Search results for

Korea's National Tax Service announced on February 16 that it will defer tax audits for job-creating companies. Companies operating in Seoul that boost their hiring by more than 10% over the previous year will have their tax audits deferred until the end of 2005. Qualifying companies in other regions will enjoy the benefit until the end of 2006.

By Andre Guelman, Dias Carneiro Advogados in association with Uría & Menéndez

Legislative Decree 6 of January 17 2003, reforming Italian company law, with effect from January 1 2004, introduced in the Italian Civil Code (the ICC) specific rules related to groups.

Germany enacted many changes in its value-added tax (VAT) law in December 2003. Most, but not all, of the changes took effect on January 1 2004. A bare bones summary of the affected areas of VAT law is as follows:

On February 12 2004 Advocate General (AG) Kokott issued her opinion in the Weidert and Paulus case (C-242/03). According to the AG, the fact that Luxembourg grants an income tax investment allowance for investments in shares of domestic companies but not for investments in shares of non-resident companies violates the free-movement-of-capital principle (article 56 of the EC Treaty) because it puts investors in shares of foreign companies and foreign companies seeking Luxembourg investors at a disadvantage. Such a restriction cannot be justified by coherence of the Luxembourg tax system or by article 58 of the EC Treaty, which prohibits arbitrary discrimination or disguised restrictions on the free movement of capital.

The UK Inland Revenue launched a surprise attack on relief for trading losses through partnerships last week. Although the February 10 announcement did not specifically mention the film industry, which the government has repeatedly pledged to support with tax incentives, funding for many UK films was jeopardized.

The Chinese finance ministry has outlined a new unified corporate tax law, which aims to treat domestic and foreign corporations on an equal footing, effectively raising corporate income tax for foreign-invested enterprises.

On December 30 2003, the French Administrative Supreme Court rendered two important decisions with respect to French thin-capitalization rules.

Brazilian authorities have released new legislation that significantly increases the overall tax burden on import transactions in Brazil.

The new tax consolidation regime was to deliver simplicity and flexibility for business but a survey by PricewaterhouseCoopers Australia last year found that the environment for corporate transactions has become more, rather than less, complex.