September 28, 2016 Taxation in Spain
A recent notice issued by the National Directorate of Tax of Spain indicated that the minim Bitcoins and other cryptocurrencies will soon be a taxable activity.
Bitcoins and other cryptocurrencies are created through a process called mining where custom-built computers are used to solve complicated mathematical problems in order to obtain the cryptocurrencies.
Previously mining has not been a taxed activity, despite the fact that the result is the creation of a valuable asset.
The National Directorate of tax indicated that they have taken the view that mining is an economic activity.
It has not yet been indicated how mining w...Read More
September 27, 2016 Taxation in Australia
On September 27th the government of Australia backed down on its intentions to apply an income tax rate of 32.5 percent on the incomes earned by working holiday makers.
Australian citizens enjoy a zero rate of tax on personal incomes up to AUD 18 200, followed by a rate of 19 percent on incomes between AUD 18 201 and 37 000, with a rate of 32.5 on all further income.
The government had previously stated that it would drop the thresholds for any non-residents with working visas in Australia, instead levying incomes at the full rate of 32.5 percent.
The intention quickly proved to be controversial, with many groups and experts clai...Read More
September 26, 2016 Taxation in New Zealand
Over the weekend Mark Keating, a tax law lecturer at the University of Auckland, suggested that the upcoming GST on digital goods and services purchased by New Zealanders from international providers may not be as effective as hoped.
Presently a New Zealander purchasing a digital good or service, such as media or software, from an overseas provider is not liable to pay GST of 15 percent.
However, from October 1st service providers selling digital goods and services to New Zealanders will be required to register for GST, collect the applicable GST, and pay the tax to the national Inland Revenue Department.
The tax measure has been dubbed the “Ne...Read More
September 23, 2016 International Tax Cooperation
Governments of major economic powers around the world are beginning to lower their corporate tax rates for the first time since the Global Financial Crisis in 2008, according to information contained in a new report released recently by the Organization for Economic Cooperation and Development.
In 2014 the governments of Japan, Spain, Israel, Norway, and Estonia all lowered the rate of taxes on corporate income, while the government of Italy, France and the UK all announced that they would cut corporate income taxes in the foreseeable future.
It is believed that the widespread reduction in corporate tax rates is intended to...Read More
September 22, 2016 Taxation in Sweeden
On September 20th the government of Sweden released it latest national budget plan, outlining new proposal to slash the taxes applicable on the repairs of many household items.
Under the proposed tax change, the VAT rate applicable on repairs on household whiteware will be slashed from 25 percent to 12 percent.
The government has also proposed that minor repairs on many household items such as bicycles, leather goods, shoes, clothing and textiles should also fall under the scope of the reduced rate of VAT.
The government expects that the reduced levels of revenue from VAT collections will be compensated by increased collections of income tax revenues.Read More