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Q1 2024 international updates: Tax and legislative updates from across the globe

March 13, 2024 / 12 min read

Our international specialists bring you the top headlines each quarter to keep you up to date on global news that could affect your organization. This quarter, read updates from the United Kingdom, India, Japan, Germany, and more.

Each quarter, our international specialists compile updates from around the world to help you stay up to date on international changes.

Take a look at the updates below and reach out to your Plante Moran advisor if you have any questions about how these items may affect you.


Visa requirements reinstated for U.S. nationals beginning April 10, 2024

After a three-month postponement, the Brazilian government will reinstate visa requirements for all U.S. nationals visiting Brazil. Beginning April 10, 2024, all U.S. nationals will need a visa to enter Brazil. Qualified applicants may apply for an e-visa.

For questions about the e-visa application procedures, visit the Brazilian government-authorized website.


Canadian Revenue Agency rules and regulations updates

The CRA has released many recent regulatory updates, and some are coming effective for 2024 years:


China issues new amendment to the Company Law

At the end of 2023, China’s National People’s Congress passed the amendment to the China Company Law. The new Company Law, introducing a series of important changes on capital contribution, shareholder rights, and corporate governance systems, will come into force on July 1, 2024. Here’s a summary of the key changes in the new Company Law:


Luxembourg and Austrian tax treaty clarifications

The German Ministry of Finance and its counterparts in Luxembourg and Austria have clarified certain provisions in the tax treaties regarding the treatment of income from employment, pensions, and government services for cross-border workers. The clarifications highlight that commute time isn’t included in the calculation of work performed, and that work performed in a third country will be allocated to the employee’s country of residence.

German tax court clarifies limitation of benefits criteria

For the second time, the tax court of Cologne upheld that asset management companies domiciled in Germany with ultimate shareholders in low-tax jurisdictions can claim a tax refund for withholding taxes paid on dividends. The ruling determined that investment management companies may have the appropriate substance to qualify for a refund, as the companies weren’t solely established for tax avoidance purposes. Specifically, the court considers passive investment management to be sufficient for an economic activity that doesn’t bar a claim for a withholding tax refund.

German controlled foreign corporation regime changes

On Dec. 22, 2023, the German Minister of Finance released revised administrative guidance related to the country’s controlled foreign corporation (CFC) regulations. The guidance provides insight into the treatment of the following:


Interim budget 2024 

The budget announcement by the Indian government on Feb. 1, 2024, emphasizes various government initiatives as follows: 

Other policy objectives in the budget include a Green Energy Initiative, Developments in Electric Vehicle (EV), Viksit Bharat Vision (i.e., Developed India), which is meant to drive India’s development progress.


Corporate tax law changes in 2024 tax reform proposals

The government agreed on various tax proposals for 2023 tax reform in an agreement reached on Dec. 14, 2023. The package is just an outline of various proposals and actual legislation will be dependent on legislation from the Diet. However, the reform bill is expected to be enacted by the end of March 2024.

Major proposals include:

Notably, the provision for tax credits for employers goes hand in hand with a government initiative to increase wages in line with inflationary pressures. Given this trend of increasing compensation expenses, the applicability of any related tax credit should be considered for employers of all sizes.


Upcoming elections in Mexico

Mexico will hold presidential elections on June 2, 2024, with the newly elected president taking office on Oct. 1, 2024, from current President Andrés Manuel López Obrador (AMLO). Mexico holds presidential elections every six years, and the elected candidate remains in power for a single six-year term. Notable candidates include Claudia Sheinbaum from the ruling Morena party; Senator Xóchitl Gálvez from the coalition of PAN, PRI, and PRD; and Jorge Álvarez from MC.

Current polls suggest the Morena party is likely to retain power, which would mark a historic milestone of Mexico having its first female president. This year’s presidential elections in Mexico will align with presidential elections in the United States, an event that happens every 12 years.

Annual tax returns in Mexico

The 2023 annual return must be submitted to the Mexican tax authorities (SAT) no later than March 31, 2024, and no extensions are permitted.

While not an all-inclusive list, the following are some tips to properly file the Mexican tax return:

United Kingdom

Spring budget announcement

The Spring Budget provides updates on the U.K. economy, projections from the Office for Budget Responsibility, and fiscal plans for the upcoming year. The economic backdrop for this budget includes stagnant growth, diminished living standards, and above-target inflation within the U.K. In his Spring Budget statement on March 6, Chancellor Jeremy Hunt unveiled significant personal tax changes:

For businesses, there are fewer surprises in the Spring Budget. The corporate income tax rate remains at the 25% rate. However, business-related items in the statement include:

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