Greetings and Happy Tuesday! This is Tax Roast, a weekly newsletter that brings you the latest updates and insights from the international tax world from tax experts (and coffee enthusiast) who are walking the tax advisory path.

And do not forget to check out our coffee of the week, because there is no tax news without a good cup of coffee :)

International Tax Update

United States / IRS proposes 1% excise tax on corporate stock repurchases

The IRS has proposed the introduction of a 1% excise tax on corporate stock repurchases. If implemented by Congress, the excise tax will apply to stock repurchases that occur after 31 December 2023 and will be based on the aggregate fair market values of the stock.

Under the proposed rule, a statutory netting principle would be implemented, in which the total fair market value of the stock issued by a taxpayer in a fiscal year is deducted from the total fair market value of the stock that the same taxpayer repurchased in that year.

The proposal also foresees the implementation of a statutory de minimis exception, which exempts a taxpayer from the stock repurchase excise tax for a fiscal year if the total fair market value of the stock that the taxpayer repurchased in that year is not more than USD 1,000,000.

Cyprus / Clarifications on TP

The Cypriot tax authorities have published additional frequently asked questions (FAQs) on their website, regarding transfer pricing. These FAQs offer more detailed guidance on the transfer pricing documentation regulations that were implemented starting from the 2022 tax year.

Bolivia / 2023 corporate tax returns filing deadline

The Tax Authority of Bolivia has announced that the deadline for filing and paying corporate income tax (Impuesto sobre Utilidades de las empresas) for fiscal year 2023 is 29 April 2024.

Hong Kong / Patent Box regime coming up?

Hong Kong is proposing tax concessions for intellectual property (IP) income, with a view to encouraging more research and development (R&D) activities in Hong Kong and promote IP trading, strengthening Hong Kong's competitiveness as a regional IP trading centre. It was announced initially in the 2024/25 Budget that the concessionary tax rate for the "patent box" tax incentive would be set at 5%, which is substantially lower than the prevailing regular profits tax rate of 16.5% in Hong Kong. More information can be found HERE.

Fun Tax Fact :)

Leadership principles for top managers at Big Multi Inc. 🏢

Rule #12 - Positive feedbacks

Giving feedbacks to your team member is necessary, but you can use this to your advantage if you do it in the right way. The objective is to give positive feedback to your team members without boosting their confidence too much. Let’s see what you need to pay attention to.

First, make sure to use a tone that screams "I'm just being polite, don't get too excited!" You don't want them thinking they're actually doing a great job or anything. So, casually mention their accomplishments in a nonchalant manner, like "Oh, by the way, I noticed you did a decent job on that project. I mean, it's not like it was perfect or anything, but it was...okay, I guess."

Next, be sure to sprinkle in some backhanded compliments to keep them on their toes. You don't want them getting too comfortable or thinking they're better than the boss, right? So, say something like, "You know, you're not completely terrible at this. I mean, you still have a long way to go, but hey, at least you're not a total disaster. Keep up the mediocre work!" Remember, the key is to make them question their abilities just enough to stay in line, but not enough to actually improve or challenge the authority of the boss. Good luck with that delicate balance!

Tax Roast of the week

Invite the crew for a coffee☕

We never say no to a good cup of coffee! So, if you loved this edition and you would like to support us, you can invite our crew for a cup of coffee here.

Coffee corner

How to roast your own coffee?

Roasting coffee beans at home can be a delightful and rewarding experience. To embark on this journey, you'll need a few essential tools: a coffee roaster, green coffee beans, a timer, and a well-ventilated area. First, preheat your coffee roaster according to the manufacturer's instructions. While it's heating up, measure out the desired amount of green coffee beans. Keep in mind that the beans will lose weight during the roasting process, so you may want to add a little extra.

Once the roaster is preheated, pour the green coffee beans into the roasting chamber. Close the lid and start the timer. The roasting process typically takes around 10-15 minutes, but this can vary depending on your desired roast level. As the beans roast, you'll notice a distinct aroma filling the air. It's important to keep an eye on the color and listen for the "first crack" sound, which indicates that the beans are reaching their initial roast level. If you prefer a lighter roast, you can stop the process here. However, if you desire a darker roast, continue roasting until you achieve the desired color and flavor profile.

Once the beans have reached your desired roast level, carefully remove them from the roaster and transfer them to a colander or a metal tray. This step is crucial as it allows the beans to cool down and stops the roasting process. Give the beans a gentle shake or stir to help cool them evenly. Be cautious as they will be extremely hot! After cooling, it's recommended to let the beans rest for at least 24 hours to allow the flavors to develop fully. During this resting period, the beans will release carbon dioxide, so it's best to store them in a container with a one-way valve or a loosely sealed bag. Finally, grind your freshly roasted beans and brew a delicious cup of coffee to savor the fruits of your labor. Enjoy the rich flavors and aromas that only a home-roasted coffee can provide!

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DISCLAIMER: None of this is financial or tax advice. This newsletter is strictly educational and is not investment or tax advice or a solicitation to buy or sell any assets or to make any financial or tax decisions. Please be careful and do your own research.
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