Download - Ernst & Young T Magazine

Global tax news
A roundup of recent developments from major
governments and tax administrations
1 France
communications with HMRC
February 2012
through an electronic system,
A proposal was submitted to part of efforts to streamline
parliament for the introduction VAT procedures. These
of a tax on certain financial encompass applications to
transactions, which would be register for VAT, make returns,
introduced from 1 August submit claims, and keep
2012. It proposes taxes on the
transaction of shares of
accounts, among other things.
publicly traded companies 3 South Africa
established in France, whose February 2012
capital is valued at over South Africa will switch from
€1b, at a rate of 0.1% of the its current secondary tax on
value of the shares traded. companies to a dividend
High frequency and automated withholding tax, as of the first
trading operations would be of April 2012. The new tax is
taxed at 0.01% on the amount essentially a tax on the
of cancelled or modified shareholder, rather than the
orders above a ceiling. company, and is calculated at
a 15% of the net amount of
2 United Kingdom the dividend declared, up from
February 2012
The UK’s HM Revenue &
the 10% initially proposed.
Customs (HMRC) published 4 Canada
draft updates to its VAT law and January 2012
regulations, aimed at enabling Effective January 1, 2012, the
businesses to make specific federal corporate tax rate was
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cut to 15%, from 16.5%. Certain 6 Finland
accelerated tax depreciation January 2012
incentives for manufacturing The Finnish government
and processing equipment were confirmed amendments to
extended through to 2013. its corporate and individual
During 2011, new legislation taxation rules, as part of its
was introduced to curtail the 2012 budget. Within this,
use of partnerships to achieve a the corporate tax rate was
tax deferral and draft legislative reduced to 24.5%, while
proposals were released related the special withholding tax on
to foreign affiliates.
certain dividends was cut
to 18.38%.
5 Portugal
January 2012
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China
Portugal confirmed a range of January 2012
tax amendments in January, China’s Ministry of Finance
affecting both corporate and increased the tax threshold
income tax rates. Withholding of its windfall tax on the
taxes on investment income oil industry, from $40 per
were increased, along with the barrel to $55. Progressively
tax rate applicable to capital high taxes are applied
gains on the sale of shares. The thereafter, with a maximum
rate of autonomous taxation on rate of 40% for any prices
profits distributed to entities above $75. This applies to
wholly or partially exempt from all oil companies operating in
corporation tax was also China effective from
increased in certain cases. 1 November 2011.