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The Arab Free Trade Zone came into effect on January 1 2005 marking the elimination of customs duty on intra-Arab trade. However, individual states will still have a "negative list" of trade items which will not qualify for exemption from customs duty. The Arab free trade zone currently comprises 17 member states: Saudi Arabia, Qatar, Bahrain, Egypt, UAE, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, the Palestine Authority, Sudan, Syria, Tunisia and Yemen. There is ambiguity on how the changes - with effect from January 1 2005 in case of intra-Arab trade- will be implemented as no procedural guidelines on the actual implementation have been issued yet. Imports from non-member countries will continue to be subject to customs duty based on the individual country's legislations. On January 1 2003, the Gulf Co-operation Council (GCC) countries (that is, Saudi Arabia, Kuwait, Oman, Bahrain, Qatar and UAE) formed a customs union removing the barriers to free trade between member states. A flat rate of duty of 5% is now imposed on most imported goods apart from listed exemptions at the first point of entry into the GCC. Those goods may then move freely between GCC countries without the imposition of any further duty. There is a 'transition' period of three years, until December 31 2005, allowing any teething problems to be ironed out.

Companies in South Africa won some tax relief on February 23 2005 when Trevor Manuel, the minister for finance, announced in the 2005 Budget that the corporate income tax rate would fall from 30% to 29%.

Whether a company which issues new shares, and becomes listed on a stock market for that purpose, is to be regarded as making a supply for consideration for VAT purposes; and whether, depending on the answer to that question, VAT paid on services acquired in connection with the listing and share issue may be deductible.

Value added tax – Reduced rate of tax – Importation of works of art, collectors' items and antiques – Public auction of goods subject to temporary importation arrangements – Auctioneer's margin.

March 16 is the date for the UK Budget, the government announced on February 23 2005.

Sixth VAT Directive – Exemptions – Supplies of services and goods directly related to welfare and social security and protection of children and young persons – Bodies recognised as being of a ‘social character’ – Private bodies run for profit – Interpretation of Article 13A(1)(g) and (h).

With effect from January 1 2005 the amendments to the Polish Tax Code became effective, including that the tax authority is obliged, upon written request of the taxpayer, to issue binding advance tax rulings. A taxpayer that receives a ruling cannot be charged with any outstanding tax liability, provided that he conducted his transactions consistently with the tax authorities' interpretation of the tax law included in the ruling. The previously existing system of rulings had not offered such opportunity; the "old" rulings protected taxpayers against penalties but not against payment of the tax liability as such.

The Internal Revenue Service (IRS) started the new year on a positive note by issuing proposed regulations that provide for the first time that a statutory merger under foreign law may qualify as an A reorganization.

Hans Eichel, Germany’s finance minister, has announced that the government wants reforms of the corporate tax system to be in place by 2007.

Two senior US government tax officials, Barbara Angus and Gregory Nickerson, have left public service to set up their own tax consultancy firm. Angus & Nickerson opened for business in Washington, DC on February 7 2005.