[World Tax News] China Reduces Stamp Duty on Securities Transactions to Boost Investor Confidence and More

Editorial Team – [2023] 154 taxmann.com 24 (Article)

World Tax News provides a weekly snippet of tax news from around the globe. Here is a glimpse of the tax happening in the world this week.

1. China reduces Stamp Duty on Securities Transactions to boost investor confidence

China’s Ministry of Finance and State Administration of Taxation have jointly issued Announcement No. 39 of 2023,introducing a noteworthy change in the stamp duty rate for securities transactions.

The concise announcement states that, with the aim of revitalizing the capital market and fostering investor trust, the stamp duty on securities transactions will be cut in half, effective from August 28, 2023. This reduction entails a decrease from 0.1% to 0.05%. While the announcement doesn’t specify an expiration date for this reduction, it does acknowledge the possibility of future adjustments.

Source: Announcement No. 39 of 2023

2. Portugal Enacts Public Country-by-Country Reporting

Portugal has officially introduced Decree-Law No 73/2023, dated August 23, 2023, via the Official Gazette. The decree-law outlines the adoption of public Country-by-Country (CbC) reporting in accordance with Directive (EU) 2021/2101. It sets a public reporting threshold of annual consolidated revenue, requiring entities to meet or exceed EUR 750 million in each of the last two consecutive fiscal periods (years).

The report shall include, among other information, the name or corporate name of the ultimate parent undertaking or the autonomous undertaking, the reporting period concerned, the currency used for reporting and a brief description of the nature of its activities.

The reports must be made available on the reporting company’s website within 12 months following the end of the fiscal period. They should be accessible free of charge, presented in the language used for the financial statements, and at least one official language of the European Union. The Decree-Law contributes to greater scrutiny by financiers, investors, suppliers, customers, workers and civil society in general over income taxes borne by multinational companies operating in the European Union, particularly in Portugal.

Failure to prepare, publish or make available on the website of the income tax information report shall be punishable by a fine of between € 1500 and € 30 000. This Decree-Law enters into force on August 24 and takes effect for periods beginning on or after June 22 2024.

Source: Decree-Law No 73/2023