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Currently, no VAT/GST is applicable in Afghanistan
The standard rate of VAT (tatimi mbi vleren e shtuar; TVSH) is20 percent. There is a reduced rate of 0 percent applicable to`the exports of goods, supply of services and goods connected to maritime commercial or industrial activities, and supplies related to international transport. The export of services and the supplies of certain goods and services are exempt from VAT, for example lease and sale of land (under certain conditions subject to 20 percent VAT), financial services, and certain supplies in connection with oil exploration. Starting from April 2014, the supply of drugs and medical services offered by private or public health institutions shall be exempt from VAT.
The standard rate Value Added Tax is 17%, the reduced rate applicable to a restrictive list of products and services is 7 % and 0% for exempted goods and activities.
There is no VAT system in Angola at this time. However, there is a consumption tax which, to some extent, substitutes VAT. Consumption tax is levied on: importation of goods, local production of goods and a range of services(e.g. consultancy services, tourism services). The rate for goods varies from 2 percent to 30 percent, with the general rate being 10 percent. The rate for services is either 5 percent or 10 percent.
The standard rate of VAT (impuesto al valor agregado; IVA) is21 percent applicable to goods and services. There is a reduced rate of 10.5 percent for certain goods and services, including, sales or imports of cattle, imports of certain capital goods included in the tariffs list of the Common Nomenclature of Mercosur (Southern Cone Common Market), interest on loans from foreign banks located in a country where the central bank has adopted the international supervision standards of the base Banks Committee. There is an increased rate of 27 percent for certain services.In addition, there are reduced rates of 2.5, 5.00 and 10.5 for those individuals/entities engaged in publishing and the lease of advertising space in newspapers, magazines and periodicals that are applicable in terms of annual turnover.
The standard rate of VAT is 20 percent. There is also a 0 percent rate which applies to, for example, the export of goods from Armenia, the provision of services, the place of supply for which is outside Armenia, the maintenance of aircraft serving international flights, and the sale of goods in duty free shops in airports. Certain supplies of goods and services are exempt from VAT, for example the sale of magazines and newspapers, scientific research work, the provision of most types of financial services, insurance, and reinsurance activity.
The standard rate of turnover tax (in Dutch: Belasting op Bedrijfsomzetten or BBO) is 1.5 percent. As of December 1st, 2014, Aruba also has an additional Health Levy (In Dutch: Bestemmingsheffing AZV) of 1 percent that is levied on business turnover realized with the supply of goods and services in Aruba.
There have been no recent changes to the GST rate of 10 percent.
The standard rate of VAT is 20 percent. VAT reduced rates of10 percent and 12 percent are applicable on some supplies.
Value Added Tax (VAT) at a rate of 7.5 percent was introduced in The Bahamas on 1st January, 2015. VAT is applicable to supplies of all goods and services other than certain exempt supplies. According to section 19 of the Act, it is mandatory for all businesses with an annual turnover of BSD 100,000 to be registered with the VAT Department of the Ministry of Finance. In respect of other indirect taxes, there are significant import duties and excise taxes on goods brought into the country. Such import duties and excise taxes range from 0 percent on certain essential items up to 85 percent on certain luxury vehicles. Stamp duty is applicable to certain commercial transactions including conveyances of realty or personalty at rates ranging from 4 percent to 10 percent based on the value of consideration. The stamp duty for registration of a debenture or mortgage is 1 percent and the sale of a business insofar as it consists of personalty (chattels or moveable assets) exclusive of cash is 6 percent. Business Licence tax is payable by businesses operating in The Bahamas at rates ranging from a flat rate of BSD100 to 3 percent of turnover. In addition there are national insurance, real property, vehicle and other taxes and fees which should be taken into account.
There is no indirect tax in Bahrain. Bahrain follows the GCC Unified Customs Duty law and imposes 5 percent on mostimports.
lThe standard rate of VAT is 15 percent. There are reduced rates of 10 percent, 9 Percent, 7.5 percent, 6 percent, 5.5 percent, 5 percent, 4.5 percent, 4 percent, 2.25 percent, 1.5 percent, and 0 percent which apply to, for examplecertain categories of air conditioned bus, launch and railway services (10 percent); rental premises (9 percent) sponsorship services (7.5 percent), restaurants (without airconditioning, furniture distributors - manufacturing stage) (6 percent), construction firms (5.5 percent), electricity distributors, seller of own branded ready-made garments sellers (5 percent), motor vehicle garages and workshops, producers of film or photo studio/shops, dockyards, carriers without petroleum, immigration advisers, English medium schools and Information Technology Enabled Services(ITES) (4.5 percent); supplies of goods and services throughparticipation in a tender/quotation and buyers of auctioned goods, furniture distributors at distribution stage (4 percent); petroleum carriers (2.25 percent); goldsmith or silversmith (2 percent); and Land developers,construction of apartments (1.5 percent). Exempt from VAT are certain food items (such as meat, fish, potatoes, vegetable, and fruits); raw jute; social welfare, culture, training, and rehabilitation services; and agricultural development.
The standard rate of VAT is 17.5 percent. Effective 1 October 2013, the VAT rate on accommodation in the hotel sector and on direct tourism services was reduced to 7.5 percent. Zero-rated supplies include exports of goods and services, basic food items, printed matter, certain agricultural machinery, and international transport of passengers and freight, as well as importations by approved educational institutions and companies in the international financial services sector, among others. Exempt supplies include certain financial services, health and educational services, and specific supplies of real property. Companies in the international business sector are not required to register for VAT and any VAT which they suffer may be refunded on application to the VAT Division on the prescribed form.
The standard VAT rate is 20 percent. Reduced rates are:- 10 percent, which is applied to sales in the territory of Belarus of crop production (except for flowers and ornamental plants), and livestock production (except for fur farming), fish and bee farming performed in Belarus; imports to the customs territory and sales in the territory of Belarus of goods for children and food according to the list defined by the President (e.g. grain, milk, butter, fish, meat and other products); - 0 percent, which is applied to export sales of goods; exports of transportation services; exports of some other works and services listed in the Tax Code. Some goods and services are exempt from VAT, such as medical equipment, medicines and other goods and services indicated in the Tax Code.
The standard rate of VAT (taxe sur la valeur ajoutée: TVA/ belasting over de toegevoegde waarde: BTW) is 21 percent. There are reduced rates of 12 percent, 6 percent and 0 percent. The 12 percent rate applies to, for example social housing (as from 1 January 2007, 6 percent in certain circumstances), restaurant and catering services (not drinks), agrochemicals, margarine. Most food and drinks, books, pharmaceuticals, hotel and camping accommodations,passenger transportation, refurbishment works to privatedwellings (under certain conditions) and agricultural services are charged at a 6 percent rate. Newspapers and periodicals published (under certain conditions) are charged with 0 percent. Suppliers of certain goods and services are exempt from VAT, for example financial services, letting ofimmovable property, hospital services, medical care and cultural activities.
There is no indirect tax.
The standard rate of VAT (Impuesto al Valor Agregado; IVA) is 13 percent of the total price of the service rendered (effective rate of 14.943 percent). Exports of goodsare zero-rated. Certain other activities are exempt from VAT: financing transactions generating interest income, purchase and sales of shares, debentures, securities and credit title transactions, sales or transfers resulting from companies’ reorganizations, capital contributions, imports made by country-accredited diplomats.
The general rate of the General Consumption Tax (in Dutch: Algemene Bestedingsbelasting or ABB) is 8%. The tax rate for the rendering of services is 6 percent (as of October 1st, 2011) and for the supply/import of goods, 8 percent. The tax rate for services related to insurances is 7 percent (as of October 1st, 2011). The tax rate for certain cars is 25 percent or 0 percent depending on the CO2 emission. The tax rate can also be 0% in situations related to import, export or customs.
The standard rate of VAT (porez na dodanu vrijednost; PDV) is 17 percent. There is a reduced rate of 0 percent which applies to, for example, exports of goods and certain related services. Supplies of certain goods and services areexempt from VAT, for example, financial services, insuranceand reinsurance services, education, health care, rentof residential property for a period longer than 60 days, certain supplies of immovable property, dealing in shares, management of investment funds and stamps. A non resident entity which does not have a seat or a permanent business unit, or a permanent residence in BiH, and which performs VATable supplies of goods or services in BiH, is obliged to register for VAT purposes and to appoint a VAT representative where the appointed tax representative has joint and several liability to the indirect tax authority in BiH. Generally, services are deemed to be supplied in BiH if the provider of services is a BiH VAT payer.Exemption from this general rule exists for a number of services, including, consulting services, engineering services, services of supply of staff, and other services
The standard VAT rate is 12 percent. There is a reduced rateof 0 percent which applies to exports of goods and services,international transport services, disposal of businesses as going concerns, certain food products not mixed with other products, some pesticides, fertilizers, farming tractors,supplies to the head of state etc. Certain supplies of goods and services are exempt from VAT, for example prescription drugs, residential accommodation, education at approved institutions, services at public medical facilities, non-fee-based financial services, and passenger transportation(excluding the transportation of tourists).
here are two types of VAT in Brazil, a state sales tax (imposto sobre circulação de mercadorias e serviços - ICMS) and a federal excise tax (imposto sobre produtos industrializados - IPI). There are other taxes on supplies of goods or services: a services tax (imposto sobre serviços - ISSQN), a social contribution for social security financing (contribuição para o financiamento da seguridade social - COFINS) and a social integration program (programa de integração social - PIS).The standard rate of ICMS is 17 percent (in São Paulo, Minas Gerais, and Paraná; the standard rate is 19 percent in Rio de Janeiro). IPI is normally charged at anad valorem (value) rate according to the classification of the product based upon the international Harmonized Commodity Description and Coding System (NCM), administered by the World Customs Organization in Brussels. Rates range from 0 percent to a maximum of 330 percent and average about 10 percent. The standard rate of ISS ranges from 2 percent to 5 percent. The standard rates of PIS and COFINS under the so-called non-cumulative regime are 1.65 percent and 7.6 percent, respectively. There are reduced rates of 7 percent and 12 percent ICMS which apply to inter-state supplies within Brazil depending on the region into which goods are sold and to certain intra-state supplies, for example to diesel oil Corporate and Indirect Tax and hydrated ethyl alcohol fuel, motor vehicles and transport services (12 percent), products that are part of the basic food basket and products from the electronic data processing industry (7 percent). Certain supplies are exempt from ICMS, for example supplies of books, newspapers, periodicals, and the paper consumed in the printing of such products, sale of fixed assets, fruits, vegetables, and farm and garden produce and preservatives. 2013 ICMS changes: The interstate sale of imported goods(not submitted to any kind of industrialization), where similar goods are available in Brazil, is subject to the ICMS rate of 4 percent. Also, the inter-state sale of industrialized goods with imported content greater than 40 percent is subject to the ICMS rate of 4 percent. Exemptions: goods industrialized under the Basic Production Process (PPB) and goods without a national equivalent.The reduced IPI rate of 0 percent applies to, for example live animals and animal products, plant products, chemical products, textile products, shoes and goods without a national similar. Certain supplies are exempt from IPI, for example supplies of vessels (except sporting or pleasure boats), exports, books, newspapers, periodicals, and paper consumed in the printing of such products, electric energy, petroleum products, fuel, and minerals belonging to the country. There are reduced rates of ISS which vary from one municipality to another. Certain supplies are exempt from ISS, for example exports of services, amounts intermediated in the bonds and securities market, bank deposits, the capital, interests, and default interests regarding credit operations performed by financial institutions. Reduced rates of 0.65 percent PIS and 3 percent COFINS apply under a so-called cumulative regime. Unlike the noncumulative regime there is no recognition of any tax credits under the cumulative regime. Certain supplies are exempt from PIS and COFINS, for example the exportation of goods, the exportation of services with payment in convertible currency, sales of products to a commercial export company for export purpose specifically and sales of fixed assets. PIS and COFINS rate changes were introduced in 2015 in Provincial Measure MP 668/2015. PIS on Importation rate has now been 2,1% and COFINS on Importation rate has now been9,65% increased to 1 percent which will correspond to a total of 10.65%, applying to the import of operations with the products listed at the appendix to Law n 12.546 of 2011. These include plastics, rubber made products, leather, textiles, several mechanical instruments and appliances, boats and floating structures, electrical equipments, among others. PIS and COFINS rate over financial income were introduces in 2015 in Federal Decree n. 8.426/15. PIS and COFINS on financial incme rate has now been 0,65% (PIS) and 4% (COFINS).
The standard rate of VAT, which applies to most taxablesupplies, is 20 percent. A reduced rate of 9 percent appliesto accommodation in hotels, sheltered housing and otherplaces for accommodation.
Zero rate – exported goods and services, and certain charges in relation to international transportation of people and goods. Also, this zero rate is applicable for any goods and services supplied by supporting industries Qualified Investment Project/contractors to particular export industries. In addition, VAT on certain supply and import of certain agricultural products shall be born by the State (i.e. State Charges).Exempt supplies include - public postal services; certain medical and dental goods and services; wholly state owned public transportation services; insurance services; primary financial services; importation of articles for personal use that are exempt from customs duties; and non-profit activities in the public interest recognised by the Ministry of Economy and Finance.
The standard rate of the federal GST is 5 percent. There is a reduced rate of 0 percent which applies to zero-rated supplies, for example exports of certain goods and services, prescription drugs, and basic groceries. Also, certain goods and services are exempt from GST, for example some supplies of residential property, financial services, educational services, and health care services. In addition, all provinces, except for Alberta, impose a value-added tax or a retail sales tax on the sales of taxable goods and services. The provinces of Ontario, New Brunswick, Nova Scotia, Newfoundland and Labrador, and Prince Edward Island apply a harmonized value-added tax known as the harmonized sales tax (HST). The rates ofthe HST vary from 13 percent to 15 percent which include a federal component of 5 percent and a provincial component (8 percent to 10 percent). There is a reduced rate of 0 percent which applies to zero-rated supplies. The HST applies to the same base of goods and services as the GST. The province of Quebec applies its own value-added tax, the Quebec sales tax (QST), at a rate of 9.975 percent or 0 percent to generally the same base of goods and services as the GST. The provinces of Saskatchewan, Manitoba, and British Columbia levy retail sales taxes in their respective jurisdictions. The retail sales tax rates vary from 5 percent to 8 percent.
There is no VAT or GST in the Cayman Islands.There is import duty on many goods with the rates rangingdepending on the type of good being imported.
The standard rate of VAT (impuesto al valor agregado; IVA) is 19%. Locally registered taxpayers can deduct Input VAT as a credit against output VAT. Exports of goods are zero-rated and exporters can recover the input VAT in cash. Exempt supplies include capital goods imported by foreign investors or companies receiving foreign investment that have subscribed an investment agreement with state of Chile under Decree Law 600; international transportation of cargo or people; certain types of insurance premiums; payments for services provided by persons who are neither domiciled non-resident in Chile and who are subject to income withholding tax and have effectively paid it; interests on financial and credit transactions and instruments; services provided to persons neither domiciled nor resident in Chile and which are qualified as export services by the National Customs Service; educational establishments and universities on educational activities, among others. Consulting, advisory and professional services in general are not subject to VAT.
There are three types of indirect taxes in China: VAT, business tax, and consumption tax. The standard rate of VAT is 17 percent which applies to the sale and importation of goods, and the provision of repair,replacement and processing services in China. VAT also applies at the rate of 17 percent for the leasing of non-real estate assets, 11 percent for transportation and certain telecommunications services and 6 percent for modern services which are subject to the VAT pilot program. Modern services includes research and development and technical services, information technology services, cultural and creative services, logistics and ancillary services and certification and consulting services. Reduced rates of VAT of 13 percent and 0 percent apply to, for example, basic necessities, agricultural products, utility services (13 percent), and exports of goods and certain services (0 percent). Exports of various goods are not wholly zero-rated and all the associated input tax is not always refundable in full to the exporters. Small scale taxpayers, being those without sophisticated business, accounting and auditing systems, and whose turnover is below certain thresholds (ranging from RMB 500,000 to RMB 800,000 of annual turnover in the majority of provinces in China, and RMB 5,000,000 for businesses which are subject to the VAT pilot program) pay VAT at the rate of 3 percent and are ineligible for input VAT credits on purchases. The VAT pilot program currently applies to the transportation, telecommunications and modern services industries across mainland China. It is anticipated that the VAT pilot program will be expanded to other services during the course of 2015. The VAT pilot program seeks to replace business tax with VAT, eventually resulting in VAT applying to all goods and services in China. Business tax Business tax applies to those services which are not yet subject to the VAT reforms (including, construction and real estate, finance and insurance, and hospitality, F&B and entertainment services). The rate of business tax is generally either 3 percent or 5 percent, although entertainment services are taxed at rates between 5 percent and 20 percent. Business tax is a turnover tax in the sense that it is not creditable inbusiness-to-business transactions. Consumption tax There are 14 categories of goods that are subject toconsumption tax, including tobacco, liquor, cosmetics, jewellers, firecrackers, refined oil, motor vehicle tires,motorcycles, motor vehicles, golf balls and clubs, luxury watches, yachts, disposable wooden chopsticks, and wooden floor panels. Normally, consumption tax is charged at an ad valorem (value) rate that ranges from 1 percent to 56 percent, while exports are zero-rated. Some goods such as refined oil are levied on a quantum (unit/volume) basis.
The standard rate of VAT (impuesto sobre las ventas) is 16 percent.Effective 1 January 2013 the reduced rate of 5 percent applies to certain supplies of goods such as coffee, some cereals, sugar, pasta, flour, some engines and agriculturalmachinery, and certain supplies of services such as storage of agricultural products, fees related to trading of agricultural products traded, and agricultural insurance.Zero-rated supplies (referred to as exempt supplies in Colombia) include exports of goods and services or tourist services provided to non-residents. Effective 1 January 2013, a new consumption tax was introduced and applies on a range of supplies of goods andservices, at the rates of 16 percent, 8 percent and 4 percent.
The sale of electricity for residential use is subject to a 5 percent rate, and sale of wood is subject to a 10 percent rate. Exports and the sale of several goods specificied in thelaw are zero rated. Services in general are not subject to VAT.
The standard rate of VAT (Porez na dodanu vrijednost; PDV) is 25 percent. There are reduced rates of 13 percent and 5 percent. The reduced rate of 13 percent applies to:- tourist accommodation,- full or half board services and the rent of campsites, - certain newspapers and magazines except for newspapers subject to the reduced rate of 5 percent,- edible oils and fats,- baby food,- supply of water (except bottled or otherwise packaged drinking water),- refined (white) sugar,- tickets for concerts,- services of preparation and serving of food, non-alcoholic drinks, wine and beer in registered hospitality facilities. The reduced rate of 5 percent applies to:- all kinds of bread, - all kinds of milk,- books (either printed or published on any other media – CDs, DVDs) of a professional, scientific, artistic, cultural, or educational character,- certain medicines,- certain medical implants and orthopedic devices,- scientific magazines, - certain daily newspapers, - cinema tickets. Certain supplies of goods and services are exempt from VAT, for example:- financial and insurance services,- health and welfare services,- education services,-deliveries by charitable organizations,- deliveries by cultural institutions and cultural services,- betting and gambling,- rent of residential property, etc.
The following was introduced on May 1st, 2013:–6 percent: general rate; –7 percent: insurances and (as of January 1st, 2014) the provision of accommodation in immovable property or by means of timeshare to short-term tourists on the island; –9 percent: for luxury and/or unhealthy goods and services. In case and to the extent that exemptions apply, no turnover tax is levied.
Effective 13 January 2014, the standard rate of VAT (Foros prostithemenis axias; FPA) is 19 percent. There are reduced rates of 5 percent and 9 percent, as well as 0 percent. For example, effective from 13 January 2014, 9 percent (up to 12/1/14 8%) applies to passenger transportation services within Cyprus; hotel accommodation; restaurant and similar catering services. 5 percent is applied to bottled and non-bottled water; books; newspapers; magazines and similar publications; gas; aids to disabled persons; animal feeds; fertilizers and insecticides; waste disposal. Since 1 January 2011, 5 percent is also applied to drugs and medicines; food items for human consumption. Under certain conditions 5% also applies to new residential dwellings. Export of goods is zero-rated. Supplies of certain goods and services are exempt from VAT, for example: certain financial services; insurance; postal services; education, health care and welfare services; cultural services provided by public bodies or other non-profit organizations.
The standard rate of VAT (dan z pridane hodnoty - DPH) is 21 percent effective since 1 January 2013. There is a reduced rate of 15 percent which applies to, for example, food products, brochures, newspapers and magazines, public transport services, social residential housing construction, and transfer of social residential houses unless exempt. As of 1 January 2015, the second reduced VAT rate of 10% is applicable to medicines, books, essential child nutrition and milling products for gluten-free diet. Exports and intra community supplies of goods, international transport of goods relating to exports or imports of goods are zero rated. Certain supplies of goods and services are exempt from VAT, for example insurance and financial services, postal services, education, health and welfare services, transfer and financial leasing of immovable property in certain conditions, and renting transfer of immovable property under certain conditions.
The standard rate of VAT (merværdiafgift; MOMS)is 25 percent. There is a reduced rate of 0 percent which applies to, for example exports of goods, newspapers, sale and leasing of ships and sale and leasing of aircrafts used by airlines predominantly operating internationally. Supplies of certain goods and services are exempt from VAT, for example health and welfare services, education, certain sport and cultural activities, land, financial and insurance services,postal services by Post Danmark, passenger transport services (excluding transport of tourists by bus).
The standard rate of VAT (impuesto sobre transferencia de bienes industrializados y servicios; ITBIS) is 18 percent. Exports of goods and services are zero-rated. Exemptsupplies include basic consumption items, educational materials, medicines, health services, utilities, nonconventional or renewable energy equipment and supply,and inland transportation of individuals and cargo. Certain basic consumption goods are also levied at a rate of 13%.
1.The standard rates of VAT (impuesto al valor agregado –IVA) are 12 percent and 0 percent. 2.VAT will not cause in the following cases:- Contributions in kind to societies.-Contracts by inheritance or liquidation of companies, including the marital community.-Sales business in which the assets and liabilities are transferred.-Mergers, divisions and transformations of companies.-Donations to entities and public sector bodies, including public enterprises; and private institutions legally incorporated non-profit organization.-Transfer of shares, shares and other securities.3. The following items (most important) are charged with 0 percent of VAT: Natural food such as: milk, bread, butter, sugar, salt, noodles, national tuna, edible oils, other than olive oil, etc.; seeds; bulbs; plants; live roots; fertilizers; insecticides; pesticides; herbicides; veterinarian products; tractors with tires up to 200 HP and other agricultural implements; medicines and drugs for human use; bond paper and books; exports; electric power, fluorescent lamps, planes and helicopters for the commercial transportation of passengers, cargo and services; hybrid or electric vehicles, whose taxable income does not exceed $ 35,000; the items brought into the country under the regime of Postal and Postal Fast Traffic International; the gold purchased by the Central Bank of Ecuador directly or through public and private economic agents, duly authorized by the Bank itself; household electric cookers and induction, including those with electric oven, pots designed for induction cookers and electric water heating systems for domestic use, including power showers.4.The following services (most important) are charged with 0 percent of VAT: - The ground water passenger and freight transport and national as well as international freight and domestic cargo air transportation to, from and in the province of Galapagos. It also includes the transportation of crude oil and natural gas pipelines;-Health, including prepaid medical and drug manufacturing services.-The rental or lease of real property used exclusively for housing.-Public services of electricity, water, sewer and garbage collection.-The education at all levels.-The printing of books.-The stock provided by legally authorized entities.-The exported.-Inbound tourism packages, -The aero spraying;-The refrigeration, cooling and freezing to preserve the food items mentioned above.-The health insurance and reinsurance and individual life, group, medical and personal accident and compulsory land traffic accident.
The standard rate of general sales tax (GST) is 10 percent. There are other rates that vary from 0 percent to 45 percent. The reduced rates apply to, for example coffee; all products made of flour, soap, fertilizers, gypsum, (5 percent); iron bars (8 percent) and exports of goods (0 percent). The increased rates apply to, for example national and international telecommunication services using mobile phones (15%) ; motor vehicles of a cylinder capacity less than 1600 cc (15 percent); some electrical appliances, perfumery (25 percent); motor vehicles of a cylinder capacity of 1600 cc up to 2000 cc; motor vehicles for the transport of goods and persons; jeep motor vehicles; camping trailers (30 percent); motor vehicles of a capacity of more than 2000 cc; andvehicles for trips and camping (45 percent).
The standard rate of VAT is 13 percent. There are noapplicable reduced rates. A zero rate is applicable on exports.
The standard rate of VAT (käibemaks) is 20 percent. There are reduced rates of 9 percent and 0 percent which apply to, for example, books; certain printed periodicals; medicines; accommodations (9 percent); international and passenger transport; exports of goods; supply of aircraft and provision thereof used by air-carriers operating mostly on international routes; supply of sea-going vessels fornavigation on high seas; services on board of such vessels or aircrafts; and goods placed in free zone, free warehouse, or VAT warehouse, (0 percent). Supplies of certain goodsand services are exempt from VAT, for example immovable property, financial and insurance services, postal services, education, and health and welfare.
The standard rate is 15 percent.
The standard rate of VAT (arvonlisävero (ALV)) is 24 percent.The reduced rate of 14 percent is applicable, for example to food and animal feed and restaurant and catering services. The reduced rate of 10 percent applies, for example to accommodations, books, pharmaceuticals, passenger transport, cultural and sporting services and newspaper and magazines sold by subscription. The rate of 0 percent applies for example to the sale and hire of certain vessels and exports of goods.
As a summary and effective January 1, 2014, the new VAT rates to be applicable in France are as follows: The intermediary 7% VAT rate (applicable to the food service industry, work on residential property, domestic passenger transport, hotel industry, drugs authorized for marketing but not covered by social security, etc.) has been raised to 10%.The standard 19.6% VAT rate has been raised to 20%.The 8% rate applicable in Corsica (construction work, etc.) has been raised to 10%.The rate of 5.5% has not been modified.Other specific rates could also be applicable in Corsica and French overseas territories.
The standard rate of VAT is 18 percent which applies to alltransactions except for: exempted transactions with the rightto offset input VAT (i.e. similar to zero rated transactions),exempted transactions without the right to offset input VATand transactions not carried out in the territory of Georgia.
The standard rate of VAT (Umsatzsteuer (USt)) is 19 percent. Reduced rates apply to certain items; 7 percent (e.g. food, plants, animals, books/newspapers, short term accommodation including certain connected services and short distance passenger transport) and 0 percent (e.g. cross-border air passenger transport, financial services to non-EU recipients, exports, and certain transactions involving ships and aircrafts). Special rates (5.5 percent and 10.7 percent) apply under the farmers’ flat-rate scheme. VAT exempt transactions include financial services to EU recipients, insurance services, certain supplies of land, health, welfare, education, specific public postal services and supplies within the Real Estate Acquisition Law.
The 17.5% rate is made up of VAT of 15% and a National Health Insurance Levy of 2.5%.Please note that the rate of 15% was introduced by the VAT Act 2013 which received Presidential Assent on 30th December 2013. Previously the standard rate of VAT was 12.5% (plus the NHI levy).While there are no reduced rates per se, Ghana does exempt certain supplies from VAT (Schedule I of VAT Code), zero rate certain supplies (Schedule II of the VAT Code) and also provides reliefs in respect of certain supplies listed in Schedule III of the VAT code.
There is no VAT or equivalent tax in Gibraltar.
The standard rate of VAT is 23 percent (from 15 March until30 June 2010 the standard VAT rate was 21 percent). There are reduced rates of 13 percent and 6.5 percent.For the Aegean islands all VAT rates are further reduced by 30 percent (i.e. from 23 percent to 16 percent, from 13 percent to 9 percent and from 6.5 percent to 5 percent)provided that certain conditions are cumulatively met. This reduction does not apply for supplies of tobacco products and means of transportation. VAT exemptions apply, inter alia, to (a) intracommunity supplies and exportations of goods, (b) the majority of services provided to foreign persons subject to VAT, (c) international transports, (d) supplies made in connection with qualifying vessels and aircraft, including the VAT-exempted release of importedgoods for free circulation in Greece when they are placed in a VAT warehouse before being delivered to qualifying vessels and aircrafts and (e) services provided by the educational, medical, insurance and financial sectors.
The standard rate of sales tax (impuesto sobre ventas (ISV)) is 15 percent. An increased rate of 18 percent applies to imports and national supplies of alcoholic beverages and tobacco products also the airplane tickets in firstclass and executive class are taxed with an 18 percent rate and telecommunication services will be taxed with a 15 percent rate, also the excess consumption of 750 kw/h of electricity the tax establish is of a 15 percent. The goods and services exported abroad are subject to 0 percent. Exempt supplies include basic food items for human consumption; livestock and certain agricultural goods, and machinery;pharmaceutical products for humans and animals; books, magazines, newspapers, and school supplies; most financial services; educational services; the supply of water andelectricity; professional and sports services; and terrestrial transportation of passengers.
Guernsey does not levy VAT or any similar indirect tax.
There is no VAT or GST in Hong Kong.
The standard rate of VAT is 27 percent (since 1 January 2012).There are reduced rates of 18 percent and 5 percent. 18 percent relates to hotels and basic food, such goods as milk, certain dairy products, bread and other bakery products and to the admission to short-term open-air events. There is a reduced rate of 5 percent for the sale of most medicines, medical instruments, certain medical aidswith 90 and 98 percent social security subsidy, books,newspapers, and magazines. Books and music notes on non-paper based but on a different type of device are subject to the reduced 5 percent rate unless electronic services are required to enlist them. Central (‘distance’) heating is alsosubject to the reduced 5 percent rate. Live performancesare also subject to the reduced 5 percent rate under certain conditions (in restaurants, in the course of family events, in the course of other events where no admission fee ispayable for the performance itself, etc.).
The standard rate of VAT (virdisaukaskattur (VSK)) is 24 percent. There are reduced rates of 11 percent and 0 percent. The 11 percent rate applies to, for example accommodation, books and periodicals, licenses to use radio and television broadcasting services, and certain food intended for human consumption. The 0 percent rate applies to, for example exports of goods and services; international transportation; fuel and equipment delivered for use in ships and aircraft engaged in international traffic; sales and rentals of ships and aircraft; and repairs and maintenance services rendered to ships and aircraft. Certain supplies of goods and services are exempt from VAT, for example real estate and parking space leases, health services, social services, educational and sport activities, postal services, financial services, and services of travel agencies. As of 1 January 2016 passenger transportation for recreational purposes, and the services of travel agents and travel organizers will no longer be exempt from. VAT but subject to 11 percent VAT. This applies to both domestic and foreign entities when providing such services in Iceland. Admissions to spas and bath houses will also be subject to 11 percent VAT, effective from 1 January 2016.
India has a federal structure with both federal and state specific indirect taxes. While sale of goods is India is liable to VAT/ CST, provision of services in India is liable to Service tax. In relation to sale of goods, intra-state sale of goods is subject to VAT and sale of goods occasioning movement across states is subject to Central Sales Tax (CST). The standard rate of VAT ranges from 12.5 percent to 15 percent across States. Also, there are certain concessional VAT rates such as 5 percent, 1 percent, and zero percent. A few examples of goods covered under concessional rates are mentioned below: • 5 percent - IT products, intangible goods (such as patents and copyrights), capital goods, chemical fertilizers, cotton, drugs and medicines, iron and steel, industrial inputs, sports goods, tractors • 1 percent - Gold, silver, precious stones (for example diamonds), articles or ornaments made of the aforementioned • Zero percent - Books, milk, fresh plants, flowers, vegetables and fruits, meat, fish, prawn, rice, and wheat• Zero rated - Exports of goods Further, there are higher VAT rates of 20 percent and above, applicable to petroleum products (such as diesel, petrol, lubricants, and aviation turbine fuel), natural and other gases used as fuel, liquor and beer. As regards CST, it is charged at the rate of 2 percent with Form C or VAT rate applicable in the originating state without Form C. In addition, there is another indirect tax on provision of services known as Service tax, which is ordinarily discharged by the service provider. The standard rate of Service tax was increased vide Union Budget 2015 to 14 percent (date not yet notified). In terms of the Service tax law, all services other than those mentioned under the Negative List of services or specifically exempted under any notification, would be liable to Service tax. While any services exported out of India would be zero rated, any services received in India from outside India (‘import’) would be liable to Service tax in the hands of the recipient of such service under ‘reverse charge mechanism’. Whether a service would qualify as ‘export’/ ‘import’ would be determined by the Place of Provision of Service Rules, 2012, which prescribe for specified rules for different type of services.
The standard rate of VAT (pajak pertambahan Nilai (PPN)) is 10 percent. There are two types of indirect tax in Indonesia: a VAT (pajak pertambahan Nilai (PPN)) and a sales tax on luxury goods (pajak penjualan atas barang mewah (PPnBM)). The rates of PPnBM range from 10 percent to 200 percent. The reduced PPN and PPnBM rates of 0 percent apply toexports of goods. Certain supplies of goods and services are exempt from PPN, for example unprocessed minerals, agricultural products, basic necessities, banking and insurance services, finance leasing, hotel and restaurant activities, employment and manpower services, various social services, and the certain supply of electric power and potable water.
There is currently no VAT/GST regime in Iraq, however effectoive January 2015 the Iraqi parliament approved a a law to impose sales tax on mobile and Internet charging cards at 20 percent, on air travel tickets and vehicle purchases of all kinds at 15 percent and on cigarettes and alcohol drinks at 300 percent. The law authorized the Ministry of Finance to issue the required instruction to implement these sales tax measures in Iraq.
The standard rate of Irish VAT is 23 percent. There are also reduced rates of 13.5 percent, 9 percent, 4.8 percent, and 0 percent. The main reduced rate of 13.5 percent applies to, for example immovable goods, building services and repair, andmaintenance services. The second reduced rate of 9 percent applies to certain goods and services in the tourism sector such as hotels accommodation and restaurant meals. Changes were recently announced with respect to the reduced rate (9%) which will also apply to (a) the supply of live horses other than those intended to be used for foodstuffs/agricultural production only, (b) greyhounds and (c) the hire of horses. These changes will come into force upon implementation of a Ministerial Order which has yet to be announced. The 4.8% rate will continue to apply to other livestock and horses intended for use as foodstuffs/agricultural production only.The export of goods, basic foodstuffs, oral medicines, medical equipment, and appliances are liable to the 0 percent rate. There is a special farmers flat rate addition of 5 percent (with effect from 1 January 2014 - previously 4.8%) which applies to certain sales by unregistered farmers. In addition, supplies of certain goods and services are exempt from VAT, such as financial, insurance, passenger transport, education, and health and welfare services.
The rate of VAT follows that of the United Kingdom.
The standard rate of VAT is 18 percent.
The standard rate of Italian VAT is 22 percent for transactions with tax points arising after 1 October 2013. Reduced rates of VAT of 10 percent, 4 percent and 0 percent can also apply in Italy. Examples of items subject to the 10 percent rate include certain domestic supplies offuel, hotel, accommodation, water and social housing. Examples of supplies qualifying for the 4 percent rate include basic foodstuffs, books and periodicals. Examples of zero rated supplies include intra community supplies, exports and certain services supplied in relation to qualifying international vessels and aircraft. A number of transaction types may also qualify for VAT exemption in Italy such as certain financial services, insurance and real estate transactions.
The standard rate of GCT (our local Value Added Tax) is 16.5 percent. The rate of 10 percent applies to certain tourism services.The rate of 25 percent applies to the supply of certain telecommunication services and instruments. The telecommunication providers attract Telephone Calls Taxes at rates of J$0.05, J$0.40 and USD0.075 per minute, on certain calls. Commercial importers pay an Advanced GCT Payment of 5 percent on the importation of certain goods in addition to the standard GCT rate applicable on imports. Zero rated supplies include exports, certain agricultural equipment and material, certain books, certain health supplies and medications. Goods purchased by or services rendered to certain government entities are now taxable at the standard rate. Exempt supplies include certain medical supplies and equipment, certain books and educational supplies, energy-saving devices and miscellaneous services including construction, health, public utilities (except electricity services) and financial services.
The standard rate of consumption tax is 8 percent, which was increased from 5 percent on 1 April 2014.Furthermore, the rate will increase to 10 percent on 1 April 2017, although the increase was originally planned to be effective on 1 October 2015. There is a reduced rate of 0 percent which applies to, for example, sales or leasing of goods as export transactions; sales or leasing of foreign cargo; international transportation services; and services provided to non-residents (except for transport or storage of assets in Japan; provision of accommodation and food in Japan; and provision of services of a similar nature in Japan). Supplies of certain goods and services are exempt from consumption tax, for example, sale or leasing of land; rental of housing; sales of securities, and similar instruments; medical treatment under public medical insurance laws; social welfare activities; school tuition; and examination services.
The standard rate of GST is 5 percent. The rate increased from 3 percent to 5 percent on 1 June 2011.
General sales tax rates applicable are as follows:The standard rate is 16 percent and applies to products,merchandise and transactions that are not subject to the reduced rate.The zero rate (0 percent) applies to certain basic foodstuffs listed in the law; certain pharmaceutical products; and fueloil, diesel oil, propane gas and butane gas.Examples of goods exempted from sales tax are wheat, bread, olive oil, paper money, gold and jewelry, electric power, vehicles used locally, cellular devices, milk, coffee,tea, rice. Examples of goods liable to VAT at the reduced rate of4 percent. Certain items of food, phosphate, potash, pens and notebooks and lead school and university, heaters, certain agricultural equipment, ambulances, equipment and medical supplies, school uniforms, and medicines. Goods liable to VAT at the reduced rate of 8 percent include constructions steel.
The standard VAT rate is 12 percent. A 0 percent VAT rate applies to exports of goods and international transportation of passengers, baggage, and goods into or out of Kazakhstan, and the sale of refined gold to the National Bank. Certain supplies of goods and services are exempt from VAT, including sales or lease of residential buildings and land plots; financial and insurance services by companies licensed in Kazakhstan; contributions to the charter capital of legal entities; and medical and veterinary services.
The VAT Act 2013 (effective 2 September 2013), provides for two rates applicable on VATable supplies - 16% and 0%.The zero rate largely applies to the export of taxable goods and services and supplies made to privileged persons and institutions.Exempt sales under the VAT Act include medical services, financial services, passenger transportation, residential accommodation, pharmaceutical products, unprocessed agricultural produce and lease of aircrafts.All other supplies that are neither listed as exempt nor zero-rated are VATable at the standard rate of 16%.
The standard rate of VAT is 10 percent. Each business person is entitled to credit input taxes paid, except for those in connection with entertainment expenses, nonbusiness related expenses, input VAT paid before the entity is registered under the VAT Law, etc., against output taxes collected. Under the revised VAT law, however, if in case the entity is registered within 20 days from the end of the VAT period to which the date of supply belongs, input VATincurred from the beginning of the VAT period to which the date of supply belongs would be creditable retrospectively. Certain taxable transactions are subject to a VAT zero-rate. The following categories of taxable transactions are zerorated:(1) the export of goods and services, (2) servicessupplied outside of Korea, (3) the supply of international transportation services by vessel or aircraft, and (4) the supply of certain goods or services in Korea where the compensation is received in foreign, non-KRW currency. Thesupply of certain designated goods and services is nontaxable and therefore exempt from VAT. VAT is not collected by the supplier of these designated goods or services, so the supplier is in a position to charge his supply without VAT tothe purchaser. In turn, the supplier is not able to deduct his input VAT associated with such goods and services. The input tax is thus borne by the supplier as if he were the ultimate consumer. The following supplies of goods or services are treated as VAT exempt: unprocessed basic foodstuffs,medical and health services, educational services, passengertransport services, books, newspapers and magazines,postage stamps, land and banking/insurance services etc.
There are currently no indirect taxes in Kuwait. Custom dutyis however charged at 5 percent of the value of the imported goods.In addtion, we understand that the Kuwait Government has plans to introduce Value Added Tax (VAT) in the next couple years. Currently, further details on the implementation of VAT have not been announced by the Government.
The standard rate of VAT (pievienotas vertibas nodoklis(PVN)) is 21 percent. There are reduced rates of 12 percent and 0 percent which apply to, for example pharmaceuticals, passenger transport, and heating for inhabitants (12 percent); supply, import, repair and maintenance of certain ships and aircraft, passenger transport by air or sea, financial transactions outside the EU and exports (0 percent). Supplies of certain goods and services are exempt from VAT, for example land and used immovable property, financial and insurance services,education, and health and welfare services.
There are no VAT/GST in Libya.
The standard rate of VAT (Mehrwertsteuer (MWST)/taxe surla valeur ajoutée (TVA)/ imposta sul valore aggiunto(IVA)) is 8 percent . There are reduced rates of 3.8 percent,2.5 percent, and 0 percent which apply to, for examplehotel accommodations (3.8 percent); water in conduits,medications, books, newspapers, food and non-alcoholicbeverages (2.5 percent); and exports of goods (0 percent).Supplies of certain goods and services are exempt fromVAT, for example official postal service, health and welfare,education, insurance, finance, and supply of certainimmovable property.
The standard rate of VAT (Pridetine´s vertes mokestis (PVM))is 21 percent. The reduced rate of 9 percent is applicable for certain periodicals (e.g. newspapers) and non-periodicals (e.g. books); certain regular passenger transportation and related baggage handling services; accommodation services rendered according to the requirements of legal acts regulating tourism activities (as of 1 January 2015); the supply of heating for dwellings and the supply of hot water (until 1 July 2014). A 5 percent reduced VAT rate is applicable to certain drugs and medicine; technical aids for disabled and their repair. There is a compensational rate of 6 percent for supplies of goods and services under the farmer’s flat rate scheme.The zero-rate applies to exports of goods outside the EU; intra-Community supplies and supply, modification, modernization, and hiring of seagoing ships and aircrafts. Supplies of certain goods and services are exempt fromVAT, such as health and welfare, educational, cultural, sports, postal, financial, and insurance services; land (except for building purposes); sale of real estate (older than 24 months); and leasing of real estate.
The standard rate of VAT (taxe sur la valeur ajoutée (TVA)) is 17 percent. There are reduced rates of 14 percent, 8 percent, 3 percent, applicable for example to certain wines, safekeeping and management of securities, management of credit by persons not granting it (14 percent); electricity and gas, certain works of art (8 percent); food (except drinks containing alcohol), children clothing, animal feed, books, newspapers and periodicals, passenger transport, hotel accommodations, certain sporting and cultural services, and certain pharmaceutical products (3 percent). Exports and intra-Community supplies of goods, supplies of goods and services used by airlines operating for reward chiefly on international routes, and services supplied for the needs of high-seagoing vessels and international passenger transport services are VAT exempt. Luxembourg also provides other exemptions for VAT, for example for banking and financial services, management of UCITS collective investments funds, SICAR, specialized investment funds, some pension funds and securitization vehicles, alternative investment funds, insurance and reinsurance operations, supply and letting of immovable property, postal services, education and certain medical supplies. Following the implementation of LE FREEPORT (logistics hub) in Luxembourg for art work and valuable goods, a VAT and customs suspension regime is applied on transactions realized within LE FREEPORT, meaning that VAT and customs do not apply on transactions related to the goods while stored in the hub. The suspension regime lasts until the goods are removed from LE FREEPORT and, as from this moment, VAT (and customs) may become due following the applicable VAT rates.
There is no value-added tax or goods and services tax in Macau.
The standard rate of VAT (danok na dodadena vrednost (DDV)) is 18 percent. The reduced rate of 5 percent applies to some supplies such as the supply of food products, publications, seeds and planting materials, agricultural machines, fodder, fodder additives and livestock, pharmaceutical and medical devices, baby products, school accessories, computers, thermal-sun systems, passenger transport, accommodation services provided by hotels, motels etc, software and supply of apartments used for residential purposes if performed within five years from construction (the preferential rate is deemed to apply until 31 December 2015, after which these supplies would be taxable under the general rate of 18 percent). Supplies of certain goods and services are exempt from VAT, for example financial and insurance services, education, health, and supplies and rental of buildings and apartments used for residential purposes, except for their first sale if performed within five years from their construction.
The standard rate of VAT (general consumption tax) is16.5 percent.Exempt supplies include supplies of live animals, animalproducts (meat and edible meat offal in raw form, fish andcrustaceans molluses and other acquatic invertebrates,vegetable products in raw state, water i.e. tap or well water,residuals and waste from the food industries, petroleumproducts, miscellaneous chemical products (fungicidesand herbicides), fuel wood, printed matter – books, coin,mechanical appliances (whether or not hand-operated)for projecting, dispensing or spraying liquids or powders,medical equipment, education services, banking and lifeinsurance services, postal services, funeral services,medical services, transport of exports, rentals and sale ofproperties used for residential purposes, ordinary bread,vehicle ambulances, motor cycle ambulance, hessian cloth.Zero–rated supplies include exports, fertilizers, sheathcontraceptives (condoms), exercise books, laundrysoap, salt, machinery – zero-rating covers agricultural,horticultural, forestry machinery, e.g. ploughs, harrows,manure spreaders, harvesting machinery, e.g. lawn mowers,egg grading machinery, combine harvesters, haymakingmachinery, goods for use in tourism industry, militaryequipment, syringes with or without needles, furnishingarticles, pharmaceutical products, sand flynet, cycleambulances, motor cycle ambulances. Changes are anticipated in July 2014 following Parliamentary sittings in May & June 2014.
GST was implemented in Malaysia on 1 April 2015, replacing the former sales tax and service tax.Certain goods and services are exempt or zero rated.
The standard rate of VAT (taxxa fuq il valur miz jud) is 18 percent. There are reduced rates of 7 percent, 5 percent and 0 percent which apply to, for example, the supply of electricity, medical accessories, printed matter, and items for the exclusive use of the disabled (5 percent); and exports of goods, international transport and ancillary services, supplies of certain qualifying vessels and aircraft, the chartering thereof and certain services provided thereto, food, and pharmaceutical goods (0 percent). Furthermore, with effect from 2011, there is a specialreduced VAT rate for the letting or provision of hotel and private accommodation (including related services up to full board basis) of 7 percent (formerly 5 percent). Supplies of certain goods and services are exempt from VAT, for example immovable property (with some exceptions); insurance services; credit, banking, and other related services; cultural, sporting and religious services; postal services; education; and health and welfare.
The standard rate of VAT is 15 percent. There is a reduced rate of 0 percent which applies to, for example exports of goods other than exempt goods, sugar, sugar cane, wheat flour, books, booklets, brochures of specific customsheadings, the supply of electricity, water, international transport of passengers and goods, certain pharmaceutical products and supplies of services to non-residents. Supplies of certain goods and services are exempt from VAT, for example rice, wheat, bread, butter, milk and cream, medical,hospital and dental services other than cosmetic surgery services, certain medical and dental equipment, educational and training services, postal services, cargo handling, and certain residential buildings.
The standard VAT rate is 16%. The preferential VAT rate of 11% for transactions conducted in the border region has been repealed from January 2014. There is a 0% VAT rate for exports, for some services and for the alienation of certain goods, generally including; patent medicines and some products intended for food, books, magazines, and newspapers published by the taxpayer, etc.
The standard rate of VAT (porez na dodatu vrijednost; PDV) is 19 percent (effective 1 July 2013). There are reduced rates which apply to, for example basic foodstuffs, medicines not listed on the Health Fund list, textbooks and teaching aids, books, monographic and serial publications, daily and periodic press (with some exceptions), hotel and other accommodations, public transportation of passengers and their personal baggage (7 percent); exports of goods, transport, and other services in relation to exports,goods and services used in international air and maritime traffic, and medicines and medical devices listed on Health Insurance Fund list (0 percent). Supplies of certain goods and services are exempt from VAT, for example financial and banking services, insurance and reinsurance services, the supply of immovable property (except the first transfer), health and social security services, cultural, sport, and religious services.
The standard rate of VAT is 20 percent.There are reduced rates of 14 percent, 10 percent and7 percent:- 7 percent rate applies for some goods of generalconsumption, water, renting out of water and electricitymeters, pharmaceutical products, etc.- 10 percent rate applies for bank, credit transactions andexchange commissions except leasing, the supply ofcatering services and hotel accommodations, the activitiesof some professions (e.g. lawyer, interpret), etc.- 14 percent rate applies to transportation transactions,electric energy, etc.
The standard rate of VAT (imposto sobre o valor acrescentado (IVA)) is 17 percent. There is a reduced rate of 0 percent which applies to, for example, exports of goods, services linked to exports of goods, international passenger transportation and some basic foodstuffs. Supplies of certain goods and services are exempt from VAT, for example medical and health services, goods and services linked to welfare and social security, education (with some exceptions), banking and financial transactions, insurance and reinsurance transactions, leasing of immovable property for residencial,commercial use and industriesin rural zones, goods and services related to agricultural, forestry, livestock and fishing activities, and importation of certain goods approved for mining and industrial free-zone operations. Additionally, services related to drilling, research and construction of infrastructure relating to mining and oil and gas activities during the exploration and appraisal stages are exempt from VAT.
Namibia levies VAT at a rate of 15% or 0% on supplies made by an enterprise. For imports, the rate of tax is also 15%. However, the value of imported goods for purposes of calculating the tax is the free on board ("FOB") value plus 10% of that FOB value. It is important to note that certain imports may be considered as exempt or zero rated if the provision of those goods or services would have been exempt or zero rated had they been supplied by a Namibian supplier.
The standard rate of VAT (omzetbelasting (BTW)) is 21 percent (as of 1 October 2012). There are reduced rates of 6 percent and 0 percent. The reduced rate of 6 percent applies to, for example, the supply of foods, drinks (excluding alcoholic beverages),medicines, books, daily newspapers and magazines, passenger transport, some labor intensive services, sports events and since 1 July 2012, performing arts. The zero rate applies to for example exports of goods, intra-Community supplies, services regarding goods not yet imported and supplies of sea-goingvessels or aircrafts. Supplies of certain goods and services are exempt from VAT, for example immovable property (with some major exceptions), financial and insurance services, education, and health and welfare.
The standard rate of GST is 15 percent. The rate is reduced to 0 percent in certain situations such as the export of goods and services, the supply of a business as a going concern, the supply of land on or after 1 April 2011, and the supplyof financial services under the “business-to-business” regime. Supplies of certain goods and services are exempt from GST unless the supplies can be zero-rated. Exempt supplies include the supply of financial services, the supply by non-profit bodies of donated goods and services, thesupply of residential accommodation, and the supply of fine metals. New Zealand also operates a GST reverse charge forimported services.
Tax standard rate for indirect tax is 15 % corresponding to Value Added Tax for sale of goods, imports and services, with some exceptions: 0% for exports of goods and services, 7% electricity service lower than 300kw/h.
The VAT rate is 5 percent. Some supplies may be zero-rated or completely exempt.
The standard rate of VAT (merverdiavgift (MVA)) is 25 percent. There are reduced rates of 15 percent, 8 percent, and 0 percent which apply to, for example food (15 percent); hotel accommodations, passenger transportation, communication of such services, the right to attendmuseums, cinemas etc. (8 percent); and exports of goods, certain supplies relating to ships and aircrafts as well as books, magazines and newspapers on paper (0 percent). Supplies of certain goods and services are exempt from VAT, for example financial services, real estate (with some major exceptions), education, health services, and social services.
Currently there is no VAT or GST in Oman.
The standard rate of Federal sales tax is 17 percent ad-valorem on supply of taxable goods, whereas specified services are subject to standard rate of sales tax at 16 percent ad-valorem under the Provincial laws. Indirect taxes in Pakistan include sales tax, Federal excise duty (FED) and Provincial sales tax. Zero-percent sales tax isapplicable on all exports from Pakistan, whereas the local supply of major export sectors to downstream industry is subject to the levy of sales tax at reduced rates. Certain supplies of goods and services are exempt from sales tax,for example agricultural products, unprocessed food items, animals and their meat, fisheries, dairy products, sale to hospitals and educational non-profit organizations. FED applies to the import and manufacturing of specified goodsand provision of specified services at different rates. The rate of FED or Provincial sales tax on specified services is generally applicable at standard rate of 16 percent, however on franchise services and telecommunication services, theapplicable rates are 10 percent and 19.5 percent respectively.
The standard rate of VAT (impuesto sobre la transferencia de bienes corporales muebles y la prestacion de servicios) (ITBMS) is 7 percent. A special increased rate of 10 percent applies to the import, wholesale, and retail sales of alcoholic beverages. A special increased rate of 10 percent applies to hotel accommodation services. A special increased rate of 15 percent applies to the import, wholesale, and retail of all kinds of cigarettes, cigars and other tobacco products. Zero-rate supplies include exports and re-exports of goods and the sales of pharmaceutical and food products when certain conditions are met (that is, the taxable person is engaged exclusively in such activities and its total output is sold within Panamanian territory). Exempt supplies include (among others) the sale of food; sales of oil fuel and similar products; newspapers; magazines, educative magnetic media, notebooks, pencils, and other items for school purposes; medicines and pharmaceutical products; and interest payments (other than commissions or fees) arising from financial services and financial leasing contracts defined by law.
The standard rate of goods and services tax (GST) is10 percent. There is a reduced rate of 0 percent whichapplies to, for example exports of goods and services,medical supplies, supplies of goods and services toprescribed foreign aid providers, supplies of goods, andservices to a non-profit body, supplies of goods andservices to resource companies. Supplies of certain goodsand services are exempt from GST, for example financial,medical, and educational services, public road transport,postage stamps, and the retail supply of newspapers.
10% is the general VAT rate.A reduced (or differential) rate of 5% applies to:- The lease and transfer of properties- The transfer of agricultural products, fruits, horticultural products in their natural state and live animals; products obtained from hunting and fishing, alive or not; vegetable oil virgin or crude degummed; certain basic foodstuffs such as:: rice, noodles, mate (yerba mate), edible oils, eggs, raw (not cooked) meats, flour and iodized salt- Interest, fees and charges of the loans granted by banking and financial entities - The transfer of pharmaceuticals products
The standard rate of VAT (impuesto general a las ventas(IGV)) is 16 percent (since 1 March 2011). The municipal promotion tax (impuesto de promoción municipal (IPM)) of 2 percent is also added to the value of goods or servicesused to determine the IGV, which results in an 18 percent sales tax overall.
The standard rate of VAT is 12 percent.
The standard VAT rates are: 23 percent, 8 percent, 5 percent and 0 percent. The rates were increased on 1 January 2011. Some of the goods (mostly food products) formerly taxed with a 7 percent VAT rate are now taxed with a 5 percent VAT rate in order to minimize the impact of the increase of VAT rates on the poorest. The new increased rates were initially introduced for a period of three years. According to the adopted Amendment of Value Added Tax Act, increased VAT rates will continue to apply until the end of 2016. Certain supplies of goods and services are exempt from VAT, for example: financial services, healthcare or education services.
On the mainland the standard rate of VAT is 23 percent, with reduced rates of 13 percent and 6 percent. Madeira island has a standard VAT rate of 22 percent, with reduced rates of 12 percent and 5 percent. Azores island has astandard VAT rate of 18 percent with reduced rates of 10 percent and 5 percent (from 1st January 2014).
The Legislature is currently (as of Aril 22, 2015) considering a bill to replace the existing sales and use tax regime with a VT syatem.The proposed rate is 16% but a counterproposal by the House has been sumitted proposing rates between 10-14%.The new rates could be applicable at sometime during 2015 as an amendment to the sales and use tax regime and the earliest that the VAT syatem is expected to be effective is January 1, 2016.
No indirect tax regime exists in Qatar. However, Qatar does follow the GCC Unified Customs Regime and applies a customs duty rate of 5 percent on most imports into Qatar.
The standard rate of VAT is 24 percent. VAT reduced rates of 5 percent and 9 percent are applicable on some supplies. Starting from 1 September 2013, the reduced rate of 9 percent also applies to supplies of bread and bakery products, flower and wheat. Starting with 20 January 2015, the reduced VAT rate of 9% also applies to all tourism packages offering accommodation. Previously the reduced rate was only applicable to packages that included accommodation or accommodation and breakfast. Also, there are high level discussions with the representatives of the Ministry of Finance regarding the application of the reduced rate of 9% for certain food products starting with June 2015.
The standard rate of VAT (nalog na dobavlennuyu stoimost’(NDS)) is 18 percent. There are reduced rates of 10 percent and 0 percent which apply, for example to sale of certain food products, specific goods intended for children, certain books and periodicals, certain pharmaceutical and other medical products (10 percent); and exports of goods, rendering of international transportation and certain types of related services, services related to transit of goods through Russia, international passenger transportation, and export of fuel for ships and aircraft (0 percent). Supplies of certain goods and services are exempt from VAT, for example lease of premises to foreign companies accredited in Russia, rendering of certain types of medical services and sale of certain medical products, public transportation, the sale of securities, rendering of certain types of banking services, insurance services, the sale of residential property. There is a specific rate of 15.25 percent (effectively it is a computed rate 18/118) which is applicable to the sale of the whole enterprise (plant). There are also computed VAT rates (18/118 and 10/110) for specific cases when VAT is applicable to the VAT inclusive amount of revenue (e.g., receipt of advance payments and other payments connected with settlements for suppliers).
The standard rate of turnover tax (Belasting opBedrijfsomzetten; BBO) in St. Maarten as of 11 February 2011 is 5 percent.
The standard rate of VAT is 15 percent. This rate applies to ordinary businesses, trade and professionals, publicauthorities, non profit bodies, clubs, societies and associations. There is a reduced rate of 0 percent (and zero rated;)for exported goods and certain exported services, duty free goods, goods not in Samoa at the time of supplyand educational services provided by approved institutions.Medical goods and services supplied by the hospital and water supply provided by the Samoa Water Authority are also zero-rated. Those supplies exempt from VAT are locally produced raw and unprocessed food, financial services,donated goods and services sold by non-profit bodies, bus and taxi fares, electricity and inter-island passenger fares in Samoa
There is no VAT or GST in Saudi Arabia.
The standard rate of VAT (porez na dodatu vrednost (PDV)) is 20 percent (effective 1 October 2012). There are reduced rates of 10 percent (effective 1 January 2014) and 0 percent which apply to, for example basic foodstuffs, medicines, textbooks and daily newspapers, hotel services, gas, and first transfer of ownership on residential buildings (10 percent); and exports of goods, transport and other services in relation to export, supply, repair, maintenance, charter and lease of aircraft and river vessels predominantly operating in international traffic, and international air and river transport of passengers under a reciprocity rule (0 percent). Supplies of certain goods and services are exempt from VAT, for example financial and banking services, insurance and reinsurance services, supplies and renting of land, transfer of sharesand securities, transfer of immovable property (exceptfirst transfer), medical and welfare services, education and professional retraining, cultural, scientific, sport, and religious services.
The standard rate of GST is 7 percent. There is a reduced rate of 0 percent which generally applies to export of goods and international services. Supplies of certain financial services, the sale or lease of residential properties and the supply of investment-grade gold, silver and platinum are exempt from GST.
The standard rate of turnover tax (Belasting op Bedrijfsomzetten; BBO) in St. Maarten as of 11 February 2011 is 5 percent.
The standard rate of VAT(dan z pridanej hodnoty (DPH)) is 20 percent. There is a reduced rate of 10 percent which applies to medicaments; certain other medicaland pharmaceutical products; contact and spectacle lenses; certain hygienic products; books and other printed products where advertisement does not exceed 50 percent of the content of the product. International passenger transportation, exports of goods, intra-community supply of goods, supply, rental, repair, and maintenance of sea craft and aircraft and some other supplies are VAT exempt with the entitlement for input VAT deduction. Supplies of certain goods and services are exempt from VAT with no entitlement for input VAT deduction, for example postal services; financial and insurance services; education and training; health and welfare; cultural services, supply and rental of immovable property (under certain conditions), etc.
As of 1 July 2013 the standard rate of VAT is 22 percent and the reduced rate is 9.5 percent.
The standard rate of VAT is 21 percent (effective 1 September 2012). The reduced rates are 10 percent and 4 percent.Reduced rate of 10 percent: food and drink used for human or animal consumption (excluding tobacco and alcoholic beverages), animals, substances to be ordinarily used in agricultural activities, medicines for animals, housing, passenger transport, flowers, etc. As of 1 January 2015 only the pharmaceutical products included in Chapter 30 \"Pharmaceutical products\" of the Combined Nomenclature intended for direct use by the end consumer are subject to the reduced VAT rate of 10%, as well as medical equipement, devices and other instruments which due to their objective characteristics are designed to relieve or treat disabilities for the personal and exclusive use of people with physical, mental, intellectual or sensory impairments.Reduced rate of 4 percent: Newspapers, magazines and books that do not contain mainly advertisements, ordinary bread, flour, milk, eggs, cheese, vegetables and fruit, medicines for human and some medical products i.e. prosthesis.
The standard rate of VAT is 11 percent. There is also a reduced rate of 0 percent. The VAT rate on financial services is also 11 percent.
There is a flat rate of 17 percent VAT for all service and purchases in Sudan. However, a VAT rate of 30 percent applies to telecommunication service. These rates have applied since July 2012.
The standard rate of VAT (mervärdesskatt (MOMS)is 25 percent. There are reduced rates of 12 percent, 6 percent, and 0 percent which apply to, for example, restaurant services (from 1 January 2012), food and hotelaccommodations (12 percent); domestic passenger transportation including ski lifts, printed books and newspapers, certain sporting and cultural events (6 percent); and exports of goods, fuel to aircrafts, ships and aircrafts for commercialtransport and services related to them and prescriptionpharmaceuticals (0 percent). Supplies of certain goodsand services are exempt from VAT, for example health and welfare; education, financial, and insurance services; and the sale and letting of real property.
The standard rate of VAT (Mehrwertsteuer (MWST)/taxe sur la valeur ajoutée (TVA)/imposta sul valore aggiunto (IVA)) is 8 percent. There are reduced rates of 2.5 percent (e.g. water in conduits, medications, books, newspapers, food and nonalcoholic beverages) and 3.8 percent (accomodation services only). Some transactions are VAT exempt (with credit), for example exports of goods. Supplies of certain goods and services are not subject to VAT (without credit unless the option to tax is levied when applicable) like for example official postal service, health and welfare, education, insurance, finance and supply of certain immovable property.
There is currently no VAT in Syria.
Under the Taiwan Value-added and Non-value-added Business Tax Act, there are two systems of business tax, one being the VAT system and the other being the gross business receipts tax (GBRT) system. The standard VAT rate is 5 percent. GBRT applies mainly to financial institutions operating in banking, insurance, trust and investment, securities, futures, and short-term commercial papers business. The GBRT rate is 2 percent for core business revenue; 1 percent for reinsurance premiums of insurance enterprises, 5 percent for non-core business revenue and banks and insurance companies’ core business revenue. There is a reduced rate of 0 percent which applies to, for example, export sales of goods, services rendered which relate to export sales, services supplied in Taiwan but used outside of Taiwan, and goods or services supplied to a bonded area business for operational use. Supplies of certain goods and services are exempt from VAT, such as land, medical services, medicine, education services, and newspapers and magazines.
The current rate of Thai VAT is 7 percent. Please note that this is a temporary rate, reduced from the standard rate of 10 percent introduced by a special Royal Decree valid until 30 September 2015.
The standard rate of VAT is 18 percent. There are reduced rates of 12 percent and 6 percent. The 12 percent rate is mainly applicable to supply of services, for example services rendered by hotels; services rendered by lawyers, notaries, legal and tax counsels, and other experts; catering andIT services. The 6 percent rate applies to supplies such as services carried out by doctors, nurses, masseurs, veterinarians, and analytical laboratories; the transport of persons and agricultural products; the import, production,and sale of fertilizers; supplies of livestock concentrate food; soy beans; fish meal; and products and articles for the pharmaceutical industry (6 percent). Supplies of certain goods and services are exempt from VAT, for example school education; imports; the production and sale of aircrafts forpublic transport; services rendered by maritime transport and ship agencies; aircraft transport services; leasing of vessels and aircrafts for international maritime and air transport; the production and sale of flower, bread, pasta(normal quality), olive oil, soy, and soy oil; and the production, refining, and conditioning of vegetable oil.
In Turkey, the following VAT rates are applied: standard rate: 18 percent reduced rates: 1 percent and 8 percent. The standard VAT rate applies to all supplies of goods or services, unless a specific measure provides for a reduced rate or exemption. Examples of goods and services taxable at 1 percent are as follows:newspapers and magazines(including sale of the newspapers and magazines in electronic where this reduced rate does not cover the electronic devices, electronic tablet devices etc.)some foods and beverages used passenger cars Financial leasing services (with certain conditions)Examples of goods and services taxable at 8 percent are as follows: some foods and beverages books (including e-books)pharmaceuticals and medical products some construction equipment ready-wear products, garments and textile products admission charges for cinemas, theaters, and operas.
The standard rate of VAT is 18%. There is however, a reduced rate of 0% which applies to: supply of goods or services where the goods or services are exported from Uganda as part of the supply; supply of international transport of goods or passengers and tickets for their transport; certain food products produced in Uganda; supply of drugs and medicines; supply of seeds, fertilizers, pesticides and farm implements; the supply of aircraft, parts thereof and maintenance equipment; and the supply of some hygiene products. There is another category of supplies called ;exempt supplies; which covers the supply of unprocessed agricultural products, postage stamps, insurance and financial services, unimproved land, supply by way of leasing residential immovable property, supply of education services and other specified supplies. Any supply that is neither exempt or zero rated, is automatically considered standard rated.
The Tax Code of Ukraine provides for three VAT (podatok na dodanu vartist', PDV) rates: 20%, 7% and 0%. The standard rate of VAT is 20 percent. A reduced VAT rate of 7 percent applies to: - supplies and imports of medicines allowed for production and use in Ukraine and listed in the State registry of medicines, as well as medical products as per the list approved by Ukrainian Government - supplies and imports of medicines, medical products and/or medical equipment for clinical trials permitted by the Ministry of Health. A reduced VAT rate of 0 percent applies to, among other things, exports of goods and related services, servicing or processing of goods temporarily imported to Ukraine (including goods temporarily imported to Ukraine pursuant to international tolling arrangements), supplies for airplanes and ships used in international traffic, international transportation of passengers and their luggage, servicing of airplanes engaged in international traffic and certain other supplies.
Indirect tax Customs DutyThe only indirect tax levy in the UAE currently is customs duty.With effect from 1 January 2003, the countries of the Gulf Cooperation Council (´GCC´) formed the GCC Customs Union which uniformly imposed 5% duty on the majority of goods entering the GCC. The GCC countries are UAE, Bahrain, Qatar, Kuwait, Oman and Saudi Arabia.Vat or GSTThere is currently no sales tax or VAT on any goods or services Sales taxAlcohol in Dubai attracts 30% sales taxMunicipality tax Municipal tax on Rentals–The tax rate is 5% (residential rentals) of the annual actual rentals payable by the tenant. As per the information received, the emirate of Dubai levies a tax of 5%, the emirate of Sharjah levies a tax of 2% and the emirate of Abu Dhabi in practice does not collect this tax. Current information is not available in respect of other emirates.–Applicable to all tenants irrespective of the nationality and is payable to the municipality of the emirate. –Collected at the time of the registration of the tenancy contracts with the respective municipality of each emirate. –The tax rate for commercial rentals is 10%. Municipal tax and service charge on Hotels–It should be noted that there is certain municipality fee and service charge that is charged for accommodation in hotels based in the UAE. These charges vary for each of the Emirates (i.e. Dubai, Abu Dhabi, Ras Al Khaimah, Ajman, Sharjah, Fujairah and Umm al Quwain).–A Municipality fee is charged on the hotel establishment for their sales and the tax rate in the emirate of Sharjah and Dubai is 10% which is paid by the customer.–A service charge of 10% is also applicable in the emirate of Dubai and Sharjah.–In addition, a nominal fee called as \"tourism dirhams\" is charged per occupied room per night (eg. around AED 20 per occupied room per night for five star hotels) in the emirate of Dubai and Sharjah.–For Abu Dhabi 10% Service charge and 6% Tourism Tax is applicable on the total billing for hotel accommodation.the above rates are based on the current tax laws of the UAE for the Year 2015 and are subject to change
The standard rate of VAT is 20 percent (effective 4 January 2011). There are reduced rates of 5 percent and 0 percent which apply to, for example children’s car seats, certain contraceptive products, domestic fuel and power, andrenovations/conversions of residential properties (5 percent);and food and animal feed, books and newspapers, prescription drugs and medicines, children’s clothes,passenger transport, and exports of goods (0 percent). Supplies of certain goods and services are exempt from VAT, for example financial and insurance services; education services supplied by eligible bodies; certain cultural services; betting, gaming, and lotteries; subscriptions; and health and welfare.
While the United States does not impose a national VAT, most states and some local governments impose transaction-based taxes commonly referred to as sales and use taxes. Forty-five states and the District of Columbia impose a state-level tax on the sale or use of goods and some services. Local governments in 34 states are authorized to impose local sales taxes. There are nearly 9,000 jurisdictions across the country that have chosen to impose a local sales tax. The state and local tax sales tax rate in the United States may range from 4 percent to 11 percent. As an example, the combined state and local sales tax rate in Denver, Colorado is 7.65 percent: 2.9 percent state sales tax, a 3.65 percent city/county sales tax, 1 percent regional transportation district tax, and a 0.1 percent special purpose district tax; the state and local taxes are administered by different authorities and separate returns are required to be remitted.Goods and services subject to tax, and the applicable tax rates, vary according to the jurisdiction. All states and some localities with sales and use tax regimes possess broad powers to determine whether goods and services are fully taxable, taxable at a special rate, or are fully exempt.
The standard rate of VAT (impuesto al valor agregado (IVA)) is 22 percent (as from 1 July 2007). The reduced rate of 10 percent applies to specific consumer goods, lodgingservices, and medicines. Under the new regulations (Law 19.210 and regulatory Decree 203/14) as from August 1, 2014 all debit card and electronic payment purchases made by final consumers got a two point reduction on the applicable VAT rates, but which was temporarily increased to a four point reduction for transactions of less than 4,000 indexed units. The new rates for debit card and electronic payment purchases are therefore in general of 20% and 8%, and of 18% and 6% for transactions of less than 4.000 indexed units (this reduction will be cut to three points in the second year and to two points from the third year on). In the case of purchases with credit cards by final consumers, the tax discount will be of two points for the first year, of one point the second year and will expire thereafter.Exports are zero-rated as wellas purchases where the consumer pays with the special aid card granted by the government to low-income taxpayers. Exempt supplies include certain agricultural goods and machinery, specified fuels, commissions, interests on specific financial transactions, and transport services.
The standard rate of VAT is 12.5 percent.
The standard rate of VAT (impuesto al valor agregado (IVA)) is 12 percent. The increased rate of 27 percent (which results from adding 15 percent to the standard rate) applies to luxury goods and services. Certain goods and services (such as red meat, animal oil, or local plane tickets) have a temporary rate of 8 percent. Exports are zero-rated. Exempt supplies include basic food items, medicine, fertilizer, fuel, newspapers, books and magazines, education, intangible assets, loans, banks, and financial institutions operations except leasing, insurance services, payroll, operations performed in specified duty free and tourist areas, national electricity, water, and natural gas.
The standard rate of VAT (gia tri gia tang (GTGT)) is 10 percent. There are reduced rates of 5 percent and 0 percent which apply to, for example, medical equipment and instruments, fresh foodstuffs, scientific and technical services, sale or lease of socialized houses (5 percent); and the exports of goods and services (0 percent). It is restated in the VAT regulations effective from 1 January 2014 that export services mean those being provided directly to overseas customers/customers in non-tariff zones and being consumed outside Vietnam/in non-tariff zones respectively. Supplies of certain goods and services are exempt from VAT, for example life insurance, financial services (other than fees for services), transfer of land use rights, health care services, computer software, printing, publishing and distribution of newspapers, magazines, and certain books. There are also certain VAT ignorable transactions whereby the supplier is not required to charge VAT but is generally allowed to claim the input VAT associated with such transactions. These include, but are not limited to, payments of indemnities, bonuses, financial assistance or other financial receipts; specified services rendered by foreign contractors such as repair of means of transportation, advertising, brokerage services; disposal of assets owned by non VAT-registered owners; certain intercompany transfer of fixed assets; capital contributions in the form of assets, and so on.
There is a 5 percent general rate. Special rates apply to a fewcategories of goods and services.
The VAT standard rate is 16 percent. There is a reduced rate of 0 percent which applies to export of goods, supplies to privileged persons, energy saving appliances, machinery and equipment, agricultural equipment & accessories etc. Exempt goods and services include water supply services, educational services, passenger transport services, selected financial services, conveyance of domestic property among other products and services. With effect from 1 January 2011, VAT at the standard rate applies on all non life insurance products. Previously, all insurance services were exempt from VAT.
Zero rating and exemption is available for few specified goods and services.
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