Monthly Archives October 2016

Sri Lanka to Hike VAT

October 31, 2016 Taxation in Sri Lanaka

VAT in Sri LankaSRI JAYAWARDENEPURA KOTTE – Sri Lanka is looking to hike VAT rates in order to receive further loans from the IMF.

In a recent statement the international credit rating agency Moody’s announced that the recent move by Sri Lanka to implement a VAT hike will aid the country’s efforts to raise its credit rating.

Sri Lanka had previously attempted to implement a higher rate of VAT earlier this year, although the efforts were waylaid by a legal challenge.

However, the new effort to see the tax become a reality are likely to see the VAT rate raised from 11 percent to 15 percent.

Moody’s believes that the higher tax rate will result in higher levels of tax revenues, ultimately aiding the country’s fiscal consolidation and raising the national revenue-to-GDP ratio.

It was also noted that t...

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EC Proposes Massive Tax Deductions for R&D

October 28, 2016 Taxation in EU

R&D Tax BreaksBRUSSELS – Newly proposed rules in the EU will see companies get tax breaks worth twice their R&D spending.

The European Commission has recently put forward a new proposal which would see significant tax deductions being granted to businesses involved in research and development activities in the EU.

Under the proposed new rules, any business with turnovers of over EUR 750 million, which is also a tax resident in the EU, would be eligible for a tax deduction on the full cost of their R&D spending.

Further, an extra 50 percent deduction will be made available for R&D expenses of up to EUR 20 million, with a further 25 percent on spending if spending exceeds EUR 20 million.

If a business which is a tax resident in the EU does not meet the size requirements, but opts to be part of the R&D d...

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S.Korea trying to Spur Growth of Fintech

October 26, 2016 Taxation in South Korea

Blockchain legislation on South KoreaSEOUL – New legislation in Korea may help the rise of new technology for use in the finance industry.

On October 24th the Chairman of the Financial Services Commission (FSC) of Korea Yim Jong-yong presided over the opening of a new integrated financial technology portal, and announced that the government would soon take greater efforts to develop the national fintech industry.

A significant part of the developments which will be carried out by the government will revolve around new legislative efforts to define the term “digital currency” and to encourage greater implementation of black-chain technology in the innovative fintech industry.

The government hopes that a proper legal definition of “digital currency” will help alleviate the risks that the technology carries in regards to th...

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UAE To Establish Tax Authority

October 25, 2016 Taxation in UAE

Tax Authority in the UAEABU DHABI – New legislation in the UAE will see a Federal tax Authority established by the end of the year.

On October 24th the UAE President Sheikh Khalifa Bin Zayed al-Nahyan issued a decree establishing the Federal Tax Authority, which will oversee tax measures throughout the emirates.

The new Federal Tax Authority (FTA) will be charged with establishing and maintaining an accurate database of taxpayers, with information on the tax obligations owed by each taxpayer.

The FTA will also issue clarifications, guides, and opinions on tax legislation at a federal level across the UAE.

In addition to interacting with taxpayers, the FTA will also coordinate tax efforts and discussions between the federal government, local governments, and taxpayers, while also representing the UAE at regional ...

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Vatican Cleaning Up Tax Affairs of Account Holders

October 20, 2016 Taxation in ItalyTaxation in Vatican

Taxes for Vatican bank accountsVATICAN – Italian taxpayers with bank accounts in the Vatican now have less than 180 days to settle their tax affairs and declare their incomes to the Italian government.

Earlier this week the Vatican released a statement explaining the procedures which will soon need to be followed by Italian taxpayers with bank accounts with the Institute for the Works of Religion, often simply called the Vatican bank.

The Vatican clarified that as of October 15th a new agreement had come into effect between the city-state and Italy, in an effort to increase fiscal transparency and the potential for tax evasion through the infamous Vatican bank.

Italian taxpayers with accounts at the Vatican bank, were told that they have 180 days from the implementation of the new tax agreement to inform tax authoritie...

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