Ecovis in Singapore

Ecovis cooperates with Taurus Corporate Finance

We welcome our new partners from Taurus Corporate Finance headquartered in Deventer.

Ecovis cooperates with Taurus Corporate Finance a Netherlands based Corporate Finance firm. Taurus Corporate Finance was established in 2011 as a merger of the M&A-activities of our existing Dutch partners from ECOVIS BonsenReuling and a consultancy firm. Mark Eenink was the first managing partner and founder of the firm. Nowadays he is supported by three further managing partners. Taurus Corporate Finance has a total staff of 12. Taurus Corporate Finance provides services in the following consulting fields:

• M&A Consultancy
• Business Valuation
• Restructuring & Recovery
• Corporate finance
• Debt-advisory

We warmly welcome our new colleagues from the Netherlands to the Ecovis family!

Made in America Tax. More U.S. Tax Reform Planned.

Around USD 2.2 trillion is to be invested in infrastructure projects in the US and USD 1.8 trillion will be made available for families. That is set out in the “American Jobs Plan” proposed by US President Joseph Biden.

The infrastructure plan would be funded through proposed corporate tax increases, including changes to international components of the 2017 Tax Cuts and Jobs Act (TCJA), while the families plan would be funded by increases to individual taxing provisions.

Proposals for Counter-Financing the Planned Additional Expenditure

The Made in America Tax Plan (the “Plan”) addresses how to fund the costs of the infrastructure proposals. The plan alters and adds to TCJA tax provisions in order to increase tax revenues. Changes to the Global Intangible Low Tax Income (GILTI) provisions, the anti-deferral regime applicable to US shareholders of certain foreign corporations, would eliminate certain exclusions and deductions in computing GILTI income. Moreover, GILTI liability would be calculated on a per-country basis, ending the ability of taxpayers to net losses with profits between entities in different countries with disparate tax rates, explain the advisers from Marcum LLP. Coupled with the proposed 28% corporate tax rate, the GILTI minimum tax rate would essentially be increased from 10.5% to 21%.

Contact us if the proposed tax changes affect you.

Douglas Nakajima, International Tax Co-Leader, Marcum LLP*, Philadelphia, USA

The plan would also repeal the Foreign Derived Intangible Income deduction (FDII) created under the TCJA, effectively eliminating a tax benefit for US corporations serving non-US clients.

Taxation of Multinational Corporations

Finally, the plan would also replace the current Base Erosion & Anti-Abuse Tax (BEAT) provisions, with an enhanced corporate minimum tax consistent with the OECD/G20 objective of implementing a global minimum tax when multinationals with offshore affiliates are taxed below a minimum tax rate. The plan seeks to disallow deductions for the offshoring of production and put in place strong guardrails against corporate inversions.

The proposals will almost certainly be subjected to major amendments before they approach the level of support needed for passage, as we are at the beginning of the legislative process. However, some form of virtually all these proposals can be expected to find their way into US tax law. Taxpayers with multinational operations and their advisors need to be ready to respond to any changes, explain the Marcum LLP experts.

For further information please contact:

Douglas Nakajima, International Tax Co-Leader, Marcum LLP*, Philadelphia, USA
Email: douglas.nakajima@marcumllp.com

* Marcum LLP is the exclusive associated partner of ECOVIS International for accounting, tax and audit in the United States of America.

Croatia Tax: Change of Submission Deadlines for Tax Returns and Annual Financial Statements

The Croatian Ministry of Finance has extended the deadline for filing corporate tax returns. This should provide relief for those companies affected by the corona pandemic.

The COVID pandemic has resulted in operating difficulties for many companies throughout the Croatian economy. To facilitate the process of final accounting controls and the preparation of annual financial statements in these specific circumstances, the Croatian Ministry of Finance has amended the “Rules on the Implementation of the General Tax Law” and extended the deadline for the submission of corporate tax returns.

Corporate Tax Return (Form PD)

The corporate tax return for the period running from 1 January 2020, or from any date in 2020, must be submitted to the Tax Administration no later than 30 June 2021. The same submission period will also apply to other forms/statements which supplement the corporate income tax return (e.g., Form PD-IPO, Form OPZ-STAT-1, Form TZ 1).

It should be noted that the extension of the deadline will not apply to taxpayers whose tax period does not correspond to the calendar year, or whose obligation for submitting the corporate tax return is not due for four months after the expiration of the tax period, explain the Ecovis experts. The deadline for the payment of corporate income tax and other public charges is 30 June 2021.

Although the deadline for filing the corporate tax return has been extended, you should discuss this with your advisers in good time.

Kristijan Novak, Head of Accounting, ECOVIS FINUM, Zagreb, Croatia

Annual Financial Statements for Statistical Purposes and Public Disclosure

Under the “Rules on the Deadlines for the Submission of Financial Statements and Accounting Records in Specific Circumstances”, the annual financial reports for statistical and other purposes must be submitted by 30 June 2021, while the financial reports for the purposes of public disclosure must be submitted by 31 August 2021. Taxpayers whose fiscal year corresponds to the calendar year may send these reports simultaneously by 30 June 2021. Entrepreneurs who are subject to consolidation must submit annual consolidated financial statements by 31 October 2021.

Even if the deadlines for these declarations have changed, the Ecovis advisors recommend that they are completed before the statutory deadline. The taxpayer may autonomously and independently submit the corporate tax return and the annual financial statements to the Croatian Tax Administration and the Financial Agency respectively, or this may be done on the taxpayer’s behalf by a proxy using a digital certificate.

For further information please contact:

Kristijan Novak, Head of Accounting, ECOVIS FINUM, Zagreb, Croatia,
Email: k.novak@finum.hr