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The article presents information on the impact of Mexico's new tax system on taxpayers in the country. After many years trying to raise tax collections in Mexico without significant success, Mexico's recently elected president, Felipe Calderon, was able to pass an innovative tax reform which includes the creation of a new tax regime intended to broaden the scope of the pre-existing income and asset tax system through the introduction of a "flat" tax as an alternative minimum tax, bringing in a set of new strict rules that are increasing tax revenues already. The unique features of Calderon's first comprehensive budget for 2008 include the new Flat Rate Business Tax and a new Tax on Cash Deposits (IDE), which will impose a tax of 2% on cash deposits made in Mexican bank accounts.

The article investigates the relevance and effectiveness of flat taxes in Europe. For many Eastern European countries, tax legislation is a comparatively new concept and for years they looked to advanced tax regimes such as those in Western Europe and the U.S. for ideas and ways to develop. In 1994, Mart Laar, as Estonian prime minister, swept aside precedents of progressive systems and introduced a flat tax system in the country. A former history teacher, Laar has admitted to having little understanding of what the system would do for the former soviet jurisdiction when he announced it, but he was no doubt thrilled to watch as the country's economy was revolutionised.

The article deals with the tax system in Mexico. The country's tax reform for the fiscal year 2007 included some amendments aimed at improving the collection of taxes, such as limitation to use net operating losses attributable to prior changes in ownership, stricter provisions on back-to-back loans, and no deduction of debts from the asset tax (AT) basis. According to the National Development Plan 2007-2012, tax reforms should be focused on establishing a sustainable development for the country. The Executive Branch submitted on June 20 2007, the 2008 Tax Bill to Congress, which contains among other reforms the new CETU flat tax. The flat tax rate would be 19% and it would be applied on a cash basis.

The article discusses the provisions of the Chinese Enterprise Income Tax Law. Under the law, income tax rates, deductions and preferential income tax policies and tax laws for local, foreign-invested and foreign enterprises will be unified. A 25 percent tax rate will be applied for all enterprises. The law also applies a withholding tax rate of 20 percent, offers preferential rates for certain types of enterprises and provides transitional rules for favorable tax rates for foreign-invested enterprises tax rates.

The article reports on a tax treaty signed between Mexico and Uruguay on August 14, 2009. The validity of the treaty covers the last exchange of the instruments of ratification and in force from January 1 of the subsequent year. Among the clauses of the treaty are coverage of Mexican income tax and flat tax and Uruguayan income taxes, social security tax and net wealth tax. The competent authorities of the two countries should come to an agreement if an individual's country of tax residence remains unclear.

The article reports on a new protocol to the Mexico-Great Britain tax treaty signed by Mexican and British authorities. There are several relevant changes set by the protocol, one of which is the coverage of the Mexican flat tax which replaced the asset tax. Also under the protocol is the income tax withholding at 15 percent for some dividend or profit distributions paid by real estate investment trusts. Changes were also made to exchange of information and regulation of mutual assistance for collecting unpaid tax liabilities.

The article reports on an income tax treaty signed by Mexico and Barbados on April 7, 2008. The treaty covers the Mexican income tax and the Barbadian income and corporation tax. According to Mexico's tax authority press release, Barbados is among the countries that have agreed to consider the new Mexican flat tax as a covered tax in the respective treaty. Under treaty provisions, for activities related to construction, perforation and exploration a permanent establishment (PE) would be deemed to exist when such activities exceed a six month period. Like in other treaties Mexico has in force, dividend distributions, royalties and interest payments benefit from lower tax rates. Attention must be given to limitation of benefits (LOB) provisions to qualify for treaty benefits.

The article discusses why Albania is an attractive market for businesses and investors. Since 2008, Albania has been implementing a flat tax of 10%. In collaboration with the local banks, the Albanian tax administration is working to implement electronic payment (e-payment). The e-payment will enable taxpayers to save on time. The tax system in the country also does not discriminate foreign investors. The government also streamlined the licensing procedures for businesses.

The article discusses some of the provisions of a tax treaty between Mexico and Ukraine signed on January 23, 2012. The treaty covers the Mexican flat tax in addition to the income tax. It provides a definition of a permanent establishment (PE) and imposes a withholding tax of five percent on the gross dividend payment. Moreover, the treaty includes a withholding tax rate of 10 percent on royalties and a tax on the sale of shares of a company and other capital gains derived from the sale of shares.

The article looks at changes in the enforcement of corporate income tax (CIT) in Poland in 2012. It highlights the calculation of foreign exchange differences for CIT purposes. It discusses the application of flat rate taxation to foreign brokerage institutions. The role of Polish tax authorities in the collection of CIT is noted. In addition, the article presents the value-added tax (VAT) rate on the supply, intra-community supply and import of some products. An increase in the maximum real estate tax rates is also indicated.

The article discusses the new tax treaty that was signed by Mexico with Hungary on June 24, 2011. It says that the treaty covers corporate and personal income tax for Hungary and income tax and flat tax for Mexico. Based on the protocol of the treaty, pension funds should be regarded as a resident of a contracting state. The definition of permanent establishment (PE), the maximum treaty withholding tax (WHT) on dividends and the capital gains obtained from the sale of shares or other comparable goods are also discussed.

The article reports on a tax treaty signed between the national governments of Kuwait and Mexico in April 2011. It says that the treaty covers various taxable instruments such as the Mexican flat tax vehicle and corporate dividends. It also mentions about the limitations of withholding tax on interest payments such as 4.9 per cent on the total amount of the interest settled to financial institutions like banks and 10 per cent in all other cases. The author also offers an overview of the implications of the treaty on the way taxpayers define royalties.

This article looks at the tax agenda of the government of Mexico for 2011. It highlights a proposed tax bill discussed by the Mexican Congress. It expects changes to the country's income tax law and flat tax rules. The article advises the Mexican Ministry of Finance to submit a study to the Congress on the feasibility of repealing the income tax law.

The article reports on an income tax treaty signed by Colombia and Mexico aimed at reducing tax burden, preventing double taxation, and enhancing the economic welfare of both countries. Among the important provisions included in the treaty are the special coverage of the Mexican flat tax by the treaty and the 10 percent applicable withholding tax rate. Also included in the treaty is an anti-abuse article intended to limit the benefits in certain cases and aims to discourage taxpayers from abusing it.

The article reports on Macedonia's adoption of a low-tax scheme. The Macedonian government has launched a television advertising campaign in Great Britain in 2007 that highlighted the low-tax scheme offered by the country despite the unpopularity of low-tax, light regulation jurisdictions. A 12% flat tax on personal income and profits is also being implemented in Macedonia.

The article reports that on September 14, 2007, the Mexican Congress approved this sui generis tax called new flat tax Impuesto Empresarial a Tasa Unica (IETU), which will be effective from January 1, 2008. The existing Asset Tax will be repealed when the new flat tax is enacted. The new flat tax rate is 17.5%, 16.5% in 2008 and 17% in 2009. It will be applied on the taxable basis for IETU purposes, which consists of the difference between some authorised cash deductions and taxable income actually collected, that is, sale of assets, the rendering of independent services and rental of property.

Reports on a flat-rate tax system proposed by Poland's Finance Ministry for corporate tax, value-added tax and individual income tax in the country. Advantages of the proposal; Actions to be taken by Poland in order to reach the level of tax simplification achieved by Slovakia; Reaction of some European Union members to the implementation of flat rate taxes in other European countries.

Reports on the reduction of corporate tax rate in Saudi Arabia. Percentage of reduced flat tax rate for foreign investors and companies; Reason for reducing the tax rate; Expectation on the benefits of the tax reduction.