New German Supply Chain Laws and Hong Kong being added to EU's list of non-cooperative countries due to tax purposes.
14 Things to Know About Germany’s New Supply Chain Due Diligence Law
The German Supply Chain Due Diligence Law (Lieferkettensorgfaltspflichtengesetz [LkSG]) was enacted by the German Bundestag on 11 June 2021 and will come into force from 1 January 2023. It obliges German-based companies above a certain size to fulfil their human rights and environmental obligations throughout the global supply chain. Starting from 1 January2023, companies with at least 3,000 employees will be covered, and from 1 January 2024 extend to companies with at least 1,000 employees. It is intended to ensure compliance with fundamental human rights standards such as the prohibition of forced labour and child labour.
Hong Kong added to the EU list of non-cooperative countries and territories for tax purposes
With effect from 5th October 2021 Hong Kong has been added to the EU list of non-cooperative countries and territories for tax purposes.
1. Hong Kong has been on the EU watch list for tax purposes since 5th October 2021
The list is designed to combat tax fraud, tax evasion, tax avoidance, and money laundering. By doing so, the EU pursues the enforcement of diligent practice in cross-border tax standards in light of its tax bases.
The list includes third countries that abuse tax practices or embezzle revenues resulting from the corporate taxes of EU Member States. The aim is to bring about a positive transformation of the tax procedures and tax legislation of the countries on the list.