Post by mdshamiul777 on Feb 12, 2024 8:53:53 GMT 4
Changes to corporate tax? Last June 23, was the date of presentation of the full text of the preliminary drafts of the four laws that make up the so-called tax reform , which we were able to learn about in a very brief way in the presentation to the media, by the Council of Ministers . Once the time has passed for a calm analysis of the true extent of the changes produced in the main taxes, the time has come to put their true scope on the table. In the corporate field, without a doubt, we must focus on the Corporate Tax , which has undergone so many changes that a complete new wording of its regulation has been chosen. It is interesting to highlight the developments with the greatest impact in our field as of January 1, 2015:
1. Losses due to deterioration of tangible and intangible assets and real estate investments are no longer deductible . These losses are therefore deferred until they effectively leave the company (due to deregistration or sale). In addition, the amortization tables of fixed assets that were in force since 2004 are reformulated.
2. The reform consolidates the loss of Vietnam Email List deductibility of interest derived from participatory loans as well as the limitation on the deductibility of negative tax bases.
3. The concept of linkage to decision-making power is expanded without the need for a direct or indirect relationship. In addition, the application of the tax consolidation regime is extended to participations held through non-resident entities.
4. The exemption regime for dividends and capital gains from non-resident entities is toughened by requiring not only the existence of a tax analogous to the Spanish corporate tax, but also that it have a minimum nominal rate of 10%.
5. Most of the currently existing tax deductions and bonuses are reduced and limited , which will contribute to reducing the effect of the reduction in tax rates in effective terms.
6. A new method of reducing the tax base appears aimed at encouraging the reinvestment of positive results, for at least 5 years, through the creation of an unavailable capitalization reserve of at least 10% of the tax base.
7. The deduction for reinvestment of capital gains from the transfer of fixed assets is eliminated .
8. All international tax regulations that can be transposed into our tax system are simplified and organized , in accordance with the recommendations of BEPS (base erosion and profit shifting) in both corporate tax and non-resident income tax. , in what I believe is the beginning of a process of regulatory harmonization in the international tax field.
Obviously, the scope of the reform is very high and makes it advisable to read and analyze it carefully, but these measures seem very relevant to companies in the real estate sector , of a certain size and organizational complexity and of international scope. I forgot to mention the gradual reduction of tax rates, but this, perhaps, is already common knowledge.
1. Losses due to deterioration of tangible and intangible assets and real estate investments are no longer deductible . These losses are therefore deferred until they effectively leave the company (due to deregistration or sale). In addition, the amortization tables of fixed assets that were in force since 2004 are reformulated.
2. The reform consolidates the loss of Vietnam Email List deductibility of interest derived from participatory loans as well as the limitation on the deductibility of negative tax bases.
3. The concept of linkage to decision-making power is expanded without the need for a direct or indirect relationship. In addition, the application of the tax consolidation regime is extended to participations held through non-resident entities.
4. The exemption regime for dividends and capital gains from non-resident entities is toughened by requiring not only the existence of a tax analogous to the Spanish corporate tax, but also that it have a minimum nominal rate of 10%.
5. Most of the currently existing tax deductions and bonuses are reduced and limited , which will contribute to reducing the effect of the reduction in tax rates in effective terms.
6. A new method of reducing the tax base appears aimed at encouraging the reinvestment of positive results, for at least 5 years, through the creation of an unavailable capitalization reserve of at least 10% of the tax base.
7. The deduction for reinvestment of capital gains from the transfer of fixed assets is eliminated .
8. All international tax regulations that can be transposed into our tax system are simplified and organized , in accordance with the recommendations of BEPS (base erosion and profit shifting) in both corporate tax and non-resident income tax. , in what I believe is the beginning of a process of regulatory harmonization in the international tax field.
Obviously, the scope of the reform is very high and makes it advisable to read and analyze it carefully, but these measures seem very relevant to companies in the real estate sector , of a certain size and organizational complexity and of international scope. I forgot to mention the gradual reduction of tax rates, but this, perhaps, is already common knowledge.