The Cabinet has recently approved in principle the Draft Ministerial Regulation under the Revenue Code Regarding Revenue Tax to increase the personal tax exemption amount on severance pay for terminated employees, aligning with the new maximum rate of severance pay. This change is intended to further ease the financial burden on terminated employees.
On 19 June 2024, Resolution No. 101/2024 (“Resolution”) was published in the Official Gazette. The Resolution established that the 17.5% Tax on the Acquisition of Foreign Currency (“Tax”) no longer applies to the acquisition of foreign currency to pay for the importation of goods to be used in the projects included in the list. The Resolution will apply to the operations carried out to acquire foreign currency as of 19 June 2024.
On 20 June 2024, the US Supreme Court ruled, in a 7-to-2 decision in favor of the government, to uphold the constitutionality of the section 965 transition tax in Moore v. United States. This case has been closely watched because it informs a potential future dispute concerning the legality of a wealth tax and significant longstanding portions of the US tax regime. The original question presented was whether, under the Sixteenth Amendment, income must be realized before it can be taxed. The Court concluded that if a controlled foreign corporation realized income, then Congress could attribute that income to the corporation’s US shareholder and tax the shareholder accordingly. By applying this principle of attribution, the Court avoided the question of whether the Sixteenth Amendment includes a realization requirement, leaving that issue open for future litigation.
On 1 March 2024, New York Governor Hochul signed into law the amended LLC Transparency Act (“Act”). Enacted on 23 December 2023, the Act underwent significant revisions as a result of the agreement between the Governor and the legislators. The Act requires that all limited liability companies (LLCs) formed under the New York Limited Liability Company Act (“LLC Act”) or seeking authorization to do (or doing) business in New York State disclose information about certain of their beneficial owners, or submit a statement that the entity qualifies for an exemption from this requirement. All LLCs in existence prior to 1 January 2026 must comply with the Act before 1 January 2027.
We are pleased to present the second edition in 2024 of Ukrainian Laws in Wartime: Guide for International and Domestic Businesses, a brief overview of the key features of wartime legislation.
The Control of Items in Relation to the Proliferation of Weapons of Mass Destruction Committee of Thailand agreed to enforce the licensing requirement for the export and re-export of dual-use items. The first pilot scheme will apply to heavy and nuclear equipment.
With immediate effect (from 2024), the new Growth Opportunities Act makes it more difficult to deduct interest for tax purposes for intragroup financing. The new rules apply not only to loans but also to debt-like or hybrid instruments.
On 24 May 2024, Resolution No. 126/2024 of the Agency for Access to Public Information was published in the Official Gazette. Among other things, it unifies the sanctions regime of Personal Data Protection Law No. 25,326 and National Do Not Call Registry Law No. 26,951.
The Thai Revenue Department (TRD) issued the revenue ruling No. Gor Kor 0702/1112 on 21 February 2024 (“Ruling”) regarding tax treatment for the new merger scheme under section 1238 (2) of the Civil and Commercial Code. According to the Ruling, the merger would be considered as an entire business transfer and the tax considerations for the EBT should apply.
The Colombian Tax Office (DIAN) issued the Tax Ruling No. 305[008717] of 30 April 2024, interpreting several matters regarding the application of the Significant Economic Presence rules. The following are the most relevant points addressed by the Ruling:
• Cases in which the deduction for payments abroad related to SEP transactions are not capped under article 122 of the Tax Code.
• Identification of SEP taxpayers that have opted for the filing/no WHT mechanism and those who are not subject to the regime.
• Scope of the activities that can be considered taxed under SEP rules.
• Comments on the priority order rules of withholding agents.