Monthly Archives July 2016

S.Korea Offers Extensive Tax Exemptions for R&D

July 29, 2016 Taxation in South Korea

SEOUL – Companies involved in robotics, artificial intelligence, 3D printing, and other high-tech areas will be eligible for extra tax breaks in South Korea.

On July 28th the government of Korea announced that it would implement several new tax measures in an aim to create several new “economic growth engines”.

The new tax regulations to be enacted by the government will allow small- and medium-sized businesses to claim up to 30 percent of their research and development expenses for tax purposes, if the expenses fall within the scope of 11 selected development sectors.

The chosen areas are all high-tech and potentially high-growth, such as artificial intelligence, 3D printing, hyper-plastics, robotics, and aerospace.

The 30 percent deductions are not open to large conglomerate organi...

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ATO Cracks Down on Tax-Dodging Retirement Funds

July 28, 2016 Taxation in Australia

CANBERRA – Taxpayers and tax advisers in Australia are being told to stop using self-managed retirement funds to evade taxes.

The Australian tax Office is cracking down on tax evasion committed via self-managed superannuation funds.

Under current regulations in Australia, taxpayers saving for retirement are able to manage their own retirement savings account via self-managed superannuation funds.

The ATO claims that a growing number of tax advisers are now helping individuals bypass their tax obligations by abusing the SMSF schemes.

Specifically, the ATO says that tax are being dodged by dividend stripping, Non-arm’s length limited recourse borrowing arrangements, and by shifting personal service incomes to an SMSF.

Taxpayers who are found to be using an illegitimate SMSF scheme to evade...

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1 Million Tax Returns Filed in S.Africa

July 27, 2016 Taxation in South Africa

PRETORIA – A growing number of taxpayers in South Africa are utilising electronic filing systems to complete their tax returns.

In a press release issued on July 25th the South African Revenue Service (SARS) announced that over the first 21 days of the national tax season a total of 1 016 056 tax returns had been filed.

Of all the tax returns filled between July 1st and July 22nd, a total of 611 453 had been filed via the online e-filing system.

The remaining 404 603 tax returns were filed in person at a SARS branch.

The success of the latest tax season was attributed primarily to efforts by SARS to ease the process of filing taxes, especially via the e-Filing system.

It was further added that support tools such as the Help-you-eFile system has further helped convince people to move to t...

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Vanuatu Should Raise VAT

July 26, 2016 Uncategorized

Monopoly JusticePORT VILA – Vanuatu needs to hike the rate of value added tax instead of raising income taxes, or else the country could face more difficulty in finding skilled workers.

In a radio interview on July 25th, Martin Hilaire of the Chamber of Commerce of Vanuatu, called on the national government to drop the proposal to raise income taxes, and, instead, hike the rate of value added tax.

Currently the rate of Value Added Tax in Vanuatu is set at 12.5 percent, and Martin Hilaire claimed that it should be raised by 2.5 percent to 15 percent.

It was explained that currently only 26 000 people in Vanuatu are registered for the Vanuatu Pension Plan, indicating that less than 10 percent of the population is included in the tax net.

If income taxes were raised, the burden of the rise would fall squar...

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Property Taxes Ranked Worldwide

July 25, 2016 International Tax Cooperation

WELLINGTON – Property taxes vary widely around the world, from 11.3 percent in Belgium to nothing in New Zealand.

The results of a new report published by the international accounting form UHY Haines Norton has shown that New Zealand levies the lowest rates in the world on the purchase of property, while Belgium levies the highest rate.

The report contains results of calculations of the taxes due to local, state, or national governments when making a private purchase of a property worth USD 1 million.

Currently New Zealand does not charge any taxes on the purchase of property, followed only by Russia which charges a nominal tax, which would amount to only USD 30.35 on the purchase of the property.

Conversely, the average amount of tax to be paid in Belgium on the purchase of a property w...

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