[World Tax News] Germany Enacts Law for Public CbC Reporting and More

Editorial Team – [2023] 152 taxmann.com 165 (Article)

World Tax News provides a weekly snippet of tax news from around the globe. Here is a glimpse of the tax happening in the world this week.

1. Germany Enacts Law for Public CbC Reporting

Germany has officially published the law for implementing Public Country-by-Country (CbC) reporting in the Official Gazette.

The law aligns with Directive (EU) 2021/2101, which includes a public reporting threshold of EUR 750 million in annual consolidated revenue for the last two consecutive financial years.

If required, the Public CbC report must be submitted in German to the business/company register no later than one year after the end of the reporting period. Additionally, the report must be published on the company’s website at no cost.

However, if the report has been submitted to the register and it is indicated on the website that it is available for free on the register’s website, the requirement to publish on the company’s website does not apply. Non-compliance with these requirements may result in fines of up to EUR 250,000.

The Public CbC reporting obligations will be applicable for financial years starting after June 21, 2024.

Reference: Federal Law

2. Singapore Incentivises business for R&D and innovation; allows tax deductions of 400%

The Inland Revenue Authority of Singapore (IRAS) has released an e-Guide on Enterprise Innovation Scheme (EIS).

This comprehensive guide provides detailed information about the EIS and is particularly useful for businesses seeking EIS benefits.

The Enterprise Innovation Scheme incentivises businesses to actively participate in research and development (R&D), foster innovation, and enhance their capabilities.

This is an enhancement to existing tax deductions and allowances related to various activities such as R&D, Intellectual Property (IP) registration, IP rights acquisition and licensing, and qualifying training.

These deductions and allowances will now be elevated to 400% for the initial SGD 400,000 of eligible expenses incurred per qualifying activity each year of assessment (YA). In addition, businesses will have the opportunity to benefit from a new 400% tax deduction on qualifying innovation expenditure, limited to SGD 50,000, for eligible innovation projects conducted in collaboration with designated partner institutions within each year of assessment (YA).

Moreover, qualifying businesses can choose a non-taxable cash grant instead of tax deductions or allowances. This cash grant can be availed at a cash conversion ratio of 20% on a maximum of SGD 100,000 of total qualifying expenditure encompassing all eligible activities.

These updated or improved tax measures will take effect from Year of Assessment (YA) 2024 until YA 2028.

Source: E- Tax Guide on the Enterprise Innovation Scheme

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