Search results for

The Inland Revenue Department issued a departmental and interpretation note (DIPN) no 40 entitled "Profits Tax - Prepaid or Deferred Revenue Expenses" outlining the department's view and the change of practice on the treatment of prepaid and deferred revenue expenses. It has been a common practice to allow a deduction by way of a computational adjustment for the whole amount of a prepaid expense in the year it was incurred even if the expense was not charged to the taxpayer's profit and loss account.

ECJ CONFIRMS GERMAN THIN CAP LAW IS DISCRIMINATORY

The State Administration of Foreign Exchange has issued new regulations on the administration of foreign exchange on July 25 2002. The new rules allow distribution companies, processing companies whose products are sold to the domestic market and companies whose registered capitals were injected in renminbi to purchase foreign currency for payment of normal trade transactions. Previously, Free Trade Zone (FTZ) companies were not allowed to purchase currency for payment to overseas entities or non-FTZ companies.

The Brazilian tax authorities have been occupied the past few weeks issuing various new regulations. New rules were enacted to provide details and clarify the new requirements for legal foreign entities (and individuals) domiciled outside Brazil to obtain a tax identification number. Likewise, Normative Instruction 208 and Normative Instruction 213 (NI), among others, were enacted on September 27 2002 and October 7 2002, respectively.

A tax treaty signed in early 2002 between Singapore and Romania came into force last week on November 28. The treaty aims to avoid double taxation and prevent tax evasion and will have an effect on all income derived on or after January 1 2003. It also intends to encourage cross-border trade and investment and provides for the exemption or reduction of tax in the source country on various types of income derived by a resident of the other country. This includes tax exemptions on profits from the operations of ships or aircraft in international use and the reduction of source country tax on dividends, interest and royalties.

Foreign exchange and inflation rate fluctuations have a significant impact on the tax position of companies operating in the region. The situation demands innovative tax planning argue Manuel Solano, Terri L Grosselin, and Ricardo Vargas of Ernst & Young

The UK's pre-Budget report introduces some key changes in the way the Inland Revenue determines permanent establishments and how it calculates stamp duty. Gary Richards of Weil Gotshal & Manges works out what it all means for business

Changes to the employee benefit trust scheme announced in the UK pre-budget report could cost London’s financial community hundreds of millions of dollars

The electrical retail group Dixons in the UK fears that a change in the tax regime could cost the company around £20 million ($31.45 million) next year

Luxembourg has threatened to undermine the European Commission’s savings tax directive unless the European Commission forces Switzerland to abandon its banking secrecy