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All Change in 2022?

Kitty Miv, Editor
29 December, 2021

As we come to the end of the year, we will be looking at changes entering into force in early 2022, beginning with the corporate tax reforms previously announced in Colombia.

Colombia is set to raise its corporate income tax rate from January 1, 2022, under a measure included in Law 2,155 that was signed into law by Colombia's President, Ivan Duque Marquez, earlier this year.

The legislation hikes Colombia's corporate income tax rate to 35 percent from the 2022 tax year, in place of the current 31 percent rate.

Large financial institutions will be subject to a three percent surtax, which will be effective during 2022 through 2025.

In the Netherlands recently, the Dutch upper house of parliament, the Senate, signed off on the Tax Plan 2022, which features a corporate tax rate hike.

The Tax Plan 2022 includes a hike to the second corporate tax rate, from 25 percent to 25.8 percent, in 2022.

The rate will apply to income exceeding EUR395,000 (USD460,000), up from EUR245,000 in 2021. A 15 percent rate applies below this threshold. The law also will restrain businesses' ability to deduct interest expenses.

On the indirect tax front, meanwhile, UK businesses trading with the European Union have been urged to get ready for new import and exports customs controls, which come into force from January 1, 2022.

HM Revenue and Customs has been reaching out to traders and businesses to support them to adapt to the changes.

Legacy customs arrangements for goods moving from Ireland and Northern Ireland to Great Britain are to be in place for as long as discussions between the UK and EU on the operation of the Northern Ireland Protocol are ongoing. This means that full customs controls are set to be introduced as planned on January 1, 2022, for goods moving between the rest of the EU and Great Britain, and for goods exported from Great Britain to Ireland.

Last but not least for this week, in Hungary, lawmakers have agreed an increase to the top rate of the country's special tax on large companies in the retail sector.

The tax is imposed on domestic and foreign companies engaged in retail activities with sales exceeding HUF500m (USD1.53m), regardless of the method of sale, including online retailers.

The tax, which was introduced last year, features three rates, based on a company's turnover, as follows; HUF500m to HUF30bn – 0.1 percent; more than HUF30bn and up to HUF100bn – 0.4 percent; and exceeding HUF100bn – 2.5 percent. A hike in the top rate to 2.7 percent has now been approved by the President, and changes in the law will become effective from February 1, 2022.

 Until next year!


About the Author

Kitty Miv, Editor

Kitty was born in Argentina in 1960 to a Scottish cattle rancher and his Argentine wife. Educated in Edinburgh and at Princeton, Kitty worked for the World Bank as an economist, where she met and married an emigre Iranian banker. During her time with the Bank, Kitty worked in a number of emerging markets, including a spell in the ex-USSR as a Transition Economies Team Leader. Kitty is now a consultant in Brussels and has free-lance writing relationships with a number of prominent economic publications. kitty@lowtax.net


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