US: Tax declarations for offshore assets delayed

Taxpayers with assets in tax havens or with income from capital from national entities, subject to exemption rates, normally 28%, will only have to report this type of gains in the 2025 IRS declaration, even though the rule was approved in the Budget of State for this year, an official source from the Tax Authority (AT) explained to ECO.

Tax
The Tax Authorities justify the postponement with “substantive changes” such as the declarative imposition of “income subject to release rates”. The inspector, Luís Leon, from consultancy Ilya, points out “practical difficulties” in implementing the law.

“The amendment to article 57 of the State Budget Law only takes effect for the 2024 tax year, considering that it has underlying substantive changes, namely, by imposing the declaration of income subject to exemption fees”, indicated the AT in response to the questions asked by ECO. Thus, “the declaratory obligation for the 2024 tax year occurs in 2025”, he concluded.

The mandatory reporting of this type of income which, at the moment, does not have to be indicated in the IRS, such as offshore assets or national capital gains such as dividends, interest on time deposits or savings certificates, as long as they exceed 500 euros, was introduced by PS in the State Budget for 2024, as a measure to combat tax evasion.

For Luís Leon, “there is no technical reason, from the point of view of the law, for not applying declarative changes”. “There are, however, practical reasons such as the difficulty in carrying all the interest, gains and dividends reported by banks and national companies and distributing them automatically to each taxpayer, for each IRS declaration. AT’s computer system is not prepared for this”, warned the inspector.

24 May 2024

UK: IMF warns Tories against further UK tax cuts

Amid a higher debt burden, U.K. should not be considering pre-election tax cuts, forecaster says. The International Monetary Fund advised Chancellor Jeremy Hunt against additional tax cuts in its annual

Read More
21 February 2025

ITALY: Google agrees to pay Italy USD 340 million to settle tax evasion investigation

Italian prosecutors on Wednesday said they are seeking to have a tax evasion investigation against Google dropped after the tech giant agreed to pay a 326 million Euro (USD 340 million) settlement.

Read More
31 January 2025

SPAIN: Spanish Prime Minister Proposes 100% Tax For Non-EU Buyers

Spanish Prime Minister Pedro Sánchez has proposed taxes of up to 100% for non-resident non-EU purchasers of property in Spain, as one of several measures intended to address the housing crisis. Sánchez

Read More
19 April 2024

HONG KONG: Hong Kong’s spot crypto ETFs have one big attraction: no tax

Hong Kong’s upcoming exchange-traded funds (ETF) that invest directly into cryptocurrencies could be attractive to many Asian investors, industry insiders say, but demand may still be a trickle compared

Read More