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The United Arab Emirates—which historically has been known for its 0% corporate tax—is set to impose a 9% federal corporate tax from June 2023, a development that will affect domestic and multinational business operations and structures in the country. The introduction of a corporate tax regime indicates that the UAE (as a member of the OECD Inclusive Framework) intends to address the challenges arising from the digitalization of the global economy and ensure the implementation of a global minimum tax. The OECD has released for public comment draft model rules on “Amount A,” the share of a business’s residual profits that will be subject to the new taxing right created under Pillar One.
The European Commission has published a draft directive to combat the misuse of shell entities for improper tax purposes in the European Union. Known as “ATAD III (Anti-Tax Avoidance Directive III), the directive would introduce a “minimum substance test" and reporting requirements, which could result in the denial of tax benefits to EU entities that are considered to have no or minimal economic substance.
BDO Corporate Tax News summarises recent tax developments of international interest across the world.
In this issue:
- INTERNATIONAL:
- ASIA PACIFIC
- AUSTRALIA: ATO finalises its compliance approach to the imported hybrid mismatch rule
- INDIA: Budget 2022 includes rules on tax treatment of crypto-currency
- JAPAN: 2022 tax reform proposals would expand scope of earnings stripping rules to foreign entities
- MALAYSIA: Tax exemption for foreign-source income temporarily extended
- MYANMAR: Update on corporate tax rate, financial year change and e-filing
- UNITED ARAB EMIRATES: Corporate tax to be introduced in the UAE
- EMEA COUNTRIES
- BELGIUM: Special tax regime for expatriates amended
- CYPRUS: Withholding tax introduced on payments to companies in low-tax jurisdictions
- EUROPEAN UNION: Proposal for preventing misuse of shell entities unveiled
- ITALY: Budget law 2022 includes changes to new super deduction
- LUXEMBOURG: Investment funds required to confirm absence of Luxembourg real estate holdings
- THE NETHERLANDS: Tax accounting impact of enacted income tax measures
- SOUTH AFRICA: Tax accounting impact of enacted income tax measures
- SWITZERLAND: Code of Conduct Taxation 2021 Released
- TURKEY: Corporate income tax rate cut for manufacturers/exporters, dividend withholding tax rate reduced
- UNITED STATES