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Big changes Afoot...

Kitty Miv, Editor
22 January, 2021

As I write this, and barring any unexpected developments between now and publication (not necessarily a safe bet this year!), US President-Elect Joe Biden is in the process of becoming US President Joe Biden, meaning that in the United States at least, we can likely expect at least a degree of forward momentum again on tax and economic measure (bipartisan horse-trading in the pretty evenly split Congress notwithstanding...) Perhaps more on that in the coming weeks though.

In the meantime, what of the rest of the world? With the eyes of the globe firmly fixed on the political situation in the US over the past month or so, and on Brexit and its likely impact on Europe and the United Kingdom (still to be determined, currently, but there appear to be... some teething troubles, put it that way), economic goings-on elsewhere seem to have fallen by the wayside somewhat, in terms of being reported upon.

Which is not to say that there hasn't been activity. Far from it, in fact! In Oman, for example, preparations are underway for the introduction of VAT from April of this year, and the value added tax thresholds that will be in place were recently revealed. Under the new regime, entities will be obligated to register when their supplies during a year reach or exceed OMR38,500, or if the value of their supplies is expected to breach this ceiling.

Voluntary registration will be permitted for those entities whose current supplies during the past 12 months have amounted to OMR19,250 or more, or if their supplies during the year are expected to surpass this threshold.

Oman's Tax Authority also announced the goods that will be exempt from value-added tax when the new VAT regime comes into force. These will include various food goods and ingredients, such as: fish, poultry and meat; dairy products and eggs; vegetables and fruit; coffee and tea; grains, certain oils, and sugar; bread; food for children; bottled water and salt for consumption.

In Ireland, meanwhile, big changes are (potentially) afoot, albeit on the direct tax front, with the Finance Department publishing an update to the Corporation Tax Roadmap, taking stock of the changing international tax environment and outlining actions Ireland has taken and will take.

As part of its review of past tax policy measures undertaken by the Irish authorities, and examination of potential future priorities, the Roadmap announced that a consultation will take place in 2021 on the possible introduction of a territorial tax regime. At present, a company resident in Ireland is subject to Irish tax on its worldwide income and gains.

The document explained that the legislation concerning double taxation relief has evolved over many years in response to policy changes and to accommodate principles established in European case law, rendering it complex. A public consultation on a possible move to a territorial tax system had been planned to take place 2019 but was postponed.

And in Poland, the implementation of the country's new 'Estonia style' corporate tax system continues apace, with the publication of new forms to be completed by companies seeking to avail themselves of the regime.

On January 1, 2021, Poland introduced a new tax regime for companies whose revenues do not exceed PLN100m (USD26.6m), which provides for an exemption from tax on reinvested profits.

On December 10, 2020, the Ministry released draft guidelines on the new regime, in Polish, including step-by-step instructions, over more than 120 pages, on the process for entering, exiting, and complying with the regime.

And earlier this month, the Polish Government published in its Journal of Laws a regulation including two forms that must be filed to opt into the regime, namely to request to join the regime and to disclose details required regarding the company's shareholders.

Until next week!


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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