Recent News

Starting in 2025, Estonia introduces significant changes to its tax legislation. These changes will affect individuals, businesses, and vehicle owners. Key changes include: Tax on mechanical vehicles: From January 1, 2025, owners of mechanical vehicles will be required to pay a new tax. An online calculator is available to calculate the tax amount. The law is available in Estonian and English on the Tax and Customs Board website. Changes to income tax rates: The rate for individuals will increase from 20% to 22%. The corporate tax system will change from 20/80 to 22/78. The reduced dividend tax rate (14/86) will be abolished. The 7% withholding tax on dividends will also be removed. Temporary defense tax: Introduced on July 1, 2025, and will remain in effect until December 31, 2028. Main components include: From July 1, 2025, the VAT rate will increase by 2% to reach 24%. From January 1, 2026,...

In October 2024, the Philippines passed a new law aimed at taxing digital services. The goal is to ensure a level playing field for both local and foreign companies and increase tax revenue from the digital economy. Key provisions of the law: Filing and VAT payment: Non-residents providing digital services in the Philippines must register as VAT payers. A 12% VAT applies to digital services consumed in the Philippines, including: Cloud services; Online advertising; Sale of digital goods (books, music, movies); Activities on marketplaces. Taxation mechanism: In cases where VAT-registered buyers consume services in the Philippines, a reverse charge mechanism is applied, where the VAT is withheld by the buyer. Requirements for foreign companies: Registration as a VAT payer is mandatory for non-residents whose revenue exceeds a certain threshold. They must submit tax returns...

In 2019, the United States enacted the Corporate Transparency Act, requiring most legal entities registered in the U.S. to disclose information about their beneficial owners. This measure aims to enhance business transparency and combat financial crimes. What Does the Law Require? Filing reports with FinCEN – the U.S. Financial Crimes Enforcement Network. Creating a non-public database accessible only to authorized entities. Reporting deadlines: 1. For companies registered before 2024, reports must be submitted by January 1, 2025. 2. For companies established in 2024, reports are due within 90 days of registration. Who Must File a Report? The law applies to most legal entities, but certain categories are exempt. These include: Banks, insurance companies, accounting firms. Nonprofit organizations with tax-exempt status. Inactive companies that meet specific criteria. A full list of exemptions is available in the FAQ FinCEN. Penalties for Non-Compliance Fines: $500 per day of delay (up to $10,000 total). Criminal liability: Intentional non-compliance may lead to imprisonment. How to File a Report? Reports can be...

The Central Bank of Turkey (CBT) has kept its key interest rate at 50% per annum for the eighth consecutive time—a 20-year high. This decision aims to curb inflation, which reached 48.58% in October The CBT emphasizes that such a high rate is a crucial tool for controlling price growth. The regulator's goal is to reduce inflation to 5% in the medium term, though achieving this amidst current economic instability and external pressures is a significant challenge. Why is the rate so high? Inflationary pressure: Turkey is experiencing one of the most challenging economic periods in its history. Rapidly rising prices for food, energy, and services necessitate a strict monetary policy. Support for the national currency: A high interest rate makes the Turkish lira more attractive to investors, helping to stabilize its exchange rate. Control over lending: The 50% rate limits excessive loan growth and helps curb consumer demand, which is essential for reducing inflation. What’s next? Experts believe that while this monetary policy helps slow inflation, it imposes significant strain on businesses and households. The high cost of loans restricts economic...

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...

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...

Law No. 7524 has entered into force, thus beginning the tax reform. One of the important changes has affected the taxation of individuals. They must provide a report on the average income received from professional activity for the year, month and even day. A big problem in the tax sphere is underreporting income and increasing expenses in order to pay lower income tax. This has led to a shortage of funds in the Turkish budget. Taxpayers must fill out a questionnaire on projected income, which will be compared with actual figures. If the amount of actual and projected income differs by more than 20%, the taxpayer will have to provide an...