Summary of P de la C 2329 “Act to Transform the Tax System of the Commonwealth of Puerto Rico”
- Income Tax
- Sales and Use Tax – Value Added Tax
For transactions after 12/31/15
General rate is 16% on taxable transactions, except for the following which have a 0% rate:
- goods and services for export
- certain imports by manufacturers (Manufacturing Plant Certificate)
For transactions before 1/1/16, taxable items pursuant to 2011 Code will be subject to 16% (instead of 7%).
- Municipalities may not collect
- Treasury will make the payment to the eligible consumer
[ON-DEMAND WEBINAR] Revealing The State & Local Tax Considerations Of A Remot...Rea & Associates
Tax Consequences Holding You Back From Deploying A Remote Workforce?
As remote work continues to overtake the traditional workforce, organizations must understand state and local tax considerations for their remote employees before adopting such a policy. Due to quick changes in the work environment and work-from-home arrangements many tax consequences that may result in your business reconsidering the deployment of a remote workforce. Fortunately, state and local tax leader and a principal with Rea & Associates, Kathy LaMonica, will be on hand to explain what businesses are up against. She will also be taking your questions throughout the presentation. Read on to discover what you will hear during this free, hour-long webinar.
State & Local Tax Guidance To Guide Your Remote Workforce Decision
Join Rea & Associates for a free, hour-long webinar to gain insight on tax law updates, remote work implications, what land mines you need to be aware of when registering for payroll taxes in new states, and more. During this event, you will:
- Gain insight on the Wayfair decision, and recent updates that may affect your business 3 years later.
- Take a deep dive into the State and Local direct and indirect tax concerns when hiring remote workers.
- Receive an update on Ohio Municipal Tax legal challenges.
- Tune in for predictions of where the states may be headed with the taxability of services and digital products, and how that may affect your compliance requirements.
- And more!
Kathy, an income principal on the firm's state and local tax team, focuses on sales and use tax consulting, compliance, and implementing technology solutions for businesses and organizations that continue to struggle with the various tax laws found throughout the nation. Since COVID-19 emerged and the topic of working remote took center stage, she has been tracking the implications associated with deploying a remote workforce. You won't want to miss this one!
#ReaCPA #State&LocalTax #RemoteEmployees
With the passage and implementation of the Tax Cuts and Jobs Act (TCJA), comes a lot of changes for taxpayers to wrap their heads around – but we’re up to the challenge.
Even with all the information floating around these days, it’s easy to overlook or misinterpret how the law works. Don’t worry; with this presentation, we'll provide you the important tips and insights surrounding this law.
Income Tax saving tips for your online businessSam Elahee
Five Star Tax Service Online Income Tax Tips. www.taxsupport.ca your one stop source for Canada, USA and Cross Border Taxation. These income tax tips are applicable to all businesses and specially businesses operation on line. It is important to keep detail record of all expenses so that you can offset some of your income and lower your tax rate. Tax in most countries are progressive. These income tax tips will help you reduce your marginal tax rates. Moving from a higher marginal tax rate to a lower marginal tax rate means savings of thousands of dollars in taxes.
WORK OPPORTUNITY TAX CREDIT: HOW EMPLOYERS CAN MAXIMIZE HIRING INVESTMENTCost Management Services
Brian Kelly hosts an interactive online workshop on the Work Opportunity Tax Credits “WOTC” for CPA Academy. The 1 hour session will focused on How Employers Can Maximize Hiring Investment. The webinar, was targeted at the accounting community, CPAs, CEOs and CFOs, and CPE Credits were available for attending.
Attendees learn how to add value to CPA service and take advantage of the billions dollars that are available today through the WOTC Tax Credit program. #WOTC
Visit our website www.cmswotc.com to learn more.
[ON-DEMAND WEBINAR] Revealing The State & Local Tax Considerations Of A Remot...Rea & Associates
Tax Consequences Holding You Back From Deploying A Remote Workforce?
As remote work continues to overtake the traditional workforce, organizations must understand state and local tax considerations for their remote employees before adopting such a policy. Due to quick changes in the work environment and work-from-home arrangements many tax consequences that may result in your business reconsidering the deployment of a remote workforce. Fortunately, state and local tax leader and a principal with Rea & Associates, Kathy LaMonica, will be on hand to explain what businesses are up against. She will also be taking your questions throughout the presentation. Read on to discover what you will hear during this free, hour-long webinar.
State & Local Tax Guidance To Guide Your Remote Workforce Decision
Join Rea & Associates for a free, hour-long webinar to gain insight on tax law updates, remote work implications, what land mines you need to be aware of when registering for payroll taxes in new states, and more. During this event, you will:
- Gain insight on the Wayfair decision, and recent updates that may affect your business 3 years later.
- Take a deep dive into the State and Local direct and indirect tax concerns when hiring remote workers.
- Receive an update on Ohio Municipal Tax legal challenges.
- Tune in for predictions of where the states may be headed with the taxability of services and digital products, and how that may affect your compliance requirements.
- And more!
Kathy, an income principal on the firm's state and local tax team, focuses on sales and use tax consulting, compliance, and implementing technology solutions for businesses and organizations that continue to struggle with the various tax laws found throughout the nation. Since COVID-19 emerged and the topic of working remote took center stage, she has been tracking the implications associated with deploying a remote workforce. You won't want to miss this one!
#ReaCPA #State&LocalTax #RemoteEmployees
With the passage and implementation of the Tax Cuts and Jobs Act (TCJA), comes a lot of changes for taxpayers to wrap their heads around – but we’re up to the challenge.
Even with all the information floating around these days, it’s easy to overlook or misinterpret how the law works. Don’t worry; with this presentation, we'll provide you the important tips and insights surrounding this law.
Income Tax saving tips for your online businessSam Elahee
Five Star Tax Service Online Income Tax Tips. www.taxsupport.ca your one stop source for Canada, USA and Cross Border Taxation. These income tax tips are applicable to all businesses and specially businesses operation on line. It is important to keep detail record of all expenses so that you can offset some of your income and lower your tax rate. Tax in most countries are progressive. These income tax tips will help you reduce your marginal tax rates. Moving from a higher marginal tax rate to a lower marginal tax rate means savings of thousands of dollars in taxes.
WORK OPPORTUNITY TAX CREDIT: HOW EMPLOYERS CAN MAXIMIZE HIRING INVESTMENTCost Management Services
Brian Kelly hosts an interactive online workshop on the Work Opportunity Tax Credits “WOTC” for CPA Academy. The 1 hour session will focused on How Employers Can Maximize Hiring Investment. The webinar, was targeted at the accounting community, CPAs, CEOs and CFOs, and CPE Credits were available for attending.
Attendees learn how to add value to CPA service and take advantage of the billions dollars that are available today through the WOTC Tax Credit program. #WOTC
Visit our website www.cmswotc.com to learn more.
What are the new VAT administrative penaltiesAhmedTalaat127
The Federal Tax Authority (FTA) shared a public clarification on 28th April 2021 about the amendments for provisions under the Cabinet Decision No 40 of 2017 for administrative penalties. VAT penalties include administrative penalties, which mean the monetary fines imposed on a person or an entity by the FTA for breaching the provisions in the Tax Law of UAE. Penalties can easily be avoided by taking the necessary precautions for non-compliance while filing the VAT report. Businesses have more time to review their data and submit an accurate VAT filing and can benefit from up to 70% waiver for their unpaid penalties if they meet the criteria.
2014 Annual Accounting Update for Not-for-ProfitsWelch LLP
On Oct. 22nd, 2014, Welch LLP's experts hosted its annual Not-For-Profit seminar where they reviewed past, present & upcoming financial issues facing NPO’s.
To listen to the recording, please visit: http://www.welchllp.com/resource-centre/videos/events/
Areas of Discussion:
• A refresher of last year's key topics
• Anti-spam legislation
• Tax Essentials: Key income tax & HST updates
• Federal incorporation act update
• Accounting update on new principles
• Governance best practices
• Tips to prevent fraud in NPO's
Speakers:
• Don Scott, FCPA, CA - Tax Partner, Director of Tax Services
• Mona Tessier, CPA, CA, CA.IT - Senior Manager, Indirect Tax Partner
• Shawn Kelso, CPA,CA - Director of Professional Standards
• Christa Casey, CPA, CA - Partner & Director of the Not-for-Profit Sector
• Andre Auger, CGA, CFE - Government Services Provider
• Adam Aptowitzer - Lawyer, Drache Aptowitzer LLP
• Alexandra Tzannidakis, B.A., LL.B. - Lawyer, Drache Aptowitzer LLP
This is a snapshot of the indirect taxes that are relevant for Australia. It was designed to be part of a larger handbook covering the world indirect taxes.
What are the new VAT administrative penaltiesAhmedTalaat127
The Federal Tax Authority (FTA) shared a public clarification on 28th April 2021 about the amendments for provisions under the Cabinet Decision No 40 of 2017 for administrative penalties. VAT penalties include administrative penalties, which mean the monetary fines imposed on a person or an entity by the FTA for breaching the provisions in the Tax Law of UAE. Penalties can easily be avoided by taking the necessary precautions for non-compliance while filing the VAT report. Businesses have more time to review their data and submit an accurate VAT filing and can benefit from up to 70% waiver for their unpaid penalties if they meet the criteria.
There are two videos in PPT, where are black slides:
Video1: https://www.youtube.com/watch?v=wxW8GP59Sq8
Video 2: https://www.youtube.com/watch?v=VcZF_DxQ5cU
On Friday the 12th February Gordon presented to clients of MRA. The topic under discussion was the possible impact of the Davis Tax Committee on estate planning as we currently know it. The presentation also looked at updates made in a Webinar held between the DTC and the South African Institute of Tax Practioners.
What are the new VAT administrative penaltiesAhmedTalaat127
The Federal Tax Authority (FTA) shared a public clarification on 28th April 2021 about the amendments for provisions under the Cabinet Decision No 40 of 2017 for administrative penalties. VAT penalties include administrative penalties, which mean the monetary fines imposed on a person or an entity by the FTA for breaching the provisions in the Tax Law of UAE. Penalties can easily be avoided by taking the necessary precautions for non-compliance while filing the VAT report. Businesses have more time to review their data and submit an accurate VAT filing and can benefit from up to 70% waiver for their unpaid penalties if they meet the criteria.
2014 Annual Accounting Update for Not-for-ProfitsWelch LLP
On Oct. 22nd, 2014, Welch LLP's experts hosted its annual Not-For-Profit seminar where they reviewed past, present & upcoming financial issues facing NPO’s.
To listen to the recording, please visit: http://www.welchllp.com/resource-centre/videos/events/
Areas of Discussion:
• A refresher of last year's key topics
• Anti-spam legislation
• Tax Essentials: Key income tax & HST updates
• Federal incorporation act update
• Accounting update on new principles
• Governance best practices
• Tips to prevent fraud in NPO's
Speakers:
• Don Scott, FCPA, CA - Tax Partner, Director of Tax Services
• Mona Tessier, CPA, CA, CA.IT - Senior Manager, Indirect Tax Partner
• Shawn Kelso, CPA,CA - Director of Professional Standards
• Christa Casey, CPA, CA - Partner & Director of the Not-for-Profit Sector
• Andre Auger, CGA, CFE - Government Services Provider
• Adam Aptowitzer - Lawyer, Drache Aptowitzer LLP
• Alexandra Tzannidakis, B.A., LL.B. - Lawyer, Drache Aptowitzer LLP
This is a snapshot of the indirect taxes that are relevant for Australia. It was designed to be part of a larger handbook covering the world indirect taxes.
What are the new VAT administrative penaltiesAhmedTalaat127
The Federal Tax Authority (FTA) shared a public clarification on 28th April 2021 about the amendments for provisions under the Cabinet Decision No 40 of 2017 for administrative penalties. VAT penalties include administrative penalties, which mean the monetary fines imposed on a person or an entity by the FTA for breaching the provisions in the Tax Law of UAE. Penalties can easily be avoided by taking the necessary precautions for non-compliance while filing the VAT report. Businesses have more time to review their data and submit an accurate VAT filing and can benefit from up to 70% waiver for their unpaid penalties if they meet the criteria.
There are two videos in PPT, where are black slides:
Video1: https://www.youtube.com/watch?v=wxW8GP59Sq8
Video 2: https://www.youtube.com/watch?v=VcZF_DxQ5cU
On Friday the 12th February Gordon presented to clients of MRA. The topic under discussion was the possible impact of the Davis Tax Committee on estate planning as we currently know it. The presentation also looked at updates made in a Webinar held between the DTC and the South African Institute of Tax Practioners.
2015 Accounting Updates for Not-for-ProfitsWelch LLP
To view our webinars geared for Not-for-profits, please visit: http://www.welchllp.com/resource-centre/webinars/non-profit-hot-topics/
On Oct. 21st, 2015, we hosted our annual Accounting Updates for Not-For-Profits breakfast seminar where our expert panel presented the relevant updates for your NPO / Registered Charity.
The following topics were discussed:
- NPO & Charity Tax Updates
- EHT Exemption, EI Rebate, & HST Updates
- New Income Streams for Not-for-Profit Corporations
- Restrictions with Respect to Business Activities of NPOs & Charities
- Update on Accounting & Audit Standards
- Controlled Entities, Branches & Divisions
- Disaster Planning
Puerto Rico: Value Added Tax - Impact on the Services IndustryAlex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”) effective April 1, 2016, for state tax purposes.The SUT will continue to be in place for municipal tax purposes after March 31, 2016.
This guidance from Kevane Grant Thornton LLP specifically relates to the services industry.
The Finance Act 2015 - How does it affect your clients? By CBW TaxRobert Maas
How will the many significant changes in the Finance Act 2015 affect your clients?
Let us share with you our thoughts on all of the main changes in the Finance Act.
2018 Pennsylvania Tax Update: The State Budget, Legislation, and Multistate T...McKonly & Asbury, LLP
This webinar was hosted by McKonly & Asbury Senior Tax Manager and SALT Leader, Michael Eby, and Tax Supervisor, Lindsey Waltemyer.
It provides an overview of the enacted 2017-2018 Pennsylvania State Budget; a brief update on recently passed Pennsylvania tax legislation and court decisions of interest; and discusses how states, including Pennsylvania, are addressing these changes at the Federal level in their own respective tax structure.
California Incentives and Multi-State Tax Issues webinar slidesRoger Royse
An online discussion of various state tax issues for companies and individuals doing business in California. Our panelists cover recent developments in California income and sales tax, tax credits and incentives, multi-state tax issues for technology companies and state residency planning for individuals. Our panel of speakers includes:
Roger Royse, Royse Law Firm
Monika Miles, Miles Consulting Group
David Wittrock, Price, Wittrock CPA LLP
David Spence, Royse Law Firm
Tax Planning Update by Tracy Monroe, CPA. Presented at Cohen & Company's Client CPE Day. Covers business as well as individual tax updates.
www.cohencpa.com
An overview of current tax reform proposals and potential implications. Overview of business implications with Chairman Camp's 2014 discussion draft, Senator Hatch's 2014 report on tax reform, corporate integration, House tax reform task force, and The Trump Plan.
U.S. State and Local Indirect Tax OverviewAlex Baulf
Please find a copy of the slides from Grant Thornton UK LLP's recent VAT Club seminar, held at our Finsbury Square offices in London. In this breakout session, Adam Raschke discussed key concepts and issues relating to the US state and local indirect tax system.
What does the budget means for you and your clients and, importantly, any tax planning opportunities for high net worth individuals and business owners.
Most observers do not believe that further curbs on public spending can reduce our debts to an acceptable level, thus suggesting that George will have to increase taxes in a way that will not hurt the average citizen. It also suggests that hopes of reforms that reduce tax yields are likely to prove unrealistic. In particular, an increase in the IHT limit (other than the promised limited relief for family homes) seems unlikely. We also expect further pain for non-doms and tax avoiders. We think that some tax relief for small businesses is likely, but as such businesses create scope for tax evasion and avoidance, we are sceptical as to how helpful these are likely to be in practice.
Bahrain: Phased roll out of VAT in BahrainAlex Baulf
The National Bureau of Taxation, operating under the Ministry of Finance, conducted their first VAT briefing session on 3rd December 2018 which was attended by several accounting firms. MOF presented the way forward on VAT implementation and addressed several concerns raised during the meeting. In light of this discussion, Grant Thornton Bahrain's VAT team has set out the key takeaways in the attached Alert.
UK: VAT alert - Government publicises VAT changes if there is “no-deal” on B...Alex Baulf
Not that it is expecting a ‘no-deal’ scenario – the UK Government has specifically emphasised that it fully expects the opposite - but, just in case, it has announced a number of measures relating to UK VAT should agreement between the EU and the UK not materialise.
The Government considers that it is progressing well in its negotiations with the EU on the terms of Britain’s exit. However, rightly, it recognises that it is always possible that agreement will not be reached. As a consequence, it has made announcements in relation to VAT in the event of a so-called Brexit ‘no-deal’.
UK businesses – especially those that trade with businesses in other Member States of the EU have had concerns on a number of fronts, not least how the UK VAT system will work after Brexit and what changes will be needed in relation to import and export procedures.
The announcements made by the Government should help businesses to prepare for a ‘no-deal’ Brexit with a little more certainty. In line with the Government, businesses should not assume that an agreement will be reached. Businesses should be prepared for a ‘no-deal’ scenario even though that may not come to fruition.
The Court of Appeal has released its judgment in Adecco UK Ltd & Ors (Adecco). In dismissing Adecco’s appeal the Court confirmed the decisions of the First Tier Tribunal (FTT) and Upper Tribunal (UT) that Adecco’s supplies of temporary staff under its ‘non-employment’ contract arrangements were liable to VAT on the full value of the supply by Adecco to the client. Adecco contended that it was liable to VAT only to the extent of its administrative and ancillary charges to the client. In its view, any charges relating directly to the costs of paying temps were not liable to VAT.
Adecco’s supplies of the services of ‘employed’ temps and ‘selfemployed’ temps were not in question. The dispute centred around ‘non-employed’ temps. In the case of ‘non-employed’ temps, the Court determined that the extent of control exerted by Adecco, the fact that Adecco met the temp’s PAYE/NIC and similar obligations was significant. Further, the Court found that there were no material differences in contracts with clients whether Adecco were placing employed or non-employed temps, such that the client would be unaware of any distinction. Adecco supplied the services of temps to clients. Adecco’s appeal dismissed.
The First Tier Tribunal (FTT) has released its decision in the case of The Rank Group plc (Rank). Rank operated 3 types of automated gambling machine: Fixed Odds Betting Terminals (FOBT), section 16/21 and section 31/34 machines. The issue for the FTT to consider was whether the machines were ‘similar’. If so, treating them differently for VAT purposes would offend the principle of neutrality. The CJEU had previously held that the machines in question fell within the same category (broadly referred to as slot machines). However, it was for the UK court to decide whether the machines in question were ‘similar’. If so, treating the income from such machines differently for VAT purposes would be considered to offend the principle of fiscal neutrality. The FTT determined that the correct test was to examine the betting experience from the perspective of the user. Would the user’s needs be equally met whichever machine was selected? In examining the evidence, the FTT concluded that the user experience was substantially similar and that users would select machines for a variety of reasons, often playing machines interchangeably. On the basis that such factors as machine location, atmosphere, opening hours and availability were specifically stated by the CJEU to be disregarded in this context, the FTT concluded that the machines were similar. Accordingly, the principle of fiscal neutrality was offended. Rank’s appeal allowed.
The Court of Appeal has issued a unanimous judgment in the appeal by Zipvit Ltd (Zipvit) against the judgment of the Upper Tribunal. Zipvit, like many other businesses, contracted with Royal Mail to supply delivery services. At the relevant time, these services were treated by Royal Mail, Zipvit and HMRC as being exempt from VAT under the UK’s implementation of the ‘postal services’ exemption.
However, following the Court of Justice judgment in the ‘TNT’ case in 2009 (which ruled that VAT exemption only applied to universal postal services), it became clear to all parties (including HMRC) that the mailmedia service provided by Royal Mail should have been liable to VAT at the standard rate.
On that basis, Zipvit submitted a claim for a refund of the input VAT purportedly included in the price it had paid to Royal Mail. HMRC rejected that claim and Zipvit appealed to the First-tier Tax Tribunal (FTT). The FTT dismissed the appeal as did the Upper Tribunal.
Now, the Court of Appeal has dismissed Zipvit’s appeal. The judgment issued on 30 June 2018 dismisses the appeal on the basis that Zipvit had no valid VAT invoice to support its claim. A fact regarded as a fatal flaw.
This case - a referral to the Court of Justice by the French court - delivers the judgment of the European Court with regard to the recovery of input VAT on expenditure incurred by Marle Participations SARL (‘Marle’). The company sought to recover input VAT on expenditure incurred on expenses relating to a corporate restructure. The tax authorities denied input VAT recovery on the grounds that the expenditure related to activities that were capital in nature and so fell outside the scope of VAT (thereby precluding VAT recovery). Marle argued that the letting of property by the holding company to a subsidiary amounted to ‘involvement in the management’ of the subsidiary. This involvement constituted an ‘economic activity’ so enabling VAT to be recovered on the restructuring costs.
The Court has ruled that the letting of property to its subsidiary amounted to ‘involvement in the management’ of that subsidiary. As such it constituted an ‘economic activity’ carrying the right, in principle, to input VAT recovery. Such input VAT recovery was to be regarded as general expenditure of Marle (and therefore subject to the normal rules governing VAT recovery). Providing the letting services were supplied by Marle on a continuing basis, for consideration, the services were taxable and Marl could demonstrate a direct link between those services to its subsidiary and the consideration it received, input VAT could be deducted in full.
International Indirect Tax - Global VAT/GST update (June 2018)Alex Baulf
High level slides from Grant Thornton's VAT Club seminar in London held in June 2018.
Topics covered include:
ECJ decision - C-580/16 Hans Bühler - Triangulation
Netherlands - VAT rate change
Russia - VAT rate change
Bahamas - VAT rate change
Angola - New VAT system
Liberia - New VAT system
Costa Rica - New VAT system
Costa Rica - e-invoicing requirements
Hungary - Electronic Invoicing
Italy - Mandatory e-invoicing
Australia - GST on hotel accommodation
Poland - VAT split payments
Spain - First penalties in relation to SII
Greece - SAF-T & E-Invoicing?
Argentina - VAT on digital services
Columbia VAT on digital services
Canada - Quebec: New QST obligations for non-resident suppliers of digital services
USA: Wayfair – the Decision
India - “Happy Birthday GST" - what's next
New Zealand - Low value consignment relief
Malaysia - GST to 0% and transition to SST
United Arab Emirates - Exchange Rates for VAT purposes
Kuwait - VAT postponed until 2021?
GCC - Bahrain, Oman, Qatar VAT implementation latest
The Spanish Tax Authorities have announced that they start to impose penalties for the non-compliance with the Immediate Supply of Information on VAT (ISI). The ISI entered into force last 1 July 2017, but the appropriate regulation of certain specific penalties did not come into effect until 1 January 2018.
On May 3, 2018, Georgia Governor Nathan Deal signed H.B. 61 enacting significant changes to sales and use tax laws, including imposing a bright-line nexus rule on certain sellers of tangible personal property. Effective January 1, 2019, any seller that conducts 200 or more separate retail sales of tangible personal property for Georgia delivery or obtains more than $250,000 in gross revenue from such sales is considered a dealer that must either register to collect and remit sales tax or notify customers of use tax obligations and report to the state that such requirements have been fulfilled.
U.S. Supreme Court Holds Hearing in South Dakota v. WayfairAlex Baulf
On April 17, 2018, the U.S. Supreme Court considered oral arguments in South Dakota v. Wayfair, a case that may have groundbreaking implications with respect to sales and use tax nexus standards. Last year, the South Dakota Supreme Court unanimously affirmed a circuit court’s decision that a law requiring certain remote sellers that do not have a physical presence in South Dakota to collect sales tax on sales made in the state is unconstitutional. In affirming the circuit court, the South Dakota Supreme Court agreed that the law violates the physical presence requirement for sales and use taxes under Quill v. North Dakota and its application of the Commerce Clause. The U.S. Supreme Court decided to consider the case and recently heard oral arguments. Mark Arrigo, Matthew Melinson, Jamie Yesnowitz and Jeremy Jester from Grant Thornton LLP attended the hearing and provide their observations in this Alert.
As a supplement to Grant Thornton China's China Tax Alert, China Tax Bulletin aims to provide you with a prompt and high level overview on the latest tax rules released by various authorities, especially those by China SAT and local tax authorities. Implications for your business are also presented for the tax rules.
The latest issue of China Tax Bulletin covers the following topics:
* New Rules Issued on Deferral of Withholding Tax on Dividends Paid to Foreign Investors and Reinvested in China
* SAT Releases 2017 Enterprise Income Tax Return Forms Clarifications on the filing of tax exemption for cross-border taxable activities and other VAT-related issues
* Government Issues More Guidance Clarifying Issues Arising from VAT Reform
State Administration of Taxation Further Clear the Determination of “Beneficial Owner”
We hope you can like our sharing and find it beneficial to your daily business. At the same time, please feel free to contact us for any further clarification on any of the covered tax issues.
International Indirect Tax - Global VAT/GST update (March 2018)Alex Baulf
These are the slides from the International Indirect Tax - Global VAT/GST update presented at Grant Thornton's VAT Club held in London on 9th March 2018.
The topics discussed include:
EU
• Bulgarian Presidency
• VAT Action Plan – proposal for a Definitive VAT System based on destination principle
• Customs: Binding Valuation Information (BVI)
• Considerations for using TP for Customs value
• Hungary: Electronic Invoicing
• Spain: SII 1.1 new version
• Italy: Simplifications to “Communications of data of invoices issued and received”
• Italy: Mandatory e-invoicing?
EMEA
• South Africa: VAT rate increase
• GCC – where are we?
• UAE: What's been released ? What's missing? Designated Zones
NOAM
• USA: Landmark sales tax nexus case to be heard in Supreme Court
APAC
• India: GST update
• China: Further VAT reform
• Malaysia: GST Compliance Assurance Program (MyGCAP)
• Singapore: Future GST rate increase / reverse charge
• Australia: Final guidance published for online retailers - GST on low value imported goods
This publication has been prepared only as a high level guide. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material in this publication.
China: Tax Bulletin-Latest update on VAT RegulationsAlex Baulf
Subsequent to Grant Thornton China's last update in July 2017, this VAT Alert summarizes some of the further significant changes on VAT regulations for your reference.
- Revision of the “Provisional Regulations of the People's Republic of China on Value-added Tax” (Referred to as “VAT regulation revision 2017“)
- Clarification on Input VAT Issues
- VAT regulations on specified financial products
- Changes on VAT invoices
- Simplified tax administration on registration of general VAT payers
India: Recommendations from GST Council in 25th meeting Alex Baulf
The GST council in its 25th council meeting held on 18 January 2018 in New Delhi, recommended various changes to the GST law. The changes, inter alia, include revision of rates applicable to certain goods/services, introduction of exemptions, and rationalisation of various existing exemptions etc.
Serbia: Tax Alert - Amendments of Serbian Tax Laws (Dec 2017)Alex Baulf
On 14 December 2017, the Serbian Parliament adopted amendments to the VAT Law, which were published in the Official Gazette of the Republic of Serbia No.113/2017.
The adopted amendments will go into force on January 1 2018, with exception of certain provisions for which it is particularly emphasized.
On 14 December 2017, the Serbian Parliament adopted amendments to the Corporate Income Tax Law, which were published in the Official Gazette of the Republic of Serbia No.113/2017.
The adopted amendments will go into force on January 1 2018, with exception of provisions regulating withholding taxation. The majority of provisions shall be applied starting from the filing of tax return for 2018.
Please see a high level overview of these changes in the Tax Alert from Grant Thornton Serbia.
USA: NY - New York Appellate Division Holds Certain Data Information Services...Alex Baulf
The New York Supreme Court, Appellate Division has held that the competitive price reports purchased by a supermarket retailer were considered to be information services that qualified for a statutory exclusion from sales tax. The Court concluded that the information services were excluded from sales tax because the information was personal or individual in nature and was not substantially incorporated into reports of others.
UK: Briefing Paper - Are you ready for Making Tax Digital? Alex Baulf
The UK government is going ahead with its Making Tax Digital (“MTD”) programme, starting with VAT-registered taxpayers. From 1 April 2019, businesses with a turnover above the VAT registration threshold will be required to keep specified minimum records in the VAT account and to submit the current nine- box VAT return to HMRC via Application Program Interface (“API”) software (linking either the accounting system or excel spreadsheets to the HMRC system).
As a supplement to Grant Thornton China's China Tax Alert, China Tax Bulletin aims to provide you with a prompt and high level overview on the latest tax rules released by various authorities, especially those by China SAT and local tax authorities. Implications for your business are also presented for the tax rules.
The latest issue of China Tax Bulletin covers the following topics:
Preferential tax deduction regarding R&D expenses extended to small and medium sized technology enterprises;
New value-added tax rules applicable to assets management products;
Clarifications on the filing of tax exemption for cross-border taxable activities and other VAT-related issues;
Key updates relating to the issuance of VAT invoices;
Widened scope of income tax incentives for small low profit enterprises;
New issued catalogue of industries for guiding foreign investment;
New administration guidance on China withholding tax; and
Detailed guidance on scope of concentration of super pre-tax deduction for R&D costs.
Cyprus: VAT Alert - VAT on building land, leasing of commercial immovable pro...Alex Baulf
Following much anticipation and speculation the Cyprus Parliament has enacted far reaching amendments to the Cyprus VAT Law on 3/11/2017 which impact transactions related to immovable property. The amending legislation (N157(1) of 2017) was published in the Official Gazette of the Republic of Cyprus on 13/11/2017.
• A significant part of the aforementioned changes involve the imposition of VAT on the supply of land. These amendments to the Cyprus VAT Law were a condition of Cyprus’ accession to the EU in 1/5/2004 for which a derogation was secured until 31/12/2007. Their enactment brings Cyprus in line with the obligations undertaken within this scope.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
NO1 Uk Divorce problem uk all amil baba in karachi,lahore,pakistan talaq ka m...Amil Baba Dawood bangali
Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
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how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Act to Transform the Tax System of the Commonwealth of Puerto Rico [P de la C 2329]
1. @2015 Kevane Grant Thornton LLP. All rights reserved.
Act to Transform the Tax System of the
Commonwealth of Puerto Rico
P de la C 2329
February 20, 2015
2. @2015 Kevane Grant Thornton LLP. All rights reserved.
Disclaimer
DISCLAIMER: These presentations and their content do not represent a consulting. Participants should not
act solely on the basis of this material and its content. Its usefulness is for information only and should not be
used as a specific consulting. In addition, you must obtain the consultation of an expert before acting or
taking a decision on any topic addressed in this presentation.
3. @2015 Kevane Grant Thornton LLP. All rights reserved.
Our Values… CLEARR
unite through global Collaboration
demonstrate Leadership in all we do
promote a consistent culture of Excellence
act with Agility
ensure deep Respect for people and
actively communicate
take Responsibility for our
actions and demonstrate integrity
4. @2015 Kevane Grant Thornton LLP. All rights reserved.
Agenda
• Summary of P de la C 2329 “Act to Transform the
Tax System of the Commonwealth of Puerto Rico”
– Income Tax
– Sales and Use Tax – Value Added Tax
• Questions
5. @2015 Kevane Grant Thornton LLP. All rights reserved.
Summary of P de la C 2329
“Act to Transform the Tax System of the
Commonwealth of Puerto Rico”
6. @2015 Kevane Grant Thornton LLP. All rights reserved.
Individual Income Tax
• Tax computation for individuals, married filing
separate and married filing joint with optional
method
Net Taxable Income Tax
Not more than $40,000 0%
More than $40,000 but less
than $125,000
15% of the del excess over
$40,000
More than $125,000 but
less than $200,000
$12,750 plus 20% of the
excess over $125,000
More than $200,000 $27,750 plus 30% of the
excess over $200,000
7. @2015 Kevane Grant Thornton LLP. All rights reserved.
Individual Income Tax
• Tax computation for married filing joint not electing
optional method
Net Taxable Income Tax
Not more than $80,000 0%
More than $80,000 but less
than $125,000
15% of the del excess over
$80,000
More than $125,000 but
less than $200,000
$6,750 plus 20% of the
excess over $125,000
More than $200,000 $21,750 plus 30% of the
excess over $200,000
8. @2015 Kevane Grant Thornton LLP. All rights reserved.
Individual Income Tax
• The Bill proposes the elimination of:
• Alternate Basic Tax ("CBA")
• Personal Exemptions
• Dependents Exemptions
• 2% additional tax on self-employed
• Option 94 elections are revoked
• Exclusion of gain on sale of principal residence
• One time exclusion for individual 60 years
and older
• Deferral of gain
9. @2015 Kevane Grant Thornton LLP. All rights reserved.
Individual Income Tax
• The Bill proposes the elimination of:
• Deductions:
• Mortgage Interest – new credit
• Educational IRA's
• Casualty losses
• Health Savings Accounts
• Special deduction to individuals – new
exemption level
10. @2015 Kevane Grant Thornton LLP. All rights reserved.
Individual Income Tax
• The Bill proposes the elimination of:
• Filing of income tax returns for those with only
salary income (W-2) which does not exceeds
$40,000 ($80,000)
• new informative return
11. @2015 Kevane Grant Thornton LLP. All rights reserved.
Corporate Income Tax
• The Bill proposes the following:
• Fixed tax rate of 30%
• Elimination of additional tax on gross income
("patente nacional")
• Keep the Alternative Minimum Tax ("AMT")
• 25% rate or % of purchases from related
person
• No waivers after 12/31/14
• Actual waivers will expire 12/31/14
12. @2015 Kevane Grant Thornton LLP. All rights reserved.
Corporate Income Tax
• The Bill proposes the following:
• AMT preferences back to 2011 Code, including
expenses paid to related person and home office
13. @2015 Kevane Grant Thornton LLP. All rights reserved.
Flow Through Entities
• The Bill proposes the following:
• Statutory conversion of all partnerships, special
partnerships and corporations of individuals
created as of 12/31/14 to a new flow through
entity ("entidad conducto")
• partnerships and certain LLC's created after
12/31/14 will be taxed as this "entidad conducto"
14. @2015 Kevane Grant Thornton LLP. All rights reserved.
Flow Through Entities
• The Bill proposes the following:
• Tax will be computed pursuant to Chapter 7 for
their first taxable year after 12/31/14. All
sections related to special partnerships and
corporations of individuals eliminated
15. @2015 Kevane Grant Thornton LLP. All rights reserved.
Flow Through Entities
• The Bill proposes the following:
• Statutory conversion of special partnerships and
corporations of individuals will not make their
owners to be deemed engaged in trade or
business in Puerto Rico.
16. @2015 Kevane Grant Thornton LLP. All rights reserved.
Flow Through Entities
• The Bill proposes the following:
• Tax effect of statutory conversion depends on
each particular case
• In general, no gain or loss
• Keep same taxable year, basis and holding
periods
• Computation of owners basis as of 12/31/14
must be done
• "Simple" change of identity
17. @2015 Kevane Grant Thornton LLP. All rights reserved.
Flow Through Entities
• The Bill proposes the following:
• Election available for corporations and LLC's
taxed as corporations to be taxed as "entidad
conducto"
• even with only one owner
• within 90 days of the beginning of the taxable
for which the election will be effective
18. @2015 Kevane Grant Thornton LLP. All rights reserved.
Preferential Tax Rates
• The Bill proposes the following:
• Capital gains
• Individuals – rate of 30% with election to tax at
normal rates
• Corporations – taxed at 30% or as ordinary
income
• Transactions after 12/31/14
19. @2015 Kevane Grant Thornton LLP. All rights reserved.
Preferential Tax Rates
• The Bill proposes the following:
• Interest
• Individuals – eliminates the 10% and 17% on
interest from financial institutions
• Individuals – eliminates the optional 10% on
interest on certain loans to eligible
corporations/partnerships
20. @2015 Kevane Grant Thornton LLP. All rights reserved.
Preferential Tax Rates
• The Bill proposes the following:
• Eligible dividends
• Individuals – rate is 30%
• subject to withholding
• until 3/31/15 – 15%
• from 4/1/15 – 20%
21. @2015 Kevane Grant Thornton LLP. All rights reserved.
Changes that may affect all taxpayers
• The Bill proposes the following:
• Exclusions/Exemptions from gross income:
• Income from sports teams taxed as ordinary
income rather than at 20%
• In the case of non resident citizens subject
to 20% withholding (29% if non resident
aliens)
22. @2015 Kevane Grant Thornton LLP. All rights reserved.
Changes that may affect all taxpayers
• The Bill proposes the following:
• Exclusions/Exemptions from gross income:
• Eliminates:
• literary, journalist, scientific, artistic awards
• amounts received from crop insurance
• IVU Loto awards – IVU Loto system is
eliminated
23. @2015 Kevane Grant Thornton LLP. All rights reserved.
Changes that may affect all taxpayers
• The Bill proposes the following:
• Exclusions/Exemptions from gross income:
• Eliminates:
• interest – except from PR and US
Government (including subdivisions and
instrumentalities)
• $2,000 ($4,000) from financial institutions
• $5,000 from Coops
• interest from certain commercial banks
24. @2015 Kevane Grant Thornton LLP. All rights reserved.
Changes that may affect all taxpayers
• The Bill proposes the following:
• Exclusions/Exemptions from gross income:
• Eliminates:
• income from royalties to news agencies
• income from military o naval
"licenciamiento"
• COLA
• income from sports game; Serie del
Caribe excluded until 1/1/16
25. @2015 Kevane Grant Thornton LLP. All rights reserved.
Changes that may affect all taxpayers
• The Bill proposes the following:
• Exclusions/Exemptions from gross income:
• Eliminates:
• rent income from Historic Zones
• only remains for contracts in placed as
of 2/15/15
• renewal of such a contract will not be
deemed in place as of 2/15/15
26. @2015 Kevane Grant Thornton LLP. All rights reserved.
Changes that may affect all taxpayers
• The Bill proposes the following:
• Exclusions/Exemptions from gross income:
• Eliminates:
• reference to Act 135 (young workers)
since new tables cover the same
exemption of $40,000 of income.
27. @2015 Kevane Grant Thornton LLP. All rights reserved.
Changes that may affect all taxpayers
• The Bill proposes the following:
• Deductions:
• Only straight line depreciation for purchases
after 12/31/14:
• If accelerate depreciation used:
compute tax basis as of 1/1/15 and
depreciate S/L for remaining life
28. @2015 Kevane Grant Thornton LLP. All rights reserved.
Changes that may affect all taxpayers
• The Bill proposes the following:
• Deductions:
• automobile expenses – use and maintenance
• actual expenses
• Secretary may allow the use of standard
mileage rate by Regulations
29. @2015 Kevane Grant Thornton LLP. All rights reserved.
Changes that may affect all taxpayers
• The Bill proposes the following:
• Deductions:
• charitable contributions –
• only for non for profits operating in Puerto
Rico and registered with Treasury
Department
30. @2015 Kevane Grant Thornton LLP. All rights reserved.
Changes that may affect all taxpayers
• The Bill proposes the following:
• Deductions:
• payments to related person or Home Office
remain 51% non deductible
• no waivers to be issued
31. @2015 Kevane Grant Thornton LLP. All rights reserved.
Changes that may affect all taxpayers
• The Bill proposes the following:
• Credits Moratorium:
• for years after 12/31/14 and before 1/1/2017
limited to 25% of tax
• Eliminates:
• Credit for work
• Credit to individuals older than 65 years
32. @2015 Kevane Grant Thornton LLP. All rights reserved.
Changes that may affect all taxpayers
• The Bill proposes the following:
• New credit for mortgage interest:
Gross Income Credit
No more than $125,000 the lesser of 15% of the
interest or $5,250
More than $125,000 but not
more than $140,000
the lesser of 12% of the
interest or $4,200
More than $140,000 but not
more than $155,000
the lesser of 9% of the
interest or $3,150
More than $155,000 but not
more than $170,000
the lesser of 6% of the
interest or $2,100
More than $170,000 the lesser of 3% of the
interest or $1,050
33. @2015 Kevane Grant Thornton LLP. All rights reserved.
Changes that may affect all taxpayers
• The Bill proposes the following:
• credit for mortgage interest will not be
reimbursable
• any amount not used will not be carried over
34. @2015 Kevane Grant Thornton LLP. All rights reserved.
Changes that may affect all taxpayers
• The Bill proposes the following:
• Act 163 supplementary information to audited
financial statements requirement remains.
• Period for the Secretary to issue estate tax
waiver increased from 30 to 60 days.
35. @2015 Kevane Grant Thornton LLP. All rights reserved.
Value Added Tax ("VAT")
• A VAT or also goods and
services tax (GST) is a
form of consumption tax.
• For the buyer, it is a tax on
the purchase price.
• For the seller, it is a tax
only on the value added to
a product, material, or
service.
.
• The sellers remit to the
government the difference
between these two
amounts, and retain the
rest for themselves to offset
the taxes they had
previously paid on the
inputs.
36. @2015 Kevane Grant Thornton LLP. All rights reserved.
VAT
• The value added to a
product by or with a
business is the sale price
charged to its customer,
minus the cost of materials
and other taxable inputs.
• A VAT is like a sales tax in
that ultimately only the end
consumer is taxed.
• It differs from the sales tax
because collections,
remittances to the
government, and credits for
taxes already paid occur
each time a business in the
supply chain purchases
products.
37. @2015 Kevane Grant Thornton LLP. All rights reserved.
VAT
• Effectiveness:
– For transactions after
12/31/15
• General rate is 16% on
taxable transactions, except
for the following which have
a 0% rate:
– goods and services for
export
– certain imports by
manufacturers
(Manufacturing Plant
Certificate)
• Effectiveness:
– For transactions before
1/1/16, taxable items
pursuant to 2011 Code will be
subject to 16% (instead of
7%).
• Municipalities may not collect
• Treasury will make the
payment to the eligible
consumer
38. @2015 Kevane Grant Thornton LLP. All rights reserved.
VAT
New terms
1. Value Added Tax (VAT or
IVA)
2. Taxable transactions:
1. import of goods into PR
2. sale of goods and services;
3. rendering of services by a
nonresident person to a
person in PR
4. combined transactions
Old terms
1. Sales and Use Tax (SUT
or IVU)
2. Taxable item:
1. tangible personal property
2. services
3. admission rights
4. combined transactions
39. @2015 Kevane Grant Thornton LLP. All rights reserved.
VAT
New terms
3. Merchant
4. Place
5. Eligible consumer
6. Eligible merchant
7. Small merchant
Old terms
3. Nexus
4. Source
41. @2015 Kevane Grant Thornton LLP. All rights reserved.
VAT
• Exclusions from IVA:
• money, stock, bonds, notes, life insurance, and other securities and
obligations;
• intangibles (except computer programs)
• electricity
• water supplied by the PR Aqueduct and Sewer Authority
• any property of the Commonwealth of PR or of the U.S. Government
• certain entertainment machines
• sales by non-merchants
• exempt transfers under Subtitle A of the Code
• the delivery of donated goods
• goods introduced into foreign trade zones
•
42. @2015 Kevane Grant Thornton LLP. All rights reserved.
VAT
• Exclusions from IVA:
• alcoholic beverages deposited in a bonded warehouse under certain
conditions;
• certain promotional materials introduced into PR
• certain vessels acquired by non-residents of PR
• services rendered between affiliated entities
• services rendered by the PR Government and by the U.S.
Government
• services rendered as an employee.
43. @2015 Kevane Grant Thornton LLP. All rights reserved.
VAT
• Taxable transactions exempt from IVA:
• certain financial services (other than bank charges)
• prescription medicines and articles for the treatment of health
conditions
• articles to correct physical deficiencies
• sales and services that qualify for Medicare, Medicaid and the PR
Government’s Health Insurance Plan
• sales to the U.S. Government and PR Government
• import and sale of petroleum derivatives, except propane gas
• certain hotel room charges
44. @2015 Kevane Grant Thornton LLP. All rights reserved.
VAT
• Taxable transactions exempt from IVA:
• import and sale of unprepared food and food ingredients
• sales of goods acquired with PAN or WIC funds
• sale of real property
• real property leases by individuals for principal residence, students
• gratuitous transfers of goods and services by non-profit entities
• certain imports by and sales to hospitals
• certain imports by and sales of agriculture products to bona fide
farmers;
• imports by and sales to hotels to be used in the exempt operation
• import and sale of vehicles
45. @2015 Kevane Grant Thornton LLP. All rights reserved.
VAT – Person responsible for the tax
• the person that imports the
goods to PR;
• non retail sales - the seller as
withholding agent for the buyer is
primarily responsible, but the
person that buys the goods or
services is also responsible;
• retail sales – the seller as
withholding agent for the buyer.
• services rendered by a non-
resident to a PR resident – the
person in PR that receives the
service.
46. @2015 Kevane Grant Thornton LLP. All rights reserved.
VAT – Collection of the tax
• The merchant that sells the
goods or services, except for
small merchants:
– sales to merchants
• Fiscal statement
• Debit and Credit notes
– retail sales
• IVA not show as separate item
• Waiver for collection:
– Certificate Exempt Purchases
– Certificate of Exemption
Manufacturing Plant
47. @2015 Kevane Grant Thornton LLP. All rights reserved.
VAT – Collection of the tax
• Special rules for sales delivered
by mail to Puerto Rico residents:
– internet sales
– mail order sales
– any other telecommunications means
48. @2015 Kevane Grant Thornton LLP. All rights reserved.
VAT
• time and form of payment
• returns
• adjustments, credits and reimbursements
• regressivity relief
• registry
– merchants
– small business
49. @2015 Kevane Grant Thornton LLP. All rights reserved.
VAT
• certificates:
– exempt purchases
– manufacturing plant
– eligible merchant
• transitory provisions
– current certificates valid until 12/31/15
– bonds will be effective until expiration date
– current credits – will carry forward but not reimbursable
• Municipalities – cannot impose/collect after effective date
51. @2015 Kevane Grant Thornton LLP. All rights reserved.
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