Recent News

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...

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...

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...

The measures to implement the pilot water resource tax reform stipulate that the water resource tax will be implemented nationwide from December 1, 2024, replacing the current water fee mechanism. China first launched the water resource tax pilot in 2016. In 2019, the water resource tax was formally incorporated into the Resource Tax Law, including different rates based on local water resources, water use types, and economic...

The Australian Parliament's Joint Committee on Social Media and the Australian Community has published its second interim report on digital platforms. The report makes a variety of recommendations, including on taxing social media platforms like Meta. This includes a recommendation that the Australian government consider introducing a digital services tax to ensure that global giants pay their fair share to the communities they profit from, similar to what is done in countries like France and...