes concerning:
IT companies that are subject to a special tax regime
output and input VAT invoices.
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Administrative and case law   2012 KPMG in Ukraine has identified the top 10 tax dispute issues resolved in 2012.
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United Kingdom
Treaties DTT March 2013 Representatives of the governments of the United Kingdom and China signed a Protocol to amend the income tax treaty between the UK and China.
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New income tax treaties between the UK and Norway and between the UK and Spain were signed 14 March 2013. The new treaties will enter into force after the ratification procedures have been completed in each country.
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Individuals 1 January 2013 The UK/Switzerland tax agreement entered into force on 1 January 2013, and applies to UK persons who have an account in Switzerland.
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Proposed legislation Budget 2013 The UK Chancellor of the Exchequer today presented the Budget 2013. Read
initial impressions and
an overview of the tax provisions
Tax legislation adopted and regulatory update Incentives March 2013 In November 2012, HM Revenue & Customs published a draft “statutory instrument” to extend the patent box regime to patents granted by certain EU Member States. The guidance has been finalized.
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VAT March 2013 The UK has introduced a VAT exemption for services provided by a cost sharing entity to its members, bringing the UK in line with European law.
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Capital gains tax March 2013 HM Revenue & Customs announced a campaign aimed at disclosure and recovery of unpaid capital gains tax on the sale of property.
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Other Tax facts 2013/2014 KPMG in the United Kingdom prepared a tax guide providing an overview of the UK tax system, as proposed under the Budget 2013 and subject to amendment by the Finance Bill.
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