Issue 54 - March 2020

Welcome to the latest edition of BDO’s World Wide Tax News.

As always, there are many new tax developments to report and keep track of.

Addressing the challenge of what a fair and workable tax system should look like in our modern global economy, many countries have pressed ahead and announced unilateral measures to implement their version of how the digital economy should be taxed. BDO has created an interactive global tool to help navigate this emerging landscape. The first edition, gives an overview of the rules on taxing digital transactions in some forty jurisdictions. 

Take part in a new programme of international research in tax, the BDO Global Tax Outlook 2020. Spanning more than fifty countries the research provides the opportunity to compare your business and the function of tax, against similar businesses, locally and internationally.

You can also read how US businesses are dealing with the digital economy, tax reform, and tax complexity, in BDO’s US Tax Outlook 2020.

In this edition of World Wide Tax News, we look other important topics, including the introduction of the Base Erosion and Anti-abuse Tax regulations in the United States of America, the Public Emergency law in Argentina, tax reforms in Costa Rica, Paraguay and Switzerland, Budget announcements in Hong Kong, India and Zimbabwe, and other current developments in tax, across the globe.

If you would like more information on any of the items featured, or would like to discuss their implications for your business, please contact the person named under the item(s). The material discussed in this newsletter is intended to provide general information only, and should not be acted upon without first obtaining professional advice tailored to your particular needs.

In this issue: 

• International
  • ​Explore our new interactive tool for Taxation of the Digital Economy
  • Take part in Global Tax Outlook 2020 
• ​Asia Pacific 
  • AUSTRALIA: Australian draft law provides clarity on hybrid mismatch rules
  • HONG KONG: Budget highlights 2020/21
  • INDIA: Union Budget 2020
  • KOREA: Cash grant budget expansion
  • MALAYSIA: Changes to the Labuan tax regime
• Europe and the Mediteranean 
  • ISRAEL: Change in business model - Broadcom Corporation case
  • THE NETHERLANDS: 
    • MLI MAP-tiebreaker - Dutch State Secretary of Finance intends to respect the outcome of ‘old’ corporate / MAP-tiebreakers of tax treaties
    • Restriction on the deduction of liquidation and termination losses from 2021
    • Update on the Brexit transition period
    • Other recent developments
  • ROMANIA: Transposal of EU Directives on reporting of cross-border arrangements and hybrid mismatches in Romania
  • SWITZERLAND: The Swiss tax reform (TRAF) entered into force on 1 January 2020
  • UNITED KINGDOM: Freeports - The Government’s Vision
• Latin America
  • ARGENTINA: Public emergency law - Tax measures​
  • ECUADOR: Tax simplification and progressivity law
  • PANAMA: Electronic invoicing implementation
  • PARAGUAY: Modernising and simplifying the Paraguayan tax system
• North America and the Caribbean
  • COSTA RICA: Tax reform: Income tax and Value Added Tax
  • UNITED STATES: Treasury issues final regulations and additional proposed regulations for base erosion and anti-abuse tax 
• Africa
  • NIGERIA: Finance Act 2019 changes 
  • ZIMBABWE: 2020 Budget: Amendments to the Income Tax Act

Robert Aziz 

Global Head of Tax and Global Head of People