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 August and 31 August 2012.
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Tax area concerned |
Relevant Date / Case reference |
Description of measures and publication link
(Considerations in italic where necessary) |
| Austria |
| Tax legislation adopted and regulatory update |
VAT |
30 September 2012 |
Refund claims for amounts of input VAT remitted in EU Member States during 2011 are due by 30 September 2012.
Read more |
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| Belgium |
| Administrative and case law |
Withholding tax |
Tate & Lyle Investments Ltd. v. Belgische Staat |
In this case it was decided that in imposing a withholding tax on both resident and non-resident companies, these entities become comparable and therefore Belgium must ensure that non-resident companies are able to benefit from the same rules as Belgian resident companies.
Read more |
| Other |
Tax facts |
June 2012 |
KPMG in Belgium prepared an easy-to-read pocket reference guide that sets forth general information concerning the tax system in Belgium.
Read more |
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| Croatia |
| Other |
Tax facts |
May 2012 |
KPMG in Croatia prepared an easy-to-read pocket reference guide that sets forth general information concerning the tax system in Croatia.
Read more |
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| Czech Republic |
| Proposed legislation |
VAT |
1 January 2013 |
The Chamber of Deputies approved changes to the VAT law—measures that are proposed to be effective beginning 1 January 2013.
Read more |
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| Denmark |
| Tax legislation adopted and regulatory update |
Tax on insurance premiums |
1 January 2013 |
The Danish stamp tax on insurance policies is repealed, and is replaced by a new tax on insurance premiums, effective 1 January 2013.
Read more |
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| European Commission |
| Tax legislation adopted and regulatory update |
Customs |
June 1967 |
The European Commission reminded importers in the European Union that products produced in Israeli settlements located within the territories brought under Israeli administration since June 1967 are not entitled to benefit from preferential tax treatment under the EU-Israel Association Agreement.
Read more |
| Direct tax consultation |
5 November 2012 |
The European Commission initiated a public consultation to collect examples of direct tax problems that arise when venture capital is invested across borders. Comments are due by 5 November 2012.
Read more |
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| France |
| Proposed legislation |
Budget |
2012 |
The new law containing tax law measures affecting the taxation of both companies and individuals has been approved.
More information is available from STC and KPMG EU Tax Centre and Fidal. |
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| Germany |
| Proposed legislation |
Budget |
2013 |
The German Upper House published its recommendations concerning changes proposed in the 2013 Tax Act to the participation exemption rules, the tax treatment of reorganizations, and inheritance tax implications for business assets.
Read more (item 1) |
| Tax legislation adopted and regulatory update |
VAT |
August 2012 |
The German federal Ministry of Finance issued guidance on the simplified electronic invoice system for VAT purposes.
Read more (item 2) |
| Transfer tax |
August 2012 |
Germany introduced a new directive concerning the real estate transfer tax in cases of reorganization of consolidated groups.
Read more (item 3) |
| Trade tax |
August 2012 |
The German tax authorities published their opinion on the amended version on the directive on the trade tax add-back.
Read more (item 5) |
| Withholding tax |
20 October 2011 |
The German federal Ministry of Finance issued guidance following a judgment of the Court of Justice of the European Union concerning the withholding tax on payments of ‘free-float’ dividends to EU/EEA corporations.
Read more (item 6) |
| August 2012 |
The German Ministry of Finance issued guidance stating that a local tax office is competent to file tax refund claimed pursuant to the judgments of the Court of Justice for the European Union in the Aberdeen and Santander cases.
Read more |
| FATCA |
August 2012 |
Germany, France, Italy, Spain and the UK have drawn up a model agreement in cooperation with the USA as basis for the FATCA.
Read more (item 4) |
| Treaties |
DTT |
1 August 2012 |
The new income tax treaty between Germany and Turkey entered into force on 14 August 2012.
Read more (item 5) |
| Administrative and case law |
Corporate income tax |
August 2012 |
The German court ruled that a tax group was not early terminated due to the sale of a controlled company within the group.
Read more (item 4) |
| August 2012 |
An opinion of the regional tax office (OFD) Muenster provides that the value stated in a taxpayer’s financial balance sheet is also to be used for tax balance sheet purposes.
Read more (item 1) |
| DTT |
24 April 2012 |
Appeal has been filed against a decision of the Lower Tax Court that an S corporation is not a resident of the US for double tax treaty purposes.
Read more (item 2) |
| 16 May 2012 |
The Lower Tax Court decided that the sale of ‘special business property’ is subject to tax as non resident tax liability in Germany. Appeal has been filed.
Read more (item 3) |
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| Hungary |
| Tax legislation adopted and regulatory update |
Tax amnesty |
31 December 2012 |
Reports from Hungary indicate that the government does not intend to extend tax amnesty (favorable tax treatment) beyond the 31 December 2012 deadline.
Read more |
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| Iceland |
| Other |
Tax facts |
August 2012 |
KPMG in Iceland published a report which provides an overview of the Icelandic tax system.
Read more |
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| Ireland |
| Other |
Tax facts |
2012 |
KPMG in Ireland published two reports concerning investments in Northern Ireland.
Read more and Read more |
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| Israel |
| Tax legislation adopted and regulatory update |
VAT |
1 September 2012 |
The standard VAT rate will increase to 17% (from 16%) effective 1 September 2012.
Read more |
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| Italy |
| Tax legislation adopted and regulatory update |
VAT |
1 July 2012 |
Italy’s Senate passed a bill that would increase the VAT rates with 2% as per 1 January 2013 and reduced with 1% as per 1 January 2014.
Read more and Read more (update) |
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| The Netherlands |
| Tax legislation adopted and regulatory update |
Company law |
1 October 2012 |
Introduction of the Act on the Simplification and Flexibilization of Private Limited Liability Company Law. The changes are effective beginning 1 October 2012.
Read more |
| VAT |
1 October 2012 |
The general VAT rate in the Netherlands will increase from 19% to 21%, effective 1 October 2012.
Read more |
| Administrative and case law |
Payroll tax |
August 2012 |
The Amsterdam Court of Appeals held that a ‘lock-up’ i.e. a prohibition against trading shares received as part of an employment package for a two-year period qualifies for a 10% reduction in the value of the shares for payroll tax purposes.
Read more |
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| Poland |
| Proposed legislation |
Corporate income tax |
August 2012 |
An SKA (limited joint-stock partnership) is treated as a partnership in Poland. Income of the SKA is not subject to tax at the entity level, but is subject to tax at the partner level. The Ministry of Finance is considering a proposal to tax an SKA in the same manner as a capital company.
Read more |
| 1 January 2013 |
Poland’s Finance Ministry proposed legislative amendments to the corporate income tax law. The amendments are scheduled to be effective 1 January 2013.
Read more |
| Tax legislation adopted and regulatory update |
Tax incentive |
October 2012 |
A technology credit program is available in Poland for small and medium size enterprises that invest in the implementation of new technology. It is anticipated that applications for the program could be submitted on a continual basis from mid October 2012.
Read more |
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| Romania |
| Proposed legislation |
Clawback tax |
August 2012 |
Romania proposed changes to the quarterly payments under the ‘clawback tax’ regime for pharmaceutical companies.
Read more |
Corporate income
tax/VAT |
|
Proposed changes to Romania’s tax laws include amendments relating to:
| • |
the corporate income tax treatment of tax losses by taxpayers that cease to exist following a merger or reorganization; |
| • |
the VAT liability of financing leasing arrangements. |
Read more |
| Tax legislation adopted and regulatory update |
Corporate income tax |
1 July 2012 |
Changes were made in relation to deduction rights for cars used for business purposes. Starting from 1 July 2012, these are subject to a 50% deduction limit not only for ‘fuel expenses for motorized vehicles which are exclusively used for transportation of people’, but also for ‘expenses related to motorized road vehicles which are not exclusively used for business purposes’.
Read more |
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| Russia |
| Tax legislation adopted and regulatory update |
WTO |
22 August 2012 |
Russia becomes a full member of the World Trade Organization on 22 August 2012, at the same time the new “customs tariff”—establishing import duty rates for the Customs Union of Russia, Belarus and Kazakhstan—will enter into force.
Read more |
Reporting requirements/
Corporate income tax/
Withholding tax/
Tax exchange information requests |
August 2012 |
A new Russian law includes the following amendments:
| • |
Requiring taxpayers to submit financial statements within the three months following the end of the reporting year. |
| • |
Concerning the calculation of the tax base for income tax related to implementation of certain investment projects. |
| • |
Concerning the rules for withholding tax on interest derived from government-issued securities, publicly traded bonds, or certain debt obligations of Russian entities to foreign entities. |
| • |
Regarding tax information exchange requests for banks to provide information concerning the accounts and deposits, bank statements, and other banking activities of entities and individuals. |
Read more |
| Retail and Consumer markets |
August 2012 |
The Russian Government issued guidance letters concerning VAT, profit tax issues for the retail sector and consumer markets.
Read more |
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| Slovakia |
| Tax legislation adopted and regulatory update |
Corporate income tax/VAT |
1 September 2012 |
Tax laws enacted in August 2012 include legislation that imposes a special tax contribution, or levy, on taxpayers in 10 ‘regulated’ industry sectors and amends the VAT law.
Read more |
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| Turkey |
| Tax legislation adopted and regulatory update |
Commercial law |
1 July 2012 |
Amendments to Turkey’s commercial law are effective at the beginning of July 2012.
Read more |
| Treaties |
Free trade agreement |
2013 |
Representatives of the governments of Turkey and South Korea signed a free trade agreement. The agreement is expected to enter into force by the beginning of 2013.
Read more |
| DTT |
1 January 2011 |
A new income tax treaty between Turkey and Germany has entered into force. The treaty’s provisions have a retroactive effective date of 1 January 2011.
Read more |
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| United Kingdom |
| Proposed legislation |
Corporate income tax |
22 October 2012 |
The UK Government published a consultation document concerning two anti-avoidance provisions:
| • |
the attribution of gains to members of closely controlled non -resident companies; |
| • |
the transfer of assets abroad. |
Comments are due by 22 October 2012.
Read more |
| 31 October 2012 |
HM Revenue & Customs (HMRC) asked for comments on proposed revised guidance concerning businesses using sampling as a basis of a claim for capital allowances in respect to fixed plant and machinery (fixtures).
Read more |
| April 2013 |
The UK's Finance Act 2012 includes i) a new controlled foreign company regime and ii) a new ‘patent box’ regime.
Read more |
| Tax legislation adopted and regulatory update |
Consultation documents |
August 2012 |
The HM Revenue & Customs published a consultation document which concerns time-apportioned reductions for life insurance policies and the European Commission published a consultation document which concerns cross-border venture capital investment.
Read more |
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