Russia

Details

  • Service: Tax & Legal, International Corporate Tax
  • Type: Publication series
  • Date: 2/1/2014

International Tax - Europe and Africa region (1 February - 28 February 2014) 

 

This e-newsletter gives you an overview of international tax developments being reported globally by KPMG member firms in the Europe and Africa regions between 1 February and 28 February 2014.

Albania

Germany

OECD

Spain

Austria

Hungary

Poland

Turkey

Belgium

Iceland

Portugal

Ukraine

Bulgaria

Lithuania

Romania

United Kingdom

Cyprus

Luxembourg

Russia

Zambia

Czech Republic

Malta

Serbia

 

European Union

Netherlands

Slovakia

 

France

Nigeria

South Africa

 

 

 

Tax area concerned

Relevant date

Description of measures and publication link
(Considerations in italic where necessary)

Albania

Treaties

DTT

February
2014

An income tax treaty between Albania and the United Kingdom has been ratified by the parliaments of both countries.
Read more

Back to top

Austria

Proposed legislation

Various tax issues

29 January
2014

Changes to the Austrian tax rules concerning group taxation, capital duty, and the tax deductibility of certain business expenses were passed on 29 January 2014 by the Austrian Council of Ministers. It is now expected that a government bill with these proposals will be presented and adopted within the next few weeks.
Read more

Back to top

Belgium

Tax legislation adopted and regulatory update

Reporting obligations

1 December
2013

Under Belgian law requiring reporting of payments made into “tax haven” jurisdictions, Belgium’s Minister of Finance stated that payments made to Luxembourg, Cyprus, the British Virgin Islands, and the Seychelles must be reported for each tax period beginning as from 1 December 2013.
Read more

Rules for employee dismissals

1 April 2014

A “framework” concerning the rules for workers dismissed from an employment situation aims to address the uncertainty associated with the distinct treatment of “blue collar” workers from the treatment of “white collar” workers.
Read more

Back to top

Bulgaria

Tax legislation adopted and regulatory update

VAT

1 January
2014

Changes to the VAT rules in Bulgaria, effective beginning 1 January 2014, include provisions:

describing what documents are required for registration and de-registration under the cash accounting regime

concerning the reverse-charge mechanism for local supplies

listing the documents required to support a zero VAT rate.

Read more

Indirect taxes

1 January
2014

Indirect tax changes in Bulgaria, effective 1 January 2014, include:

changes to the excise tax rates for certain energy products—i.e., the rates for natural gas for business use, heavy fuel oils, and natural gas used as motor fuel—and reduced rate for gas / oil used primarily in agricultural production

provisions reducing the security deposit to be provided by authorized warehouse keepers for goods maintains under a customs duty suspension arrangement.

Read more

Administrative and case law

Settlement of tax & social security liabilities

Decision No.
2 (4 February 2014) under constitutional
case
No. 3/2013

Bulgaria’s constitutional court issued a decision holding as unconstitutional, a provision of the tax and social security procedure law that provided that tax and social security liabilities were to be settled in the order in which they arose.
Read more

Back to top

Cyprus

Tax legislation adopted and regulatory update

VAT

13 January
2014

The rates of VAT in Cyprus are:

The “standard” VAT rate is 19 percent (increased from 18 percent) effective 13 January 2014

The “reduced” VAT rate is 9 percent (increased from 8 percent) effective 13 January 2014.

Read more

KPMG publications

Various tax areas

2014

A “tax guide” for 2014 provides an overview of the tax system in Cyprus and information for non-resident investors and corporations in Cyprus.
Read more

Back to top

Czech Republic

Proposed legislation

Individual & corporate income tax

2014

The coalition agreement establishing the new government in the Czech Republic indicates that there are no plans to raise either individual or corporate income taxes.
Read more

Back to top

European Union

Tax legislation adopted and regulatory update

Transfer pricing  

January
2014

The European Commission announced that the EU Joint Transfer Pricing Forum adopted a report on compensating adjustments.
Read more

VAT

12 February
2014

The European Commission adopted two reports concerning issues relating to VAT fraud within the EU.
Read more

7 February
2014

The European Commission launched a webpage concerning the VAT rules that apply with respect to telecommunications, broadcasting, and electronic services within the EU.
Read more

Proposed legislation

Exchange of information  

September
2014

The European Commission issued a statement in support of an agreement by the G20 Finance Ministers on a new global standard to counter tax evasion and to improve tax transparency worldwide.
Read more

Treaties

Administrative cooperation agreements

February
2014

The European Commission announced an intention to enter into negotiations with Russia and Norway for administrative cooperation agreements with respect to VAT.
Read more

Back to top

France

Tax legislation adopted and regulatory update

APAs / MAPs

February
2014

The French tax authorities announced the creation of a new program that will be responsible for both APAs and mutual agreement procedures.
Read more

Treaties

DTT

1 January
2015

An income tax treaty, and Protocol, between France and China was signed in late November 2013.
Read more

Back to top

Germany

Administrative and case law

Exit taxation

C-164/12 (23 January 2014)

In a recent judgment, the Court of Justice of the European Union (CJEU) addressed the effect of the German exit taxation provisions on reorganizations and the compatibility of exit taxation with EU law.
Read more

VAT

February
2014

In response to a submission from the German federal tax court, the CJEU issued a judgment stating its position on the reduction of the taxable amount on intermediary services when discounts are granted to end-customers.
Read more

Back to top

Hungary

Tax legislation adopted and regulatory update

Tax accounting

February 2014

Provisions of Hungary’s “branch office law” and “company law” apply to Hungarian branch offices of foreign enterprises. For Hungarian branch offices established by certain entities (e.g., credit institutions, insurance companies), the provisions of other laws also must be taken into account.
Read more

Administrative and case law

Group taxation

Hervis
Sport-és Divatke
resked
elmi Kft. v.
Nemzeti Adó -
és Vámhivatal Közép-
dunántúli
Regionális
Adó
Foigazg
atósága
,
C-385/12
(5 February
2014)

The CJEU considered whether Hungarian tax law—that serves to disadvantage undertakings linked, within a taxpayer group, to companies established in another EU Member State—constitutes an indirect discrimination on the basis of the location of the registered offices of the companies.
Read more

Back to top

Iceland

Tax legislation adopted and regulatory update

Transfer pricing

1 January 2014

Legislation passed by Iceland’s parliament introduces a transfer pricing regime in Iceland. The effective date is 1 January 2014.
Read more

Back to top

Lithuania

Tax legislation adopted and regulatory update

Corporate income tax

Beginning in 2014

Beginning in 2014, the ability of corporations to carry forward tax losses, for corporate income tax purposes, is limited in Lithuania.
Read more

Back to top

Luxembourg

Tax legislation adopted and regulatory update

Taxation of impatriate workers

1 January 2014

Luxembourg’s tax authorities issued guidance amending the tax rules that apply for foreigners working in Luxembourg (i.e., “impatriate” workers).
Read more

VAT

2015

The Luxembourg Finance Minister announced a planned increase in the VAT rates.
Read more

Administrative and case law

VAT

February 2014

The European Commission announced it is referring Luxembourg to the CJEU for the VAT  treatment of independent groups of persons under Luxembourg VAT law.
Read more

Back to top

Malta

Proposed legislation

Income tax

January 2014

Legislation in Malta is intended to amend the rules that apply with respect to the taxation (and withholding tax) on amounts distributed by corporations from profits.
Read more

Budget

2014

Legislation has been presented to the parliament, to implement measures that were presented in the government’s budget for 2014.
Read more

Back to top

Netherlands

Administrative and case law

Taxation of games of chance

January 2014

The Advocate General (attached to the Supreme Court) issued an “independent opinion” with respect to a case concerning the taxation of games of chance. At issue was whether the government, by introducing a tax on games of chance on slot machines, had violated the right to property.
Read more

Dividend withholding tax

February 2014

The Advocate General of the CJEU issued an opinion in two joined cases that involve profit distributions made by Dutch companies to their parent companies that are residents of Curaçao.
Read more

Corporate income tax

7 February 2014

The Supreme Court on 7 February 2014 issued decisions in two cases concerning whether a payment would be regarded as interest on a loan or as a participation dividend paid on a share capital investment.
Read more

Group taxation

SCA Group Holding, C-39/13, C-40/13, and C-41/13 (27 February 2014)

The Advocate General of the CJEU released an opinion in consolidated cases, concluding that Dutch law that denies tax consolidation when either a parent company or sister company is a foreign entity is in breach of EU law.
Read more

Back to top

Nigeria

Tax legislation adopted and regulatory update

Transfer pricing

February 2014

When Nigeria’s tax authority published the transfer pricing regulations, taxpayers celebrated the inclusion of safe harbor provisions. Unfortunately, the safe harbor in the transfer pricing regulations might not be as safe as many originally thought.
Read more

Back to top

OECD

Proposed legislation

BEPS

September 2014

The OECD released a revised timeline for action relating to BEPS discussion drafts and public consultations.
Read more

23 February 2014

The OECD on 30 January 2014 released an initial draft of revised guidance on transfer pricing documentation and country-by-country reporting pursuant to Action 13 under the BEPS Action Plan.
Read more

Exchange of information

13 February 2014

The OECD released a document—Standard for Automatic Exchange of Financial Account Information—that is the latest step towards automatic exchange of information globally about bank accounts and other financial assets held offshore.
Read more

Back to top

Poland

Tax legislation adopted and regulatory update

VAT

1 April 2014

New law in Poland concerns taxpayer claims for deductions of input VAT with respect to vehicles. The law is effective 1 April 2014.
Read more

Back to top

Portugal

Proposed legislation

Various tax areas

2014

In Portugal there are newly enacted corporate tax law changes and other tax law provisions part of the legislation enacting the 2014 budget measures.
Read more

Back to top

Romania

Tax legislation adopted and regulatory update

VAT  

January 2014

Romania’s Ministry of Finance issued an order concerning the procedures and conditions with respect to VAT warehouse authorization.
Read more

Various tax areas

February 2014

New law in Romania—a “government decision”—amending the tax code, was published in the official journal in February 2014.
Read more

Administrative and case law

VAT

SC Fatorie SRL,C-424/12 (6 February 2014)

The CJEU issued a judgment in a case concerning whether a Romanian company could claim a VAT deduction using information from an “incorrect” invoice received from its Romanian supplier, although the taxpayer company was to have applied the reverse-charge mechanism.
Read more

Back to top

Russia

Tax legislation adopted and regulatory update

Foreign workers

10 January 2014

Legislation amending the rules for the employment of foreign workers—assigned to work in Russia by foreign commercial entities that are located in member states of the World Trade Organization—generally has an effective date of 10 January 2014.
Read more

Back to top

Serbia

Tax legislation adopted and regulatory update

Corporate income tax

2013

Serbia’s Finance Minister approved new guidance for use in determining a taxpayer’s corporate income tax.
Read more

Transfer pricing

2013

Serbia’s Minister of Finance on 14 February 2014 adopted a “rulebook” with respect to arm’s length interest rates. The rulebook provides the prescribed interest rates applicable to related-party financing arrangements, and is applicable for taxpayers with related-party financing during 2013—i.e., the rulebook affects transfer pricing documentation for 2013.
Read more

Amendments to Serbia’s “rulebook” on transfer pricing concern transactions that, because of their value, are deemed as not having a material effect on the taxpayer’s tax liability.
Read more

Back to top

Slovakia

Tax legislation adopted and regulatory update

Corporate income tax

1 January 2014

Legislation passed by Slovakia’s Parliament in December 2013 reduced the corporate income tax rate from 23 percent to 22 percent, effective 1 January 2014.
Read more

Back to top

South Africa

Proposed legislation

Budget

2014

South Africa’s 2014 budget speech will be presented on 26 February 2014.
Read more

Transfer pricing

2014

Among the transfer pricing and cross-border tax provisions in the 2014 budget are the following measures:

secondary adjustment for transfer pricing

foreign dividends of CFCs owned by individuals

tax exemption for CFCs.

Read more

Back to top

Spain

Administrative and case law

Retail sales tax on diesel

Transportes Jordi Besora SL v. Generalitat de Catalunya, C-82/12 (27 February 2014)

The CJEU issued a judgment finding that the Spanish tax on retail sales of diesel and petrol is contrary to EU law.
Read more

Back to top

Turkey

KPMG publications

Transfer pricing

2007

Since the release of transfer pricing regulations in 2007, transfer pricing has been a focus for both corporate taxpayers and the tax authorities in Turkey. The APA program in Turkey is an important part of the transfer pricing regulations, in that the APA program is considered to offer a valuable solution and a proactive approach for addressing transfer pricing risks. KPMG in Turkey has prepared a 12-page report that examines the APA process in Turkey.
Read more

Back to top

Ukraine

Tax legislation adopted and regulatory update

Corporate income tax / VAT

January 2014

Corporate income tax rates in Ukraine are to be phased down beginning 1 January 2014, according to a rate-reduction schedule. VAT rates are to be reduced beginning 1 January 2015.
Read more

Back to top

United Kingdom

Tax legislation adopted and regulatory update

Tax compliance

February 2014

The Cabinet Office published a slightly revised version of the procurement policy note, with measures to promote tax compliance.
Read more

Tax evasion

February 2014

The United Kingdom government and HM Revenue & Customs continue to take action against tax evasion.
Read more

Administrative and case law

Cross-border group losses

19 February 2014

The UK Supreme Court issued its judgment concerning three remaining issues in the Marks & Spencer case—i.e., the case addressing a cross-border group relief claim, and finding that the conditions of “no possibilities test” must be satisfied at the time the actual claim is made.
Read more

KPMG publications

BEPS

February 2014

The KPMG member firm in the United Kingdom has prepared a report examining the OECD's discussion draft on transfer pricing documentation and country-by-country reporting, under the BEPS Action Plan.
Read more

Back to top

Zambia

Treaties

DTT

4 February 2014

Representatives of the governments of Zambia and the United Kingdom on 4 February 2014 signed a new income tax treaty.
Read more

Back to top

 

For a full summary of global tax developments, visit kpmg.com/TaxNewsFlash.

 

Contacts:

Anna Voronkova
Partner,
Head of International Tax
+7 (495) 937 44 24


Evgenia Wolfus
Partner,
International Tax
+7 (495) 937 44 19


Alexander Tokarev
Senior Manager,
International Tax
+7 (495) 937 44 77


Olga Ermolaeva
Senior Manager,
International Tax
+7 (495) 937 44 77


Elena Dolgova
Manager,
International Tax
+7 (495) 937 44 77