Solidalitory Levy to fund corporate income tax cuts
The south Pacifian territory of French Polynesia is to impose a 1.5% Solidatory Levy on VAT transactions from 1 April 2022.
The Levy will apply to all taxable transactions subject to VAT. However, it will not be deductible against output / sales VAT for businesses.
The new charge will help fund a cut in Corporation Tax from 27% to 25%. Rates for digital companies and R&D firms will be cut to 20%.
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