On 29 May 2023, the National Executive Power sent the Liquefied Natural Gas Promotion Bill to the Honorable Chamber of Deputies of the Nation. The Bill, while still a draft, creates a Promotional Regime for Large Liquefied Natural Gas Investment Projects for the production, storage, commercialization, transportation and infrastructure of LNG and/or its export, through the granting of tax, customs and exchange control benefits.
On 29 May 2023, the National Executive Power sent the Liquefied Natural Gas Promotion Bill to the Honorable Chamber of Deputies of the Nation. The Bill, while still a draft, creates a Promotional Regime for Large Liquefied Natural Gas Investment Projects for the production, storage, commercialization, transportation and infrastructure of LNG and/or its export, through the granting of tax, customs and exchange control benefits.
The National Executive of Venezuela issued Decree No. 4,821 on 1 July 2023, exempting definitive imports of tangible personal property from Value Added Tax (VAT) and import tax.
The Decree establishes that the periodic evaluation of VAT exemptions will be carried out in accordance with the determinations of the National Integrated Customs and Tax Administration Service (SENIAT) and the Ministry with competence in Economy, Finance and Foreign Trade, which are the competent authorities in charge of implementing the Decree’s provisions.
Through General Resolution 5393/23, AFIP (tax authority) regulated the provisional payment of the PAIS tax that applies to the importation of goods included in paragraphs (b) (sumptuary goods) and (e) (the rest of the goods, as set forth in Decree 377/23) of Decree 99/19.
In this issue, we focus on the FY2023 Tax Reform Enforcement Order and Enforcement Regulations and the Guidelines on Respecting Human Rights in Responsible Supply Chains.
On the tax side, the Cabinet Order Partially Amending the Order for Enforcement of the Income Tax Act and the Ministerial Order Partially Amending the Ordinance for Enforcement of the Income Tax Act in relation to the 2023 Tax Reforms were published in a special extra (No. 25) of the Official Gazette dated 31 March 2023.
On 24 July 2023, Decree No. 377/2023 was published in the Official Gazette. By means of the Decree, tax shall apply (i) at the rate of 25% on the acquisition of foreign currency for payments to be made for any type of service provided from abroad, with certain exceptions; (ii) at the rate of 7.5% on the acquisition of foreign currency for payments to be made for freight services and other transport services for import or export operations of goods; and (iii) at the rate of 7.5% on the acquisition of foreign currency for payments to be made for the import of goods (with certain exceptions).
It was recently announced that South Africa’s Health Promotion Levy on sugary beverages was to be extended to pure juice. The South African government is expected to publish a discussion paper on the levy soon. This is intended to aid consultation on the proposals to extend the levy to pure fruit juices and lower the four-gram threshold.
On 13 July 2023, in Case C-106/22, the European Court of Justice delivered its decision in relation to a preliminary reference submitted by the Budapest High Court. In the context of companies that often have a cross-border ownership structure extending outside of the EU, the ECJ concluded that the fact that a parent company registered in a third country has a majority control over an EU-based investor does not mean that the EU FDI Screening Regulation applies.
On 17 July 2023, the US Securities and Exchange Commission (SEC) urged Chinese companies to disclose certain business links they may have to Uyghurs and other Muslim minorities. The companies may face compliance risk and supply chain disruptions if they operate in the Xinjiang region of China or do business with companies that operate in the area known for its Uyghur population, the SEC said in new guidance. The Uyghur Forced Labor Prevention Act, which President Biden signed into law in 2021, blocks imports from the region unless a company can prove the products were made without forced labor.
On 23 June 2023, the National Assembly passed the Law on e-Transactions (amended), replacing the current Law on e-Transactions No. 51/2005/QH11. The new law includes seven chapters and 54 articles addressing various issues that will directly impact both onshore and offshore businesses that transact with consumers in Vietnam. It will come into force on 1 July 2024.