Tributario
The Supreme Court makes an unexpected change to the legal treatment of executive directors’ compensation
In its judgment of February 26, 2018, the Supreme Court modified the interpretation given by most experts and authorities and by the Directorate-General of Registries and the Notarial Profession in its decision dated June 17, 2016, ratified by the Barcelona Provincial Appellate Court in its decision 295/2017 of June 30, 2017, on the regulation of executive directors’ compensation.Deferral of withholding tax on distributed profits re-invested by foreign investors for direct investment in China
China is experiencing a certain decrease in foreign investment resulting, amongst other reasons, from the increasing labor and other costs. The State Administration of Taxation, the Ministry of Finance, the Ministry of Commerce and the National Development and Reform Commission, have jointly launched a new tax preferential policy for overseas investors, Cai Shui (2017) No. 88, Circular on Policy Issues concerning Temporarily Not Levying the Withholding Tax on Distributed Profits Used by Overseas Investors for Direct Investments in order to boost the economy, further encourage foreign investments, and promote continuing operations within China on a long-term basis. The new tax policy allows the foreign investors to temporarily defer the withholding taxes on distributed profits that are re-invested directly into China, if certain conditions are met.Major taxpayers obliged to issue electronic invoices
A new ruling by the DIAN, no. 010 dated February 6, 2018, requires major taxpayers - i.e. those classed as such pursuant to ruling no. 076 of 2016 - to issue electronic invoices in accordance with the provisions of decree 2242 of 2015. The tax authorities will be able to enforce compliance with this obligation as from September 1, 2018.Garrigues bolsters its tax practice in Brazil with the incorporation of Daniel Dix
Daniel Dix has more than eighteen years’ tax experience, most recently as a partner of PricewaterhouseCoopers (PwC). Daniel is a renowned expert in the area of indirect taxation and has participated in major transactions and advised large companies in a wide range of sectors, particularly the energy sector.New regulation will allow the disposal of pension funds after 10 years, before retirement
On February 10, 2018, the Official State Gazette published Royal Decree 62/2018, of February 9, 2018, amending the Regulations on the funding of companies’ pension commitments with workers and beneficiaries, approved by Royal Decree 1588/1999, of October 15, 1999, and the Pension Plan and Fund Regulations, approved by Royal Decree 304/2004, of February 20, 2004.