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  • European Commission investigates Italian tax breaks
    The European Commission announced on March 16 2004 an investigation of the tax incentives offered by the Italian government to newly-listed companies. Upon meeting certain conditions, companies that list their shares on a regulated EU stock exchange qualify as of January 1 2004 to a reduced 20 % corporate income tax rate (instead of the ordinary 33%) for the fiscal year in which the listing occurs, and the following two fiscal years.
    March 21 2004
  • Mexican update: Finance ministry broadens tax incentives
    During the second week of February, the Ministry of Finance issued new miscellaneous regulations that both clarify and broaden tax incentives that had previously been decreed
    March 21 2004
  • Time running out in EU accession race
    With only just over a month to go before 10 new countries join the EU, companies are struggling to cope with EU VAT legislation and missing opportunities to take advantage of tax-enabled business opportunities
    March 21 2004
  • Brazilian update: Taxes on imported goods and services to rise
    Brazilian authorities have released new legislation that significantly increases the overall tax burden on import transactions in Brazil
    March 21 2004
  • Japan approves tax treaty
    The Japanese parliament has approved the tax treaty signed with the US on November 6 2003. The treaty would eliminate source-country withholding taxes on all royalty income, dividends paid to parent companies owning a majority stake in the paying entity, and some interest income. Japan and the US are expected to exchange instruments of ratification on March 30 2004 in Tokyo, at which point the treaty will enter into force.
    March 21 2004
  • US state gives tax breaks to car manufacturers
    The US state of Michigan will give generous tax breaks to General Motors (GM) and Dr. Schneider Automotive Systems, a German car manufacturer, in a bid to retain and create manufacturing jobs. GM will get a $10.4 million single business tax credit over 20 years if it invests $299 million in its Warren transmission plant for future business while Dr. Schneider Automotive Systems will receive a $3.1 million tax credit over 15 years to build a new manufacturing plant.
    March 21 2004
  • US complains to WTO over China’s tax help for semiconductors
    The US has filed a case with the WTO about China, charging that its value-added tax (VAT) rebates for domestic producers of semiconductors violate global trade rules
    March 21 2004
  • Putin announces sweeping tax reforms
    Vladimir Putin, Russian President, has targeted the oil industry to pay for sweeping tax reforms that would cut social tax paid by Russian companies. He has said once the tax system is reformed, it must not undergo changes for a long time.
    March 21 2004
  • EU update: Discrimination and the free-movement-of-capital principle
    On February 12 2004 Advocate General (AG) Kokott issued her opinion in the Weidert and Paulus case (C-242/03)
    March 21 2004
  • China gives tax amnesty to foreign residents
    The Chinese State Administration of Taxation has announced a tax amnesty that will allow foreign residents who are taxable in China to pay their overdue or underreported tax liabilities without penalties. The amnesty allows foreign residents or their withholding agents to remit overdue tax payments on or before June 30 2004, without penalties.
    March 21 2004
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