International Tax News - September 2013

by DLA Piper
Contact

FRANCE ANNOUNCES DRAFT 2014 BUDGET – LIGHTER  TAX BURDEN FOR BUSINESSES

France’s draft budget law for 2014 was presented to Parliament on September 25 and is now under discussion in the National Assembly and Senate.

It proposes reforms to rekindle France’s sluggish economy and fix the record-high deficit and unemployment rate, including a lighter tax burden on businesses, €15 billion in public spending cuts, a higher VAT and higher taxes on households.

Find out more.


CORPORATE TAX REFORM IS COMING TO SWITZERLAND

Tax experts in Switzerland now predict that certain Swiss tax regimes – the cantonal tax regime, the holding regime and, in particular, the auxiliary company regime, will ultimately need to be repealed.

A repeal of these regimes will trigger the need for reform of Switzerland’s corporate tax system. Such a reform may include a redefinition of the tax base.

Find out more.


CHINA LAUNCHES PILOT FREE TRADE ZONE IN SHANGHAI

Foreign investors in certain industry sectors can look forward to further reforms and liberalizations in China’s newly approved Free Trade Pilot Zone in Shanghai.

While the full text of the Free Trade Pilot Zone Plan will not be released for a few more days, reports already indicate that its attractions will include highly preferential tax policies. The Shanghai government is reportedly striving to implement a lower preferential enterprise income rate applicable to qualified enterprises within the FTPZ – various sources have reported a possible rate of 15 percent.

Other favorable tax policies within the FTPZ that have been in discussion include payment of income taxes on proceeds generated from outbound investment by installments, and lower tax rates for offshore trading and financing.

Many expect that other liberalized policies will address customs supervision, capital flow and market access. For instance, in China’s existing bonded zones, the entry and exit of goods are under customs supervision. In contrast, the FTPZ is intended to be a real free trade zone, whereby customs recordal for goods shipped from overseas into the FTPZ will no longer be required. Customs supervision will also be streamlined.

The liberalization of policies regarding taxation, customs supervision, capital flow and market access has the potential to significantly cut down operating costs for multinationals and may be conducive to efficient internal resource allocation.

Find out more.


EU VAT PLACE-SUPPLY RULES EVOLVE AGAIN – GET READY TO TACKLE THE CHANGE

The European Union VAT rules regarding place of supply will once again change. EU-based businesses involved in providing electronically supplied services (including telecommunications, broadcasting and other electronic services) to non-business consumers will need to be aware, and change their relevant procedures.

The change is part of the extension of the EU “mini one-stop shop” system to EU-based businesses. The system aims reduce administrative burdens by allowing suppliers to declare and account for VAT in one EU member state.

Although the change is more than a year off, affected businesses should be preparing to make the relevant changes, which concern such issues as pricing structures, customer location, whether your business should relocate, and the knock-on effect that your IT systems will experience.

Find out more about key points to making these changes.


CHINA TO FURTHER SIMPLIFY FOREIGN EXCHANGE ADMINISTRATION

China’s State Administration of Taxation and State Administration of Foreign Exchange have jointly promulgated new rules that aim to facilitate cross-border payments and receipts of foreign exchange regarding service trade items by simplifying administrative procedures and documentation requirements.

These new rules relax the historical foreign exchange controls on inbound and outbound remittances for non-trade transactions. It is expected that payment settlements will become significantly more efficient as a result of these new rules.

Find out more about these changes.


AUSTRALIA: GOODS AND SERVICE TAX CLAUSE  HELD TO BE VOID FOR UNCERTAINTY

A recent decision of Australia’s Victorian Supreme Court highlights the need for suppliers to ensure that all of their transaction documents (including contracts, agreements and deeds) include adequately drafted pricing provisions and goods and service tax (GST) clauses.

While the case involved a real estate transaction, the issues raised are relevant for all transaction documents under which a supplier intends that the consideration be expressed GST-exclusive, with GST (where applicable) being payable as an additional amount pursuant to a GST clause.

Find out more about this decision.

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© DLA Piper | Attorney Advertising

Written by:

DLA Piper
Contact
more
less

DLA Piper on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.