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The Ministry of People’s Power of Economy, Finance and Foreign Trade issued Resolution No. 017-2022 on 30 August 2022 (“Resolution”), whereby tariff codes were removed from and added to Appendix I of Decree No. 4,683 of 1 May 2022 (“Decree”). The Decree established the exemption from the payment of value-added tax (VAT), customs duties and customs service fees for imports of certain goods and economic sectors until 31 December 2022.
The Resolution entered into force on 12 September 2022 (i.e., five business days following its publication in the Official Gazette of the Bolivarian Republic of Venezuela).

More and more companies are either building or considering building a presence in a metaverse. As metaverses continue to develop, they’re blending online multiplayer gaming, cryptocurrency, non-fungible tokens (NFTs), and virtual reality into a new immersive digital experience for their users. In this article, Baker McKenzie aim to provide a non-exhaustive overview of some high-level tax aspects to consider when expanding into the metaverse ecosystem.

On 4 February 2022, the Canadian Department of Finance released a proposed set of rules “EIFEL Rules”) intended to address concerns that Canadian taxpayers that are part of a multinational group are deducting excessive interest and other financing costs. The EIFEL Rules restrict the deductibility of net interest and other financing expenses. Although technical amendments are expected, it is anticipated that the EIFEL Rules will begin to apply for tax years that begin in 2023. Multinational groups with Canadian members are encouraged to consider the impact of the EIFEL Rules, and potential mitigation and optimization strategies, now.

While the OECD continues with its journey to modernize the global tax system under its two-pillar approach, many countries are now beginning to embark on the road to implementation of Pillar 2 and multinationals may need to prepare for its impact as early as 2023.
Join our panel of Tax professionals at the Baker McKenzie New York Office on 3 November 2022 for the next installment in our series of Pillar 2 events

On 19 September 2022, the European Commission adopted a proposal that would give the EU sweeping new powers to address shortages and supply chain disruptions of crisis-relevant and strategic goods and services in times of crisis. The proposed Single Market Emergency Instrument (SMEI) is the latest in a series of EU measures that will impact supply chains, including new proposals for rules on foreign subsidies, corporate sustainability reporting and due diligence, carbon taxes, deforestation, and, most recently, a proposal to prohibit products made with forced labor from the EU internal market. Once adopted, the SMEI will impose far-reaching obligations on EU firms.

On 12 July 2022, the German Ministry of Finance has published a preliminary draft ministerial bill that, inter alia, provides for a reform of the tax audit and bookkeeping rules in the German General Tax Code and the German Act on crossborder administrative cooperation within the EU for tax audits. The draft has been resolved by the Federal Cabinett on 24 August 2022 and on 29 August 2022 the official Government’s Draft Bill has been published.

By National Law No. 27,686, published on 19 September 2022, the “Regime for the Development and Strengthening of the Argentine Auto Parts Industry” was created, granting tax and customs benefits to manufacturers of vehicles that use national auto parts and to manufacturers of auto parts in Argentina. The law sets forth the following tax and customs benefits: (i) accelerated amortization of capital goods and infrastructure works, excluding civil works not related to the industrial process; (ii) anticipated refund for the VAT corresponding to the investment made; and (iii) reduction of export duties to 0% up to 31 December 2031.

On 28 August 2022, Decree No. 4,7281 which partially reforms the MERCOSUR Common Nomenclature (NCM), went into effect in Venezuela. The Decree establishes a new sub-chapter in Chapter 98 of the NCM, “Imported Industrial Material for Productive Development”, which assigns a 0% ad valorem tariff to imports of authorized merchandise and exempts them from value-added tax. The duration of the exemption will be subject to the validity of the tax benefits established in the Decree of Customs Exemptions in accordance with Article 75 of the Organic Tax Code.

On 20 September 2022, the Dutch government released the budget proposals, which includes certain amendments to Dutch tax laws. At a high level, the impact of the Tax Plan 2023 on most corporate taxpayers will likely be limited. The more impactful measures that are announced by the Dutch government, such as the Dutch implementation of Pillar 2, require further consideration by the government and are expected in the course of next year and be effective the earliest at 1 January 2024. As a next step, the measures announced will be discussed in Parliament in the coming weeks and, when approved, most of the new rules will be implemented effective 1 January 2023.

The government has announced its Growth Plan 2022. The key employment-related aspects are: the repeal of IR35 reforms introduced in 2017 and 2021; the removal of the bankers’ bonus cap; requirements for trade unions to put pay offers to a member vote and to maintain minimum service levels during strike action; reductions to income tax rates; an increase to the company share option plan limits. The government also reconfirmed plans to reverse a rise in National Insurance contributions and to scrap a planned health and social care levy.