Tax holidays

Not applicable for this jurisdiction.

Tax rulings

In some cases, taxpayers are entitled to present to the tax authorities a request for a ruling on a specific case. The ruling is binding for the consultant.

Tax incentives

There are tax incentives at the federal, state and municipal level which target specific activities, such as renewables and software services and development.

Tax holidays

Not applicable for this jurisdiction.

Tax rulings 

The ATO and the different state/territory revenue offices issue public rulings, determinations, interpretative decisions and practice statements that set out their views on the operation of the relevant federal or state law.

In addition, a taxpayer can seek certainty in respect of their tax affairs by applying for a private ruling. A private ruling is legally binding on the Commissioner.

Tax incentives

There are tax incentives for specific activities, including research and development, and deductions for certain mining and primary production industries. In addition, lower withholding tax rates (15 percent) are available for distributions to certain non-residents from eligible withholding managed investment trusts (MITs). From July 1, 2024, eligible Build-to-Rent projects could qualify for the concessional MIT withholding tax rate of 15 percent.

From July 1, 2019, certain income derived by MITs considered to be active business income will no longer be eligible for the 15-percent MIT tax rate (eg, MIT cross staple arrangement income, MIT agricultural income and MIT residential housing income). Rental income from commercial and industrial real estate continues to be eligible for the 15-percent MIT tax rate.

Tax holidays

Not applicable for this jurisdiction.

Tax rulings

Since January 1, 2011, an Advanced Ruling is available. A complete disclosure is required. A notification is only issued subject to the condition that the applicable legal facts on which the tax authorities' assessment is based do not change. A request for an Advanced Ruling may only be filed with the tax authority that is competent locally with regard to the subject matter for the relevant facts. With respect to content, such Advanced Ruling may be received as of January 1, 2019 to the areas of restructuring (Umgründungen), international tax law, transfer prices, group taxation (Gruppenbesteuerung) and tax avoidance questions and, as of January 1, 2020, to VAT and international tax law issues. An Advanced Ruling is subject to an administrative fee (Verwaltungskostenbeitrag), whereby amounts from EUR1,500 up to a maximum of EUR20,000 can be charged, depending on the requesting company's turnover. In addition, non-binding rulings are also available and have a high practical relevance.

Tax incentives

An invention premium is granted as a tax refund, which is directly credited or paid to the corporate entity. The premium equals 14 percent of the expenses for specific research and development activities. The premium is granted as a tax refund and may be claimed at the end of the tax year. An opinion of the Austrian Research Promotion Agency (FFG) is required. The premium applies to research and development activities with respect to expenses paid to companies or permanent establishments located in an EU or EEA country. The premium may also be claimed for contract research projects limited to expenses of EUR1 million per annum.

Tax incentives related to COVID-19

A lot of COVID-19 packages and support measures were provided by several federal institutions, eg, the Austrian Ministry of Finance, the Austrian Social Security Institution for Self-Employed, and the Austrian Health Insurance Fund, as well as the Austrian federal states, municipalities, and professional organizations. They have introduced facilitations for tax payments, postponed annual income tax return due dates, as well as the disclosure of deadlines for the annual financial statements, made special a short-time work model available and also provided guarantees and subsidies (eg, subsidy for fixed costs) across Austria and the federal states.

Tax holidays

Not applicable for this jurisdiction.

Tax rulings

Certainty over the application of Belgian tax laws to a specific transaction or situation can be obtained (only in advance) by means of a formal ruling involving the agreement of the Advance Ruling Commission (Service des Décisions Anticipées en matières fiscales / Dienst Voorafgaande Beslissingen in fiscale zaken).

Tax incentives

Subject to certain conditions, a company may benefit from investment, IP and R&D related tax incentives (innovation income deduction, R&D payroll tax deduction, etc.).

Tax rulings

On certain issues, taxpayers can request a private letter ruling that applies only to the specific issue. However, tax rulings cannot grant holidays or incentives without a law which sets up the conditions and benefits.

Tax incentives

Brazil provides for different types of tax incentives at the federal, state and local levels, which target the development of specific regions of the country or specific activities.

Under the Tax Reform no new tax incentives can be granted, with a few exceptions. The existing ICMS and ISS benefits will be maintained until 2029 and will be gradually reduced until 2032.

Tax holidays

Not applicable for this jurisdiction.

Tax rulings

Under certain circumstances, taxpayers can request a private letter ruling that applies to the specific issues addressed therein.

Tax incentives

There are tax incentives for specific activities, including in respect of scientific research and experimental development and certain Canadian production, resource exploration and development and renewable energy activities.

Tax holidays

Foreign individuals who are domiciled or resident in Chile will pay taxes in Chile only on their local income during the first 3 years following their settlement in Chile.

Tax rulings

Chilean tax authorities issue general rulings (Circulares) aimed to interpret, instruct, implement or clarify application of tax regulations. They are compulsory for the civil servants that work in the Chilean Tax Service (Servicio de Impuestos Internos, or the Chilean IRS).

Taxpayers may request the Chilean tax authorities to issue a specific ruling (Oficio) to determine the regulations and taxation applicable to particular operations. These rulings shed light on the application of tax regulations and could serve as precedent for other cases (they can even be used to argue a presumption of good faith for taxpayers).

Tax incentives

There are tax incentives for the activities performed by companies to foster economic development of certain types of activities and local economic growth.

VAT refund on fixed assets

Upon the fulfillment of certain conditions, Chilean legislation allows the recovery of carried-forward input VAT derived from the purchase of fixed assets.

VAT exemption on import of capital goods

Certain taxpayers can qualify for a VAT exemption on the import of capital goods destined for certain investment projects to be carried out in Chile (eg, Renewables Parks). The investment must exceed USD5 million.

Reduced rate for interest paid by financial institutions abroad.

Interest paid to foreign banks, financial institutions, foreign insurance companies or foreign fund managers may qualify for a reduced 4 percent withholding tax rate.

Other Tax Exemptions

There are various laws that grant tax benefits to companies located in specific areas of the country, far from major urban centers. The benefits provided by these laws range from tax exemptions to credits against corporate tax liabilities. The most relevant laws include the Arica Law, Tocopilla Law, Austral Law, Navarino Law, Tierra del Fuego Law and Free Trade Zones.

Tax holidays

Tax holidays are available to certain encouraged industries, such as basic infrastructure projects, environmental protection and energy and water conservation projects and software enterprises.

Tax rulings

There is no established national procedure for advance tax rulings, however, certain cities have adopted trial measures on advance tax rulings.

Tax incentives

Preferential tax rates are available to certain encouraged enterprises, such as High and New Technology Enterprises and encouraged investment in West China as well as certain encouraged industries in certain selected areas.

Tax exemption or deduction is applicable when an enterprise has generated certain encouraged types of revenue, such as revenue from agriculture, forestry and technology transfer. China encourages research and development (R&D) by offering bonus deduction on R&D expenses and allows accelerated depreciations to manufacturing enterprises. Depending on locations, there may also certain local tax incentives available in form of fiscal subsidy, subject to the negotiations with the local authorities.

Tax holidays

3 days a year, certain goods are exempted from VAT, such as clothing, household appliances, toys and games, sport elements, school supplies, and certain supplies for the agricultural sector.

Tax rulings

Taxpayers can request rulings from the tax authority in Colombia. Tax rulings are not binding for taxpayers; however, they are mandatory for the tax authority.

Tax incentives

Some of the tax incentives set forth in the Colombian tax code are:

Income exempted from corporate income tax, under certain requirements

The income obtained from the following activities is exempted from Income Tax, provided that certain requirements are met:

• Income received by companies carrying certain activities classified as activities of "Orange Economy" will be exempt from Income Tax for 5 years. These activities include software development, film production, architecture, among others.

• Companies carrying out investments in the Colombian agricultural sector will be exempt from Income Tax for 10  years.

• Income obtained in the sale of energy generated based on renewable sources specially indicated in the tax code.

• Income related to the development and sale of interest or priority housing projects is exempt from Income Tax.

We highlight that, under Colombian Law, Income Tax exemptions are not transferable to shareholders.

Special corporate income tax rates

• 27 percent for taxpayers that perform new investments in fixed assets equal or exceeding UVT30,000,000 (in 2022, COP1,140,120,000,000) and create more than 400 direct employments. The requirements vary for investments in activities with a high technological component, e-commerce, or the aeronautical sector. Profits obtained from such investments are not subject to the dividends tax.

• 20 percent for certain users of Free Trade Zones.

• 9 percent for taxpayers undertaking specific activities (eg, hotel services and ecological tourism).

• 0 percent for companies that create a specific number of employments, and perform commercial, industrial, agricultural, touristic, or health activities in certain Colombian territories (Arauca, Guajira, Norte de Santander, Quibdó and Armenia). This tax rate applies for the first 5 years, and for the following 5 years these companies would be subject to the 50 percent of the general corporate tax rate (ie, 17.5 percent as of 2022).

Tax incentives for using, developing, and generating of renewable energy

Subject to certain requirements, the following tax incentives apply for developing and generating renewable energy:

• A special income tax deduction equivalent to 50 percent of the investments completed in renewable energy projects. This tax deduction cannot exceed 50 percent of the net taxable income and can only be deducted in the 15 years following the taxable year in which the investment took place.

• Accelerated depreciation rate of 20 percent for machinery, equipment and other assets used in the project. This is a tax incentive because, generally, there are maximum annual tax depreciation rates provided by law in respect of different types of tangible assets (between 2.2 percent and 20 percent). The accelerated depreciation only applies to the generation of renewable energy.

• Purchase and import of machinery and equipment, and related services, acquired for renewable projects will be VAT- exempt

• Imports of equipment and machinery will be exempt from customs duties.

Tax holidays

Not applicable.

Tax rulings

Companies may apply for a binding advance ruling concerning a specific tax question with the Finnish tax authorities or alternatively with the Finnish Central Tax Board.

Tax incentives

Key foreign expert employees working in Finland may, under certain conditions, apply to be taxed at flat rate of 32 percent on their employment-related income. Such tax treatment is applicable for a maximum of 48 months.

Tax holidays

Not applicable for this jurisdiction.

Tax rulings

No broad-based rulings are available. On certain issues, taxpayers can request a private letter ruling that applies only to the specific issue.

Tax incentives

There are tax incentives for specific activities, including R&D credits. The payroll tax credit for competitiveness and employment has been replaced as from January 1, 2019 by social charges exemption.

Tax holidays

Not applicable for this jurisdiction.

Tax rulings

Taxpayers can request a binding ruling from the tax authorities before executing a transaction. If the relevant tax authority issues a ruling, it is bound by it if the taxpayer has executed the transaction as described in its request.

Tax incentives

Various incentive programs exist for the promotion of modern energy generation and efficiency (eg, solar and wind energy), as well as programs for the promotion of domestic buildings, environmental protection, R&D, health care, infrastructure and agriculture. Promotion can either be granted as a tax benefit, allowance, guarantee, loan or participation.

Tax holidays

Not applicable for this jurisdiction.

Tax rulings

Advance rulings are available to taxpayers as a paid service and are subject to certain formalities.

A taxpayer can voluntarily request for a ruling in specified areas, such as the application of the locality of profits rules or the general anti-avoidance provision, royalty payments, stock borrowing or lending and interest income exemption.

The normal processing time is 6 weeks, but a complex application can take significantly more time. A ruling is final, but it does not affect the taxpayer's right of objection against a subsequent tax assessment issued in accordance with an unfavorable ruling.

Tax incentives

See Tax rates. The Inland Revenue (Amendment) (Tax Concessions for Family-owned Investment Holding Vehicles) Ordinance 2023 was gazetted and came into operation on May 19, 2023. As an incentive for developing family office businesses in Hong Kong, this Ordinance provides tax concessions for (a) eligible family-owned investment holding vehicles managed by eligible single-family offices in Hong Kong and (b) family-owned special purpose entities. Only the assessable profits of family-owned investment holding vehicles and family-owned special purpose entities arising from qualifying transactions and incidental transactions would be eligible for profits tax concessions, which would apply retrospectively to any year of assessment commencing on or after April 1, 2022.

With effect from April 1, 2019, the Inland Revenue (Profits Tax Exemption for Funds) (Amendment) Ordinance 2019 provides profits tax exemption for privately offered funds operating in Hong Kong, whether domiciled inside or outside Hong Kong.

The Inland Revenue (Amendment) (Tax Concessions for Certain Shipping-related Activities) Ordinance 2022 was gazetted on July 22, 2022 and introduced half-rate profits tax concessions (ie, 8.25 percent) to qualifying shipping commercial principals, including ship agents, ship managers and ship brokers. Tax concessions will apply to sums received by or accrued to shipping commercial principals on or after April 1, 2022.

The Inland Revenue (Amendment) (Tax Concessions and Two-tiered Standard Rates) Ordinance 2024 was gazetted on May 31, 2024 to give effect to a one-off reduction of the final tax in respect of profits tax, salaries tax and tax under personal assessment for the year of assessment 2023/24 by 100 percent, subject to a ceiling of HKD 3,000 per case.

The Inland Revenue (Amendment) (Tax Concessions for Intellectual Property Income) Ordinance 2024 was gazetted on July 5, 2024 to implement the "patent box" tax incentive to provide tax concessions (at a concessionary tax rate of 5 percent instead of 16.5 percent) for qualifying profits sourced in Hong Kong and derived from eligible intellectual property (IP) rights created through research and development (R&D) activities.

Tax incentives are also available to certain specified areas subject to qualifying conditions, such as interest on and any profit made in respect of Renminbi sovereign bonds, capital expenditure on specified environmental protection facilities, capital expenditure on plant and machinery specifically related to manufacturing, and expenditure on computer hardware and software.

Tax holidays

Not applicable for this jurisdiction.

Tax rulings

Advance rulings may be requested by both resident and non-resident companies on any type of tax, provided that the request concerns the tax consequences of a future contract or transaction. In addition, binding rulings may be requested in relation to past transactions regarding corporate income tax, personal income tax, small business tax and local business tax consequences.

The application for a ruling is subject to a fee. The fee of the ruling request is between HUF5 million and HUF8 million (approximately between USD14,500 and USD23,500), depending on whether the taxpayer applies for an urgent ruling.

Tax incentives

There are tax incentives for specific activities. The tax credit for the promotion of development, being the general incentive regime, may not exceed 80 percent of the tax due. Any other tax credits (eg, the small business investment credit, the film production credit and the credit for sport subsidies) may not exceed 70 percent of the tax due that remains after the deduction of the tax credit for the promotion of development.

Hungary has an attractive IP regime that provides several benefits for IP-related activities. Pursuant to Hungarian legislation, companies may deduct 50 percent of the profit derived from royalty payments received. There are further advantages, including the CIT and local business tax exemption for income arising from the royalty payments received and the sale of a qualifying IP; preliminary requirements are registration of the IP with the tax authority and a 1-year holding period.

Tax holidays

Subject to certain conditions, tax holidays are available to certain corporations either engaged in specific sectors such as exports or infrastructure, or to corporations that are newly formed or that are of a smaller size.

Tax rulings

An advanced ruling can be obtained by an applicant (either a non-resident or a resident transacting with a non-resident) in respect of any question of law or fact in relation to the income tax liability of the non-resident, arising out of a transaction undertaken or proposed to be undertaken.

With effect from September 1, 2021, the Authority for Advance Ruling (AAR) ceased to operate, and the Boards for Advance Rulings was constituted to give advance rulings on or after September 1, 2021.

Tax incentives 

There are tax incentives for certain industries, subject to fulfilment of conditions.

Tax holidays

Not applicable for this jurisdiction. There is a relief from corporation tax of up to EUR40,000 per year which is available to startup companies for the 1st 3 years from the commencement of trade. Marginal relief is available where the total corporation tax payable is more than EUR40,000 but less than EUR60,000. The relief is subject to certain conditions and its amount depends on the amount of employer social insurance paid by the company per year in respect of its employees. This is currently available up to December 31, 2026.

Tax rulings

Rulings are not generally available from the tax authority but they may give a non-binding opinion.

Tax incentives

There are tax incentives available for specific activities, including, for example, a knowledge development box regime for certain IP exploitation trades, R&D tax credits and tax depreciation on the purchase of certain intellectual property.

Tax holidays

Not applicable for this jurisdiction.

Tax rulings

No broad-based rulings are available. Under certain circumstances, taxpayers can request a private letter ruling that would apply only to a specific issue. Ruling summaries are published on a no-names basis.

Tax incentives

Subject to certain conditions, Israeli corporations may qualify for and benefit from certain tax incentives regimes, some of which are discussed under Participation exemption.

Under the Law for Encouragement of Capital Investments provisions, a corporation that qualifies as a Preferred Enterprise would be entitled to a reduced tax rate on its Preferred Income of 16 percent, or 7.5 percent if the enterprise is located in a peripheral zone. Dividend distributed to Israeli resident shareholders from Preferred Income is subject to tax at a rate  of 20 percent. In the case of non-resident shareholders, subject to the receipt in advance of a valid certificate from the ITA allowing for a reduced tax rate, the 20 percent may be further reduced according to the applicable treaty.

A Special Preferred Enterprise is generally a Preferred Enterprise that:

• Has been pre-approved by the Israel Tax Authority and
• Has Preferred Income of at least NIS1 billion and revenues, on a consolidated basis, of at least NIS10 billion.

A Special Preferred Enterprise may be entitled, during a benefits period of 10 years, to a further reduced tax rate of 8 percent, or 5 percent if located in a peripheral zone.

Legislation, which became effective January 1, 2017, provides a new incentive regime for a Preferred Technological Enterprise. An enterprise that meets the requirements would be entitled to a reduced corporate tax on income related to its intellectual property of 12 percent, or 7.5 percent if located in a preferential zone. Dividend distributed to Israeli resident shareholders from the preferred income would be subject to 20 percent tax and, in the case of non-resident shareholders, subject to the receipt in advance of a valid certificate from the ITA allowing for a reduced tax rate, or 4 percent if distributed to a foreign corporation that holds solely or together with other foreign corporations at least 90 percent of the shares of the Israeli corporation. The Israeli tax on dividends may be further reduced according to an applicable treaty.

This legislation also provides that a Special Technological Preferred Enterprise is a Technological Preferred Enterprise that is part of an affiliated group with revenues, on a consolidated basis, of at least NIS10 billion and that such corporation would be entitled to a reduced tax rate on the IP-related income of 6 percent.

Tax holidays

Not applicable for this jurisdiction.

Tax rulings

On certain issues, taxpayers can file a ruling request to ask for the interpretation of a specific ruling issue by the tax authority. Companies with international activities are entitled to apply for a specific mutual agreement procedure (MAP) concerning international aspects (transfer pricing, permanent establishments and dividends /interests/royalties flows, also with respect to double tax treaties). Another special procedure is provided for companies that plan to invest not less than EUR15 million in Italy, in order to ascertain the tax consequences of an investment plan and/or the tax consequences of related extraordinary operations (eg, mergers, acquisitions). Furthermore, major companies (eg, with revenues exceeding EUR750 million) may enter into a cooperative compliance regime with the Italian tax authorities.

Tax incentives

A number of tax incentives has been introduced and enhanced over years, with a special attention to the so-called Industry 4.0 Plan and Transition 5.0. Among others, it is worth mentioning the tax credit for R&D expenses, and the tax credit on investments in certain business assets. Other special provisions are set out for small enterprises and investments in Southern Italy.

For FY 2025, corporate income tax (ie, IRES) rate can be reduced to 20 percent, instead of the ordinary rate of 24 percent, when certain requirements are met (mainly, not distribution of dividends and investments in Industry 4.0 Plan and Transition 5.0).

Tax holidays

Not applicable for this jurisdiction.

Tax rulings

The National Tax Agency provides a procedure for obtaining an advance ruling on the tax treatment of a completed or future transaction if the law at issue has not previously been clarified, but this process must occur before the tax return filing deadline for the tax period in which such transaction is carried out.

Tax incentives

There are various tax incentives for specific activities, including R&D credits and special depreciation rules.

Tax holidays

Not applicable for this jurisdiction.

Tax rulings

Luxembourg operates a system known as advance tax agreement (ATA) enabling taxpayers to request an advance tax decision from the Luxembourg tax authorities. An administrative fee will apply.

Advance tax agreements granted before January 1, 2015 were, according to the former practice of the Luxembourg tax administration, not limited in time. Such advance tax agreements became automatically null and void as from the end of the 2019 tax year.

Taxpayers relying on advance tax agreements granted before January 1, 2015 will benefit from the provisions of such agreements for the last time when filing their tax return for 2019. Henceforth, new advance tax agreement requests will have to be introduced in accordance with the new procedure which has been applicable since January 1, 2015. This new procedure already contains a 5-year validity period for advance tax agreements.

Tax incentives

Various incentive programs exist in Luxembourg in the areas of risk capital, audiovisual activities, environmental protection, R&D (experimental development, experimental development and cooperation, industrial research, industrial research and cooperation or fundamental research), intellectual property, professional training and recruitment of unemployed persons. Most of the incentives are granted as tax credit.

Intellectual property may benefit from the new Intellectual Property (IP) regime introduced in March 2018. The Luxembourg tax law provides for a partial exemption of 80 percent on the net income derived from eligible IP assets, as well as a 100 percent exemption from net wealth tax. Under this law, patents and copyrights on computer software, among others, are eligible assets for the preferential tax treatment. Eligible income that will qualify for preferential tax treatment includes net income from direct use, royalties from the granting of licenses or income from the sale of eligible IP assets. The IP activity of the company should be properly documented to demonstrate the link between the eligible IP assets and the related expenses. The taxpayer must also be ready to share this information with the Luxembourg tax authorities, if requested.

Furthermore, several incentive programs exist for certain entities: investment funds (which are subject to several exemptions), private wealth management company (Société de gestion de Patrimoine Familial or SPF) (which is exempt from Luxembourg taxation on income and NWT in Luxembourg), securitization companies (which are exempt of NWT), venture capital companies (Société d'Investissement en Capital à Risque or SICAR) (incorporated under a corporate form, the SICAR is subject to income tax at the normal rate with the benefit of an exemption on income and gains (eg, dividends, capital gains, liquidation proceeds, interest) under certain conditions) and shipping companies (which are not subject to municipal business tax and can benefit from investment tax credits and accelerated depreciation).

Tax holidays

In the past, there have been tax amnesty programs, generally when a new administration takes office. The last available program was in 2013.

Tax rulings

It is possible to obtain a private letter ruling from the Mexican tax authorities (Hacienda) on specific technical tax issues. Generally, private rulings are effective only during the tax year for which they are granted and only apply to the specific taxpayers that requested them.

Tax incentives

As of 2017, there is a tax incentive on research and development (R&D) activities, which consists of a credit of 30 percent for qualifying R&D expenses, aimed at encouraging investment in this area. A tax incentive is applicable to taxpayers that use diesel. There are also incentives for real estate investment trusts (ie, FIBRAS), movies, theater productions and high-performance sports. For 2023, tax incentives to exporters in certain industries are granted with an accelerated depreciation deduction in capital expenditures in certain fixed assets and/or the possibility of applying in the annual tax return of FY2023 to 2025 an additional deduction equal to 25 percent to the increase in training expenses for employees. These industries include:

“manufacturing or production of electric components, batteries, power cables, plugs, contacts, fuses and accessories for electrical installations, gasoline, hybrid and alternative fuel engines for cars, vans and trucks and electrical and electronic equipment, steering systems, suspension, brakes, transmission systems, seats, interior fittings and stamped metal parts for automobiles, vans, trucks, trains, ships and aircraft.”

In addition, during 2023, a Decree promoting investment by taxpayers who carry out productive economic activities within the Isthmus of Tehuantepec was granted, consisting of a tax credit equivalent to 100 percent of the income tax triggered in the fiscal year, during the first 3 fiscal years. Th tax credit will then be 50 percent of the income tax in the 3 subsequent years, or up to 90 percent in case the minimum employment levels are exceeded. A tax credit equivalent to 100 percent of the Value Added Tax (VAT) will be paid by taxpayers who carry out within the Isthmus of Tehuantepec the alienation of goods, the provision of independent services or the granting of the use or temporary enjoyment of goods. To persons who carry out productive economic activities within the territory, the tax credit can be applied for 4 years from the entry into force of the Decree. Immediate deduction of 100 percent of the original amount of certain investment of new fixed assets that they use in the Isthmus of Tehuantepec to carry out their productive economic activities is applicable during the first 6 fiscal years.

Tax holidays

Not applicable in Mozambique.

Tax rulings

In Mozambique, whenever a taxpayer is in a doubt in relation to the interpretation of the tax law and/or on the most secure way to apply it, they are entitled to approach the tax authorities and request a tax binding opinion. If the tax authority issues a ruling, it is bound by it, provided that the taxpayer has furnished the tax authority with complete and accurate information regarding the transaction to which the opinion relates for. General non-binding tax opinions are also available, though in practice taxpayers tend to use the binding opinions.

Tax incentives

Tax and customs incentives as well as other benefits – such as the right to import capital, export profits and re-export invested capital – are given to domestic and foreign private investments, whether by individuals or by legal entities, made in Mozambique under the Investments Law and Code of Fiscal Benefits. For certain areas like the extractive industry, there is a specific sector industry tax law with specific incentives.

Tax holidays

Not applicable for this jurisdiction.

Tax rulings

No broad-based general rulings are available as they are considered incompatible with international and EU standards. However, on an individual basis, taxpayers may request an advance tax ruling or advance pricing agreement from the Dutch tax authorities. The Dutch tax authorities’ advance ruling practice has been an integral part of the tax system for many years and contributes to the attractive business climate in the Netherlands.

Tax incentives

There are tax incentives for specific activities, including an IP box regime (Innovation Box) with a reduced effective corporate income tax rate on qualifying IP income of 9 percent, and a payroll tax credit for innovation, competitiveness and employment.

A special tonnage tax regime applies to shipping companies.

A 0 percent tax liability or full exemption is provided for qualifying investment funds.

Tax holidays

Not applicable in this jurisdiction.

Tax rulings

Companies may apply for a binding advance ruling concerning tax consequences on a future transaction. A binding advance ruling will last for 5 years, provided that the transaction is carried out within 3 years from December 31 of the year the binding ruling was issued.

Tax incentives

Limited research and development credits are available.

A Tonnage Tax Regime is available, which implies favorable taxation of qualifying shipping companies.

Tax holidays

Not applicable for this jurisdiction.

Tax rulings

The National Superintendency of Customs and Tax Administration (SUNAT) is responsible for administering all aforementioned taxes (eg, income tax and VAT, among others). Companies’ residency in Peru must be registered before the Peruvian Tax Administration (Taxpayer’s Registry) in order to carry out their activities.

The Tax Court is a specialized administrative tribunal, which depends on the Ministry of Economy and Finance, but is otherwise autonomous regarding its specific functions. Its mission is to rule over tax controversies that may arise between tax administration and taxpayers, by interpreting and applying the corresponding tax legislation, issuing mandatory observance jurisprudence, and establishing homogenous criteria that continue to support the progress of the tax system.

Finally, taxpayers are entitled to file an appeal before the Judiciary (Court) against resolutions issued by the Tax Court, but payment of the tax debt must be performed or guarantees must be provided.

Tax incentives

• R&D expenses

Expenses related to research and development (R&D) such as scientific research, technology development and technology innovation projects can receive an additional deduction for corporate income tax purposes. It must be noted that these expenses may or may not be related to the core business.

• Tax rate applicable to agricultural businesses

Individuals and corporations developing agriculture activities business (agro-industrial activities related to wheat, tobacco, oilseeds, oils and beer are not included) as well as individuals and corporations carrying out an agroindustry business outside Lima and Callao are subject to a corporate income tax rate of 15 percent until 2030; or 20 percent until 2024 and 25 percent from 2025 until 2027 depending on the entities income (under or over USD 2 million).

• Amazon regime

Taxpayers with domicile in the Amazon and carrying out certain activities (eg, agroindustry, tourism, aquiculture, fishing and forestall, among others) in such territory  could be subject to a corporate income tax rate of 0 percent, 5 percent or 10 percent depending on the specific activity and territory involved. In any case, all corporations domiciled in the Amazon are not subject to VAT in terms of the supply of goods and services carried out within the Amazon.

• Tax stability agreements

According to this regime, foreign investors and the local companies incorporated by them are able to sign Tax Stability Agreements with the government that freeze the current tax regimen that applied at the time the agreement is signed.

Only the income tax regime may be frozen.This includes income tax from the investor’s income (ie, their income tax on the distribution of dividends) and income tax from companies incorporated in Peru (ie, the income of the business income itself). Conversely, the Tax Stability Agreement excludes consumption taxes such as VAT and excise duties, among others.     

• Advanced recovery of VAT

Peru has implemented a special VAT regime that allows some taxpayers to recover, in advance, the input VAT that was charged in all its acquisitions.

Under this regime, companies that exceed certain threshold of investments and that are involved in investments projects of more than 2 years at the preparatory stage (among other requirements) could receive an advance payment of the VAT that was charged at the time of the acquisition of goods and services related to such projects.

• Higher depreciation rate in financial leasing contracts

With regards to the acquisitions of fixed assets in the context of a financial leasing contract, the tax law provides the chance to apply a higher depreciation rate in relation to the regular regime if certain conditions are met. 

• Preferential depreciation rates for buildings, construction and hybrid and electric vehicles

From 1 January 2023, Peru has implemented special depreciation regimes for taxpayers under the general income tax regime, and MYPE regime (regime for individual small and medium companies). Taxpayers are entitled to apply a maximum depreciation rate of 33.33% if (i) the construction has started as of 1 January 2023 and (ii) at least 80% of the construction is completed by 31 December 2024.  

On the other hand, taxpayers are entitled to apply a maximum annual rate of 50%, for hybrid and electric vehicles acquired in 2023 and 2024.

Tax holidays

Not applicable for this jurisdiction.

Tax rulings

Tax rulings are of a general or individual nature. Individual rulings are issued upon request within 3 months from filing of a request (the deadline for issuing individual tax ruling is extended to 6 months during the COVID-19 pandemic). Individual tax rulings may be requested by anyone who wants to confirm interpretation of tax provisions – not only by taxpayers, but also by potential shareholders, foreign investors or foreign entities considering starting business activity in Poland.

Tax incentives

There are tax incentives for specific activities or types of income, including relief for R&D activities, income from intellectual property (IP Box), relief for innovative employees, relief for robotization, relief for prototypes, relief for expansion, relief for corporate social responsibility, relief for initial public offerings (IPOs), relief for consolidation, notional interest deduction for retained profits and additional equity contributions, as well as investment incentives related to business activity carried out in special economic zone.

Tax holidays

Not applicable for this jurisdiction.

Tax rulings

No broad-based rulings are available. Taxpayers can request a private letter ruling that applies only to a specific issue.

Tax incentives

There are tax incentives for specific activities, including R&D expenses and deductions (eg Research and development (R&D) (Sistema de Incentivos Fiscais em Investigação e Desenvolvimento Empresarial or SIFIDE II), tax regime for investment support (Regime Fiscal de Apoio ao Investimento or RFAI), Pension funds, Investment Funds, including Real Estate Investment Funds (REIFs), and Sociedades de Investimento e Gestão Imobiliária or SIFI (with a regime akin to Real Estate Investment Trusts), Incentives to urban rehabilitation, Madeira International Business Centre (MIBC), Incentives on the capitalization of companies, Tax Incentive for Scientific Research and Innovation, etc.

Tax holidays

Not applicable for this jurisdiction.

Tax rulings

Taxpayers can request an individual tax ruling that applies only to a future fiscal situation. Taxpayers engaged in transactions with related parties may also request the tax authorities to issue an Advance Pricing Agreement (APA).

Tax incentives

There are tax incentives for R&D activities and for profits reinvested in technological equipment, computers and software.

Tax holidays

Tax holidays are available for particular projects (eg, Skolkovo).

Tax rulings

An individual ruling may be obtained by a taxpayer from the Russian Ministry of Finance with respect to a specific situation. Such tax rulings, where issued on the basis of full and complete facts and information disclosed, are technically binding for the tax authorities. However, in practice, the binding character of the tax rulings is often ignored by the authorities or courts. That said, if the taxpayer follows the recommendation expressed in such a ruling and the tax authorities disagree with this position and charge additional taxes, then the taxpayer will be exempt from tax fines and interest for the late payment of the tax.

Tax incentives

Tax incentives are available in relation to certain activities (eg, R&D, IT, manufacturing), for companies resident in the special economic zones, territories of advanced social and economic development, and investment projects in several Far Eastern and Siberian regions.

Regional authorities are no longer allowed to establish new reduced regional rates of the Russian profits tax. Accordingly, the application of regional low rates is now limited to the instances specified by the Russian Tax Code (eg, Special Investment Projects, Regional Investment Projects, special economic zones). The existing regional reduced tax rates introduced before January 1, 2018 will apply until January 1, 2023.

Previously, Russian regional authorities could grant tax incentives that reduced the regional portion of the corporate profits tax rate to no lower than 12.5 percent until 2020 for certain groups of taxpayers.

Russian tax law provides for special tax regimes for small and medium-sized businesses.

Special investment contracts (SPIC)

SPIC constitutes a new measure of governmental support aimed at stimulating investment in the establishment and modernization of industrial production in Russia at the federal and regional levels.

Under Federal Law of August 8, 2019, № 290-FZ, the legislation that had previously regulated this area was significantly changed, introducing a so-called SPIC 2.0 regime. Under a SPIC, the investor must implement a project involving the launch or development of a technology included on the List of Advanced Technologies, determined by the Russian Government.

The previous investment threshold of RUB750 million has been repealed, while the new regulation sets no minimum level of investment-project financing. However, the investor must finance the project at the level specified in the relevant SPIC. 

On the one side, the SPIC is concluded by the investor, and on the other, it is concluded jointly by the Russian Federation (the federal executive body authorized by the Russian government), the Russian constituent entity and municipality. The procedure for concluding a SPIC is established by the Russian government. In general, the SPIC is concluded with the investor(s) on the basis of open or closed competitive bidding for the right to conclude the contract.

The deadline for concluding a SPIC has been set at no later than December 31, 2030, while the effective term of a SPIC depends on the level of investments (no more than 5 years for investments of RUB50 billion or less, and no more than 20 years for investments of over RUB50 billion).

The profit tax benefit covered by the SPIC 2.0 regime has been left at the previous level, ie, the rate can be lowered all the way to 0 percent (rate levels are set by the relevant Russian constituent entity). However, provisions have also been made for the possible application of a preferential tax rate in those cases where proceeds from the sale of the goods manufactured within the scope of the SPIC account for less than 90 percent of total revenue (provided a number of conditions are complied with). At the same time, a number of additional restrictions have been introduced.

The new mechanism of SPIC 2.0 has not yet been fully implemented and requires certain sub-laws to be enacted before it becomes operational.

Tax holidays

 Not applicable for this jurisdiction.

Tax rulings

Taxpayers can apply for an advance ruling from the Singapore tax authority, the IRAS provided it concerns an interpretation of the law. Broadly, an advance ruling is a written confirmation from the IRAS of how a provision of the Income Tax Act applies to a specific taxpayer and a proposed arrangement. A non-refundable fee applies upon application for the ruling and a further hourly fee applies to the next 4 hours spent on the ruling. The ruling process should take approximately 8 weeks (expedited handling is possible). Rulings are final, binding and confidential.

As of May 1, 2019, and to enhance taxpayer’s understanding of the IRAS’s interpretation of tax law in specific scenarios, the IRAS publishes a summary of certain advance rulings (ie, a summary of the background, facts and issues raised in the application for advance ruling, as well as the ruling given) on its website. However, this publication is anonymous and subject to the taxpayer’s specific consent.

An advance ruling only applies to the applicant and the particular arrangement that was subject to the ruling request.

Under the new Section 10L of the Singapore Income Tax Act 1947 (ITA), taxpayers may apply for an advance ruling to seek certainty on the adequacy of the economic substance requirements (also known as ESR AR applications) when a proposed sale or disposal of foreign assets is expected to occur within 1 year from the application date.

Singapore participates in an internationally agreed framework for the compulsory spontaneous exchange of information in respect of rulings. Under the framework, Singapore will spontaneously exchange information on specified categories of rulings with certain jurisdictions (such as rulings relating to preferential regimes, certain transfer pricing rulings, permanent establishment (PE) rulings and related party conduit rulings).

Tax incentives

Singapore offers groups that set up a real economic presence in Singapore a wide range of economic and tax incentives, provided they satisfy the relevant conditions for the incentive. Such incentives can include tax exemption on certain items of income, a reduced tax rates (ie concessionary rates), withholding tax exemptions or GST remissions (among others). The areas in which tax incentives may be obtained range from R&D activities, financial sector activities, fund management, insurance, regional or global headquarters, trading and distribution, logistics and transportation, shipping, leasing, and manufacturing or services relating to high tech or innovative products. Each incentive comes with a set of conditions and substance tests which must be met. Some tax incentives are awarded for a specified number of years (generally 5-10 years), subject to renewal, provided incremental substance conditions are satisfied.

In addition, Singapore offers a Qualified Refundable Tax Credit (QRTC) that fits into the Pillar 2 framework, called the Refundable Investment Credit (RIC). The RIC is designed to incentivize businesses undertaking sizeable investments in high-value and substantive economic activities. The credits are to be offset against any tax, DTT or MTT levied on and other amounts due from the qualifying company, or refunded in cash.

Tax holidays

Not applicable for this jurisdiction.

Tax rulings

Taxpayers may approach the South Africa Revenue Service (SARS) for a binding advance tax ruling. However, SARS will not give a binding ruling on certain issues (eg, transfer pricing, general anti-avoidance or matters of a factual nature).

It is also possible to obtain non-binding opinions. 

Tax incentives

There are tax incentives for specific activities, including R&D deductions, renewable energy generation  and special economic zones.

Tax holidays and incentives

The corporate income tax exemption was effective on the application for foreign investments submitted on or before December 31, 2018, and it is abolished after January 2019.

Tax rulings

No broad-based rulings are available. Taxpayers can request a clear ruling with regard to a specific transaction of a taxpayer's business through the advance ruling system.

Cash grant

Effective from January 1, 2019, most tax incentives concerning corporate income tax and personal income tax for foreign investors nullified. To compensate this change, Korean government announced to dramatically increase cash grant in accordance with Foreign Investment Promotion Act. Cash grant should be provided by the central and local governments of Korea as matching fund basis.

Tax holidays

Not applicable for this jurisdiction.

Tax rulings

Rulings are available and they are binding for the Spanish Tax Authorities.

Tax incentives

There are several tax reliefs for the engagement in certain activities such as R&D credits, employment generation credits and incentives to the film industry.

Tax holidays

Not applicable for this jurisdiction.

Tax rulings

Companies may apply for a binding advance ruling concerning a specific tax question with the Swedish National Board of Advance Rulings. The Swedish Tax Agency offers written tax guidance for a specific question.

Tax incentives

Key foreign employees may, during a 7-year period, qualify for a 25 percent reduction of the taxable portion of their income when working in Sweden.

Tax holidays

On a federal level, the confederation may provide incentives by way of tax reductions to enterprises which establish themselves in certain areas of the country that are economically underdeveloped. In addition, federal aid may be granted as security on commercial loans or as a contribution to the payment of interest on such loans.

Tax incentives

On a cantonal level, business incentives may be granted for cantonal and communal income tax purposes in connection with new business activities in the canton. Business incentives may be obtained for creating a new presence which has particular economic interest for the canton. The new business activity additionally must not be in direct competition with existing local businesses. Lastly, and perhaps most importantly, business incentives are generally granted in connection with the creation of new local jobs. The number of jobs that must be created to benefit from business incentives is generally quite low (eg, beginning at 10 to 20 jobs in most cantons). Business incentives are obtained by negotiation with the competent cantonal authorities. Incentives may include up to a full or partial 10-year tax holiday on a cantonal/communal level as well as low-interest loans on new buildings and easy access to work permits.

Furthermore, as part of the implementation of the corporate tax reform that entered into force on January 1, 2020, Switzerland abolished its tax privileged regulations – in particular, the holding company, the mixed company, domiciliary company, principal company and finance branch regimes that have been considered harmful by the OECD. These regimes have been replaced by new, internationally accepted measures. The key substitute measures for corporate taxpayers are:

• Reduction of general tax rates, whereby the majority of the cantons now have an ETR (ie, the effective combined federal-cantonal-municipal rate) between 12 and 14 percent for all companies.

• Introduction of a cantonal patent box system based on the modified nexus approach of the OECD, with tax relief for qualified income of up to 90 percent.

• Introduction of an R&D super deduction at cantonal level of up to a maximum of 150 percent of the effective qualifying expenses.

• Increase of the asset base when a company or its activities and functions migrate to Switzerland.

The expiry of the special tax regulations is subject to transitional regulations, which should make it possible for companies who benefited from such regulations to increase their tax values from before 2020 through a special release mechanism of "hidden reserves" for 5 years after the expiry of January 1, 2020. This depends on the specific facts and circumstances of the companies.

Tax rulings

Tax rulings are available for almost every aspect of taxation, and Switzerland is not subject to EU state aid rules. Under the OECD base erosion and profit shifting project, Switzerland also committed to spontaneous exchange on tax rulings for certain cross-border tax rulings (ie, rulings on preferential tax regimes, cross-border transfer pricing rulings, unilateral downward adjustment rulings and tax residency or PE rulings).

Tax holidays

Not applicable for this jurisdiction.

Tax rulings

A taxpayer may apply to the tax authorities for advance tax rulings to clarify its tax issue or confirm its tax position.

Tax incentives

Taiwan offers certain tax incentives in order to promote economic development in certain industries, especially in R&D investments. Certain tax incentives are provided to investors if they are located in prescribed areas such as science parks, bonded zones and free-trade zones.

Tax holidays

Not applicable for this jurisdiction.

Tax rulings

It is possible for taxpayers to request an advance ruling on the tax treatment of specific transactions.

Tax incentives

There is a wide range of tax incentives for certain investments with incentive certificates. Reductions on corporate tax rates, governmental support for income tax for wages, exemptions on the value-added tax and customs duty as well as refund support on value-added tax are among those incentives. The said incentives may differ based on the relevant investments' sector, scope and size. 

Tax holidays

A 0-percent tax rate is applicable to small companies declaring gross annual income below UAH3 million and that pays wages to each employee which exceeds 2 minimal statutory wages, under the following conditions:

• A company is newly established
• Such company declares gross annual income below UAH3 million and has 5 to 20 employees on average for 3 consecutive years

Tax rulings

Tax rulings (ie, tax consultations) are generally of 2 types:

• Generalized 
• Individual

Generalized tax consultations are issued by the Ministry of Finance and provide guidance on most problematic issues.

Taxpayers may also request an individual tax ruling applicable to their individual case.

Taxpayers who act in accordance with a generalized and/or individual tax ruling may not be imposed with sanctions. Tax consultations issued by tax authorities may be contested by a taxpayer in the court.

Tax incentives

There are tax incentives envisaged for certain businesses (eg, for companies established by organizations of people with disabilities and companies financed via international technical aid).

The UAE has a large number of Emirate-instated Free Zones where the usual mainland foreign ownership restrictions do not apply. Entities registered in the Free Zones are not liable to pay tax at the Emirate level for a specific period. Free Zone entities may either be exempt from tax or subject to a 0-percent tax rate, depending on the regulations in the specific Free Zone.

Tax holidays

Not applicable for this jurisdiction.

Tax rulings

No broad-based rulings are available. On certain issues, taxpayers can request a private letter ruling that applies only to the specific issue.

Tax incentives

There are tax incentives for specific activities and behaviors, including R&D credits and enhanced deductions for expenditure on certain types of environmentally friendly installations or for investment in economically deprived parts of the UK. Tax incentives are also available  for investments in freeports. The patent box regime offers a reduced effective 10 percent rate of corporation tax for income from certain IP which is developed or managed in the UK. There are capital allowances at different rates on various items of machinery and plant and a 3 percent allowance on building costs involved in constructing new commercial buildings.

Tax holidays

Not applicable for this jurisdiction.

Tax rulings

An industry issue resolution may be requested to provide generally applicable guidance on frequently disputed or burdensome business tax issues affecting a significant number of taxpayers. Pre-filing agreements may be requested by a taxpayer for a transaction already executed, prior to filing the applicable year's tax return. Advance pricing agreements may be available to address transfer pricing on future transactions between related parties. A taxpayer may also request a private letter ruling for guidance on specific issues as to that specific taxpayer.

Tax incentives

Tax incentives exist for specific activities and include R&D credits and deductions for certain US production activities. US corporate taxpayers earning foreign-derived intangible income (FDII) may qualify for a reduced effective tax rate on such income. Property acquired and placed in service may qualify for 100-percent bonus depreciation deduction in the year of acquisition.

Tax holidays

Tax holidays are normally made available as part of a broad range of tax incentives. These tax incentives are normally provided to investors, particularly those with a qualifying degree of export orientation, or those who engage in Public Private Partnerships with the Government of Zimbabwe.

Tax rulings

It is possible to obtain advance rulings from the Zimbabwe Revenue Authority (ZIMRA) on the tax treatment of a contemplated transaction or receipt of income.

Tax incentives

Tax incentives exist for certain categories of corporate entities through initiatives such as having a project certified as having National Project Status and through certifying of certain areas as Special Economic Zones.