SOFIA - Bulgaria will lower its value added tax rate in 2012, although the government will not yet specify the date or extent of the reduction. In a televised interview on December 29th the Deputy Prime Minister of Bulgaria Simeon Djankov confirmed that the government will lower the national value added tax rate by either 1 or 2 percent in 2012. The upcoming changes will come as part of the government’s pledge to decrease the value added tax rate to 16 percent by 2015, ... Read More

BEIJING - Chinese policymakers have revealed the government’s plans to lower tax obligations and increase public spending. On December 26th at a budget meeting held in Beijing, Chinese policymakers outlined the government’s plans for spurring economic growth in 2012, confirming that public spending will be increased and new tax changes will be instated to help small businesses in the country. Throughout 2012 the government will increase spending on social security, housing projects, education, healthcare, and other measures aimed at boosting economic productivity and national ... Read More

LONDON - London’s reputation as an international metropolitan center brought swarms of overseas investors to the city in 2011 in the search for real estate, but the use of overseas companies has allowed the buyers to skip out on nearly GBP 750 in taxes for the purchase. In 2011 foreign residents purchased GBP 4.3 billion worth of real estate in the city of London, and the current tax rules in the UK meant that the properties were levied at a reduced tax ... Read More

ROME - Italy has approved its long discussed austerity package, which introduce new taxes and changes to economic policies. At a session of the Senate of Italy on December 22nd, Italian policymakers gave final approval to a proposed austerity package aimed at eliminating the country’s budget deficit by 2013 and injecting new life into the economy. The austerity measures will include a new tax on all real estate in Italy, including residential and commercial properties. Also, the national retirement age will be raised to ... Read More

KUALA LUMPUR - Malaysia will see a significant boost to its tax revenue levels, due to the government’s efforts to stamp out illicit capital outflows. At a press conference held on December 21st in Kuala Lampur, the Prime Minister of Malaysia Najib Razak stated that the Inland Revenue Board expects to collect approximately MYR 98 billion in tax revenues this year. The new projection is approximately MYR 7 billion higher than forecasted by the government earlier in the year. If the expectations are ... Read More

COPENHAGEN - Difficult economic conditions in Denmark are forcing the government to revise its projections for tax collections in 2011 and 2012. On December 20th the Ministry of Finance of Denmark released the latest Budget Outlook containing, among other economic indicators, new projections regarding the country’s GDP growth and tax revenue forecasts for 2011 and 2012. According to data contained in the report, the government of Denmark will see its budget deficit expand by DKK 3.1 billion in 2011, and by DKK 16.2 ... Read More

BEIJING - Taxes on owners of motor vehicles are being changed in China, with new rates aimed at encouraging taxpayers to choose greener and more fuel efficient vehicles. On December 19th the State Administration of Taxation of China revealed the Vehicle and Vessel Tax Law, stating that from January 1st 2012 new taxes will be instated on all vehicles in the country. The new tax will be levied on passenger vehicles with engine sizes above 1L and with seating capacities of less than ... Read More