October 22, 2014 Taxation in Hungary
BUDAPEST – Internet access in Hungary is expected to become significantly more expensive, as the government plans to implement a usage-based tax on internet access.
At a press conference held on October 21st the Economics Minister of Hungary Mihály Varga announced a new proposal to levy a tax on internet access in the country at a rate of HUF 150 for each gigabyte used by a user.
Currently no taxes are levied on internet access, but a tax is applied on each minute of phone calls made, and also on each SMS message sent, and the Minister explained that the new tax has been proposed as an increasing amount of communication and messaging is now done not through traditional telephone or mobile networks, but via online applications.
The tax is expected to raise as much as HUF 20 billion per y...Read More
October 21, 2014 Taxation in Israel
JERUSALEM – Mining companies in Israel may see as much as half of their incomes taxed away, if the suggestions raised by a government committee are approved.
On October 20th the government appointed Sheshinski Committee issued a new report proposing changes to the taxation of profits earned from mining activities in Israel, suggesting that a new progressive tax of between 25 percent and 42 percent on profits.
The tax was recommend to be charged at a rate of 25 percent after the activities of the company reach an annual return on investment of 14 percent, rising to a maximum rate of 42 percent when profits rise enough to attain a return on investment of 20 percent or higher.
The currently active royalty rate will be set at a uniform rate of 5 percent, compared to the current variable rat...Read More
October 20, 2014 Taxation in Pakistan
ISLAMABAD – Despite the fact that tax revenues are still not reaching government targets, the tax-to-GDP ratio seen in Pakistan has been shown to be on the rise.
Over the weekend the Federal Board of Revenue of Pakistan issued the FBR Biannual Review for the 2013 – 2014 financial year, showing that the national tax-to-GDP ratio during the time period reached 8.9 percent, while in the previous year the tax-to-GDP ratio was 8.5 percent.
Over the 2013-2014 financial year, tax collections in Pakistan reached a total of PKR 2 266 billion, while in the previous year tax collections were only PKR 1 946 billion, equating to a growth level of 16 percent.
It was noted that the levels of growth required to reach the government’s tax collections targeted are higher than the growth levels seen in t...Read More
October 17, 2014 Taxation in UK
LONDON – Tax compliance is improving in the UK, although a significant portion of taxes are still outstanding due to tobacco smuggling and evasion of VAT.
The difference in the amount of tax revenues collected in the UK and the amount of taxes actually collected in the UK between 2012 and 2013 is approximately GBP 34 billion, an amount equivalent to 6.8 percent of total tax liabilities, according to new information released by the HM Revenue and Customs on October 16th.
According to Financial Secretary to the Treasury David Gauke said that at the current levels, the UK has one of the lowest tax gaps in the world, and the government’s active measures to lower tax evasion and to raise tax compliance has proven to be effective.
The current level of the gap of 6...Read More
October 16, 2014 Taxation in USA
WASHINGTON D.C. – Tax revenues in the USA are hitting record highs as collections of both personal and corporate income taxes see significant growth.
On October 15th the US Treasury Department issued the Monthly Treasury Statement for the fiscal year through to September 30th 2014, showing that the national budget deficit has reached the lowest level since 2007.
The lowered budget deficit has been attributed to the fact that the total of tax revenues collected reached USD 352 billion, the first time that the tax take breached USD 3 trillion since records began.
The total tax receipts were fuelled by a 6 percent increase in collections of personal income taxes, and a 17 percent rise in the collection of corporate income taxes.
The current budget deficit is USD 483...Read More