Shekh Golam Rahman’s Post

Luxemburg unveiled today major tax relief for 2025. From low earners exemptions to attractive bonus for expats and measures to revive the real estate market, the Government has decided to boost further the attractivenes of the country.

Finland’s Tax Strategy for Economic Recovery in 2025

May 29th(Wednesday): Fixed Tax Reduction and Electricity Price Increase In Japan, starting in June, just three days from now, a fixed tax reduction of 40,000 yen (30,000 yen from income tax and 10,000 yen from resident tax) will be implemented for the taxpayer and one dependent family member for the 2024 (Reiwa 6) tax year. The method of implementing this fixed tax reduction will vary depending on whether the individual is a salaried worker (including part-time and temporary workers), a business income earner (including freelancers), or a pension income earner. Depending on the number of dependents and income status, there may be cases where a benefit (self-application) rather than a tax reduction will occur, and it has already been pointed out that this could result in a significant administrative burden for businesses and others. This measure is intended to support the decrease in real income due to the rapid rise in prices and is based on the "2024 Tax Reform Act" enacted on April 1, 2024. Nationwide, this fixed tax reduction is expected to amount to approximately 3.2 trillion yen for the year. Meanwhile, the prices of goods and services continue to rise within Japan. Temporarily, the price of cabbage has surged to around 500-1,000 yen per head, including tax, significantly impacting the lives of pension income earners like us. Additionally, with the increase in renewable energy surcharges and the reduction of subsidies, the electricity bill to be paid in June (for May usage) is expected to increase by about 1,200 to 1,500 yen per household compared to the previous month. As we enter the summer season, calls are made every year to take measures to alleviate the tight supply and demand of electricity, but this year the situation may be different. The increase in electricity prices may lead to a significant suppression of electricity demand, strongly influenced by income constraints. Many households may find themselves unable to use air conditioning even in the sweltering heat, approaching the limit of their payment capacity. This situation may raise public outcry, questioning why subsidies continue to be provided for gasoline but not for electricity bills, especially in the face of sweltering summer heat exacerbated by global warming.

Because for the last 3 election cycles in a row Labour chose to voluntarily take a Capital Gains Tax (CGT) off their platform, even going so far as pledging not to introduce one.  Why? To win votes from the centre right.  Now that those votes are well and truly lost possibly Labour could rethink this.   A CGT is a theory or a principle.  The implementation of one is complex and difficult. My own recommendation is to stick with simple taxes on housing such as the Stamp Duty on property sales in Australia and The UK.  Further taxing wealth in financial or other assets is difficult and has more unintended side effects.  So potentially just raising the top tax rate by 5-10% could capture some of that.

📢 Flash News: New Tax Measures Announced by the Luxembourg Government! The Luxembourg Government has proposed a draft law introducing several significant tax measures for both individuals and companies. These changes aim to enhance the purchasing power of residents and cross-border employees while boosting the country's competitiveness. ✨ Key Measures Include: - Adjustments to the tax scale and more advantageous tax calculation formula for taxpayers benefiting from tax class 1A - Revamp of the Impatriate tax regime - Revised ceilings for the profit sharing scheme - Increased tax credits For a detailed overview, please read our Flash News here: https://lnkd.in/eGd7YYVz #TaxUpdates #Luxembourg #TaxMeasures #StayInformed #PwCLuxembourg

"Portugal would do better to attract talent and improve earnings incentives by setting a ceiling for social contributions and reducing income tax rates more broadly, instead of granting special tax credits or returnee tax-relief. Closing the value-added tax (VAT) gap and eliminating special tax credits would allow room to either reduce the tax burden on labor or pursue alternative reforms that would increase labor productivity and real wages." #portugal #PIT #IRS #taxfoundation

In Estonia, the turnover tax will increase from 22% to 24% (food too) from 1 July 2025, and the change in income tax from 20% to 22% and the introduction of a 2% corporate income tax are planned for 1 January 2026.

🌏 Australian Income Tax Rate Changes Effective 1 July 2024 - Important information for Australian Employers Over the last few years, both the Coalition and Labour Governments have announced income tax cuts that have been applied in stages since 2018. The final stage of these changes, known as the Stage 3 tax cuts, will come into effect from July 2024. These changes are now law after passing both houses of parliament on 27 February 2024. The changes that apply from 1 July 2024 are: 👉 Bottom tax rate: Decreases from 19% to 16% 👉 32.5% tax rate: Decreases to 30% 👉 37% tax rate threshold: Increases from $120,000 to $135,000 👉 45% tax rate threshold: Increases from $180,000 to $190,000 For detailed income tax brackets and rates for Australian residents from 2024–25 onward, refer to the table below or visit our global insight guide on Australia https://lnkd.in/gidrq6Ar. These changes are designed to reduce tax rates and adjust income thresholds, potentially impacting your tax obligations and financial planning. If you need any assistance understanding these new changes or help with your EOFY reporting in Australia, don't hesitate to get in touch with activpayroll. Our team of experts in Australia, lead by Melanie Gaensler are here to support you through these updates and ensure your compliance. Get in touch 👉 https://lnkd.in/eiTev5yn Melanie Gaensler | Andrew Philp | Thivagar Naidu

❗Friendly Reminder for Finnish Taxpayers! As the Finnish tax season approaches, it's crucial to ensure that you are aware what income needs to be reported on your Finnish tax return, and how to do this. The Finnish tax administration will populate the pre-completed tax returns during March-April 2024 based on the information they have available to them. The pre-completed tax return will also confirm the individual's filing deadline, either 7.5.2024, 14.5.2024, or 21.5.2024. Here are a few quick tips from Vialto Partners Finland's to ensure a smooth filing process for anyone with Finnish income to declare: ✔ Double-check all income sources: Take a thorough look at all your Finnish income streams, including employment, investments, rental income, and anything else. Accuracy is key! ✔ Don't forget personal foreign income: If you've earned income from abroad, make sure to include it on your tax return. Foreign sourced income will typically not be included on your pre-completed tax return. ✔ Check if foreign employment income has been correctly reported: If you have worked abroad a significant amount of the time and that income is taxable in another country, or if you have foreign sourced trailing income (such as equity awards or a bonus), additional action will likely be required to ensure everything is handled correctly on your Finnish tax return. By proactively managing your tax obligations and staying informed about the necessary reporting requirements, you can navigate the tax season with confidence and peace of mind! Please reach out to Vialto Partners Finland if you or your employees would need any assistance. 📝 💼 #vialtopartners

⏰ 💰 Portugal's IRS Tax Deadline: A Reminder for Expats and Remote Workers https://buff.ly/4eNX2cH Today is the final day to file your 2023 income tax return (IRS) in Portugal. 🗓️ This deadline applies to all taxpayers, including those who have automatic IRS and have not yet validated their tax return: 1. Automatic IRS: If you're eligible, your declaration is considered submitted today. 2. Tax refunds: Expect your refund by August 31st. 3. Tax payments: If you owe taxes, you have until August 31st to make the payment. Don't miss this important deadline! ⏰ #Portugal #IRS #Taxes #Deadline #Refund #TaxTips #ExpatLife #DigitalNomadLife #RemoteWork #InternationalTax