Kpmg’s week in tax 23 – 27 april 2018 kpmg global la gastronomie

• Kenya: Pending tax legislation includes measures that would exempt additional goods from the value added tax (VAT); allow an exemption from stamp duty for first-time purchases of residential housing; and exempt certain developers and operators in “special economic zones” from the tax on capital gains and from payment of the compensating tax.

• South Africa: The rate of VAT imposed on retention payments within the construction sector may be affected by what was the rate of VAT when the payments are invoiced, become due, or are received. The VAT rate changes was effective 1 April 2018.

• South Africa: New rules effective 1 March 2018 require an employee to remit tax upfront under the PAYE (pay as you earn) withholding process on reimbursements for travel allowances, if the employee is reimbursed at a higher rate than the prescribed rate.

• Africa: Tax guides produced by KPMG provide information about the tax systems of selected African countries. Each country guide contains information about income tax, corporate tax, tax implications for non-residents, capital gains, transfer pricing rules, transaction taxes, transfer duties, and other items.

• Rev. Rul. 2018-13 provides the schedules of prevailing state-assumed interest rates for use by insurance companies to compute their reserves for tax years beginning after December 31, 2016, and on or before December 31, 2017. This revenue ruling is the last in a series of supplements to the interest rate schedules (originally set forth in Rev. Rul. 92-19) because of changes enacted under the new tax law in the United States.

• The Eleventh Circuit concluded that Alabama’s tax regime that imposes a sales or use tax on rail carriers when they buy or consume diesel fuel—but exempts competing motor and water carriers from those taxes—does not violate provisions of the “Railroad Revitalization and Regulatory Reform Act” (4-R Act) with respect to motor carriers, but does violate the 4-R Act rules with respect to water carriers. The case was previously before the U.S. Supreme Court.

• In Kentucky, a package of tax reform legislation (in the form of two bills) has been passed by the legislature. The legislation includes federal tax conformity measures as well as changes to the tax rates and tax rules for individual and corporate taxpayers.

• A KPMG report summarizes state and local tax developments concerning technology-related issues, for the first quarter of 2018 (the topics covered include access to web-based services, guidance on digital equivalents, and the taxability of software).

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