The Budget theme of Transform, Energise and Clean India (TEC) aims to address issues with several core areas such as rural growth, poverty alleviation, infrastructure development and corruption while showing the government’s commitment towards prudent fiscal management and tax administration. The Finance Minister has done an exceptional job in maintaining the fiscal deficit at 3.2% of the GDP despite increased spending on the rural economy and infrastructure developments to spur economic growth in the backdrop of demonetisation.
We are pleased to present the January issue of SKP Global Updates – our newsletter that covers employment, payroll, Goods and Services Tax (GST)/Value Added Tax (VAT) and corporate tax related developments globally. The key highlights of this issue include changes in the withholding tax rate in Nigeria, requirement for nonresident investors to obtain tax identification number in Argentina, new withholding tax obligation in Brazil, rates of social security contribution and Employment Insurance (EI) premium for 2017 in Canada, amendments in Thai labour regulations and new obligations for large companies in the Czech Republic.
Recently, the Central Board of Direct Taxes (CBDT) has notified several amendments in the Articles and Protocols of the India–Israel tax treaty. The revised tax treaty shall be enforced from 1 April 2017. The key takeaways from the revised treaty are as follows: 1. Insertion of Limitation of Benefit (LOB) Article: The LOB Article has been inserted to restrict the tax treaty benefits if the principal purpose test is not...