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International Tax Newsletter - Europe & African region

Europe & African region

International Tax Newsletter

Europe and Africa regions

November 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 November and 30 November 2018.

 

Czech Republic Denmark European Union France
Germany Ghana Hungary Ireland
Italy Malta Mauritius Netherlands
Nigeria Norway Poland Portugal
South Africa Spain Switzerland United Kingdom
Zimbabwe      



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

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

To register for the International Tax webcasts, click here.

International Tax Newsletter - Europe & African region

Czech Republic

Administrative and case law
 
Tax treaties - 14 November 2018
 
The Supreme Administrative Court held that if an income taxation treaty can be applied to a taxpayer’s situation, the tax administrator cannot automatically use domestic law or regulations to interpret a treaty’s concepts, but must apply international law principles and the commentaries to the OECD’s Model Convention.
 
 
 
Treaties
 
Double tax treaties  - November 2018
 
The government of the Czech Republic is taking steps for legislation that would correspond to an income tax treaty—such legislation being necessary because the Czech Republic does not recognize Taiwan as an independent state and thus cannot enter into an income tax treaty with Taiwan.
 

Denmark

Administrative and case law

VAT - 13 November 2018

The Court of Justice of the European Union issued a judgment in a case concerning a claim for the recovery (refund) of VAT on expenses related to a proposed, but ultimately unrealized, sale of shares. The case is: C&D Foods, C-502/17.

Read more.

European Union

Tax legislation approved and regulatory update

EU blacklist - 6 November 2018

The ECOFIN Council decided to further amend the EU blacklist of non-cooperative jurisdictions by removing Namibia from the list.

Read more.

 

Proposed legislation

Digital Services Tax - 6 November 2018

The ECOFIN Council discussed the Digital Services Tax and the progress achieved so far in the negotiations, in particular with respect to the introduction of a sunset clause and the limitation of the scope of the Digital Services Tax.

Read more.

 

Administrative and case law

Various tax areas - November 2018

The EU Tax Centre prepared a summary of EU tax developments that can have both a domestic and a cross-border impact.

Read more.

France

Proposed legislation

ATAD / Corporate income tax  - 23 November 2018

The high chamber of the French Parliament voted to limit the effects of a lower interest limitation to the net interest expenses corresponding to the debt above a debt-to-equity ratio.

Read more.

 

Administrative and case law

Withholding tax  - 22 November 2018

The CJEU rendered its decision in a case concerning the compatibility with EU law of the French withholding tax levied on dividends paid by French companies to non-resident loss-making companies. The case is: Sofina and Others (C-575/17).

Read more.

Germany

Tax legislation approved and regulatory update

VAT - 15 November 2018

German tax authorities announced a further extension of a regulation concerning the VAT treatment of the supplies of goods via consignment stocks. The new extension applies through (until the end of) 2019.

Read more.

Ghana

Proposed legislation

Budget 2019 - 21 November 2018

Several tax initiatives intended to protect revenue and to broaden the scope of tax were included in Ghana’s budget for 2019. They include, among other:
­

  • the highest individual income tax rate band would be reduced from 35 percent to 30 percent
  • to simplify the collection of withholding tax for both small-scale mining operators and the tax authorities,
  • the point of collection of the tax would shift to the point of export. 
  • use of automated tax collection systems would effectively enhance the collection of certain indirect taxes.

Read more.

Hungary

Tax legislation approved and regulatory update

Corporate income tax / CFC - 1 January 2019

The parliament approved tax legislative changes that generally have an effective date of 1 January 2019. They include, among other:
­

  • a group taxation registration requirement
  • interest limitation rules (also referred to as "thin capitalization" rules)
  • changes to the rules for controlled foreign corporations.

Read more.

Ireland

Proposed legislation

ATAD - 14 November 2018

The Irish Government launched a consultation on its adoption of measures under the EU Anti-Tax Avoidance Directive.

Read more.

Italy

Administrative and case law

R&D / Tax incentives - 9 November 2018

A tax ruling offers some clarification R&D investments made by foreign companies and specifically those that have R&D activities in Italy (or for those foreign companies that are considering establishing an R&D center in Italy).

Read more.

VAT - 9 November 2018

The Italian tax authority issued guidance to clarify certain measures concerning the VAT grouping regime.

Read more.

Withholding tax  - 13 November 2018

The Italian tax authority issued a tax ruling to clarify the tax treatment of interest income realized by a non-resident taxpayer from a loan made to an individual taxpayer who is a resident of Italy.

Read more.

Malta

Tax legislation approved and regulatory update

Various tax areas  - 2 November 2018

Guidelines on the income tax, duty and VAT treatment of transactions related to distributed ledger technology were issued by the Maltese Revenue.

Read more.

Mauritius

Tax legislation approved and regulatory update

Corporate income tax / Substance requirements - 14 November 2018

Tax regulations in Mauritius have been revised, with measures concerning:

  • repeal of the deemed foreign tax credit extension of the partial exemption to apply to both domestic and foreign-sourced income
  • enhanced “substance requirements” 
  • tax exemption on the gain or profit realized on a sale of shares and securities.

Read more.

Netherlands

Tax legislation approved and regulatory update

VAT - 1 January 2019

The change to the VAT “zero rate” for the delivery and provisioning of seagoing vessels and the performance of services to seagoing vessels was announced in the 2018 Tax Plan and was originally intended to take effect on 1 January 2018. However, the change was postponed until 1 January 2019.

Read more.

 

Proposed legislation

ATAD - 15 November 2018

The Lower House of the Dutch Parliament adopted the 2019 Tax Plan package and the bill implementing the first European Anti-Tax Avoidance Directive, including a number of amendments and motions.

Read more.

 

Administrative and case law

Interest - 3 October 2018

The Deputy Minister of Finance, answered questions raised by the Lower House about pending fiscal unity emergency repair legislation.

Read more.

Tax rulings - 26 November 2018

The Dutch Deputy Minister of Finance in a November 2018 letter to the Lower House outlined the main features of a revision of the tax ruling practice.

Read more.

Nigeria

Administrative and case law

VAT - 13 November 2018

The Federal Inland Revenue Service has started issuing VAT certificates to businesses that are registered for VAT collection purposes.

Read more.

 

Other

Tax incentives - November 2018

Nigeria’s list of “pioneer” industries and products reflects a list of sectors for which certain tax incentives are available. Pioneer status entitles qualifying entities and companies to an income tax “holiday” for up to five years.

Read more.

Norway

Proposed legislation

Corporate income tax - 1 November 2018

The Norwegian conservative government published a proposed state budget plan for 2019. The key tax proposals include a reduction in the corporate income tax rate to 22 percent and amendments to interest deduction limitation rules.

Read more.

Portugal

Proposed legislation

Income tax relief  - 1 January 2019

Portugal’s 2019 state budget includes a measure offering tax relief for former Portuguese individual tax residents who decide to return to Portugal in 2019 or 2020.

Read more.

South Africa

Proposed legislation

CFC - November 2018

South African taxpayers have seen a number of anti-avoidance provisions proposals over the last three years, with a focus on the taxation of trusts and controlled foreign companies.

Read more.

Tax compliance  - 16 November 2018

The South African Revenue Service announced its intention to introduce administrative non-compliance penalties on outstanding corporate tax returns.

Read more.

VAT/ Digital economy - 15 November 2018

The National Treasury published a draft regulation with proposed rules relating to VAT and services supplied by electronic means.

Read more.

Spain

Proposed legislation

Financial transactions tax - 16 November 2018

The Ministry of Finance has published text of a draft bill for a financial transactions tax.

Read more.

Switzerland

Proposed legislation

Corporate income tax - May 2019

The Geneva State Council presented a final cantonal project for implementation of federal tax reform and other tax provisions, including a measure to reduce the canton’s corporate income tax rate to 13.79 percent.

Read more.

VAT/ Digital economy - 15 November 2018

The National Treasury published a draft regulation with proposed rules relating to VAT and services supplied by electronic means.

Read more.

United Kingdom

Proposed legislation

Brexit - 23 November 2018

HMRC releases updated ‘no deal’ guidance and KPMG’s Brexit page continues to provide practical guidance for business.

Read more.

Corporate income tax  - November 2018

The rules on profit fragmentation have been updated to remove the additional notification requirements and introduce a new reasonableness test.

Read more.

Finance Bill - 30 November 2018

An update on the progress of the Finance Bill through Parliament.

Read more.

Zimbabwe

Proposed legislation

Budget 2019  - 22 November 2018

Zimbabwe’s budget for 2019 includes measures to introduce an “intermediated money transfer tax” to be imposed at a rate of 2 percent.

Read more.

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