Europe & African region International Tax Newsletter
Europe and Africa regions
November 2018
This e-newsletter gives you an overview of international tax developments being reported globally by KPMG member firms in the Europe and Africa regions between 1 November and 30 November 2018.
| Czech Republic | Denmark | European Union | France |
| Germany | Ghana | Hungary | Ireland |
| Italy | Malta | Mauritius | Netherlands |
| Nigeria | Norway | Poland | Portugal |
| South Africa | Spain | Switzerland | United Kingdom |
| Zimbabwe |
For a full summary of global tax developments, visit kpmg.com/TaxNewsFlash.
To contact the International Tax Team email internationaltax@kpmg.com.
To register for the International Tax webcasts, click here.
Czech Republic
Denmark
Administrative and case law
VAT - 13 November 2018
The Court of Justice of the European Union issued a judgment in a case concerning a claim for the recovery (refund) of VAT on expenses related to a proposed, but ultimately unrealized, sale of shares. The case is: C&D Foods, C-502/17.
European Union
Tax legislation approved and regulatory update
EU blacklist - 6 November 2018
The ECOFIN Council decided to further amend the EU blacklist of non-cooperative jurisdictions by removing Namibia from the list.
Proposed legislation
Digital Services Tax - 6 November 2018
The ECOFIN Council discussed the Digital Services Tax and the progress achieved so far in the negotiations, in particular with respect to the introduction of a sunset clause and the limitation of the scope of the Digital Services Tax.
Administrative and case law
Various tax areas - November 2018
The EU Tax Centre prepared a summary of EU tax developments that can have both a domestic and a cross-border impact.
France
Proposed legislation
ATAD / Corporate income tax - 23 November 2018
The high chamber of the French Parliament voted to limit the effects of a lower interest limitation to the net interest expenses corresponding to the debt above a debt-to-equity ratio.
Administrative and case law
Withholding tax - 22 November 2018
The CJEU rendered its decision in a case concerning the compatibility with EU law of the French withholding tax levied on dividends paid by French companies to non-resident loss-making companies. The case is: Sofina and Others (C-575/17).
Germany
Tax legislation approved and regulatory update
VAT - 15 November 2018
German tax authorities announced a further extension of a regulation concerning the VAT treatment of the supplies of goods via consignment stocks. The new extension applies through (until the end of) 2019.
Ghana
Proposed legislation
Budget 2019 - 21 November 2018
Several tax initiatives intended to protect revenue and to broaden the scope of tax were included in Ghana’s budget for 2019. They include, among other:
- the highest individual income tax rate band would be reduced from 35 percent to 30 percent
- to simplify the collection of withholding tax for both small-scale mining operators and the tax authorities,
- the point of collection of the tax would shift to the point of export.
- use of automated tax collection systems would effectively enhance the collection of certain indirect taxes.
Hungary
Tax legislation approved and regulatory update
Corporate income tax / CFC - 1 January 2019
The parliament approved tax legislative changes that generally have an effective date of 1 January 2019. They include, among other:
- a group taxation registration requirement
- interest limitation rules (also referred to as "thin capitalization" rules)
- changes to the rules for controlled foreign corporations.
Ireland
Proposed legislation
ATAD - 14 November 2018
The Irish Government launched a consultation on its adoption of measures under the EU Anti-Tax Avoidance Directive.
Italy
Administrative and case law
R&D / Tax incentives - 9 November 2018
A tax ruling offers some clarification R&D investments made by foreign companies and specifically those that have R&D activities in Italy (or for those foreign companies that are considering establishing an R&D center in Italy).
VAT - 9 November 2018
The Italian tax authority issued guidance to clarify certain measures concerning the VAT grouping regime.
Withholding tax - 13 November 2018
The Italian tax authority issued a tax ruling to clarify the tax treatment of interest income realized by a non-resident taxpayer from a loan made to an individual taxpayer who is a resident of Italy.
Malta
Tax legislation approved and regulatory update
Various tax areas - 2 November 2018
Guidelines on the income tax, duty and VAT treatment of transactions related to distributed ledger technology were issued by the Maltese Revenue.
Mauritius
Tax legislation approved and regulatory update
Corporate income tax / Substance requirements - 14 November 2018
Tax regulations in Mauritius have been revised, with measures concerning:
- repeal of the deemed foreign tax credit extension of the partial exemption to apply to both domestic and foreign-sourced income
- enhanced “substance requirements”
- tax exemption on the gain or profit realized on a sale of shares and securities.
Netherlands
Tax legislation approved and regulatory update
VAT - 1 January 2019
The change to the VAT “zero rate” for the delivery and provisioning of seagoing vessels and the performance of services to seagoing vessels was announced in the 2018 Tax Plan and was originally intended to take effect on 1 January 2018. However, the change was postponed until 1 January 2019.
Proposed legislation
ATAD - 15 November 2018
The Lower House of the Dutch Parliament adopted the 2019 Tax Plan package and the bill implementing the first European Anti-Tax Avoidance Directive, including a number of amendments and motions.
Administrative and case law
Interest - 3 October 2018
The Deputy Minister of Finance, answered questions raised by the Lower House about pending fiscal unity emergency repair legislation.
Tax rulings - 26 November 2018
The Dutch Deputy Minister of Finance in a November 2018 letter to the Lower House outlined the main features of a revision of the tax ruling practice.
Nigeria
Administrative and case law
VAT - 13 November 2018
The Federal Inland Revenue Service has started issuing VAT certificates to businesses that are registered for VAT collection purposes.
Other
Tax incentives - November 2018
Nigeria’s list of “pioneer” industries and products reflects a list of sectors for which certain tax incentives are available. Pioneer status entitles qualifying entities and companies to an income tax “holiday” for up to five years.
Norway
Proposed legislation
Corporate income tax - 1 November 2018
The Norwegian conservative government published a proposed state budget plan for 2019. The key tax proposals include a reduction in the corporate income tax rate to 22 percent and amendments to interest deduction limitation rules.
Portugal
Proposed legislation
Income tax relief - 1 January 2019
Portugal’s 2019 state budget includes a measure offering tax relief for former Portuguese individual tax residents who decide to return to Portugal in 2019 or 2020.
South Africa
Proposed legislation
CFC - November 2018
South African taxpayers have seen a number of anti-avoidance provisions proposals over the last three years, with a focus on the taxation of trusts and controlled foreign companies.
Tax compliance - 16 November 2018
The South African Revenue Service announced its intention to introduce administrative non-compliance penalties on outstanding corporate tax returns.
VAT/ Digital economy - 15 November 2018
The National Treasury published a draft regulation with proposed rules relating to VAT and services supplied by electronic means.
Spain
Proposed legislation
Financial transactions tax - 16 November 2018
The Ministry of Finance has published text of a draft bill for a financial transactions tax.
Switzerland
Proposed legislation
Corporate income tax - May 2019
The Geneva State Council presented a final cantonal project for implementation of federal tax reform and other tax provisions, including a measure to reduce the canton’s corporate income tax rate to 13.79 percent.
VAT/ Digital economy - 15 November 2018
The National Treasury published a draft regulation with proposed rules relating to VAT and services supplied by electronic means.
United Kingdom
Proposed legislation
Brexit - 23 November 2018
HMRC releases updated ‘no deal’ guidance and KPMG’s Brexit page continues to provide practical guidance for business.
Corporate income tax - November 2018
The rules on profit fragmentation have been updated to remove the additional notification requirements and introduce a new reasonableness test.
Finance Bill - 30 November 2018
An update on the progress of the Finance Bill through Parliament.
Zimbabwe
Proposed legislation
Budget 2019 - 22 November 2018
Zimbabwe’s budget for 2019 includes measures to introduce an “intermediated money transfer tax” to be imposed at a rate of 2 percent.
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