WTS Indonesia is a professional service firm focusing on the provision of Indonesian tax services. Equipped with decades of experience in dealing with complex Indonesian tax ecosystem, Tomy Harsono founded WTS Indonesia in 2019 where the firm started aiming to excel in the market from that point on
WTS Global News
Lataxnet representation on WTS Global’s Tax Directors Meeting: Lisbon, Portugal
Lataxnet representation on WTS Global’s Tax Directors Meeting | Lisbon, Portugal
It was a privilege for our partners to be an importan part of the WTS Global Tax Director Meeting that was held in Lisbon, Portugal from October 9th to October 10th.
The slogan of this year meeting was “BEPS 2.0 – paradigm shift in global taxation”
Topics discussed were:
- Future company structures and tax governance – How multinational companies react to the G-20, OECD and EU developments
- BEPS 2.0 – Impact on current business models and management of data
- How companies deal with ATAD and DAC6 compliance in the day to day business
For more information you may refer to the program in the following PDF:
VAT: Tax measures taken worldwide related to COVID-19
VAT: Tax measures taken worldwide related to COVID-19
An overview of the VAT-measures worldwide by country
The global COVID-19 outbreak is significantly affecting businesses and their employees. Hence countries worldwide are reacting to it. This overview shows the tax measures taken related to COVID-19 worldwide in 35 countries.
World
High level list COVID19 VAT measure different jurisdictions
Australia is offering speedy credits on Goods & Services liabilities (Status: March)
Austria The deadline for the submission of the annual VAT return has been extendend to 31 August 2020. Moreover, the deferral and instalments of payments are possible on request. (Status: April)
Belarus The Belarusian government is not rushing with adopting measures to combat the Coronavirus: as of today, the borders are open, Belarus is not on lockdown, and not even an individual quarantine policy for educational establishments has been introduced.
Belgium Belgium has postponed the deadlines for VAT filing and payment of VAT. In addition, no VAT on donations of medical equipment to hospitals will be charged.
Brazil Postponement of the payment of the PIS and COFINS federal contributions and of the filing of ancillary federal tax obligations. Reduction to zero of the import duty and federal excise tax (IPI) rates on several products. Several Sates extended deadlines to comply with ancillary obligations related to the State-VAT (ICMS) and granted ICMS exemptions, taxable basis and rates reductions on transactions with hygiene, medical and pharmaceutical products. Many municipalities extended deadlines to comply with tax ancillary obligations and postponed deadlines to pay the Tax on Services (ISS) levied on determined services.
Canada will be providing federal tax reliefs from a new relief fund announced on 12 March. Details to follow. (Status: March)
China China offers VAT reliefs to combat COVID-19 impacts.
Colombia will provide delayed VAT payment terms for the first semester of 2020. (Status: March)
Costa Rica has provided a 3-month VAT payment deferment for taxpayers from 15th March. (Status: March)
Croatia The amended legislation has allowed taxpayers to defer payment of VAT until the moment of settlement of the invoices issued by the taxpayers. The prescribed deferral period is 3 months, with the possibility of extension to additional 3 months. (Status: April)
Cyprus A temporary suspension of the obligation to pay VAT is possible, if the VAT will be gradually paid by 11 November 2020. Eligible for companies whose turnovers are not more than EUR 1 million according to the tax return submitted in 2019 or where turnovers have been decreased by 25% due to COVID-19. (Status: April)
Czech Republic ‘The government of the Czech Republic allows following reliefs to combat COVID-19: Deferral of VAT payment upon request, waiver of interest on late payments and interest on the deferral of tax, waiver of the fine for late submission of tax returns, control reports and failures to submit control reports, waiver of administrative charges and exemption from VAT and customs duties on goods imported from third countries for the benefit of disaster victims. The government of the Czech Republic allows following allows following reliefs to combat COIV-19: Deferral of VAT payment upon request, waiver of interest on late payments and interest on the deferral of tax, waiver of the fine for late submission of tax returns, control reports and failures to submit control reports, waiver of administrative charges and exemption from VAT and customs duties on goods imported from third countries for the benefit of disaster victims.
Denmark The Danish Parliament is expected to implement a bill enabling small and medium sized businesses to apply for an interest-free loan equal to the amount of paid VAT in their latest VAT return submitted.
Estonia The Estonian Tax and Customs Board has suspended calculation of interest on tax debts from 1 March 2020 until 1 May 2020.
EU Commission has suggested countries provide VAT payment holidays, and act in unison. It has also relaxed the state-aid rules, which would permit VAT measures benefiting only specific businesses or sectors. (Status: March)
Finland The fee for late submission of the VAT return can be waived, if the taxpayer has a justified reason, e.g. illness. (Status: April)
France The French government does not allow deferral of payment or VAT reduction during the coronavirus crisis but temporarily relaxed VAT calculation and “paper” invoicing rules.
Georgia is doubling funding for company VAT credit refunds. (Status: March)
Germany has offered businesses affected by the Covid-19 outbreak the option to apply for delayed VAT payments (and other taxes) from 13 March 2020.
Greece Payments of VAT due between 11 March and 30 April are suspended until 31 August for specific enterprises. (Status: April)
Hungary The Hungarian Government appealed to the European Commission to exempt the import of medical equipment that are necessary to overcome the virus, such as face-masks and ventilators, from customs duties and VAT.
Ireland The application of interest on late payments is suspended for small and medium-sized enterprises for January, February, March and April 2020. (Status: April)
India has extended the timelimits for monthly GST filings for the periods March 2020 to May 2020 and the Annual Return and Audit for the FY 2018-19 until 30 June 2020. It has also delayed the implementation of new return filing system and E-invoice registration until 1 October 2020.
Indonesia has said it will waive 10% consumption taxes on hotels and restaurants in Bali and nine other tourist destinations for the next three months. It will also grant postponements of payments of import VAT for businesses, and offer accelerated VAT credit repayments for manufacturers. (Status: March)
Italy has implemented further deferment of VAT payments and VAT fulfillments deadlines regarding April and May.
Jamaica plans to cut its General Consumption Tax from 16.5% to 15%. (Status: March)
Japan is considering a temporary Consumption Tax rate reduction from 10% to 5%. It has already delayed filing deadlines and payments by one month until April. (Status: March)
Latvia To support businesses during the coronavirus outbreak Latvia has introduced new VAT measures to speed up the procedure for refunding overpaid VAT.
Lithuania The State Tax Inspectorate (STI) could be asked to extend the payment term for Corporate Income Tax, VAT, Personal Income Tax and other taxes administered by the STI.
Luxembourg: A failure in filing VAT returns will not be subject to fines. This measure applies until otherwise indicated by the government. (Status: April)
Malaysia Malaysia has extended the period for submission and payment of SST returns for taxable periods ending in February and March respectively. Submission for both taxable periods are due on 30th April, while payments are given extension until 13th May. (Status: April)
Malta announced 14 March a VAT payment holiday for businesses and self-employed for March and April. VAT credit refunds will also be accelerated. (Status: March)
Netherlands Deferral of VAT payments for a period of three months upon request. (Status: April)
Poland The deadline to file SAF-T returns is postponed until 1 July 2020. (Status: April)
Philippines The Philippines’ tax authority, i.e., Bureau of Internal Revenue, extended the filing and payment of the monthly and quarterly VAT returns. (Status: March)
Portugal Portugal suspends until 30 June 2020 all tax enforcement procedures in progress or initiated within that period. Moreover, Portugal exempts donations of goods used to fight the pandemic (e.g., medical or protective equipment) from VAT under certain conditions.
Romania No interest and penalties for late payment are computed for unpaid taxes (including VAT) with a due date / payment date starting with 21.03.2020 and 30 days after the closure of the state of emergency. Additionally, the enforced collection of taxes is suspended / does not start during the state of emergency and 30 days after the closure of the state of emergency. (Status: March)
Serbia VAT is not calculated and paid for the sale of goods or services performed free of charge by the VAT taxpayer to the Ministry of Health, the Republican Health Insurance Fund or a health institution in the public domain, and the VAT payer is entitled to deduct the previous tax on the basis of that turnover. (Status: March)
Singapore GST will remain at 7 per cent for the time being. Furthermore, the GST rate will not be raised in 2021. The government announced a GST voucher for all eligible households living in Singapore public housing. GST will remain at 7 per cent for the time being. Furtermore, the GST rate will not be raised in 2021. The government announced a GST voucher for all eligible households living in Singapore public housing.
Slovakia The VAT due won’t be considered as an outstanding payment and there won’t be levied any penalties in connection with the VAT due, if the VAT due will be paid till the end of the month following the month in that the emergency state in Slovakia was called off. (Status: March)
Spain From the 22nd of April to the 31st of July 2020, the VAT-tax rate applicable to supply of goods, imports and intra-community acquisitions of goods to fight against COVID-19 (included in the Annex of the Royal Decree-law 15/2020) whose recipient is a public-law entity, a clinic or hospital center or social-nature entities, will be 0%. Tax returns whose period of submission is from April 15th to May 20th have been extended until May 20th, 2020.
South Korea has cut VAT taxes for small businesses, given tax boosts for consumers replacing their cars early, and provided tax deductions on personal credit card spend. (Status: March)
Sweden A defereral of VAT payments can be granted for up to a year. (Status: April)
Thailand has exempted face masks from import VAT and reduced time waiting for VAT refunds to 15 days. (Status: March)
Turkey Deferral of April, May and June payments of the withholding, VAT withholding and Social Security Institution (SSI) premiums for the tax payers who are engaged in specific field of activities. (Status: April)
UK The UK Government is allowing all UK VAT registered businesses to defer any VAT payments arising during 20 March 2020 to 30 June 2020 until 31 March 2021 without incurring penalties or interest. VAT returns should be completed and submitted as normal.
US California suspends for 60 days interest on late sales tax remittances due to effects of virus or complying with health requirements. (Status: March)
Vietnam Vietnam is granting extensions on timelines for tax payments of VAT, CIT and PIT and for finalizations of PIT.
Exemption from withholding tax on dividends paid by a French company to a non-resident company: another non-compliance with EU law?
Exemption from withholding tax on dividends paid by a French company to a non-resident company: another non-compliance with EU law?
Key Facts
- According to French law, a EU parent company not resident in France is liable to pay withholding tax on dividends unless two conditions are fulfilled: (i) a formal undertaking to maintain a minimum participation of 10% and (ii) the appointment of a representative
- In the opinion of the Administrative Court, the difference of treatment between resident and non-resident entities constitutes a restriction on the freedom of establishment within the EU
The French Administrative Court of Appeal of Douai has ruled recently that certain conditions laid down by French tax law in order to benefit from the withholding tax exemption on dividends paid by a French company to its foreign parent company may be contrary to EU law.
It follows from the case law of the European Court of Justice (in joined cases C-283/94, C-291/94 and C-292/94 Denkavit, VITIC and Voormeer, of 17 October 1996) that, according to Directive 90/435/EEC of 23 July 1990 (the “Parent-Subsidiary Directive”), Member States are not obliged to immediately grant the exemption from withholding tax pending the minimum holding period. Pursuant to the Parent-Subsidiary Directive, to ensure compliance with the holding period, Member States may, as it is currently the case in France, either provisionally withhold the dividend tax and grant the refund after the completion of the holding period, or provide an immediate exemption subject to the undertaking to maintain the participation and remit the tax in the event of non-compliance with the holding period.
According to French tax law (CGI, art. 119 ter 2. c), a non-resident EU company which has not held the required minimum participation in its French subsidiary for at least two years may still benefit from the immediate exemption from withholding tax on the dividends received, provided it satisfies two cumulative conditions: (i) the submission of a formal undertaking to maintain a participation of 10% in the capital of the French distributing company for at least two years and (ii) the appointment of a representative responsible for the payment of the withholding tax in the event of non-compliance with this undertaking.
In the case at hand, the French Administrative Court of Appeal of Douai analysed the compatibility of these conditions with EU law. The Court first noted that, in order to benefit from the participation exemption regime on dividends, parent companies resident in France are not subject to such double obligation. French parent companies may indeed benefit from this regime, as of the first year of holding the required participation in the subsidiary paying the dividends, without having to enter into a formal undertaking to hold this participation for the required two-year period, or to appoint a representative.
Take-away
The Administrative Court of Appeal of Douai concluded that the provisions of Article 119 ter 2, c of the French tax code are contrary to Article 49 TFEU. This decision is final since the French tax authorities have not appealed to the Highest Administrative Court (“Conseil d’État”).
We recommend international groups to verify whether this case law may be applicable to their situation and to safeguard their rights by timely filing a claim under the French procedural rules.
The full document can be viewed here.
COVID-19: Transfer Pricing considerations
COVID-19: Transfer Pricing considerations
Analysis from a holistic, transactional and overarching perspective
Key Facts
- Analysis from a holistic, transactional and overarching perspective
- Our experts discuss different opportunities for Transfer Pricing
- We provide you with our comprehensive Covid-19 & TP framework
We are pleased to share our webinar presentation, the WTS Global Covid-19 TP Response Framework (PDF) and a template (with commentary) to make addendum to existing intragroup agreements.
Please find here the following materials for your inspiration:
Webinar presentation
Covid-19 TP Response Framework
Template to make addendum to existing intragroup agreements
We are happy to schedule an online meeting to discuss your specific case. Please free to contact our WTS Global transfer pricing specialists.
COVID-19 and international tax measures: Summary per region
COVID-19 and international tax measures: Summary per region
WTS Global experts share their regional expertise in a comprehensive overview
Key Facts
- What tax measures have been taken worldwide on COVID-19? Where are opportunities on effective management of the implications?
- Summaries on Latin America, Asia Pacific and Europe
- Organized in a country by country perspective
WTS Global experts worldwide have composed short summaries on tax measures taken related to COVID-19. We are pleased to share our knowledge with you and provide you with the compiled information clustered per region.
Asia Pacific
The summary is covering the following countries: Australia, China, India, Japan, Malaysia, Pakistan, Philippines, Singapore, South Korea, Thailand, UAE and Vietnam. (Status: April 24, 2020)
Latin America
The summary is covering the following countries: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Panama, Paraguay, Peru, Dominican Republic, Uruguay, Venezuela. (Status: April 2, 2020)
Europe and the Americas
The summary is covering the following countries: USA, Brazil, Colombia, Argentina, UK, France, Italy, The Netherlands and a short overview for further european countries Europe. (Status: April 2, 2020)
Africa
Coming soon
Germany: WTS Group wins top-class new member: Dr. Jutta Menninger joins as Managing Partner
Germany: WTS Group wins top-class new member: Dr. Jutta Menninger joins as Managing Partner
Financial Advisory field expands
Munich, August 1, 2019 – WTS, one of the leading international consulting firms for tax consulting and financial advisory, is strengthening its Managing Partnership with Dr. Jutta Menninger, effective August 1, 2019. In her new function, she would be responsible for the Group’s financial advisory business, together with Ingo Weber, and will also occupy other key positions.
Dr. Jutta Menninger joins us from Brose, where she headed the group tax department of the international automotive supplier for the past five years. Prior to that, Menninger worked for PwC for 20 years in various positions, including being the Partner for Transfer Pricing and Valuations and Head of the Financial Advisory Services practice in Munich.
“I warmly welcome Dr. Jutta Menninger to WTS. She is an excellent tax lawyer with extensive expertise in financial advisory and the optimisation of financial processes. She has an extremely broad base and brings outstanding management qualities from which we will benefit greatly,” explains Fritz Esterer, CEO of WTS.
At WTS, Dr. Jutta Menninger, together with Ingo Weber, also Managing Partner and founder of the consulting specialist, FAS, which belongs to the WTS Group, will form the top management in Financial Advisory. In addition, their focus will be on the implementation of internal tax control systems (tax ICS), the automotive sector and – in close cooperation with WTS Director, Georg Fahrenschon – on tax consulting for large family-run companies.
Dr. Jutta Menninger is a member of the EU Joint Transfer Pricing Forum, the Tax Working Group of the German Association of the Automotive Industry (VDA) and the Family Business Foundation. She regularly appears as a speaker at national and international events and is the author of numerous specialist publications.
Fritz Esterer adds: “The management team of the WTS Group now consists of a total of twelve managing partners whose responsibilities are divided between the disciplines of taxation and financial advisory. We have, thus, further optimised our positioning and created the basis for continued strength and growth, now and in the future.”
About WTS
WTS is a global tax consulting firm that deliberately refrains from auditing financial statements. The range of services is complemented by related legal advice and comprehensive financial advisory services. With a pioneering spirit, WTS’s more than 900 employees develop innovative and tailor-made concepts that they implement for their clients with a high level of implementation competence.
WTS is represented in more than 100 countries worldwide through the international network, WTS Global, and in Germany, at ten locations.
Further information at wts.com/de
About the FAS
As a member of the WTS Group, FAS is an independent, innovative solution provider for goal-oriented consulting, active operational support and efficient outsourcing of corporate finance functions as well as for valuation purposes and transaction processes. The company is headquartered in Stuttgart with offices in Munich, Düsseldorf, Frankfurt am Main, Leipzig, Berlin, Hamburg, Cologne, Zurich and Vienna.
Further information is available at www.fas.ag
