[World Tax News] Greece to Introduce Digital Transaction Fee, Phasing Out Stamp Duty and More

Editorial Team – [2024] 166 taxmann.com 344 (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. Greece to Introduce Digital Transaction Fee, Phasing Out Stamp Duty

The Greek parliament is reviewing a draft bill proposed by the Ministry of Finance on September 2, 2024, which aims to eliminate stamp duty and replace it with a new digital transaction fee. This fee could reach up to 3.6% for certain specified transactions.

The digital transaction fee will apply to transactions involving tax residents of Greece or entities with a permanent establishment in Greece, provided the transaction is connected to the activities of that establishment.

This new fee structure will take effect from January 1, 2025, with transactions completed by December 31, 2024, remaining subject to the existing stamp duty.

Source: Draft Bill

2. UAE calls on resident juridical entities with licenses issued in July to register for corporate tax by end of September 2024

In a press statement, the Federal Tax Authority (FTA) advised Taxable Persons to adhere to the timelines specified for Registration of Taxable Persons for Corporate Tax for Taxation of Corporations and Businesses and its amendments. The FTA Decision provides deadlines for each category of Taxable Persons subject to Corporate Tax to submit their Corporate Tax registration applications.

As per Cabinet Decision No. 75 of 2023, an Administrative Penalty will be levied on Taxable Persons who fail to comply with submitting their Corporate Tax registration application within the periods specified in the FTA Decision.

The FTA explained that Juridical Persons that are Resident Persons incorporated or otherwise established or recognised before 1 March 2024 must submit their Corporate Tax registration application based on the month their Licence was issued, irrespective of the year of issuance. For Taxable Persons holding multiple Licences on 1 March 2024, the deadline is determined by the Licence with the earliest issuance date. In the event that a Taxable Person holds an expired Licence on 1 March 2024, the registration deadline is still based on the month the Licence was issued.

The FTA stated that registration for Corporate Tax purposes is available through the EmaraTax digital tax services platform, which is accessible 24/7. The registration process has been streamlined into four main steps that will take approximately 30 minutes to complete. The platform also allows for Value Added Tax or Excise Tax registrants to access directly their accounts via EmaraTax, complete registration for Corporate Tax, and submit the required documents. Once the registration request is approved, Taxable Persons will obtain a Tax Registration Number for Corporate Tax purposes.

Meanwhile, the FTA urged Taxable Persons subject to Corporate Tax who have yet to register to create a new username through the EmaraTax platform using their email address and mobile number.

Additionally, Taxable Persons subject to Corporate Tax can register directly through the EmaraTax digital tax services platform, or through the authorised Tax Agents listed on the FTA’s website. They can also submit a Corporate Tax registration application at several government service centres across the country, which provide their services electronically in accordance with government service standards and under the supervision of qualified and trained individuals. Once application procedures and electronically entered data verification are complete, a team of specialists reviews the application internally and provides the applicant with their Tax Registration Number for Corporate Tax directly to the email address listed in the Corporate Tax registration application.

Source: News, dated 03-09-2024

3. Argentina Lowers Tax on Foreign Currency Purchases for Freight Services and Imports

On 2 September 2024, Argentina issued Decree 777/2024 in the Official Gazette, reducing the tax on foreign currency purchases (Impuesto Para una Argentina Inclusiva y Solidaria – PAIS tax) from 17.5% to 7.5% for:

• Freight services abroad and other transportation services related to import or export of goods, and
• The importation of goods, excluding luxury items.

The reduced rate applies to foreign currency purchases made from 3 September 2024. Additionally, the advance payment tax rate on foreign currency purchases for imported goods was reduced from 16.625% to 7.125%, effective on the same date, under General Resolution 5559/2024.

Source: Decree 777/2024
General Resolution 5559/2024

4. Poland releases Updated Transfer Pricing Information Q&A

The Polish Ministry of Finance announced the release of the fifth edition of the Transfer Pricing Information Q&A, referred to as the TPR Guide 2023. The guide offers an updated set of answers to questions related to transfer pricing reporting requirements. According to the announcement, the TPR Guide 2023 includes practical examples illustrating the recommended method for completing transfer pricing information, aiming to streamline the reporting process and enhance data consistency.

Notably, new questions and examples have been added, specifically addressing the following:

(A) General Issues regarding:

a. Submission of a correction to the TPR Information submitted on the TPR-C(5) form.

b. Possibility of submitting TPR Information following the dissolution of a company during the tax year.

c. Submission of TPR Information in the event of a takeover of a Polish entity by a foreign entity without closing the accounts.

d. Submission of TPR Information by the acquiring company in the event of acquiring more than one company.

(B) Section A – place and purpose of submission: This includes the questions on the type of TPR form by a general partnership and the submission of TPR Information in option 5 for the acquired entity if the merger took place with the closing of the accounts.

(C) Section C – additional data of the entity to which the information relates to whether an entity is a micro or small entity, documents and information needed to calculate the indicators

(D) Section D – transaction data, namely, Transaction Value per Country and Transaction Value fields and the relationships between them.

Source: TPR Guide – Questions and Answers (5th Edition)