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International Tax Newsletter - Europe & African region

Europe & African region

International Tax Newsletter

International Tax Europe and Africa March 2019

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 March 2019 and 31 March 2019.

Africa European Union Luxemburg Poland United Kingdom
Austria France Namibia Senegal  
Belgium Germany
Netherlands Serbia  
Czech Republic Ireland Nigeria South Africa  
Egypt Italy OECD Switzerland  

 

For a full summary of global tax developments, visit home.kpmg/taxnewsflash.

To contact the International Tax Team email internationaltax@kpmg.com.

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International Tax Newsletter - Europe & African region

Africa

KPMG Publications 2019 Africa Indirect Tax Guide March 2019

The 2019 Africa indirect tax guide includes a summary of the indirect tax regimes and compliance administrative issues in Africa.

Austria

Tax legislation approved and regulatory update CFC/MLI January-March 2019

KPMG in Austria prepared a summary of developments from January to March 2019, including an ordinance on application of the final version of the CFC rules.

Belgium

Tax legislation approved and regulatory update Company Code 1 May 2019  

The new Belgian Company Code enters into force on 1 May 2019.

Tax legislation approved and regulatory update Tax compliance / Beneficial Owner 30 September 2019

By 30 September 2019 all Belgian corporate or other legal entities are obliged to identify their Ultimate Beneficial Owners (“UBOs”) and upload the required information in the Belgian UBO-Register.

Administrative and case law Corporate income tax / Withholding tax November 2018

Luxembourg SICAVs may have refund opportunities for Belgian annual tax and withholding tax, following a late 2018 decision of a Belgian court.

Czech Republic

Proposed legislation VAT  March 2019

Tax legislation pending consideration in the Czech Republic includes measures for implementation of the directive concerning the determination of VAT on vouchers.

Administrative and case law R&D incentives  March 2019

A regional court issued a decision in a case concerning the tax allowances allowed for research and development. The case is: No. 31 Af 23/2016-76.

Egypt

Tax legislation approved and regulatory update  Tax compliance  March 2019

KPMG in Egypt prepared a summary of recent tax developments, including taxpayer registration procedures and electronic tax payments.

European Union

Tax legislation approved and regulatory update  Digital economy   12 March 2019 

The Economic and Financial Affairs Council of the EU did not reach agreement on the digital advertising tax during the 12 March meeting.

Tax legislation approved and regulatory update Digital economy   March 2019 

Concerning taxation of the digital economy, the EU Member States have not yet been able to reach agreement on an EU-wide tax measure, and some believe it is doubtful whether such an agreement could be reached before there is an international solution from the Organisation for Economic Cooperation and Development.

Tax legislation approved and regulatory update Tax transparency March 2019 

EU Finance Ministers have updated the list of non-cooperative tax jurisdictions, and have “black listed” 15 countries. Three jurisdictions have been moved to the “grey list.”

Tax legislation approved and regulatory update VAT January 2021

The European Commission issued a release concerning an agreement reached by EU Member States on detailed measures needed to simplify the VAT collection rules for sales of goods online. The new rules are intended to provide for a smooth introduction of the new VAT measures for e-commerce and to be effective in January 2021.

Tax legislation approved and regulatory update Tax avoidance / Tax evasion  26 March 2019 

The European Parliament adopted in plenary the final report on financial crimes, tax evasion and tax avoidance adopted by the TAX3 Committee.

Administrative and case law Various tax areas March 2019 

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  Digital economy  March 2019

The French government released a draft law that proposes to introduce a digital services tax.

Proposed legislation  Corporate income tax  March 2019

The French government released a draft law that proposes to amend the already enacted and scheduled reduction of the corporate income tax rate for certain “large companies.”

Administrative and case law Social security  14 March 2019

The CJEU issued a judgment concluding that welfare contributions aimed at funding social security benefits in France cannot be charged on income from the assets of French residents insured under the Swiss social security scheme. The case is: Ministre de l'Action et des Comptes publics v. Dreyer, C-372/18.

Germany

Administrative and case law VAT March 2019

The German Federal Tax Court concluded that prize money from a television show is not subject to value added tax.

Ireland

Tax legislation approved and regulatory update VAT March 2019

Irish Revenue has updated sections or added new sections to its manual on VAT.

Italy

Administrative and case law WHT March 2019 

The Italian Supreme Court and the Italian tax authority have different views of application of the withholding tax exemption available under the EU Parent-Subsidiary Directive for dividends paid by Italian subsidiaries to European parent companies.

Luxemburg

Proposed legislation  Corporate income tax  5 March 2019

The Luxembourg government presented a bill with respect to the 2019 budget law. Proposed corporate income tax changes include additional provisions on interest limitation and fiscal unity, as well as the reduction of the corporate income tax rate from 18% to 17%.

Administrative and case law State aid  7 March 2019

The European Commission launched an investigation to evaluate whether the tax rulings granted to a Finnish food and drink packaging group by Luxembourg constitute state aid within the meaning of EU law.

Treaties  Double tax treaties  1 January 2019

Luxembourg and Senegal reinforced their co-operation on an international level by signing a double tax treaty, applicable from 1 January 2019.

Namibia

Tax legislation approved and regulatory update  Non-resident shareholders tax March 2019

Dividends paid by Namibian companies to foreigners are subject to a 10% tax known as Non-resident Shareholders Tax.

Netherlands

Tax legislation approved and regulatory update Brexit  29 March 2019

The Dutch Minister of Justice and Safety published, in anticipation of a possible “no-deal” Brexit, withdrawal rules for citizens of the United Kingdom and their family members who lawfully reside in the Netherlands as of 29 March 2019.

Proposed legislation  Brexit March 2019

The Deputy Minister of Finance sent a draft decree with transitional tax rules in connection with Brexit to the Lower House of the Dutch Parliament.

Proposed legislation  Excessive borrowing March 2019

An internet consultation on a draft bill to address excessive borrowing from one’s own company was launched.

Proposed legislation  Partnerships  March 2019

A bill to modernize partnerships aims to bring the partnership law in line with the needs of current practices.

Nigeria

Tax legislation approved and regulatory update Competition and Consumer Protection Acts  January 2019

The Federal Competition and Consumer Protection Act was enacted by the National and subsequently signed into law.

Administrative and case law
Tax liens 15 March 2019

The Federal Inland Revenue Service announced its intention to recommence imposition of liens on the bank accounts of delinquent taxpayers.

OECD

Tax legislation approved and regulatory update Digital economy  March 2019

The OECD moves towards implementing its Policy Note Addressing the Tax Challenges of the Digitalised Economy.

Tax legislation approved and regulatory update VAT 22 March 2019

The OECD issued a release reporting that delegates from over 100 jurisdictions, including regional and international organisations, have unanimously endorsed new rules that will ensure the collection of additional VAT/GST revenues.

Poland

Proposed legislation VAT  March 2019

There are reports that the tax authorities will replace the current VAT return with a “standard audit file for tax” (SAF-T) format, pursuant to recommendations from the OECD.

Senegal

Treaties Double tax treaties  1 January 2019

Luxembourg and Senegal reinforced their co-operation on an international level by signing a double tax treaty, applicable from 1 January 2019.

Serbia

Tax legislation approved and regulatory update Tax compliance  15 May 2019

Tax residents in Serbia, in filing their individual income tax returns, are to report their worldwide income, while persons who are not residents in Serbia are to report their income earned in the territory of Serbia.

Administrative and case law   Individual income tax March 2019

The Ministry of Finance issued an opinion providing an exemption from individual income tax for compensation paid with regard to expenses for employee travel to and from work is not available without a valid accounting document.

South Africa

Tax legislation approved and regulatory update Tax incentives  March 2019

Changes to South Africa’s employment tax incentive regime include an extension for 10 years.

Tax legislation approved and regulatory update VAT / Digital economy  April 2019 

An increased number of non-resident suppliers of electronic services (e-services) will be required to register for VAT purposes in South Africa due to an amendment to the definition of “electronic services.”

Switzerland

Tax legislation approved and regulatory update Automatic Exchange of Information March 2019

The Swiss Federal Council recently announced a revision of the Swiss Automatic Exchange of Information Federal Act and Ordinance.

Tax legislation approved and regulatory update Cryptocurrency March 2019

The Swiss tax authorities have issued guidance on the taxation of Bitcoin and other cryptocurrencies, including income derived from “mining.”

Administrative and case law  Employment income  March 2019

The Swiss federal authorities published a new national salary calculator that was specifically developed to calculate the applicable salary level for non-Swiss nationals working in Switzerland on assignment.

United Kingdom

Tax legislation approved and regulatory update Corporate income tax / Share plans   March 2019 Consideration of some of the practical issues that can arise when claiming corporation tax deductions in respect of share incentive arrangements
Tax legislation approved and regulatory update   Corporate income tax 1 April 2019

A new quarterly instalment payments regime for very large businesses will commence for accounting periods beginning on or after 1 April 2019.

Tax legislation approved and regulatory update Various tax areas  April 2019

As the countdown begins for the new tax year, companies and individuals need to be aware of the key changes coming into effect.

Tax legislation approved and regulatory update Spring Statement 13 March 2019

The Spring Statement was held on 13 March 2019. The Chancellor’s speech was light on tax announcements, with no new tax measures introduced.

Proposed legislation  Structures and buildings allowance March 2019

Draft secondary legislation on the new Structures and Buildings Allowance was published for comments.

Administrative and case law Profit diversion compliance facility March 2019

HMRC officials urge taxpayers to be proactive with the Profit Diversion Compliance Facility guidance.

Other Brexit / Trade and customs  March 2019

KPMG in the UK discusses the temporary tariff regime which will come into place in the case of a no-deal Brexit, and the impact of this regime.

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