COVID-19: Tax modifications at the international level

The latest legislative and tax developments in the international arena due to COVID-19

The expansion of the Coronavirus at an international level has caused various modifications to be made both in the legislative and judicial spheres. At B Law & Tax we review the latest tax developments introduced in the countries most affected by the virus to support investment and protect the economy.

Firstly, India published the 2020 budget law on April 1st, which expands the taxable fact of the digital services tax. In addition, online advertising services may be taxed at a rate of 6% or any electronic commerce operation of non-resident entities at 2%. In the case of the tax on dividend distributions, this will be replaced by the tax at the shareholder level via withholding.

The territory of Norway is studying the possibility of introducing a 15% withholding on payments between related parties. However, the public consultation period does not expire until May 27th. In the case of Colombia, the country's DIAN has published a consultation clarifying the impact of the Agreement to avoid double taxation between Colombia and the United Kingdom regarding the most-favored-nation clause.

Finally, Spain has presented its draft law on the tax on certain digital services and the tax on financial transactions. Also included is the resolution published by the General Directorate of Taxes in relation to the characteristics that a non-resident entity must have in order to be considered as an entity under income attribution regime.

 B Law & Tax
International Tax & Legal Advisors

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Tags: international taxation, Taxation, Coronavirus, General Directorate of Taxes, Judicial, Budget Law