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International Tax Newsletter - Europe & African region

Europe & African region

International Tax Newsletter

International Tax - Europe and Africa, June 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 June and 30 June 2019.

Austria EU Ireland Mauritius Poland Uganda
Channel Islands France Italy Montenegro Romania United Kingdom
Cyprus Germany Kenya Netherlands South Africa  
Czech Republic Ghana Latvia Nigeria Spain  
East Africa Hungary Malta OECD Sweden  

 

For a full summary of global tax developments, visit TaxNewsFlash- Global.

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

To register for the International Tax webcasts, click here.

International Tax Newsletter - Europe & African region

Austria

Administrative and case law  VAT  5 June 2019  

The European Commission announced it has referred Austria to the Court of Justice of the European Union (EU) for Austria’s failure to apply special VAT rules for travel agents correctly.

Channel Islands

Proposed legislation  Beneficial ownership 19 June 2019

The governments of Jersey, Guernsey, and the Isle of Man set out their stance on the future registers of the beneficial ownership of companies.

Cyprus

KPMG publications Tax Card  June 2019 

KPMG in Cyprus has prepared a “tax card” that sets forth the rates that applies to individual (personal) income tax, corporate tax, employer's contributions, social insurance, and certain tax incentives.

Czech Republic

Administrative and case law Permanent establishment June 2019

The Supreme Administrative Court looked to features defining the status of a dependent agent for purposes of determining whether a Czech agent was a permanent establishment of a German entity in the Czech Republic.

Administrative and case law VAT June 2019

The CJEU issued a judgment concluding that certain Czech rules with regard to refunds of VAT are contrary to an EU directive and the fundamental principles of VAT. The case is: A-PACK CZ, C‑127/18.

East Africa

Proposed legislation Budget  13 June 2019

The East African Community Finance Ministers continued the tradition of synchronized presentation of the member countries’ respective budgets.

European Union

Proposed legislation  Financial transaction tax   14 June 2019

The ECOFIN received an update from the 10 EU Member States participating in the “enhanced cooperation procedure” concerning developments regarding a financial transaction tax.

Administrative and case law Various tax areas  June 2019

The EU Tax Centre prepared a summary of EU tax developments that can have both a domestic and a cross-border impact.

KPMG publications  2019 EU country tax profiles June 2019

KPMG's European Tax Centre has published annual profiles of the tax systems of most European countries. The tax profiles may be useful in understanding the direct tax rules of each EU country.

France

Proposed legislation Digital services tax June 2019

Enactment of a digital services tax in France is expected soon, now that differences in the legislation passed by each chamber of parliament have been resolved.

Germany

Administrative and case law VAT June 2019 

The German Federal Tax Court determined that “formal warnings” given by a copyright holder to enforce copyright-related injunctive relief against the party infringing the copyright are subject to VAT. The case: XI R 1/17.

Administrative and case law WHT 5 June 2019

The Advocate General of the CJEU issued an opinion in a case concerning the compatibility with EU law of the German withholding tax on dividends paid to a Canadian pension program or scheme. The case is: College Pension Plan of British Columbia.

Ghana

KPMG publication  Tax data card 2019  2019

A “tax data card” prepared by KPMG in Ghana provides an overview of the Income Tax Act.

Hungary

Tax legislation approved and regulatory update VAT 1 July 2019

Effective 1 July 2019, invoices for goods and services must contain certain tariff headings and numbers that apply for VAT purposes.

Proposed legislation  Various tax areas  June 2019 

The Ministry of Finance in early June 2019 submitted draft tax legislative amendments to Hungary's parliament.

Administrative and case law Advertisement tax/State aid  27 June 2019  

The General Court of the European Union issued a judgment rejecting the European Commission’s decision finding that the Hungarian advertisement tax was incompatible with the EU state aid rules.

Ireland

Tax legislation approved and regulatory update
VAT June 2019 

Irish Revenue’s Tax and Duty Manual includes updates concerning VAT.

Italy

Administrative and case law  WHT/Net taxation  June 2019

A regional tax court concluded that Italian withholding tax imposed on royalties paid to foreign companies is discriminatory because the amount of the tax is calculated based on the gross amount of the royalties. The case is: no. 363/2019

Kenya

Proposed legislation  Various tax areas  13 June 2019

The Finance Bill, 2019 and various legal notices containing the budget proposals were submitted to the parliament.

Latvia

Administrative and case law   Customs duties  June 2019

The CJEU issued a judgment in a case concerning the “deductive method” under Article 30(2)(b) of the Community Customs Code in the special context of the customs valuation of the imported medicines. The case is: Oribalt Rīga (C-1/18).

Malta

Tax legislation approved and regulatory update Tax consolidation  31 May 2019

Malta has introduced fiscal unity rules enabling related Maltese and foreign companies to form part of a tax group for the purposes of Maltese income tax.

Mauritius

Proposed legislation  Budget 10 June 2019

The Prime Minister and Minister of Finance and Economic Development presented the 2019-20 budget speech.

Montenegro

Tax legislation approved and regulatory update Tax compliance   June 2019

The Ministry of Finance adopted a "rulebook" with regard to the content of tax returns filed by non-resident legal entities in reporting income related to capital gains and income from the leasing of movable or immovable property.

Netherlands

Proposed legislation Corporate income tax group rule June 2019

The Deputy Minister of Finance launched an internet consultation on an options document that essentially contains four possible solutions for a new corporate income tax group rule.

Administrative and case law   14 June 2019

The Dutch Deputy Minister of Finance answered parliamentary questions on conduit companies.

Nigeria

Tax legislation approved and regulatory update VAT 25 July 2019

The exemption from VAT relating to commissions on stock exchange transactions expires on 25 July 2019.

Proposed legislation  Tax compliance  June 2019

The Lagos state tax authority issued a notice announcing an intention to integrate the state’s existing taxpayers identification system with the national tax identification number system.

Administrative and case law VAT 24 June 2019

The Court of Appeal affirmed a decision of the Federal High Court concerning VAT imposed on satellite-network bandwidth capacities when provided outside Nigeria by a Netherlands-based non-resident company. The case is: Vodacom Business Nigeria Ltd. v. Federal Inland Revenue Service.

Administrative and case law VAT June 2019

The Tax Appeal Tribunal sitting in Lagos issued a judgment in a case concerning the Lagos state tax authority’s assessment of interest and penalty related to unremitted amounts of withholding tax and employment-related tax.

OECD

Proposed legislation  Tax transparency/AEOI and CRS 7 June 2019 

The Organisation for Economic Cooperation and Development (OECD) issued an update on the status of global tax transparency initiatives.

Poland

Proposed legislation  VAT  June 2019

The Ministry of Finance has proposed legislation that, for certain transactions, would require application of the “split-payment mechanism” for VAT remittance purposes. The effective date would be 1 September 2019.

Proposed legislation  WHT 19 June 2019

The Ministry of Finance published a long-awaited draft of explanatory notes with respect to the withholding tax provisions (effective in 2019).

Romania

KPMG publications  Tax Guide 2019

KPMG in Romania has prepared a tax guide — a report that provides a brief overview of the taxation of corporations and individuals for 2019.

South Africa

Tax legislation approved and regulatory update Tax incentives  June 2019

Some taxpayers in South Africa are favoring shorter-term investments that are known as “section 12J investments” in an effort to reap higher returns. Section 12J investments are enhanced by an up-front tax deduction.

Administrative and case law Corporate income tax  June 2019

The Tax Court in South Africa held that, for purposes of determining when revenue from the sale of gift cards is recognized for income tax purposes, the taxpayer only became legally entitled to the proceeds when the gift cards were redeemed or when they expired.

Administrative and case law Tax audits  June 2019

The South African Revenue Service is expected to increase audit activity across all taxes, and in particular with regard to employee and employment taxation.

Spain

Administrative and case law Tax compliance  6 June 2019 

The European Commission announced it has decided to refer Spain to the CJEU for imposing disproportionate penalties on Spanish taxpayers for the failure to report assets held in other EU and EEA States.

Sweden

Administrative and case law Cross border loss relief  19 June 2019 The CJEU rendered its decision in two cases concerning the compatibility with EU law of the Swedish rules on the deductibility of losses from foreign subsidiaries. The cases are: Memira (C-607/17) and Holmen (C-608/17). Read more

Uganda

Proposed legislation  Budget  June 2019

Tax measures proposed in the 2019 budget are expected to have an effective date of 1 July 2019.

United Kingdom

Administrative and case law Corporate income tax/Tax residence  June 2019

The Upper Tribunal overturned a decision of the First-tier Tribunal in a case concerning whether certain wholly owned Jersey incorporated subsidiaries of a UK property development and investment group were resident in the UK for corporation tax purposes.

Administrative and case law CFC/State aid 12 June 2019

HM Treasury confirmed that the UK government made an annulment application to the EU General Court against the European Commission’s decision that the financing company exemption within the UK’s controlled foreign company regime gave rise to state aid.

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