Marcum’s Financial Institutions Services Group Blog is dedicated to staying up-to-date on news, events and regulatory changes impacting the banking and credit union industries. For questions or further information, please contact Brenda J. DeCosta, assurance partner in our Boston office and the Regional Leader of Marcum’s Financial Institutions Services Group.
Noteworthy International Tax Developments
Posted on - Tuesday, March 01, 2011
Mexico: In December 2010, Mexico issued a new decree impacting maquiladora operations by revising the definition of a maquiladora eligible for benefits under the IMMEX regime. The decree provided some helpful clarifications, but also imposed more stringent requirements for newly established (post-2010) maquiladora’s.
- Japan: Proposed 2011 tax reform in Japan would reduce corporate tax rates by approximately 5%, effective for years beginning on or after April 1, 2011. As a revenue offset, the proposed reform would limit certain deductions and credits, including net operating loss carryforwards.
- Hungary: Hungary recently enacted tax legislation that reduced the corporate tax rate from 19% to 10% beginning in 2013 and also eliminated withholding taxes for interest, royalties and service fees.
- Puerto Rico: Puerto Rico just enacted a new income tax code that, among other changes, reduces the corporate tax rate from 39% to 30% and provides flow-through tax treatment for partnerships.
- Canada: The federal corporate tax rate in Canada was reduced to 16.5% for 2011.
- Malta: The U.S. - Malta income tax treaty entered into force in November of 2010.
- Former Dutch Antilles: The Netherlands Antilles was dissolved in October of 2010 and, with it, its tax regime.