Monthly Archives June 2013

Vietnam Slashes Corporate Tax

June 21, 2013 Taxation in Vietnam

vietnam dongHANOI – Vietnam is looking to encourage more economic activity by lowering the tax burdens faced by businesses.

On June 19th the National Assembly of Vietnam voted on and approved a cut the country’s corporate tax rate, lowering the tax from the current 25 percent to 22 percent on January 1st 2014, with a further reduction down to 20 percent scheduled for the beginning of 2016.

Small and medium sized enterprises in Vietnam, which make up the majority of the country’s businesses, will be granted even greater tax benefits, with a 20 percent tax rate being applied from July this year, ultimately being reduced to 17 percent in 2016.

In a further effort to reduce tax burdens on businesses, the government will also now allow companies to carry forward any losses incurred, and to deduct thes...

Read More

Taxes to Quell Property Bubble

June 20, 2013 Taxation in China

BEIJING – Property buyers in major cities in China’s could soon be paying extra taxes on property purchases.

According to a new report released on June 19th by the Xinhua News Agency, the local governments of the cities of Beijing, Shenzhen, Nanjing, Hangzhou and Qingdao have submitted plans to Ministry of Housing, Ministry of Finance, State Administration of Taxation proposing to implement taxes on sales of property and housing in their particular cities.

Property taxes have already been trailed in Shanghai and Chongqing, where the tax on purchase of second homes was set in 2011 at a rate of up to 0.6 percent and 1.2 percent, respectively.

Xinhua has not provided on how the municipal authorities of the five cities plan to implement property tax in the territories, but experts believe tha...

Read More

European Parliament Backs Transaction Tax

June 19, 2013 Taxation in EU

European ParliamentBRUSSELS – The European Parliament has agreed to support the implementation a financial transaction tax in Europe, but has offered suggestion for how to improve the tax.

On June 18th the Economic and Monetary Affairs Committee of the European Parliament voted and agreed to support the implementation of a multinational tax on financial transaction in Europe, a proposal which is currently in front of the European Commission.

Currently 11 countries of the EU are jointly working towards enacting an international tax on financial transactions, which is expected to be set at 0.1 percent on all trades involving stocks or bonds, as well as 0.01 percent on trades involving derivatives.

The European Parliament and the Economic and Monetary Affairs Committee do not have a direct influence on the impl...

Read More

HMRC Flooded with Anonymous Tip-Offs

June 18, 2013 Taxation in UK

Phone CallLONDON – UK taxpayers are keeping a vigilante eye on each other’s tax affairs, and are making hundreds of anonymous tip-offs regarding incidences of tax evasion.

Over the last 12 months the HM Revenue and Customs (HMRC) received over 72 000 anonymous phone calls, or approximately 200 per day, regarding potential cases of tax evasion committed by taxpayers, according to the results of research released on May 17th by the UK based taxation and accountancy firm Bloomsbury Professional.

The managing director of Bloomsbury Professional Martin Casimir explained that the high volume of calls coming to the HMRC’s dedicated whistleblower hotline is a reflection of the public’s perception of tax evasion, saying “…for many people, wages have flatlined in real terms over the last few years while at t...

Read More

Uganda to Tax Money Transfers

June 17, 2013 Taxation in Uganda

Mobile Money TransferKAMPALA – Nearly 9 million Ugandan taxpayers are about to be hit in the pocket, as the government sets forward to tax a mobile money transfer service widely utilized in the country.

Late last week the government of Uganda announced that a 10 percent tax will be charged on all mobile money transfers completed through national financial institutions, and while the measure was initially overlooked by the public, controversy arose over the weekend as claims were made that the measure will have a disproportionately detrimental effect on the financial situation of the country’s lowest earning taxpayers.

Mobile money is a widespread and popular service in Uganda, allowing individuals and business owners to deposit, withdraw, and transfer money to an account which is directly linked to their mobi...

Read More