Monthly Archives March 2016

Dubai Enacts Airport Departure Tax

March 31, 2016 Taxation in UAE

air travelMANILADUBAI – Flying out of Dubai will soon become slightly more expensive, as the local government looks to raise funds through a departure tax.

On March 30th the Crown Prince of Dubai Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum approved a new departure tax of AED 35 (approx. USD 9.50) to be paid by anyone flying out of the emirate of Dubai after June 30th 2016.

The tax is to be paid by every passenger on a flight from a local airport to a destination outside of the UAE, with the only exemptions being granted to cabin crew, children under the age of 2, and transit passengers who arrive and depart on the same flight.

The new tax is to be collected by airlines, and will passed to the airports, who subsequently pass it on to tax authorities.

The extra tax revenues arising from the ta...

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Israel Caps Executives’ Salaries

March 30, 2016 Taxation in Israel

These won't get you far in Israel.JERUSALEM – Fifty high-level executives of banks and financial institutions in Israel will soon face salary cuts, as new tax rules are brought in to cap excessive pay packets.

Earlier this week the parliament of Israel approved tax changes aimed at capping the salaries of high-level executives at a maximum of ILS 2.5 million (approx. USD 657 thousand) in order to reign in income inequality.

Any salary payments of over ILS 2.5 million per year paid by a bank or financial institution will no longer be deductible when calculating corporate income tax obligations of the business.

The new regulations will also apply to small financial institutions which do not pay such high salaries, but still have a wide pay disparity between top-level and bottom-level workers, as any salary which more than 3...

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Universal Basic Income in New Zealand Would Require Tax Overhaul

March 29, 2016 Taxation in New Zealand

WELLINGTON – New research indicates that the proposal to implement a Universal basic Income in New Zealand is not practical, unless the government slashes its spending or overhauls the current tax system.

In a statement released on March 29th the New Zealand activist group the Taxpayers’ Union claimed that it is not possible to implement a Universal basic Income in New Zealand unless the country also enacts a flat rate tax on personal incomes.

The idea of implementing a Universal Basic Income (UBI) is currently under discussion in New Zealand, after the opposition Labour Party floated the concept earlier this month.

The Taxpayers’ Union claims that in order for a UBI to not lead to income decreases for welfare and superannuation recipients, the rate would need to be set at NZD 15 th...

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‘Netflix Tax” Gets Nod of Approval in New Zealand

March 24, 2016 Taxation in New Zealand

WELLINGTON – Digital books, downloads, and media are set to become more expensive in New Zealand, as new GST rules are given the go-ahead.

Earlier this week the Select Committee for Finance and Expenditure appointed by the Parliament of New Zealand gave its approval to legislative changes extending the scope of GST to cover purchases of intangible goods from overseas suppliers.

Currently in New Zealand intangible goods, such as services, software, or media, purchased from an online retailer located outside of the country do not fall under the scope of the 15 percent Goods and Service Tax.

The newly approved regulations will extend GST to cover such goods and services, but only if the supplier exceeds a threshold of NZD 60 thousand of sales in New Zealand per 12-month period.

The new ta...

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Taxes Discourage Smokers from Switching to E-Cigarettes

March 23, 2016 Taxation in USA

WASHINGTON D.C. – Poorly planned tax measures may prevent smokers in the USA from dropping the habit in favor of less harmful e-cigarettes.

On March 22nd the US think-tank the Tax Foundation released a new report on the taxation of electronic cigarettes in the USA, calling for state governments to ensure that they do not tax the new vaporizer technologies in the same way that they would tax traditional tobacco products.

In its report the Tax Foundation noted that vapor products have been shown to be less harmful to humans than traditional cigarettes, and called on tax authorities to ensure that new tax measures do not inadvertently discourage current smokers from switching to this less damaging alternative.

Currently only four states in the USA charge a separate tax on the sale and suppl...

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