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International Tax Newsletter - Europe & African region

Europe & African region

International Tax Newsletter

Europe and Africa regions

June 2018

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 June and 30 June 2018.

 

Austria Belgium Bulgaria Czech Republic
Denmark East Africa European Union France
Germany Hungary Ireland Italy
Luxembourg Mauritius Netherlands OECD
Poland Serbia Sweden Switzerland
United Kingdom      



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

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

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International Tax Newsletter - Europe & African region

Austria

Proposed legislation

Anti-tax avoidance directive - 18 June 2018

A draft of an annual tax amendment law for 2018 includes measures that would transpose the EU Anti-Tax Avoidance Directive into Austrian domestic tax law.

Read more.

Belgium

Other

Tax compliance - June 2018

The coming second installment of prepayments is an opportunity for every company in a tax paying position, whereas the timely filing of tax returns and local files can also be a challenge.

Read more.

Bulgaria

KPMG publication

Tax Guide - 1 June 2018

KPMG offers a concise overview of taxes in Bulgaria in 2018.

Read more.

Czech Republic

Proposed legislation

VAT - 13 June 2018

Amendments to the VAT law completed the comment period and are expected to be submitted to the Chamber of Deputies.

Read more.

 

Anti-tax avoidance - 2019

The 2019 tax package is reportedly about to be submitted by the government. The Ministry of Finance has added a new proposal to require taxpayers to report income transferred abroad and to clarify the “abuse of right concept.”

Read more.

 

Anti-tax avoidance directive - 1 January 2019

Proposed changes to the income tax law of the Czech Republic has completed the comment process. Among the proposed amendments are provisions that would implement the EU Anti-Tax Avoidance Directive into Czech tax law.

Read more.

Denmark

Administrative and case law

Cross border loss relief - 12 June 2018

The Court of Justice of the European Union rendered its decision in a case concerning the compatibility with EU law of the Danish rules on the deductibility of losses from foreign permanent establishments. The case is: Bevola and Jens W. Trock (C-650/16).

Read more.

 

Withholding tax - 12 June 2018

The CJEU rendered its decision in the Fidelity Funds case, concerning the compatibility with EU law of the Danish withholding tax on dividends distributed to non-resident investment funds. The case is: Fidelity Funds (C-480/16).

Read more.

East Africa

KPMG Publications

2018 East Africa Budget Analysis - 15 June 2018

The East African Community Finance Ministers presented their countries’ respective budgets modelled along the theme of industrialization for job creation and shared prosperity.

Read more.

European Union

Tax legislation approved and regulatory update

Custom duties - 22 June 2018

The European Commission announced the adoption of regulation as the EU's rebalancing measures in response to the U.S. tariffs on steel and aluminum.

Read more.

 

Mandatory disclosure requirements - 25 June 2018

The new mandatory disclosure requirements for intermediaries and relevant taxpayers entered into force on 25 June 2018.

Read more.

 

Proposed legislation

VAT - 1 January 2020

The European Commission issued a release concerning an approach reached by EU Member States on new tools to close loopholes in the EU's VAT system.

Read more.

 

Custom duties - June 2018

The European Commission announced a programme proposal aimed at improving the efficiency of tax and customs cooperation among the EU Member States.

Read more.

 

Other

CCTB - 19 June 2018

German Finance Minister Olaf Scholz and his French counterpart Bruno Le Maire issued a common position paper on the European Commission’s proposal for a Common Corporate Tax Base (CCTB).

Read more.

 

Code of conduct - June 2018

The ECOFIN Council adopted conclusions on the work of the Code of Conduct Group during the first half of 2018. The Member States particularly welcomed the progress made by the Group with regard to the EU blacklisting process and endorsed a new multiannual work program.

Read more.

 

Taxation trends report (2018) - June 2018

The European Commission released a report showing that tax revenues rose in 19 EU Member States in 2016 as a percentage of GDP in 2016, but that the level of taxation in EU Member States differs greatly.

Read more.

France

Administrative and case law

VAT - 29 June 2018

The French Supreme Tax Court held that the French tax authorities can consider income that is not “booked” in the accounts of the taxpayer-company for purposes of determining a tax on added value. In this case, the amount at issue related to a transfer pricing re-assessment. The case no. is: 409645.

Read more.

Germany

Administrative and case law

CFC  - 5 June 2018

Advocate General of the CJEU published his opinion in a case concerning the derogation from the prohibition on restrictions to the free movement of capital with non-EU countries, and its application to the German controlled foreign company rules. The case is: X-GmbH case (C-135/17).

Read more.

 

VAT - 25 June 2018

The German Federal Tax Court issued a judgment in a case concerning the input VAT deduction when the invoice did not provide specific details about the time of the supply.

Read more.

 

Carry forward of tax losses - 28 June 2018

The CJEU rendered its decision in a case regarding the compatibility with EU State aid rules of German legislation, which under certain conditions allows a company in financial difficulties to carry forward tax losses despite changes in its shareholder structure. The case is: Heitkamp Bauholding (C-203/16).

Read more.

Hungary

Proposed legislation 

Corporate income tax / Individual taxation - 2019

Draft tax legislation for next year was submitted to Hungary's Parliament.

Read more.

Ireland

Tax legislation approved and regulatory update

PAYE - June 2018

Irish Revenue recently updated its much awaited guidance on the operation of PAYE for short-term business visitors, who are performing the duties of their overseas employment in Ireland.

Read more.

 

VAT - June 2018

KPMG in Ireland prepared a summary of recent VAT developments.

Read more.

 

Other

AEO  - June 2018

Irish businesses need to prepare for the changes in trading into and out of the UK once the UK finally leaves the EU.

Read more.

Italy

Tax legislation approved and regulatory update

E-invoicing  - 1 January 2019

Law Decree no. 79/2018 postpones until 1 January 2019 the mandatory e-invoice requirements for business-to-business supplies of gasoline or diesel intended to be used as motor fuel and supplied at petrol stations.

Read more.

Luxembourg

Tax legislation approved and regulatory update

Anti-tax avoidance directives - 19 June 2018

The Luxembourg government issued a bill for the transposition of the EU Anti-Tax Avoidance Directive into Luxembourg domestic tax law.

Read more.

 

Administrative and case law

Hybrid convertible loan / Tax rulings - 20 June 2018

The European Commission issued a release stating that Luxembourg allowed two group companies to avoid paying taxes on almost all their profits for about a decade—found to be “illegal” under EU State aid rules because the rulings provided an undue advantage.

Read more.

 

VAT - 29 June 2018

Luxembourg’s tax authorities have issued additional guidance concerning the determination of input VAT deductions for “partial taxpayers”.

Read more.

Mauritius

Tax legislation approved and regulatory update

Tax compliance - 15 August 2018

Companies that pay dividends exceeding MUR 100,000 (approximately USD 2,850) must submit an annual information return of dividends distributed.

Read more.

 

Proposed legislation

Tax budget - 14 June 2018

The budget for 2018/2019, reflects tax reform efforts in the global business sector and incentives for certain foreign persons.

Read more.

Netherlands

Proposed legislation

Corporate income tax / Fiscal unity regime - 8 June 2018

A bill has been presented to parliament in response to a February 2016 judgment of the Court of Justice of the European Union on the “per element” approach in the context of the Dutch fiscal unity regime for corporate income tax purposes.

Read more.

 

Administrative and case law

Advance tax rulings - 14 June 2018

Advance tax rulings will no longer be available for standard securitization transactions.

Read more.

 

Payroll taxes  - 22 June 2018

The Dutch Supreme Court issued its judgment in a case concerning whether a severance package is to be regarded as an early retirement scheme.

Read more.

OECD

Other

Global revenue statistics database - 28 June 2018

The OECD announced the launch of a new database providing detailed and comparable tax revenue information for 80 countries around the world.

Read more.

 

Tax avoidance - 18 June 2018

The OECD issued a release intended for resource-rich developing countries and the attempts by multinational mining enterprises to avoid taxes through the use of tax incentives.

Read more.

 

Poland

Tax legislation approved and regulatory update

VAT - 1 July 2018

A measure introduces the “split payment” mechanism as part of the VAT rules. This mechanism is based on the assumption that the purchaser of goods and services will remit the amount of VAT into a dedicated VAT bank account of the supplier.

Read more.

Serbia

Tax legislation approved and regulatory update

Beneficial owners - 8 June 2018

A law establishing a central register of “ultimate beneficial owners” was enacted. The measures apply to legal entities and others registered in the Republic of Serbia.

Read more.

 

Company law - 9 June 2018

National Assembly of the Republic of Serbia adopted amendments of the Law on Companies.

Read more.

Sweden

Tax legislation approved and regulatory update

Corporate income tax - 14 June 2018

The parliament passed legislation, clearing the path for enactment of corporate tax measures. The bill includes:

  • measures for implementation of the EU Anti-Tax Avoidance Directive into Swedish domestic tax law 
  • changes to the interest deduction limitation rules
  • a phased-in reduction of the corporate income tax rate. 

Read more.

 

Gambling tax - 1 January 2019

The Swedish parliament passed a gambling-related tax bill which is designed as a licensing system, whereby all those who provide games on the Swedish gambling market must be licensed.

Read more.

 

Switzerland

Tax legislation approved and regulatory update

VAT - 27 June 2018

Treating an investment fund asset management or performance fee as being subject to VAT has been a standard and accepted practice in the past. However, recent developments have shown that no Swiss VAT is due on such services in certain instances.

Read more.

 

Proposed legislation

Corporate income tax - 7 June 2018

“Tax Proposal 17”—as the legislative tax reform proposals have been known—was discussed in the first chamber of the Parliament (Council of States). The Council of States approved the application of an economic commission with amendments.

Read more.

United Kingdom

Tax legislation approved and regulatory update

VAT / Tax compliance - 1 April 2019

HMRC has confirmed that from 1 April 2019 all VAT registered businesses with a turnover in excess of GBP 85,000 will have to maintain digital records for VAT and submit their returns digitally.

Read more.

 

Administrative and case law

PAYE - 22 June 2018

First Tier Tribunal holds that waiving loans to close companies’ directors who were also participators was taxed as earnings.

Read more.

 

PAYE - 5 April 2019

Up to 50,000 individuals and their employers could be affected by PAYE and NIC charges that apply to relevant loans outstanding.

Read more.

 

Stamp duties  - 15 June 2018

The Supreme Court has allowed HMRC’s appeal in this decision on the SDLT due on a Shari’a-financed land purchase. The case is Project Blue v HMRC.

Read more.

 

Withholding tax - 22 June 2018

The Court of Appeal has found for HMRC in a case regarding whether a source of interest arose within the UK and a company was obliged to withhold income tax on payments of interest.

Read more.

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