Tax system – Im Just Sayin http://imjustsayin.net/ Mon, 23 May 2022 19:03:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://imjustsayin.net/wp-content/uploads/2021/10/icon-5-120x120.png Tax system – Im Just Sayin http://imjustsayin.net/ 32 32 Portugal needs to review its tax system https://imjustsayin.net/portugal-needs-to-review-its-tax-system/ Mon, 23 May 2022 19:03:00 +0000 https://imjustsayin.net/portugal-needs-to-review-its-tax-system/ The European Commission wants Portugal to simplify the tax system, increasing the efficiency of tax and customs (TA) administration and reducing the administrative burden on taxpayers. This is one of many suggestions that the EU executive has passed on to the country in the country-specific recommendations published as part of the European Semester spring package. […]]]>

The European Commission wants Portugal to simplify the tax system, increasing the efficiency of tax and customs (TA) administration and reducing the administrative burden on taxpayers.

This is one of many suggestions that the EU executive has passed on to the country in the country-specific recommendations published as part of the European Semester spring package.

“Improve the efficiency of the tax system and the social protection system, in particular by simplifying the two structures, increasing the efficiency of the respective administrations and reducing the associated administrative burden”, writes the European Commission in the recommendations it dedicates in Portugal.

In the same document, in its analysis of the Portuguese tax system, the Community Executive highlights the discrepancy that exists between the IRS withholding tax (made monthly on salaries) and the tax that the taxpayer actually had to pay (calculated annually in the IRS regulations). “Direct tax deductions are often too high, leading to considerable refunds the following year,” write the European experts.

Reimbursements too high

The problem is the degree of adjustment of the IRS withholding tax tables (the rate applied to salary each month) to the IRS levels (through which the annual tax due in the adjustment of the IRS in April of the following year is calculated). The government has adjusted the deduction tables, but some argue, including the European Commission, that the gap remains too high.

It follows from the criticisms of European experts that they prefer a system in which there are fewer reimbursements in the annual statement, with less tax deducted each month. This year, the executive has already adjusted the restraint tables, incorporating the impact of the creation of two new levels that is planned in the state budget for 2022 (OE2022), but refuses to update the levels from the IRS at the expected rate of inflation for this year.

Complex laws

But this is not the only problem identified by the European Commission in the Portuguese tax system. Another of the European recommendations is the simplification of the tax advantages in force in Portugal, which is also a concern of the government. The current system, with more than 500 tax benefits and scattered in more than 60 laws, is “quite complex and not sufficiently transparent”. “The economic efficiency of tax expenditures would benefit from being constantly monitored”, advise European experts.

In addition to identifying this problem with the IRS, the techs also note that the structure of the IRC generates “complexity” for taxpayers (businesses, in this case) and represents an “additional burden” for authorities. tax since, in addition to the national tax, there are surcharges such as the municipal surcharge and the state surcharge.

This complexity, which occupies the resources of the tax machine, has costs: the expenses incurred for the task of collecting taxes are “relatively high”, being in 2019 around 20% higher than the European average. At the same time, AT’s investment in information and communication technologies is “low” compared to the European average.

“Making tax administration more efficient would help reduce the time it takes to pay taxes in Portugal and reduce the large volume of tax arrears (at 37.1% of total net revenue at the end of 2019, they were among the higher in the EU)”, concludes the European Commission.

]]>
OP-ED: We can do better with our tax system | Op-Ed https://imjustsayin.net/op-ed-we-can-do-better-with-our-tax-system-op-ed/ Sat, 21 May 2022 04:15:00 +0000 https://imjustsayin.net/op-ed-we-can-do-better-with-our-tax-system-op-ed/ Benjamin Franklin once said, “Nothing is certain except death and taxes.” Nobody likes taxes, but they are necessary for the proper functioning of a society. I had a college education in taxes, and as a small business owner, I also experienced the business side of our tax code. Our current tax system is inefficient, creates […]]]>

Benjamin Franklin once said, “Nothing is certain except death and taxes.” Nobody likes taxes, but they are necessary for the proper functioning of a society. I had a college education in taxes, and as a small business owner, I also experienced the business side of our tax code. Our current tax system is inefficient, creates unnecessary pain and anxiety, and has become the tool of the powerful. We can do better.

For the sake of brevity, I will focus on the income tax, which became institutionalized with the ratification of the 16th Amendment in 1913. Initially, it affected only the very wealthy (only 357,000 out of 97 million people the paid, and the maximum rate was 6%). This changed when the costs of World War II overwhelmed the tax revenue system and income tax became a mass tax, with 40 million people contributing.

In 1986, President Reagan introduced a bipartisan tax reform bill that greatly simplified taxes and removed the distinction between types of income (interest, capital gains, wages, etc.). This eliminated an entire industry of tax shelters designed to allow taxpayers to turn wages into capital gains to reduce taxes. Complexity has since crept back into the tax code, with a reduced rate for capital gains (which is why Warren Buffet pays a lower tax rate than his secretary) as well as a growing number of tax credits and deductions. There is no good reason for income earned as wages to be taxed at a higher rate than income generated from wealth, other than that the wealthy have more influence in Congress. The same tax rate should apply to all income.

Since Republicans opposed government spending (non-defense) but can tolerate tax cuts, Democrats used the tax code to achieve policy goals instead of new spending programs. Policies such as the Earned Income Tax Credit (EITC) complicate the tax code and, ironically, have led the IRS to audit low-income taxpayers (earning less than $25,000) at five times the rate from everyone. Focusing on low-income taxpayers ignores where most tax revenue is lost, the tax returns of the wealthy. The IRS estimates that $600 billion in taxes are owed but not collected, 28% of which is owed by the top 1%. The IRS had fewer than 10,000 auditors in 2017, numbers not seen since 1953, when there were dramatically fewer returns requiring audit.

Anti-tax rhetoric has been weaponized by Republicans and used to cut IRS funding, as if preventing the IRS from enforcing tax laws is tantamount to cutting taxes (Republicans cut IRS budget 18% over the past decade, while making the tax code more difficult to enforce). It’s incredibly myopic, because tax laws still apply, so law-abiding citizens (which I hope we all aspire to be) still pay their taxes, but people who are willing to break the law but who are no longer afraid of being caught, do not do it. IRS funding shifts the tax burden from tax evaders to people who aren’t cheating on their taxes. If enough people avoid taxes, people who are still paying start to feel like suckers and are also more likely to cheat. An example of what this looks like was the Greek debt crisis, where the government and the economy were in crisis partly due to the government’s inability to collect taxes.

The IRS budget should be increased because when the IRS hires employees, they bring in far more revenue than they cost. The IRS estimates that spending an additional $80 billion would bring in $400 billion, while increasing compliance. This would improve the experience for most taxpayers, making it easier for the IRS to answer questions, for example.

Additional funds would also allow the IRS to create tax software that would make it easy (and free) for taxpayers to file their taxes. Since the government has most of the information needed to determine taxes owed, filing should be as simple as confirming the government’s figures, as is done in many other countries, where most citizens spend little time or anxiety over taxes. The government does not already offer this service due to the political influence of large corporations that profitably sell tax preparation software (Intuit, H&R Block). They lobbied Congress to stop the government from creating such software because it would harm their business. In return, the companies promised to make their own software free for low- and middle-income taxpayers. But companies made it so difficult to access that very few people used it for free. It was basically a bait and switch scam, with lots of upsells. This agreement is now dead and the government should do what it should have done a long time ago.

One way to simplify the payment of taxes would be for all governments to define taxable income in the same way. If they did, the federal government could collect income tax on behalf of states and localities. Each government could determine the tax rate it charges, but ideally governments could simplify their taxes enough that a taxpayer could fill out one form. The federal government should collect income taxes for states and cities, and just transfer the money. Other taxes (sales, real estate) would not be affected.

One of the most complicated aspects of taxation concerns retirement savings, which are often sheltered from tax. Their complexity allows people with smart lawyers and accountants to outsmart the system, which not only robs the government of revenue (by raising taxes for everyone else), but also means that productive talent is wasted in the tax avoidance instead of more socially productive uses. A glaring example of this is that billionaire Peter Theil created a Roth IRA in 1999 that will allow him to avoid paying taxes on $5 billion in income.

Paying taxes should be considered a patriotic duty, and those who pay a lot of taxes should be honored to bear such a large share of our common expenses. Paying taxes should be made as simple and inexpensive as possible. We can do better.

Kent James holds a doctorate in history and politics from Carnegie Mellon University and is an assistant in the Department of History at Washington & Jefferson College.

]]>
Fritz Kaegi has finally fixed Cook County’s broken property tax system https://imjustsayin.net/fritz-kaegi-has-finally-fixed-cook-countys-broken-property-tax-system/ Fri, 20 May 2022 16:56:00 +0000 https://imjustsayin.net/fritz-kaegi-has-finally-fixed-cook-countys-broken-property-tax-system/ Fritz Kaegi, the Cook County assessor, becamearound cook county’s broken property tax system I’ve never been impressed with any of the politicians in Illinois, but Fritz Kaegi, the Cook County assessor since 2018, is an exception to this rule. He inherited a seriously broken system from Joe Berrios and turned it upside down. I think […]]]>
Fritz Kaegi, the Cook County assessor, became
around cook county’s broken property tax system

I’ve never been impressed with any of the politicians in Illinois, but Fritz Kaegi, the Cook County assessor since 2018, is an exception to this rule. He inherited a seriously broken system from Joe Berrios and turned it upside down. I think the end result will be very good news for Chicago owners who should note that this guy is on the primary ballot on June 28.

Let me digress for a moment to those of you who think I’m crazy to deliver good news to homeowners in Chicago when you’ve just seen your assessed value increase by…whatever the percentage. First, I’m going to ask you if the taxable value is wrong. If it’s totally far-fetched, you should appeal and you’ll probably win. Otherwise, you deserve a higher assessed value. Second, I’ll remind you of something I’ve pointed out many times in these blog posts: an X% increase in your taxable value doesn’t mean your taxes go up by X%. The assessed values ​​determine the allocation of the county and city budget, which are in no way influenced by the assessed values. In other words, if everyone’s assessed value increases by 75% and the budget stays the same, everyone’s property taxes stay the same.

Now back to the story. The assessor’s office was an abomination under Berrios. My blog posts about specific properties regularly called for property taxes that were grossly out of whack – almost always high-end properties assessed at a fraction of their market value.

The results were so dire that the Chicago Tribune published a pair of exhibits in 2017 about the built-in gaps in the system based on analyzes by ProPublica Illinois and the Chicago Tribune. A June article confirmed my suspicions that high end properties were undervalued while low end properties were overvalued. They followed in December with another article this demonstrated that the tax burden was also unfairly skewed towards landlords and away from commercial and industrial properties.

Kaegi addressed both of these issues during his tenure. I can’t find outlandish reviews anymore. However, the other thing I love about this guy is that he’s also been a model of transparency, sharing great data on the impact of his work – and you know how much I love the data.

The last gem I found is this Chicago 2021 Reassessment Scoreboard on the appraiser site which allows you to see what has changed by property type and community area. Here are some conclusions drawn from this data:

  • The total of all property values ​​increased by 31%. So if your taxable value has increased by less than that, you probably get a slight tax reduction.
  • The total value of residential properties only increased by 10% and that includes some new construction. Thus, the average assessed value of an older home has probably increased by less than 10%.
  • The total value of non-residential properties increased by 56%.
  • These last two facts also mean that the tax burden has shifted from houses to non-residential properties.
  • If you go to the map and select Residential, you’ll see that the tax burden has also shifted from low-income neighborhoods to high-income neighborhoods. Therefore the lower west side saw a 51% increase in their total assessed value while Riverdale saw a 40% drop.
  • Since I live West Town I should point out that total residential values ​​have increased by 20%.

So there is proof that the two biggest problems of the Berrios dynasty have been solved. That’s why I like that guy from Kaegi even though my assessed value went up 50%. Yeah, got a guy working on it.

#PropertyTaxes #ChicagoPropertyTaxes #FritzKaegi

Gary Lucido is the President of Lucid real estate, the Chicago-area full-service real estate brokerage that offers homebuyer rebates and discount commissions. If you want to keep up to date with the Chicago real estate market or get an insider’s view on the sordid underside of the real estate industry, you can subscribe to Getting Real via email using the form below. Be sure to verify your email address when you receive the verification notice.

]]>
Osinbajo deplores unprecedented leaks in the tax system https://imjustsayin.net/osinbajo-deplores-unprecedented-leaks-in-the-tax-system/ Thu, 19 May 2022 04:31:02 +0000 https://imjustsayin.net/osinbajo-deplores-unprecedented-leaks-in-the-tax-system/ • Says OECD treaty will worsen Nigeria’s revenue losses • VP will consolidate Buhari’s plans and programs if elected, supporters say James Emejo and Adedayo Akinwale in Abuja Vice President Prof Yemi Osinbajo said yesterday that Nigeria was facing unprecedented leaks in tax administration. He said the situation had threatened fiscal stability at all levels […]]]>

• Says OECD treaty will worsen Nigeria’s revenue losses

• VP will consolidate Buhari’s plans and programs if elected, supporters say

James Emejo and Adedayo Akinwale in Abuja

Vice President Prof Yemi Osinbajo said yesterday that Nigeria was facing unprecedented leaks in tax administration.

He said the situation had threatened fiscal stability at all levels of government, adding that revenue leakages were not unrelated to corruption in the tax system.

The Vice President spoke at the opening of the 24th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN), on the theme “Global Disruption and Digitalisation: Implications for Socio-Economic Development”.

Osinbajo also warned that signing the Organization for Economic Co-operation and Development (OECD) corporate tax treaty would “further exacerbate the problem of leakages in our tax system.”

In October 2021, Nigeria rejected the tax agreement signed by 136 countries, to apply a corporate tax rate of at least 15%.

Countries agreed to the pact, fearing multinational corporations would divert profits to low-tax jurisdictions to lower their bills. The measures were also part of efforts to tap into the emerging digital economy.

However, justifying the country’s decision not to approve the deal, Osinbajo said it would aggravate leaks in the tax administration.

Represented at the conference by the Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr. Muhammad Nami, the Vice President said that the terms set out in the agreement would further deprive the country of needed revenue.

Still, there were growing fears among experts that the country would benefit more from signing the deal.

But the VP, while addressing the gathering of tax experts, clarified that “we didn’t sign not because we wanted to do it our way but one, you have a requirement that you can tax any digital player or any multinational company on a global scale, this company must have an annual turnover of 20 billion dollars. This was the first concern.

“The second concern is the averaging mechanism. That $20 billion in revenue is not just for the fiscal year, but a three-year average. So this company needs to earn $20 billion for three consecutive years or it would never pay in any country it operates in except the home country.

Continuing, he said, “Another key thing that caught our attention is that 20% of that $20 billion has to be generated in a country like Nigeria, whatever that company does in Nigeria, we don’t. we can subject it to any tax in Nigeria.

“We must not forget our tax law. The minimum turnover you need as a business in Nigeria to be able to register with the FIRS and pay tax in Nigeria today is only 25 million naira.

“And for someone who earns less than 10% of $20 billion, which I believe is about $2 billion in Nigeria, and that person will not pay tax in Nigeria.

“I think the injustice is unimaginable, it’s wrong and we will stand firm and say we won’t accept it, and that’s why we rejected the signing of the agreement.”

Osinbajo said, “If a company operating in Enugu only generated 25 million naira ($60,000), it would open an office in Nigeria, pay utilities, employ staff and still pay taxes in Nigeria; but someone who generates maybe $1 billion should walk away with the gross income without paying tax to this country, we believe that should not be done.

“Nigeria is the only country we have and we shouldn’t be sensational in discussing these issues, we shouldn’t be emotional about it but let’s stay patriotic because if we sign this then you can name all the multinationals operating in the country, as their overall turnover will not reach 10% of what they earn in the country, they will stop paying taxes in this country.

“That’s why we didn’t sign and we’re not arrogant about it, we’re not trying not to change the way the world is going, but the right thing has to be done.”

Nevertheless, Osinbajo pointed out that the persistent problems of insecurity and crime, inadequate social economic infrastructure among others, could only be solved if there were adequate revenues in the hands of the government through taxation and compliance. effective.

He instructed the CITN and Nigerians in general to ensure compliance with the prevailing tax rules and to “encourage others to comply and report those who do not comply.”

He said the CITN remains an essential part of the country’s tax ecosystem, stressing that taxation is a key driver for social harmony, political stability and economic development and growth.

The vice president said that until the current administration took steps to diversify the economy, previous administrations relied almost exclusively on crude oil revenues.

He said: “However, we have learned from recent market trends that crude oil, like other commodities, is not a sustainable source of national revenue.

“That’s because, as you know, the world has witnessed an unusual modulation in crude oil prices since 2015 when this administration began.

And in the long term, it would be part of a global shift towards green energy that would further weaken demand for crude oil. In all of this, one message emerges: if we are to make progress as a nation, all of us; compatriots should give up an adequate share of their resources in the interest of national development, social harmony, political stability and economic growth.

Osinbajo said tax professionals must be aware of the costly impact of non-compliance by the taxpayers they hold on government revenues, adding that society as a whole remains crucial and must be given the most high priority in tax administration.

Meanwhile, National Chairman, Osinbajo Consolidation Organisation, Mr. Oyeniran Oyebamidele said that the Vice President would consolidate all the projects and programs established or initiated by the current administration if elected President next year.

The group disclosed this yesterday, in a statement released by its National Publicity Secretary, Rev. Godwin Arome.

The group described the vice president as a development icon, who marked the political history of the country by being resourceful, energetic, politically suave and the epitome of democracy.

The statement quoted Oyebamidele as saying that the country would notice the ongoing effort made by the Buhari administration to lay a solid foundation for the transformation of the country through the establishment of development infrastructure, industrialization, social investment and economic directions, the benefits of which he said have yet to be realized, due to global issues that have created devastating effects on many fronts of development initiatives across the world.

He expressed satisfaction with the Vice President’s performance, saying he had shown remarkable tact and maturity in supporting the administration of President Muhammadu Buhari as a worthy MP, whose loyalty and the quality of credible leadership were not questioned; with unwavering focus.

Furthermore, the chairman of the committee, Mr. Jibrin Yusuf, who is also a member of the group’s board of directors, said that most of the members are grassroots politicians and will work to ensure the success of raising people who would carry the message of presidential aspiration. d’Osinbajo in the nooks and crannies of the country and among APC delegates, who would decide the party’s presidential standard bearer at the National Convention for the presidential primary.

For his part, the organization’s national secretary and chief strategist, Dr. Yakubu Ugwolawo, stressed the need for everyone to be on deck to work vigorously and harmoniously for Osinbajo’s emergence as a bearer. party flag.

]]>
UAE announces introduction of federal corporate tax system https://imjustsayin.net/uae-announces-introduction-of-federal-corporate-tax-system/ Tue, 17 May 2022 11:06:53 +0000 https://imjustsayin.net/uae-announces-introduction-of-federal-corporate-tax-system/ The United Arab Emirates Ministry of Finance (MoF) announced on January 31, 2022 the introduction of a Federal Corporate Tax (CT) scheme which will apply to all companies in the United Arab Emirates, exception of those operating in the extraction of natural resources (which will remain subject to emirate level corporate taxation). The UAE CT […]]]>

The United Arab Emirates Ministry of Finance (MoF) announced on January 31, 2022 the introduction of a Federal Corporate Tax (CT) scheme which will apply to all companies in the United Arab Emirates, exception of those operating in the extraction of natural resources (which will remain subject to emirate level corporate taxation). The UAE CT Regime will apply, under certain circumstances, to persons who hold a business registration to engage in such activity in the UAE.

The federal CT system will come into effect for fiscal years beginning on or after June 1, 2023. The applicable tax rate will be 0% for taxable income up to AED 375,000 (approximately USD 100,000) and 9% on taxable income above this threshold. Large companies, defined as those with an overall consolidated turnover of more than €750 million, may be subject to a different tax rate (expected at 15%), which will be in line with the BEPS Pillar 2 project of the OECD.

The starting basis for determining the taxable income will be the net accounting profit (in accordance with internationally acceptable accounting standards). Specific CT adjustments that may be made will be announced in due course, although it is expected that ordinary and necessary business expenses incurred in producing taxable income will be deductible. Income from (i) dividends, (ii) capital gains and (iii) qualifying intra-group transactions and reorganizations will not be included in taxable income, subject to the satisfaction of certain conditions (which are likely to apply). include an ownership threshold and a minimum holding period) .

Entities that operate only in free zones (and in accordance with regulatory requirements) should retain existing tax exemptions (which could be for 15 to 50 years), although there will remain a reporting obligation for entities in free trade zones. . Banking transactions will be subject to the tax, but further details on current emirate-level corporate taxation will be provided in due course. There will be no withholding tax on payments made to non-residents.

The filing date for the tax return has not been confirmed, however, only one CT return is required per financial period (i.e. year) and this must be filed electronically. No details were provided regarding the due date for payment of any TC, but it was confirmed that there will be no prepayment scheme.

Take away key

The UAE Ministry of Finance has confirmed that there will be no introduction of personal income tax in the UAE. As such, income generated by individuals should not be subject to UAE IC unless an individual holds a UAE business license in respect of such UAE sourced income. Therefore, persons who hold a business license and derive income from it will need to understand if their activities fall within the scope of the UAE TB.

Businesses, such as family offices and/or asset holding companies, should fall under the UAE CT. As these entities are established and operate only in a UAE Free Zone, they should not be subject to the UAE TC, although there will still be a requirement to register and file the TC annually. Where entities are established outside a UAE Free Zone, but the business activities are outside the UAE / conducted only in a UAE Free Zone, it may be worth considering restructuring existing UAE operations to host those located in a UAE Free Zone such that the revenue generated is not subject to UAE TC.

As a general observation, the current wording of the UAE TC framework should remain attractive to UAE-based investment entities due to the inclusion of (i) the dividend exemption and (ii) the exemption participation for capital gains on disposal of investments.

Next steps

We expect the UAE Ministry of Finance to release further details on the expected UAE TC framework by mid-2022, which is expected to include the release of draft legislation and issuing executive directives in a timely manner.

The content is provided for educational and informational purposes only and is not intended and should not be construed as legal advice. This may qualify as “lawyer advertising” requiring notice in some jurisdictions. Prior results do not guarantee similar results. For more information, please visit: www.bakermckenzie.com/en/disclaimers.

]]> The new government plans to increase the minimum wage and pensions, reform the tax system and health insurance, build non-profit apartments, among other goals https://imjustsayin.net/the-new-government-plans-to-increase-the-minimum-wage-and-pensions-reform-the-tax-system-and-health-insurance-build-non-profit-apartments-among-other-goals/ Sun, 15 May 2022 07:18:20 +0000 https://imjustsayin.net/the-new-government-plans-to-increase-the-minimum-wage-and-pensions-reform-the-tax-system-and-health-insurance-build-non-profit-apartments-among-other-goals/ ATS, May 14, 2022 – While future coalition partners are expected to initial a coalition agreement on Saturday, some details of the document have already leaked. The agreement provides for changes in the pension and health care system, and there is a commitment to increase the minimum wage to 800 euros and the minimum pension […]]]>

ATS, May 14, 2022 – While future coalition partners are expected to initial a coalition agreement on Saturday, some details of the document have already leaked. The agreement provides for changes in the pension and health care system, and there is a commitment to increase the minimum wage to 800 euros and the minimum pension to 700 euros.

Some details of the deal have already been revealed by members of the Freedom Movement, Social Democrats (SD) and the left in their public appearances.

Among other things, they announced that around 20,000 non-profit rental apartments will be built during the next two legislatures, and that the minimum wage will be raised to 800 euros net and the minimum pension to 700 euros.

The plan is to eventually abolish supplementary health insurance and suspend the purchase of Boxer armored personnel carriers (APCs). The procedures for purchasing military equipment under the government of Janez Janša will be reviewed.

The N1 news web portal also took note of the pledge that there will be no barbed wire and other “technical obstacles” on the border with Croatia, erected to control illegal migration flows, d by the end of this year.

Another proposal is that doctors in the public health care system will no longer be allowed to work for individuals and concessionaires after completing their shifts at public facilities.

A phased property tax is also in the works, and the coalition will also advocate for the right of employees to turn off their company phones and emails at the end of working hours.

According to N1’s sources, the agreement stipulates that the tax reform of the Janša government which increased net salaries will be abolished at the beginning of next year.

The online edition of Večer newspaper adds that the amount of general personal income tax relief will remain the same.

Companies, including start-ups, should benefit from tax incentives for the digital and green transition, and the effective corporate tax rate should increase.

The coalition should also promote employee profit sharing and involvement in business ownership and management, N1 said.

According to the portal, the government intends to initiate discussions with EU institutions to modify the National Recovery and Resilience Plan, and that EU funds will mainly be used to finance the green transition and the scanning.

The coalition promises free school meals to all primary and secondary students, and school curricula are also expected to be changed somewhat, adds N1.

Večer notes the mitigation of rising energy prices by focusing on the most vulnerable groups, the promotion of the development of solar power plants and the replacement of fossil fuel heaters with those using renewable energy.

The future coalition also plans a pension reform that would strengthen the first pension pillar and encourage additional retirement savings. In the field of health, it plans to establish up-to-date registers of queues for treatments and procedures.

They also promise greater availability of doctors at primary level, debureaucratization and digitization of the healthcare system and additional financial incentives for medical personnel.

As for the media, the future partners announce that the broadcaster RTV Slovenija and other public media (the Slovenian News Agency – STA) will be given a status that will prevent political interference, Večer said.

They will also work to abolish electoral units by introducing preferential voting in National Assembly elections, which will require a two-thirds majority in parliament.

According to information obtained by the STA, the coalition agreement will include a strategy for the abolition of precarious work, of which the public administration would be an example. There is also a commitment to reduce the abuse of part-time employment.

Other goals include a more transparent disability insurance system, a stronger network of public social protection institutions, the prevention of brain drain and a clear migration policy with an employment strategy and full integration.

]]>
Vietnam approves tax system reform strategy until 2030 https://imjustsayin.net/vietnam-approves-tax-system-reform-strategy-until-2030/ Wed, 11 May 2022 10:21:52 +0000 https://imjustsayin.net/vietnam-approves-tax-system-reform-strategy-until-2030/ The Vietnamese government has approved a tax reform strategy until 2030 to modernize the country’s tax sector in line with global practices. We highlight proposed tax reform strategies, which could impact personal and corporate tax rates, VAT, etc. Further guidance documents are still awaited. Vietnam approved tax system reform strategy to 2030 under Decision 508/QD-TTg […]]]>

The Vietnamese government has approved a tax reform strategy until 2030 to modernize the country’s tax sector in line with global practices. We highlight proposed tax reform strategies, which could impact personal and corporate tax rates, VAT, etc. Further guidance documents are still awaited.


Vietnam approved tax system reform strategy to 2030 under Decision 508/QD-TTg approved by the Prime Minister. Vietnam’s tax reform strategy aims to modernize the tax sector in line with global practices. the Ministry of Finance (MoF) was tasked with implementing the strategy.

The strategy also aims to implement Vietnam’s ten-year socio-economic strategy until 2030 while helping to cover state tax revenue. The tax strategy aims to strengthen IT applications while simplifying administrative procedures and reducing compliance costs for businesses and individuals.

As Vietnam moves towards adopting digital technology, the government has proposed integrating a centralized IT system that manages tax administration and provides electronic services to taxpayers. This centralized system will also link the tax sector database to national population databases, state management agencies and other relevant ministries.

With this, the government hopes to achieve 90% taxpayer satisfaction by 2025 and 95% by 2030, while support for people paying taxes electronically at 70% by 2025 and 90% by here 2030.

Various tax implementation strategies

Corporation tax

The strategy will review tax incentives and tax exemptions for corporation tax and modify or remove redundant incentives. The government wants to put in place incentives for small and medium enterprises which are the backbone of the Vietnamese economy. As the government seeks to attract quality FDI, tax authorities are likely to release tax programs aimed at industries attracting quality FDI.

Income tax

For personal income tax (PIT), the government has stated that it will review, research and modify tax rates that are suitable for individuals in line with international practice. This includes the convenience of reporting, but also the prevention of tax evasion and evasion.

Value added tax

The government plans to apply a single VAT rate and broaden the tax base. Government agencies are also planning to facilitate refunds.

Special consumption tax

The government plans to increase the SCT tax on tobacco, beers and spirits while adding additional products to the SCT portfolio. SCT rates will also be reviewed.

Natural resources tax

The government is also planning to study and modify the tax rates on the tax on natural resources (TRN). He said he would strive to do so transparently, stressing that the policy is practical while protecting Vietnam’s natural resources. Currently, NRT is imposed on Vietnam’s natural resources such as oil, minerals, natural gas, forest products and natural water. The government will have to balance this, as taxes that are too high could discourage FDI, especially for resources such as nickel.

Property tax

For property-related taxes such as farmland use tax and land use tax, farmland use tax will be exempt until the end of 2025. However, the government should strengthen property tax regulations for houses. This amount will be set in accordance with the provisions of the land law and other applicable taxes.

Import / Export

For import and export, the government plans to reduce import duty rates from 32 to 25 by 2025 and 20 by 2030. As Vietnam wants to develop its local industries, it plans to revise the rates import and export duties to increase exports while increasing local value. contributions.

Take away food

The first phase of the strategy, which extends until 2025, aims to revive the economy and support businesses and individuals affected by the pandemic. This includes restoring production and business activities to pre-pandemic levels. In the second phase of the strategy, the government aims for the domestic revenue of the state budget to reach around 86-87%. The government is likely to publish other documents and decrees guiding the implementation of the tax reform strategy.


About Us

Briefing Vietnam is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from its offices worldwideincluding in Hanoi, Ho Chi Minh Cityand Da Nang. Readers can write to vietnam@dezshira.com for more support on doing business in Vietnam.

We also maintain offices or have alliance partners who assist foreign investors in Indonesia, India, Singapore, The Philippines, Malaysia, Thailand, Italy, Germanyand the United Statesin addition to practices Bangladesh and Russia.

]]>
Approval of the tax system reform strategy until 2030 https://imjustsayin.net/approval-of-the-tax-system-reform-strategy-until-2030/ Mon, 09 May 2022 08:02:55 +0000 https://imjustsayin.net/approval-of-the-tax-system-reform-strategy-until-2030/ The strategy aligns Vietnam’s tax policy with international practices to meet resource needs and achieve the ten-year socio-economic development strategy until 2030. It will help stabilize state budget revenue from taxes and costs in conjunction with socio-economic development strategies for 2021-25 and 2026-30. In the initial phase, support will be offered to help businesses and […]]]>

The strategy aligns Vietnam’s tax policy with international practices to meet resource needs and achieve the ten-year socio-economic development strategy until 2030.

It will help stabilize state budget revenue from taxes and costs in conjunction with socio-economic development strategies for 2021-25 and 2026-30.

In the initial phase, support will be offered to help businesses and individuals get back to business after the negative impacts of COVID-19.

Taxpayer satisfaction with tax agencies is expected to reach at least 90% by 2025, and support for people paying their taxes electronically up to 70%.

At a tax agency (Photo: VNA)

The strategy also aims to refine regulations on value-added taxes on exports and services, and amend those on tax exemptions and refunds in a simple, transparent and concerted manner with related laws.

It will establish a roadmap on the adjustment of taxes on tobacco and alcoholic beverages and revise consumption taxes on products according to socio-economic conditions for the period 2021-30.

The strategy will seek to reduce import duties to around 25% by 2025 and 20% by 2030, from the current 32%, and design tax incentives for small and medium-sized enterprises (SMEs).

In addition, it will increase taxes on land and houses and impose taxes on sectors that harm the environment.

Source: VNA

]]>
Let’s not complicate the tax system even more https://imjustsayin.net/lets-not-complicate-the-tax-system-even-more/ Thu, 05 May 2022 18:45:00 +0000 https://imjustsayin.net/lets-not-complicate-the-tax-system-even-more/ Finance Keeping taxes low and easy to comply with should be the main objective Comment: As a former revenue minister, New Zealand’s longest-serving minister to date, I took more than passing interest in a speech last week by current minister David Parker. It proposed to establish a set of tax principles that could be included […]]]>

Finance

Keeping taxes low and easy to comply with should be the main objective

Comment: As a former revenue minister, New Zealand’s longest-serving minister to date, I took more than passing interest in a speech last week by current minister David Parker. It proposed to establish a set of tax principles that could be included in legislation to guide the direction of tax policy for future governments.

Such a move would help ensure greater consistency and certainty in future tax policy, while giving the public a clear set of metrics against which to assess the tax performance and policy of these governments.

There is a lot of merit in what Parker has suggested, although, as he himself acknowledged, there are many hurdles that will have to be overcome. Rightly, he suggested that for such an approach to be viable, it would need the buy-in of at least the main opposition party to give it durability and credibility beyond the lifetime. of the current government.

This will require that the principles be set out at a high and general level, which risks turning them into meaningless platitudes.

In any case, the National Party has already expressed cynicism about Parker’s idea, saying it is just a ruse to allow Labor to introduce new taxes if they are re-elected l next year, which Parker denied.

Unfortunately for him, the Prime Minister’s unclear comments this week on whether Labor will introduce a wealth tax if re-elected – despite ruling it out during the 2020 election campaign as long as ‘she was Prime Minister – play directly into the National hands.

Nonetheless, Parker should stick to his guns, at least for now. The debate is worthwhile, whatever the difficulties and the entrenched positions. However, it’s unlikely in the longer term that this will lead to the specific result Parker might be looking for.

“Experience suggests that taxes imposed for reasons other than the collection of revenue – for example, the redistribution of income, the reduction of inequality or simply political reasons – are unlikely to be administratively or effectively effective. to generate the expected revenue.

Taxation is an inherently political issue, even though the tax system itself is only the mechanism by which the government collects the revenue it needs to do its job. Since the 1980s, successive governments have worked hard to provide greater certainty about government spending plans through measures such as the Public Finances Act, the Fiscal Accountability Act and the Statement of Accountability process. Political budget.

At the same time, the generic tax policy process based on discussion papers and inviting public feedback has brought more transparency. However, the process is still nowhere as clear as it has become on the spending side, which is another argument in favor of Parker’s proposal.

The fundamental debate is to what extent the tax system should focus on collecting revenue as efficiently as possible, and to what extent it should be used to redistribute wealth and implement social policy programs.

Since the advent of the welfare state and the development of progressive taxation, the tax system has become inherently more complicated as people seek to minimize their tax liability through legitimate means such as tax refunds. tax, or illegitimately through tax evasion.

This, in turn, has led to the development and constant updating of so-called anti-avoidance rules to close loopholes as they arise and prevent tax evasion. And, as new avoidance and evasion practices develop, more and more rules become necessary to fill in the gaps, making the system increasingly complicated and difficult to administer.

Along with this, the legal and accounting professions now spend much more time advising their businesses and clients on how to legitimately meet and legally minimize their tax obligations.

At the same time, the tax system has been increasingly used by governments for purposes other than strict tax collection, simply because the Inland Revenue database is more comprehensive than most others in the public sector.

In addition to its core function, we now use our tax system for granting Working for Families tax credits, collecting student loan repayments, the Child Support Scheme and collecting Accident Compensation Income Earner tax. All of these add to the complexity of the tax system, even if an overall set of tax principles is adopted.

Since the 1980s, all governments have adopted a “broad base, low rate” model, according to which the distribution of taxes should be spread broadly between business, personal income and consumption, with individual rates being progressive, but also maintained. low as possible. I have always believed that keeping taxes low and easy to comply with should be the main objective.

I always kept on my desk a copy of Canada’s first income tax law, the Income Tax War Act of 1917, as a reminder of how tax systems had become complex. This act has only 24 clauses, 11 pages in total, and is breathtaking in its simplicity. Now Canada’s Income Tax Act is 3,227 pages long!

During my first term as Minister of Revenue in the mid-1990s, under the National/United coalition government, I began working to simplify the tax system and rewrite the Income Tax Act plain language income.

This long project was carried out in great detail by the eminent jurist, the late Mr Justice Sir Ivor Richardson, and I was delighted, as a member of the government led by Clark Labour, to get his rewritten law passed, and still current today, by Parliament in 2007. Even so, it is about the same length as the law of Canada.

In addition to trying to simplify the tax system and make it more fluid, I also wanted to improve the collection of taxes that had been correctly levied but were not paid. In 2008, with the support of Sir Michael Cullen, I secured more resources for the collection and enforcement work of the Inland Revenue.

Within a year, officials reported that they were getting a sixfold return on that extra funding in terms of collecting those unpaid taxes. Consequently, this program has been expanded by successive governments.

My belief is that, with one notable exception, New Zealand does not need new or additional taxes. If current tax laws are fully enforced and the system has the resources to operate accordingly, New Zealand can easily and fairly raise the revenue it needs to do its job. Experience shows that taxes imposed for reasons other than revenue collection – for example, income redistribution, reduction of inequality or simply political reasons – are unlikely to be administratively efficient or effective. generate the expected revenue.

Moreover, to have any chance of working, they will almost certainly need a substantial strengthening of anti-avoidance rules, which will further add to the complexity of the system. And the more complex the system, the more people will look for even more ways to circumvent it.

The only notable area of ​​exception is, in my view, environmental taxes, but replacing and not extending other existing forms of taxation. A lot more work needs to be done here, but the idea certainly deserves more thought, especially as the social and economic consequences of climate change start to bite harder.

Whatever else they might accomplish, Parker’s proposals have brought renewed attention to the function and purpose of our tax system. His initiative may well fail due to his ideological timidity, being a bit too cute for many to believe he doesn’t have a broader agenda.

Nevertheless, it could make considerable progress by ensuring that all current taxes are efficiently, correctly and therefore fairly collected, in line with the objective of “broad base, low rates”, and that the system as a whole is continuously simplified.

Further strengthening of enforcement mechanisms would help answer Parker’s other legitimate question: whether the wealthy are paying their fair share of those taxes. And he could also bring his parallel experience as environment minister to the table to start a thorough debate on the scope and merit of resource allocation and consumption taxes.

Both would be more enduring achievements than settling for a vague and general set of tax principles, likely to be so meaningless that no future government would take them seriously.

]]>
Consult before overhauling Malta’s tax system, Grech urges finance minister https://imjustsayin.net/consult-before-overhauling-maltas-tax-system-grech-urges-finance-minister/ Wed, 04 May 2022 10:41:00 +0000 https://imjustsayin.net/consult-before-overhauling-maltas-tax-system-grech-urges-finance-minister/ The government has failed to consult key stakeholders on its plan to overhaul the country’s tax system, opposition leader Bernard Grech said on Wednesday. “There are stakeholders, important stakeholders, not just the opposition, who have yet to be consulted on this new tax plan that the government has announced it will put in place,” he […]]]>

The government has failed to consult key stakeholders on its plan to overhaul the country’s tax system, opposition leader Bernard Grech said on Wednesday.

“There are stakeholders, important stakeholders, not just the opposition, who have yet to be consulted on this new tax plan that the government has announced it will put in place,” he said. he says, adding that consultation should be taken seriously when it comes to matters of national importance.

Finance Minister Clyde Caruana Caruana announced last week that Malta’s tax system would be scrapped and a new one installed by 2025.

The move comes as the international community seeks to crack down on corporate tax havens, introducing a global minimum corporate tax rate which Malta has also pledged to implement.

While the international plan would only impact large multinationals, the fear of financial services players is that it will eventually be extended to all companies domiciled in countries that are not those where they do most of their business. .

Grech said it’s an issue that will impact employers, employees and the broader economy. Reforms in this sector must be transparent, he said.

The leader of the PN was speaking during a meeting with the Chamber of Commerce which saw the business community specify what they expect from the opposition during the next legislature.

A change of PN brand?

Speaker of the Chamber, Marisa Xuereb, detailed what the members of the organization consider to be the main priorities for the next legislature.

Politics and policies today, she said, are far from visionary.

Politicians also had to be “consistent” to win the trust of the electorate.

Chamber president Marisa Xuereb: “People need to feel like brand ambassadors,” she told PN. Photo: Jonathan Borg

Xuereb also suggested that the PN invest in a branding initiative.

A sense of identity, she said, is key to engaging with your target audience.

“Companies spend a lot of money and time working on their brands, and political parties need to do the same. People need to feel like brand ambassadors,” she said.

Xuereb also looked at the financial situation of political parties, saying it would be good if they published their accounts like companies do.

The PN are in a difficult financial situation and Grech announced last month that he was 32 million euros in debt.

On party-owned media, Xuereb asked what would happen to the other if one were to fold, since they were set up on the principle that one cancels the other.

Above all, the opposition was expected to be credible, constructive and coherent.

One in five members of the electorate, Xuereb said, did not vote in the last election because he felt neither party was credible enough.

There are key issues on which politicians are not deemed credible and there are major challenges facing the country that need to be addressed.

Independent journalism costs money. Support Times of Malta for the price of a coffee.

Support us

]]>