Recent News

Starting December 1, 2024, China will cancel its 13% export tax rebate on aluminum and copper, a move that is expected to significantly impact the global market. Chinese companies, including Aluminum Corp. of China Ltd. and China Hongqiao Group Ltd., saw their stock prices fall by 5-10%, while international competitors saw an increase in their stock values. Experts believe that this decision is part of China’s strategy to reduce excess production capacity in the metallurgical sector, which could help decrease the global surplus of aluminum. Specifically, the removal of the tax break will make Chinese aluminum more expensive on international markets, potentially reducing its exports and creating demand for products from other producers. So far, the response to the copper market has been less significant, as China is not as dominant a supplier of copper as it is of aluminum. However, the increase in copper exports abroad this year suggests that we may see changes in the...

Luxembourg continues to strengthen its position as a financial hub, attracting startups, particularly in the fintech sector. As of November 2024, the country has announced several new initiatives aimed at fostering financial innovation: CSSF Innovation Hub (Commission de Surveillance du Secteur Financier). This platform serves as a single point of contact for entrepreneurs to discuss innovative financial projects. It is designed to simplify the launch of financial technologies and address key regulatory challenges. Simplified Regulations for Cryptocurrency Companies. Luxembourg has updated its rules for cryptocurrency operators, maintaining strict measures against money laundering (AML) and terrorism financing. The new regulations include clearer licensing requirements and alignment with the EU’s DORA directive (Digital Operational Resilience Act). Eased Requirements for Startups. Luxembourg has introduced tailored support mechanisms for young financial companies, reducing bureaucratic hurdles and optimizing tax procedures to encourage new business formation. Enhanced Financial Crime Prevention. Alongside regulatory updates, Luxembourg emphasizes...

The European Union has announced the implementation of new requirements starting in 2024 as part of the BEPS (Base Erosion and Profit Shifting) initiative, aimed at combating tax evasion. Companies operating through holding structures or registered in offshore jurisdictions will now need to demonstrate substantial economic presence in their registered country. This requirement includes evidence of assets, personnel, and management activities within the jurisdiction. Additionally, new rules mandate transparency in tax reporting, including the automatic exchange of information about ultimate beneficiaries. These measures apply to both existing businesses and new entrants planning to expand into the EU market. Experts note that the reforms could complicate tax planning and increase operational costs but aim to level the playing field for all companies. Recommendations for Businesses: Conduct an audit of ownership structures and tax reporting Develop a strategy to adapt to the new requirements. Consult legal experts to mitigate potential risks. The EU continues to pursue stricter tax regulation, focusing on combating aggressive tax...

Property ownership rules have been updated for citizens of the UAE, Saudi Arabia, Oman, Bahrain and Qatar. They can now purchase property in Kuwait without restrictions. This speaks to the close ties between the Gulf countries. Citizens of countries that are not included in the list of Gulf Cooperation Council countries can buy property in Qatar if they meet certain criteria. For example, if there is a mutual agreement on the purchase of property with the buyer's country of residence. In addition, the property must be located in a residential area and intended for residential use, and the buyer (without a criminal record) must have lived in Kuwait for at least 10 years. Also, the buyer can only own one property in the country, and its area must not exceed 1,000...

The FATF is holding a consultation on possible changes to its standards and recommendations to align them with measures to ensure “financial inclusion”. The consultation focuses on Recommendation 1 “Assessing risks and applying a risk-based approach”, Recommendation 10 “Customer due diligence” and Recommendation 15 “Emerging technologies”. The FATF may require supervisors to review and take into account the risk mitigation measures taken by financial institutions and certain non-financial businesses and professions. The consultation is open until 6...

An amnesty has been announced for unpaid social security contributions and contributions for compensation for accidents at work and occupational diseases. This means that penalties for overdue and unpaid contributions due until the second quarter of 2024 are exempted. The exemption is granted if the principal amount is paid in full by March 31, 2025 or in monthly installments according to the schedule agreed on March 31,...

The new Strategy takes into account key risks identified by agencies in recent years, including the recently updated National Money Laundering Risk Assessment. The Strategy focuses on three main objectives: 1) preventing criminal proceeds from entering the Singapore system, 2) detecting, identifying and countering illicit flows and activities in a timely and effective manner, and 3) enforcing, taking tough and deterrent action against those who abuse Singapore’s AML system. The Strategy proposes measures that will enhance beneficial ownership transparency for legal persons and entities, review and develop the next phase of the beneficial ownership framework. It also proposes to improve the beneficial ownership framework for trusts by amending the Trusts...

The Turkish Tax Administration announced the publication of a communication amending General Communication No. 1 on Transfer Pricing. The main amendment is to align the deadline for submitting CbC notifications in General Communication No. 1 with Presidential Decision No. 8956 dated September 14, 2024. Presidential Decision No. 8956 provided that the deadline for submitting CbC notifications is within 6 months after the end of the reporting financial year, instead of the end of June of the year following the reporting year. In addition to aligning the relevant provision of General Communication No. 1, a new example has been added regarding the deadlines for submitting the CbC notification (within 6 months) and the CbC report (within 12...

The breaks include a general increase in the thresholds for individual income taxes, with the exception of the €1 million threshold for the top 55% rate. The law also includes various other incentives for individuals, as well as certain breaks for small businesses. This includes raising the small business income threshold to €55,000 for both VAT and income tax from...