Press Releases from Nair & Co. (73 total)
Luxembourg Implements New Tax Provisions
Luxembourg has implemented various measures with the aim of increasing revenue through taxation. Most of the provisions come into effect from January 1, 2013. The details of the important tax measures are summarized below:
For Corporate doing business in Luxembourg:
• The surcharge for employment fund has been hiked by two percentage points from 5% to 7%. This would result in an increase in the total tax for the City of Luxembourg, from…
Czech Republic Approves Austerity Measures and Amends VAT Laws
Details of the major VAT changes effective from January 1, 2013 are as follows:
• The standard VAT rate has been increased to 21% and the reduced VAT rate to 15%.
• The scope for VAT has been widened, making more customers liable to pay in future.
• The VAT exemption for insurance and re-insurance has been amended.
• The electronic format rules concerning tax documents have been changed.
• VAT returns will have to be filed electronically from 2014.
• Calendar…
Australia Strengthens Data Privacy Laws
Australia Amends Privacy Laws: Key changes
The current dual system of Information Privacy Principles and National Privacy Principles applicable to the public sector and private businesses respectively, will be replaced with the new unified Australian Privacy Principles (APPs).
Companies will be required to maintain an active privacy policy and also make sure it is complied-with on an ongoing basis.
Businesses may be required to disclose personal information of overseas recipients in certain cases,…
France Proposes Changes to Tax Laws for Stock Options
The proposed changes, if implemented, would be applicable to qualified stock options and free shares awarded on or after September 28, 2012. The awards made prior to this date, however, will stay under the existing tax system. Other proposed changes include the new 18 % rate of tax on income which will be applicable on income derived since January 1, 2012, and certain other changes like progressive taxation on capital…
Ireland: Taxpayers to Submit Financial Statements in Inline eXtensible Business …
(Sunnyvale, CA)- The revenue department of Ireland declared that it will provide taxpayers the option of submitting financial statements in Inline eXtensible Business Reporting Language (iXBRL) format through the upgraded Revenue's On Line System (ROS), to make the inspection process efficient. Similar facilities will also be available for income tax payers from January 1, 2013.
Financial statement submission in iXBRL format is voluntary in the beginning, but will be made mandatory…
China Introduces Surcharge on Electronic Waste; Manufacturing Sector Affected
(Sunnyvale, CA)- Chinese tax authority, State Administration of Taxation (SAT) has released a declaration establishing surcharge on electronic waste in the country, on August 20, 2012. The announcement with retrospective effect from July 1, 2012, declares that manufacturers delivering electronic goods in the country must make payment to the fund provisioned for disposal of electronic waste.
The SAT would be responsible for collections of the newly introduced charges. However, it should…
Hungary Proposes to Introduce New Tax on Financial Transactions by Payment Servi …
(Sunnyvale, CA)- The Hungarian government has proposed to introduce a new tax on financial transactions by payment services providers (PSP) having registered or branch office in Hungary.
The National Bank of Hungary has been exempted from the purview of the above. However, it would be liable to the tax in case it:
* securities are issued by central bank for a period less than two weeks, or
* short term deposits…
South Korea Announces Tax Hike; Business Entities in the Country Affected
(Sunnyvale, CA)- The South Korean government has announced changes to its tax laws that would increase tax rates for both large businesses operating in the country and employees. The new law changes are expected to increase South Korean tax revenues by KRW 1.8 Trillion and raising taxes on capital gains and tax rates.
South Korean Government Tax Changes: Key Highlights
* Raises the highest minimum tax rate to 15% from 14% for…
China Clarifies Enterprise Income Tax Treatment of Equity Compensation Plans
(Sunnyvale, CA)- Chinese tax authorities have clarified the Corporate Income Tax (CTI) treatment of equity incentive compensation plans (EICP) taking effect from 1 July, 2012. The recent clarification dealing with executive compensations is likely to improve the chances of business expansion in China and develop the country’s securities market.
In the light of a developing Chinese market, a large number of companies have opted for incentive compensation programs as an inclusion…
UK to Introduce Statutory Definition of Tax Residence in Finance Bill 2013; Prov …
Sunnyvale, CA, USA, September 3, 2012 - (PressReleasePoint) - The United Kingdom is likely to introduce the statutory definition of tax residence in the Finance Bill 2013. Draft legislation which includes a statutory definition of tax residence will provide clear rules for taxpayers; the same has been published after considering public views. The British Government also intends to bring in reforms to the concept of ordinary residence.
Statutory Definition…
China Revises Income Tax Incentives for Software and Integrated Circuit Manufact …
(Sunnyvale, CA) – China has revised the enterprise income tax incentives for software and integrated circuit (IC)companies as per a notification released jointly by the Ministry of Finance and the State Administration of Taxation (SAT).
The tax incentives are applicable from January 1, 2011 to December 31, 2017. During this period, software and IC manufacturers are exempt from enterprise income tax (EIT) for initial two years (starting from the first profit-making…
Update: India Provides Details on Mandatory Tax Reporting Requirements for Liais …
(Sunnyvale, CA) – The Income tax authority of India has extended the due date for filing 49C form for particular categories of assessees having a Liaison Office in India. On account of technical difficulties in providing appropriate facility for electronic filing, the due date has been extended up to September 30, 2012, for the financial year 2011-12.
Formerly, the assessees were directed to file Form 49C electronically, within 60 days from…
Government of Romania Introduces Changes to VAT Legislation
(Sunnyvale, CA) – The Government of Romania has introduced an array of changes to its VAT legislation. The amendment includes an increase in the VAT registration threshold, tax authority’s right to de-register taxpayers and VAT related deductions for purchase of vehicles.
Revised VAT registration threshold
*The VAT registration threshold has been increased from € 35,000 to € 65,000, effective from July 1, 2012.
*Taxpayers who have declared or realised an annual turnover not…
India Announces Major Changes to Service Tax Laws; New Rules to Take Effect from …
(Sunnyvale, CA) - India’s Department of Revenue has finalized the dates for the implementation of the Negative List for service tax as well as the phase-out of the current service tax regime.
Although the proposed changes are in draft format, once the new regime is in place, all companies will have less than a month's time to comply with the changes. Except for exempted services or services in the Negative List,…
India – New Rule Allows Use of ‘Other Method’ for Determining Arm’s Leng …
(Sunnyvale, CA) - The Indian Tax Administration has introduced a new transfer pricing method which uses the ‘other method’ for determining Arm’s length Principle (ALP) for international transactions.
According to the new rule 10AB to the Income-tax Rules, 1962, the other method for determination of the arm’s length price in relation to an international transaction shall be any method which takes into account the price which has been charged or paid,…
India Introduces Changes to EEFC Account Norms
The Indian Government has introduced changes to the Exchange Earners' Foreign Currency Account (EEFC) norms. As part of the revision, exporters or individual professionals who have an EEFC account will now have to convert 50 percent of their balances into rupee balances, and they will also be given permission to purchase foreign exchange by accessing the forex market only after extinguishing their existing EEFC account balances.
In the year 2006, foreign…
Indian Court Allows Company to Shift Service Tax Liability
Sunnyvale, CA - In a milestone verdict, the apex court of India held that an assessee of service tax may enter into a contract with another party to shift liability. This case involved Rashtriya Ispat Nigam Ltd and M/S Dewan Chand Ram Saran where the Supreme Court read out the verdict in favour of the former.
Background:
In an agreement, public sector steel manufacturer, Rashtriya Ispat Nigam Ltd involved goods transporter, M/S…
India: Documentation for Foreign Exchange Remittance Eased
Sunnyvale, CA- With an aim to liberalize documentation requirements, the Reserve Bank of India (RBI) has raised the limit for foreign exchange remittance for miscellaneous purpose without documentation process to US$25000 from US$5000.
In the year 2002, Authorized Dealers were directed to release up to US$500 or its equivalent for all transactions upon obtaining a letter from the applicant that includes basic information. In the year 2003, the foreign exchange limit…
India Introduces E-waste Management Rules for Manufacturers and Consumers of Ele …
(Sunnyvale, CA) – The Indian Ministry of Environment & Forest (MoEF) has introduced e-waste management rules for the safe disposal and handling of e-waste (Waste electric and electronic equipments) in order to reduce and recycle e-waste in the country.
The E-Waste Management and Handling Rules, 2011 which came into effect on May 1, 2012 are applicable to both manufacturers of electrical goods and consumers of electronic equipment who will now need…
Spain Introduces New Tax and Administrative Measures to Reduce Public Deficit
(Sunnyvale, CA) - In order to reduce public deficit this year, the Spanish government has introduced provisional measures to the Corporate Income Tax.
To achieve this objective, the government has fixed a 30% limit on net financial expenses deductibility of the EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), maintained zero deprecation of assets for small and medium-sized enterprises (SMEs), and cut down annual overall limitation on tax credits.
The decree comes…
Indian Ministry of Finance Proposes Amendment to Budget 2012-13
The Indian Ministry of Finance has proposed certain amendments to the Union Budget 2012-13, which introduced certain provisions to check tax evasion. To address concerns of the adverse impact of the provisions, the Indian finance minster has announced revision of the Union Budget.
The proposed amendment highlights areas like deferred implementation of General Anti-Avoidance Rules (GAAR), retrospective amendments to indirect transfers abroad and capital gains on private equity.
The proposed revisions to…
Vodafone Serves Notice of Dispute against Indian Tax Law
(Sunnyvale, CA) – India’s plans to introduce amendments to its tax laws that include powers to retroactively overturn recent court rulings has sparked off a new contention between the government and Vodafone with the telecommunication company challenging the new retrospective tax legislation.
Vodafone has served a Notice of Dispute against controversial proposals included in the Indian Finance Bill 2012 which allows the government to change tax laws retroactively as well as…
Brazil Makes New Changes to Social Security Contribution
(Sunnyvale, CA) - New changes to the social security contribution for Brazilian employers may take effect from August 1, 2012, subject to Congress' approval.
Provisional Measure* 563/2012 was issued on April 4, 2012, introducing the following changes:
*Information technology (IT), Information and communication technology (ITC) and call center service companies will now pay 2% Contribuição Para O Instituto Nacional de Seguridade Social (INSS) instead of 2.5%. The rate will also be extended…
Brazil Introduces New Amendments to Financial Transaction Tax (IOF)
(Sunnyvale, CA) - The Brazilian Government has introduced new amendments to the regulations on financial transactions tax (IOF) imposed on foreign exchange transaction with effect from March 1, 2012.
As per the new ruling, direct foreign loan transactions and transactions involving bonds issued to the international market with a minimum average term of less than three years will be subject to 6% IOF. Also, the new average term will be applicable…
Brazil Introduces Fixed Profit Margins to Simplify Transfer Pricing Method
(Sunnyvale, CA) –The Brazilian government introduced changes to transfer pricing rules which includes a range of fixed profit margins for various industry sectors. The main changes are effective January 1, 2013 but the rules can also be applicable for calendar year 2012.
Details of Provisional Measure 563
New fixed profit margins for the purpose of calculation of the Resale Minus Profit method (Preço de Revenda menos Lucro – PRL).
The existing profit margins…
UK’s New Immigration Rules to Take Effect from June 14, 2012
(Sunnyvale, CA)- UK has introduced changes to its immigration rules which would affect foreign nationals residing or entering the UK on employer-sponsored visas as well as the employers. The changes are based on the observations of the Migration Advisory Committee (MAC) and will be effective from June 14, 2012.
Tier 2 Changes to UK Immigration Rules:
Changes for foreign nationals residing or entering in the UK sponsored by A-rated employers:
* The level…
Australia: Court Case Emphasizes Importance of Following Correct Employee Termin …
(Sunnyvale, CA) - A federal court ruling involving employee termination in Australia demonstrated that following the right procedures and maintaining proper records related to long-term employee issues including workplace rights and absence from work, can protect the employer when facing an adverse action claim.
In Eriksson v The Commonwealth [2001] FMCA 964, a federal magistrate ruled in favour of the employer (Department of Health and Ageing) in determining whether the termination of an…
Australia to Reform Business Name Registration Process
(Sunnyvale, CA) - Australia will soon launch the National Business Names Register which will enable companies to use a single form to register a business name across all Australian states and territories.
In accordance with the Business Names Registration Act 2011 (Cth), from May 28, 2012, the Australian Securities and Investments Commission (ASIC) will maintain a new business names register on a centralized database.
The current process requires business names to be…
Australia Amends Trademark Laws to Streamline Processes
(Sunnyvale, CA) - The Australian Occupational Health & Safety (OHS) law recently underwent a series of changes, violations of which could result in fines of up to $600,000 and/or imprisonment of up to five years for corporate as well as individual executives.
The changes came into effect in January 2012 in New South Wales, Queensland, the Commonwealth, the Australia Capital Territory and the Northern Territory.
The amendments to OH&S laws that Senior…
Canada Releases Details of New Tax Measures
(Sunnyvale, CA) - The Canadian Finance Minister announced details of the new tax measures which include an expanded list of medical devices and prescription drugs that are free from Goods and Services Tax/ Harmonized Sales Tax. The Economic Action Plan 2012 also details penalties for falsified registration of charitable tax shelters as well as authorizes the Canada Revenue Agency to issue demands for filing returns either through an online notice…
Hong Kong Releases Advance Pricing Guidelines; China Explores Advance Tax Ruling …
(Sunnyvale, CA) - Hong Kong’s Inland Revenue has released its long-awaited Advance Pricing Agreement guidelines, which will initially focus on negotiating bilateral and multilateral APAs specifically with jurisdictions with which Hong Kong has a Double Tax Agreement.
According to the Hong Kong APA guidelines, only resident and non-resident companies with a Permanent Establishment (PE) generating taxable income in Hong Kong can apply for an Advance pricing Agreement. Companies or PE’s which do…
Switzerland & UK Supplement Withholding Tax Agreement, Changes To Take Effect Ma …
(Sunnyvale, CA) - Switzerland and United Kingdom signed a protocol of amendment that supplements their withholding tax agreement of October 6, 2011. The agreement is awaiting approval from the Parliament of both, Switzerland and United Kingdom, to take effect at the beginning of 2013.
According to the Swiss Federal Department of Finance (FDF), interest payments have not been included in the agreement and taxpayers can discharge tax liabilities on interest payments.
Post…
Regulatory Updates: Denmark, Malaysia, Germany, Ireland & Japan
Danish Government Eliminates Special Tax Rules on Share-based Payment
The Danish Government plans to eliminate special tax rules on employee share ownership plans and individual share-based remuneration plans. Abolition of rules on employee share ownership will be effective from January 1, 2012, and abolition of individual share-based remuneration plans with a deferred tax element till the time of sale will be applicable to signed agreements on or after November 21, 2011.
German…
VAT Updates: China, Czech Republic, Romania, Portugal
China Plans to Extend VAT Pilot Scheme to Beijing in July
China’s pilot scheme for VAT which is intended to replace the current business tax in Shanghai is likely to be extended to Beijing in July, this year. Currently, VAT is being applied only to the manufacturing industry. The pilot VAT rates of 11% and 6% are mainly being introduced to support the services sector such as transportation. China commenced the…
EU- India Expected to Finalize Free-trade Agreement in 2012
(Sunnyvale, CA) - The European Union and India have advanced negotiations on the free-trade agreement which is expected to be finalized by the end of 2012. The agreement, once complete, is expected to boost bilateral trade leading to increased international business expansion opportunities for both European and Indian companies.
Representing the European Union at the recently held EU –India Summit in New Delhi, Commission head Jose Manuel Barroso said that the…
China Opens Access to Centralized Database of Bribery Convictions
(Sunnyvale, CA) - China’s major investigatory and prosecutorial division - Supreme People’s Procuratorate (SPP) along with other PRC anti-corruption organizations declared the availability of a centralized database of individuals and companies charged with bribery offenses to the public on February 16, 2012.
Companies and individuals will now be able to check for companies or individuals with bribery convictions throughout mainland China thus, eliminating the cumbersome task of checking every province or…
Supreme Court Ruling to Impact Companies Employing UK Expats
(Sunnyvale, CA) - The UK Supreme Court has ruled that employees of UK companies who worked outside the UK could raise a claim of ‘unfair dismissal’ in a UK employment tribunal, signifying far reaching implications for companies that employ UK expats.
The Supreme Court ruled that the employee (who worked outside the UK) has the right to file a case of unfair dismissal owing to his “substantial connection” to the United…
Highlights of Singapore Budget 2012
(Sunnyvale, CA) - Singapore announced a cash grant for small and medium enterprises along with a slew of other announcements including a new scheme for enhancing productivity and innovation during its budget statement on February 17, 2012.
Singapore budget 2012 – Small and Medium Enterprise (SME) Cash Grant
A one-off non-taxable SME cash grant calculated at 5% of the company’s revenue for YA2012 will be granted to SMEs. The grant which will…
Argentina Imposes New Import Regulations
(Sunnyvale, CA) – Argentina has implemented a new trade regulation which makes it mandatory for companies to declare the amount of goods being imported into the country by signing an official document beforehand. Effective February 1, 2012, all registered importing companies are required to fill in the Anticipated Sworn Declaration of Imports (Declaracion Jurada Anticipada de Importacion - DJAI) application. Importers will also have to provide details about the business…
China Reduces Corporate Tax for Small Businesses; Cuts Import Tariffs
(Sunnyvale, CA)- China’s tax policy framework for 2012 largely focuses on reducing taxes for both individuals and small businesses to maintain economic growth and stability. China’s Ministry of Finance presented the tax policy framework for 2012 during the National Finance Work Conference in Beijing.
Tax incentive for small low-profit enterprises extended
In 2011, the income tax threshold for individuals had been raised from RMB2000 (USD315) to RMB3500. Micro businesses and small-sized…
Nair & Co. Announces 40% Growth in 2011
(Sunnyvale, CA) – Nair & Co., the leader in international business expansion services, announced a record 40% growth in 2011 resulting from substantially greater demand for its outsourced accounting, payroll, compliance, legal and other consulting services.
“2011 has been a high growth year for us, with many of our clients significantly expanding their international operations. Allied to this, we have seen a significant spurt in new client acquisition coupled with excellent…
Germany’s Electronic Income Tax System Delayed
(Sunnyvale,CA) –The German finance ministry has delayed the launch of its new electronic income tax tracking system owing to technical problems.
The delay of the electronic version of the ‘Lohnsteuerkarte’ document used by employers to process employee wages and taxes will have no effect on taxpayers, the German Finance Ministry said in a recent release.
The new income tax tracking system - ELStAM, which was supposed to be in use from January…
Ireland to Reduce Frequency of Tax Returns & Payments for Certain Businesses
(Sunnyvale, CA) - With effect from January 1, 2012, certain businesses in Ireland will enjoy a reduction in the frequency with which they file their tax returns and pay taxes.
Taxes may be paid and VAT returns may be filed every six months by businesses making total annual VAT payments of less than EUR 3,000. Businesses making total annual VAT payments between EUR 3,000 and EUR 14,400 can do so every…
China extends import tax exemption & VAT refunds for foreign R&D centers
(Sunnyvale,CA) –Chinese authorities have recently announced that the import tax exemption on purchases of certain R&D equipment and devices by foreign invested R&D centres would continue.
Circular 88 released jointly by The Minstry of Finance (MoF), the Ministry of Commerce (MOFCOM), the General Administration of Customs (GAC) and the State Administration of Taxation (SAT) also confirmed the extension of Value Added Tax (VAT) refund on purchase of domestically-manufactured equipment available for…
Reserve Bank of India Reduces Validity Period for Checks, Pay Orders
(Sunnyvale, CA) - The Reserve Bank of India has decided to reduce the validity period for checks, drafts, pay orders and banker's checks from six months to three months from April 1, 2012.
Currently, bankers in India are allowed to make payment of checks and drafts within a period of six months from the date of the instrument.
The Reserve Bank of India in the interest of banking policy and public interest has ruled…
Income Tax Hike for Dormant Companies in Italy
(Sunnyvale, CA) - Dormant companies in Italy will be paying a higher corporate tax rate in 2012 as per the new Italian tax law. Companies that can be considered ‘dormant’ will have to pay 38% corporate income tax (IRES) tax rate next year compared to the current rate of 27.5%.
The corporate income tax increase however, will not affect Unlimited Liability Companies (ULC) or personal companies.
The law also extends the ‘dormant’…
Korea to Reduce Corporate Tax for Mid-sized Companies
(Sunnyvale, CA) - The Korean government announced plans to reduce the top marginal corporate tax rate to 20% for companies with tax bases between 200 million won and 50 billion won in 2012.
However, the current corporate tax rate of 22% (effective rate of 24.2% including resident surtax) will be maintained for companies with a tax base of over 50 billion won.
According to the announcement, the new middle tax bracket was…
‘Fastech Favorite’ Smartling Wins Nair & Co.’s Business Expansion Services …
Wins complimentary offer to set up international operations, accounting and payroll support services
(Sunnyvale, CA) - Nair & Co., the leader in international business expansion services named Smartling, Inc. as the winner of the Fastech Favorite award at the Dow Jones VentureWire FASTech conference on November 8, 2011 at Redwood City, California.
The web translation services company was voted winner by the audience members of the conference from among 49 other start-ups…
France Announces Corporate Tax Surcharge, Hikes VAT Rate to Reduce Debts
(Sunnyvale, CA) The government of France announced plans to impose a ‘temporary’ corporate tax surcharge of 5% for 2012 and 2013 for large companies.
The French government also plans to increase the 'reduced' value-added tax (VAT) rate of 5.5% to 7%(with certain limited exceptions).
The move is part of France’s second austerity package designed to increase corporate tax revenue and reduce government expenditure and debts.
New Corporate Tax Proposals
The corporate tax proposal mainly…
UK VAT- Intrastat Declarations to Be Submitted Online
(Sunnyvale, CA) – HM Revenue & Customs (HMRC) intend to make electronic submission of Intrastat declarations mandatory. HMRC plans to amend the UK Intrastat legislation to withdraw the option to submit Intrastat declaration by paper. This measure is likely to take effect on April 1, 2012.
According to an earlier notice (Circular 25) issued by the government, VAT can be charged at the full rate of 17 percent by general taxpayers…
