In these articles PwC tax partners share their insights into some of most important tax developments in their country and region. Value Added Tax (VAT) is currently a hot topic in the Middle East, where it is due to be introduced in the United Arab Emirates and the Kingdom of Saudi Arabia in 2018, and in India where a new Goods and Services Tax was introduced in 2017. In Serbia and Namibia, there are have recently been considerable improvements in digital technology for taxation, but there is still more that could be done. The Chinese tax authority has made significant changes not just to electronic systems for administering taxes, but also to the culture of the tax authority and the way it interacts with taxpayers. Finally, in Argentina there has been an increase in the use of technology for tax compliance and a new tax reform bill came into effect in 2018.
The Federal Administration of Public Revenue (AFIP) in Argentina has made good progress in automating the processes to speed up compliance for taxpayers; the time to comply has fallen considerably between 2009 and 2016 and the simplification of many other information systems is underway. The recent comprehensive tax reform bill has introduced a number of important changes to the tax system with a view to gradually harmonising federal and provincial taxes . Read more about the details of the reform package and how the country can take advantage of the digitalisation of tax compliance.
The Chinese State Administration of Taxation (SAT) has been working hard to establish a modern tax administration system. As a result they have introduced wide ranging changes to the structure of the tax system, to the technology used by both taxpayers and the SAT, and to the culture of the SAT. These changes have helped to reduce the time to comply by 75% between 2004 and 2016. Read more about how the SAT has harnessed technology to optimise taxpayer services.
Paying Taxes 2018 - Pg 52 of 112; PDF, 6.7mb
India introduced Goods and Services Tax (GST) from 1 July 2017. Prior to the introduction of GST, India had a very complex indirect tax structure with multiple Central and State levies, administered by different authorities and with different tax rates. All these taxes have now been subsumed into a GST levied on the event of ‘supply’ of goods or services. We consider the political, administrative and technological hurdles that had to be faced in the process.
Paying Taxes 2018 - Pg 54 of 118; PDF, 6.7mb
The Middle East
Implementing a VAT system across the six Gulf Cooperation Council States in two years is an ambitious undertaking. We look at the progress that has been made to date in introducing laws and regulations and consider the remaining challenges that taxpayers and tax authorities will have to resolve to make the introduction of VAT in the region a success.
Paying Taxes 2018 - Pg 56 of 112; PDF, 6.7mb
The Namibian Inland Revenue Department migrated to an Integrated Tax Administration System at the end of 2016 and it is anticipated that new functions and reporting capabilities will be afforded by the new system. We consider how this system, along with other advances in technology, could benefit taxpayers, the tax authority and ultimately the growth and development of the economy.
Paying Taxes 2018 - Pg 58 of 112; PDF, 6.7mb
Between 2013 and 2015 Serbia significantly improved the ease of paying taxes in the country by both simplifying procedures and digitising processes. Since then however the pace of reform has slowed, but there is still much that could be done to further improve the administration of taxes. We look at the progress that has been achieved to date and the steps needed to transform the country’s tax system into a truly modern, taxpayer oriented service.
Paying Taxes 2018 - Pg 60 of 112; PDF, 6.7mb