- The 2025 Finance Bill expands access to the VAT group regime, offering tax advantages.
- It introduces a measure to neutralize additional wage tax for companies that would not be taxed independently.
- The reform targets companies in VAT groups facing disproportionate wage tax obligations.
- The objective is to make the VAT group structure more accessible by eliminating surplus wage tax.
- Wage tax exemption applies if the employer would not be taxed independently and 90 percent of the group’s turnover qualifies for VAT deduction.
- The reform benefits companies in the taxable sector by streamlining intra-group VAT transactions and simplifying reporting.
Source: taxand.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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