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 September and 30 September 2012.
| |
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 |
Withholding tax |
September 2012 |
The Austrian tax authorities have started to issue refunds of withholding tax on portfolio dividends distributed to foreign corporate shareholders, pursuant to a provision added to Austrian tax law in 2009.
Other entities that have been subject to Austrian withholding tax on dividend distribution may want to consider filing claims for refunds.
Read more
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| Property tax |
1 April 2012 |
Effective 1 April 2012 property tax may be due on the sale of foreign property.
Read more |
| Proposed legislation |
Land registration tax |
1 January 2013 |
Draft legislation in Austria propose a land registration ‘fee’ (tax), at a rate of 1.1% on the market value of property.
Read more |
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| Belgium |
| Proposed legislation |
VAT |
September 2012 |
The Belgian Government has decided to repeal the regime for a VAT deposit required to obtain a reverse charge of import VAT.
Read more |
| Tax legislation adopted and regulatory update |
VAT |
1 January 2012 |
A new circular letter clarifies the VAT status of non-profit associations.
Read more |
| Administrative and case law |
Corporate income tax |
Argenta Spaarbank, C-350/11 (19 September 2012) |
The Advocate General of the Court of Justice of the European Union concluded that the Belgian notional interest deductions rules, as applied to Belgian companies with foreign permanent establishments, impose a restriction on the freedom of establishment that cannot be justified.
Read more |
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| Bulgaria |
| Other |
Tax facts |
2012 |
KPMG Bulgaria published an overview of the Bulgarian tax system.
Read more |
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| Cyprus |
| Tax legislation adopted and regulatory update |
VAT |
8 June 2012 |
The reduced VAT rate (5%) for purchase or construction of a residence in Cyprus is, as of 8 June 2012, also available for citizens from third countries.
Read more |
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| Czech Republic |
| Tax legislation adopted and regulatory update |
Corporate income tax |
September 2012 |
Pending legislative changes, the 5% income tax rate will continue to apply both to funds intended for the public and to qualified investor funds.
Read more |
| VAT |
September 2012 |
Guidance was issued on the VAT reverse charge in the construction sector.
Read more |
| Administrative and case law |
Corporate income tax |
No. 2 Afs 29/2012-18, 29 May 2012 |
Work performed on individual parts of products intended for sale and performed at the premises of another entity, may constitute the formation of a permanent establishment in the form of a fixed place of business.
Read more |
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| Denmark |
| Tax legislation adopted and regulatory update |
Wage tax |
1 January 2013 |
Certain favorable tax rules relating to employer-provided “free housing” will be repealed, effective 1 January 2013.
Danish companies that have offered employer-provided residences for employees as part of their employment package when recruiting foreign workers, may want to reconsider their policies due to this increased taxation.
Read more |
| Corporate income tax |
September 2012 |
The ability of ’major shareholders‘ (who have a controlling interest) to borrow money from a company has been limited.
Read more |
| 2013 |
Effective for tax years beginning in 2013, deductions may no longer be claimed for contributions to certain pension plans.
Read more |
| Reporting requirements |
1 July 2012 |
Effective 1 July 2012, stricter penalties may be imposed on companies that do not timely or correctly report wages, salaries, or employee benefits to the Danish tax administration (SKAT).
Read more |
| Excise tax |
28 September 2012 |
Danish companies that pay excise tax on certain Danish goods and then sell those goods in another country may be eligible for refund of the excise tax.
Read more |
| VAT |
1 July 2012 |
Effective 1 July 2012, a simplified invoice may be used for the sale of goods and services when the amount does not exceed DKK 3,000 (approximately US$500).
Read more |
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| Estonia |
| Proposed legislation |
Corporate income tax |
2013 |
The Ministry of Finance proposed that income on immovable property earned in Estonia by contractual investment funds established in Estonia will be subject to income tax beginning in 2013.
Read more |
| Tax legislation adopted and regulatory update |
VAT |
August 2012 |
Certain health-related products (including medicinal products, medical equipment and devices, sanitary and toiletry products, and contraceptives) will be subject to a VAT rate of 9% as of August 2012.
Read more |
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| European Commission |
| Tax legislation adopted and regulatory update |
VAT |
2015 |
Effective 2015, the VAT on telecommunications, radio and television broadcasting, and electronic services provided by a supplier established in the EU to non-taxable persons also established in the EU will be imposed (charged) in the EU Member State where the customer resides.
Read more |
| 2013 |
Companies with value added tax (VAT) filing responsibilities are reminded of an approaching deadline for EU Member States to implement new e-invoicing rules established by the second VAT Directive.
Read more |
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| France |
| Tax legislation adopted and regulatory update |
Corporate income tax |
28 September 2012 |
The French government unveiled proposed corporate and individual tax measures that are to be included in the Draft Finance Law for 2013.
Read more |
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| Germany |
| Administrative and case law |
VAT |
August/
September 2012 |
An overview of recent judgments of the Court of Justice of the European Union concerning German VAT issues.
Read more. |
| EU |
Corporate income tax |
September 2012 |
The European Commission announced it has referred Germany to the Court of Justice of the European Union with respect to the German tax rules on the reinvestment of hidden reserves.
Read more |
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| Ghana |
| Other |
Tax facts |
|
KPMG in Ghana published a guide for investors in Ghana which contains an section on Ghana’s tax system and tax incentives.
Read more |
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| Greece |
| Tax legislation adopted and regulatory update |
Withholding tax |
17 September 2012 |
KPMG in Greece has provided a list of the most common withholding tax obligations in September and October 2012.
Read more |
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| Hungary |
| Administrative and case law |
VAT |
Mecsek-Gabona Kft v. Nemzeti Adó- és Vámhivatal Dél-dunántúli Regionális Adó Foigazgatósága, C-273/11 (6 September 2012) |
The Court of Justice of the European Union held that a company that has sold goods for transport to another EU Member State may be refused a VAT exemption if it failed to prove that the supply was an intra-Community transaction.
Read more |
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| Iceland |
| Tax legislation adopted and regulatory update |
Withholding tax |
September 2012 |
The tax authorities explained that a corporation is not required to withhold and remit tax on amounts paid to directors for service in their position as members of the board of directors.
Read more |
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| Ireland |
| Tax legislation adopted and regulatory update |
Incentives |
2012/2013/2014 |
Ireland’s Foreign Earnings Deduction (FED) is a tax relief program available to employees of Irish companies who spend time working abroad in Brazil, Russia, India, China, and South Africa—the “BRICS countries” and applies in tax years 2012, 2013, and 2014.
Read more |
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| Luxembourg |
| Administrative and case law |
Corporate income tax |
DI. VI. Finanziaria SAPA di Diego della Valle & C. SapA v. Administration des contributions en matière d’impôts, C-380/11 (6 September 2012) |
The Court of Justice of the European Union issued a judgment concluding that EU law precludes Luxembourg tax provisions requiring the recapture of a previously granted tax benefit when the taxpayer/company transfers its registered seat to another EU Member State.
Read more |
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The Netherlands |
| Tax legislation adopted and regulatory update |
Transfer tax |
1 September 2012 |
The Dutch Ministry of Finance issued a decree extending the period to claim a deduction of the real estate transfer tax in the event of a resale of the property. The period is extended from 6 months to 36 months.
Read more |
| Other |
Customs |
September 2012 |
KPMG in the Netherlands prepared a report which describes the classification of “set-top boxes” (i.e. determining the correct CN code) and the determination of the correct customs duty rate.
Read more |
| Administrative and case law |
Customs |
6 September 2012 |
The Court of Justice of the European Union rendered two important preliminary rulings on the levying of customs duties. Central to both rulings is that where use is made of a customs arrangement, such as customs warehousing or inward processing, a customs debt can be incurred despite the fact that the treatment of the goods was completely in line with the customs arrangement, and therefore all its conditions had substantively been met.
Read more |
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| Portugal |
| Tax legislation adopted and regulatory update |
VAT |
1 October 2012 / 1 January 2013 |
Tax legislation transposes into Portuguese law certain EU VAT Directive provisions concerning (1) the place of supply of services and (2) invoicing rules with respect to VAT, including electronic data-transmission rules.
Read more |
| Administrative and case law |
Corporate income tax |
Commission v. Portugal, C-371/10 (6 September 2012) |
The Court of Justice of the European Union issued a judgment rejecting the Portuguese Exit tax regime.
Read more |
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| Romania |
| Tax legislation adopted and regulatory update |
Tax Reform |
August/
September 2012 |
Changes to Romania's tax code include measures that affect the use of losses when the taxpayer ceases to exist following a merger, spin-off, or other reorganization.
Read more |
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| Sweden |
| Proposed legislation |
Corporate income tax |
1 January 2013 |
Sweden’s government has proposed to reduce the corporate income tax rate to 22%, from the current rate of 26.3%, beginning 1 January 2013.
Read more |
| 1 January 2013 |
The Swedish government published a bill containing proposed changes to Sweden’s interest deduction limitation regime. If the bill is approved, the changes will have an effective date of 1 January 2013.
Read more |
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| Turkey |
| Tax legislation adopted and regulatory update |
Consumption tax |
22 September 2012 |
The special consumption tax amounts or rates for passenger automobiles, gasoline, and certain alcoholic beverages have been increased. The new amounts/rates have immediate effect.
Read more |
| Other |
Incentives |
September 2012 |
KPMG in Turkey published a report which summarizes the new investment incentives in Turkey.
Read more |
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| Ukraine |
| Tax legislation adopted and regulatory update |
Corporate income tax/VAT |
1 January 2013 |
Recent amendments to the tax code of Ukraine include measures which determine that certain tax payers have to make a corporate income tax payment in advance and that an automatic VAT refund is not available for ’large taxpayers‘ that report tax losses from their activities in 2011.
Read more |
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| United Kingdom |
| Administrative and case law |
Corporate income tax |
HM Revenue & Customs v. Philips Electronics UK Ltd., C-18/11 (6 September 2012) |
The Court of Justice of the European Union issued a taxpayer-favorable judgment, holding that a provision in the UK’s group relief law—which prevents losses of a UK permanent establishment of an EU company from being surrendered when any part of the loss can be used in the company’s state of residence—is a restriction on the freedom of establishment.
Read more |
| Tax legislation adopted and regulatory update |
Incentives |
September 2012 |
Guidance on the new UK ’patent box’ regime is expected to be released late September/early October 2012.
Read more |
| FATCA |
September 2012 |
The United States and the United Kingdom have signed a bilateral agreement to implement the information reporting and withholding tax provisions under the Foreign Account Tax Compliance Act (FATCA) regime.
Read more |
| 17 September 2012 to 23 November 2012 |
HM Revenue & Customs published a consultation document seeking comments with respect to the agreement between the United Kingdom and the United States concerning the Foreign Account Tax Compliance Act (FATCA) provisions. The consultation period is 10 weeks, from 17 September 2012 to 23 November 2012.
Read more |
| Corporate income tax |
September 2012 |
HM Revenue & Customs published new draft guidance on the controlled foreign companies (CFC) regime, as contained in the Finance Act 2012. The draft guidance is expected to be finalized by 2013.
Read more |
| Proposed legislation |
Incentives |
September 2012 |
The UK government announced the introduction of a ’Brown Field allowance‘ for oil companies and those involved in oil services businesses that undertake additional development in certain older fields in the UK continental shelf.
Read more |
| Budget |
11 December 2012 |
The draft Finance Bill clauses will be published on Tuesday 11 December 2012, and will be open for consultation until 6 February 2013.
Read more |
| EU |
Corporate income tax |
September 2012 |
The European Commission announced it has referred the United Kingdom to the Court of Justice of the European Union with respect to the UK’s tax rules on cross-border loss relief.
Read more |
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