Tax Updates: Discover the Latest Changes in Motor Vehicle Taxes and Corporate Tax Rates
Changes in Motor Vehicle Tax and Corporate Tax Rates
[Q] What are the proposed changes in motor vehicle taxes and corporate tax rates? [A] The proposed changes include an additional motor vehicle tax for vehicles registered in earthquake-prone areas and exemptions for those affected by earthquakes. The corporate tax rate is expected to increase from 20% to an unspecified higher rate.
[Q] How will the motor vehicle tax be implemented?
[A] The motor vehicle tax will be payable in two installments, with the first installment due in the month following the law’s implementation and the second in November.
[Q] What exemptions will be abolished in corporate tax?
[A] Certain exemptions related to property sales, such as holding immovable property for more than two years and the corresponding VAT exemptions, will be eliminated.
[Q] When will these changes come into effect?
[A] The implementation of the new rates is expected to start from October 2023 for tax declarations made after that date. The revised rules for partial demerger will come into effect on January 1, 2024.
[Q] How will these changes affect businesses?
[A] The changes in corporate tax exemptions may have significant economic consequences, particularly in the real estate market and business practices related to property sales. Companies should consider the implications and adjust their tax planning strategies accordingly.
[Q] Are these proposed changes finalized?
[A] The proposed law is currently under discussion and has not been enacted yet. The final outcome may be subject to further amendments or approvals.
[Q] What other changes are mentioned in the proposed law?
[A] The proposed law also includes an increase in the President’s authority to determine special consumption tax rates and environmental contribution fees.
[Q] When will we have more updates on these proposed tax changes?
[A] Stay tuned for further updates as the legislative process progresses and the proposed law undergoes further discussions and approvals.
These proposed changes in motor vehicle taxes and corporate tax rates aim to address economic and social impacts caused by earthquakes. As the legislative process continues, more updates will be provided regarding the implementation and implications of these changes.