Tuesday, 12 January 2021 13:24

PRISM Tax Newsletter - 4th Quarter 2020 issue

The latest issues of PRISM – the quarterly tax newsletter, which is part of Reanda's effort to stay in touch with our clients by sharing updates and insights on the recent taxation changes and current hot topics.

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Changes to company tax rates

There are changes to the company tax rates in Australia. The full company tax rate is 30% and the lower company tax rate is 27.5%.

Italian recent fiscal opportunity: Optional revaluation of fixed assets

The Italian government introduced Law Decree n. 104 on 14 August 2020 to provide for the optional revaluation of fixed assets. Some interesting peculiarities noted as compared to the previous laws providing such option. This note comments upon the main features of the new opportunity. The Article 110 allows enterprises to revaluate, for accounting purposes only, tangible and intangible assets (exclude stock-in-trade), as well as shares in subsidiaries and parent companies constituting fixed assets, resulting from the financial statements for the current year as at 31 December 2019. The revaluation is for accounting purposes only.

Economic Stimulus Packages and Budget 2021

The Year 2020 is a year full of challenges not only to Malaysia but to the whole world! At the forefront, our Frontline Heroes, especially healthcare professionals working in the Ministry of Health, related ministries and private healthcare facilities devote nobly their time and energy, risking their lives to contain the pandemic Covid-19, for the benefit of the nation. In the economy, businesses are struggling to survive the impact of Covid-19; while people are in financial hardship, being without a job or enough money. Our Government cares deeply about the people and allocated a large sum of money with bold fiscal measures through a series of economic stimulus packages amounting to RM325 billion and the Budget 2021 totaling RM322.54 billion. The total allocation of RM647.54 billion in year 2020 is the largest ever in the history of Malaysia.

Statutory Residence Test & exceptional days due to COVID-19.

The UK is currently experiencing the effects of the coronavirus (COVID-19) pandemic along with rest of the world. The pandemic may impact an individual’s ability to move freely to and from the UK or, require an individual to remain in the UK unexpectedly. How long a non-UK resident individual spends in the UK will impact his or her residence status which in return affects the UK tax position. We will look at the Statutory Residence Test (“SRT”) which determines an individual’s tax residence status and the exceptional days that non-UK resident individuals may disregard due to Covid-19.

Amendments to the tax treatment of intangible assets

On 17 July 2020, the Cypriot House of Representatives passed a bill amending Section 9(1)(l) of the Income Tax Law which introduced changes with respect to the tax treatment of intangible assets.

The credit rating of the Greek economy was upgraded, despite the second lockdown

Greece is facing a second wave of the pandemic. The most important for Greece is how much the national health system can cope with the thousands of patients who are admitted to hospitals. The number of cases that announced daily is over 2,000 and the imposition of a second lock-down was unavoidable. On November 7 the restrictive measures were imposed in order to deal with the spread of the virus. Measures will be valid until November 30, but according to the forecasts of infectious disease specialists the measures will be extended. Greek economy has been affected and is sure to shrink in 2020, but there are indicators that show recovery in 2021.

Mandatory electronic filing for tax appeal from January 01, 2021

The Federal Board of Revenue (FBR) of Pakistan has made mandatory for taxpayers to file appeals against the orders passed by official of FBR through the web portal (Iris) from 1st of the January 2021. Commissioner Inland Revenue (Appeals) is the first stage of appeal available to taxpayers for filing appeals against the assessments made by FBR. The new mechanism will enable the FBR to maintain all appeal record and orders electronically.