Draft law plugs tax loop­hole

The Star Early Edition - - INTERNATIONAL -

CHAN­CEL­LOR An­gela Merkel’s cab­i­net is ex­pected to ap­prove a mea­sure to­mor­row to close a tax loop­hole used by for­eign firms op­er­at­ing in Ger­many, ac­cord­ing to leg­is­la­tion drafted by the fi­nance min­istry. The leg­is­la­tion, which would still need ap­proval by the Ger­man par­lia­ment, is ex­pected to take ef­fect next year and re­sult in €30 mil­lion (R435m) in ad­di­tional in­come for Ger­many. The leg­is­la­tion calls for tight­en­ing rules that al­low de­duc­tion of cer­tain in­ter­nal ex­penses to dis­cour­age firms from trans­fer­ring patents, li­cences, con­ces­sions and mar­ket rights to other coun­tries that ei­ther ap­ply low taxes or none at all. – Reuters

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