Austrian government announced a package of proposals to tax the digital economy. According to European Commission UK CFC rules constitutes illegal state aid. This is only some of the news that you will read about in the International Tax News.
The Economic Partnership Agreement (EPA) concluded between the EU and Japan on 17 July 2018 will enter into force on 1 February 2019, which is surprisingly ahead of the planned date.
On 23 October 2018, Jersey’s Minister for External Relations presented draft legislation that would introduce increased substance requirements on certain Jersey resident companies.
On 1 January 2019, the new Treaty for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital that the Czech Republic signed in 2016 with Turkmenistan will start to be implemented.
On 23 October 2018, the Spanish government released three draft bills to implement some of the tax measures proposed in the 2019 budget.
Key measures impacting non-UK owned groups announced in the 29 October 2018 budget include the introduction of a 2% digital services tax as from April 2020, applicable to groups with global revenue from such activities exceeding £500 million a year and income generated in the UK exceeding £25 million.
The Dutch Supreme Court issued a decision on 19 October 2018 confirming the February 2018 decision of the Court of Justice of the European Union (CJEU) on the compatibility of the Dutch fiscal unity regime with EU law.
The new version of the double tax treaty between the Czech Republic and the Korean Republic is currently under discussion . The new double tax treaty shall replace the initial version of the treaty dating back to 1992 and substantially changes some areas. The new version provides a wider definition of a permanent establishment and changes the withholding tax rates on interest and dividends.
The Czech Republic has not concluded the standard international double tax treaty with Taiwan, as it has with the majority of other countries (as the Czech Republic does not acknowledge the territory of Taiwan as a state, it cannot conclude the contract).
