On 5 May 2020, the General Department of Taxation (“GDT”) issued a guideline on the value added tax (“VAT”) treatment of business asset disposals. The guideline specifies the following three points with regard to VAT on business asset disposals: Where the input VAT on a business asset was allowed as a tax credit, the subsequent […]

When applying Value Added Tax (“VAT”), a key consideration is the place of delivery of the goods or services, which is often determined by reference to the place of consumption. If goods are consumed outside of the territory, then they are considered to be export goods, and 0% VAT is usually applied. Likewise, services consumed […]

On 11 April 2019, the Ministry of Economy and Finance issued Circular 003 to confirm the tax treatment of seniority payments introduced by a 2018 amendment to the Labor Law and the issuance of Prakas 443 in September 2018. One of the many uncertainties that had been identified since the introduction of seniority payments as […]

On 3 August 2018 the Ministry of Economy and Finance issued Prakas 741, entitled “Rules and Procedures for the Implementation of Tax on Income and Other Taxes Related to the Cut, Make and Trim Activities of Qualified Investment Projects”. On 6 September 2018 the General Department of taxation (“GDT”) issued Notification 12802, entitled “Textile and Garment Enterprises’ Voluntary […]