#Taxation Archives - Page 4 of 14 - Law firm Finance Business Service: offshore registration, tax planning, legal services

Since January 1, 2017 Ukraine will join to the Plan of BEPS

Published: Sergey Panov | 25.11.2016 | blog

Such news was told by the Ministry of Finance of Ukraine after transfer on November 22 by the Minister of Finance of the official letter on accession to the General secretary of OECD (Organization for Economic Cooperation and Development) which is the author of this Plan. The plan of BEPS (Base Erosion and Profit Shifting) was developed for fight, which connected with tax evasion and creating of equal conditions for all taxpayers companies. In general the plan of BEPS provides large-scale reorganization of the existing system of the cross-border taxation. It contains 15 points of counteraction to aggressive tax planning among which there are enhancements of rules of transfer pricing, the income taxation of the controlled foreign companies, prevention of avoiding taxation by international treaties, exchange of financial information, etc. With acquisition of official membership in BEPS Ukraine will undertake the liability to implement the minimum standard of the Plan including four points: fight against the tax speculation connected with use of special tax regimes; avoidance of abuses in case of application of tax conventions; disclosure of information on using schemes of...

New Zealand seeks tax transparency from MNEs

Published: Sergey Panov | 24.11.2016 | news

The Commissioner of New Zealand tax management, Naomi Ferguson turned to local and multinational corporations belonging to a foreign owner to be more transparent in their international tax matters. Ferguson made the call Chartered Accountants of Australia during the launch of the 2016 edition of the Document of Compliance the center of transnational corporations and in Auckland on November 18 held a tax conference of New Zealand. The document of compliance describes in detail as the tax authority continues to increase amount of a research of large corporations, increasing number of the companies which will receive closer attention. The New Zealand large companies will be obliged to represent the Main Packet of Compliance which will include annual information on their structure of group, the financial reporting and tax coordination while the companies belonging to the foreign owner are obliged to finish the intended International Questionnaire. According to the internal income, nearly 600 New Zealand and foreign groups were under observation since 2012. From next year this number increased almost to 900 groups, including all the multinational companies belonging to foreign owners...

Ireland is the most efficient place in the EU, for the payment of taxes for businesses

Published: Sergey Panov | 23.11.2016 | news

Ireland remains the most efficient country in the EU, in which it is possible to pay taxes for businesses, according to the latest PwC / World Bank survey of tax. The report dealt with 189 economies around the world and take into account that all taxes was paid by companies. He analyzed the bureaucratic and administrative burdens imposed on businesses, when it comes to time spent on compliance, payment and registration of taxes, as well as the amount of tax imposed. Ireland took the 6th place in the world. PwC and the World Bank found that a typical Irish company spends about a quarter of the total volume of commercial profit in taxes. This figure was 12.4 percent of the income taxes, 12.1 percent of labor taxes and 1.4 percent in other taxes. In addition, the company spends a little more than two weeks, on their tax affairs and makes the payment almost every six weeks. PwC stressed that the statutory corporate tax rate in Ireland 12.5 percent, very close to the rate of "income tax" 12.4 percent. In the report explained that within the EU and the European free trade area, company will pay 40.6 percent of its commercial profit in taxes, including income taxes of 12.6 percent,...

Hungary plans the lowest corporate tax of the EU

Published: Sergey Panov | 21.11.2016 | news

Mihaly Varga, Hungary's Minister of National Economy, announced about decision of government to reduce the corporate tax rate lower than 10 percent next year. On November 18, behind the scenes of the Regional Digital Conference in Budapest, he made the announcement during which he unveiled the plan of the government to impose a single rate for nine percent of the corporate tax. Now, the headline shows, that the rate of Hungary of the corporate tax constitutes 19 percent, and there is lower level of the income tax of 10 percent on the first 500 million Hungarian forints (1.7 million US dollars) of the income. Dramatic movement would give Hungary one of the lowest corporate tax rates in the world and one of the lowest in the European Union "onshore" jurisdictions. Varga said that this measure will save companies about 145 billion HUF (500 million US dollars) a year tax. The Government expects to compensate the shortfall through controlled growth to increase tax revenues. The government plans to introduce a new tax rate of 1 January 2017. Author: Olena Kutova senior lawyer of the Finance Business Service company ...

Income tax and VAT on receiving the bonus in monetary form from non-resident supplier

Published: Dmitriy Batrakov | 18.11.2016 | blog

In the letter of 28.10.2016 State Fiscal Service of Ukraine has provided clarification regarding taxation of receiving bonus in monetary form from the supplier on the basis of non-resident credit note (the settlement document which contains the message which goes the supplier to the buyer about record on credit of the account of the last certain amount in connection with approach of a circumstance which created a right of claim of such amount for buyer). This explanation is proved by numerous requests from representatives of both small, and large business in a consequence of lack clearly defined by the legislation rules governing this sector of relationships. Concerning the taxation on profit it should be noted the following. So, according to provisions of the Tax Code of Ukraine (further – the Code) the object of taxation on income tax is a profit with an origin source from Ukraine and abroad, which is determined by adjusting (increase or decrease) a financial result to the taxation (profit or loss), determined in the financial reporting of the entity in according to national provisions (standards) of financial accounting or international accounting standards, on the...

European Union heads “Revolution” of taxes

Published: Sergey Panov | 17.11.2016 | news

The tax commissioner Pierre Moscovitchi says that the European commission something reached in fight "revolution of tax transparency" against prevention and avoidance of taxes. This week Moscovici gave a keynote speech at a conference in 2016 on the future of Europe at Harvard University. He said that the event, which the Commission approved the events surrounding Luxleaks, Panama Papers, and the Bahamas Leaks, is now forcing EU members "to perform their duties." He told with hope: "The bank secrecy will disappear in Europe soon, and the companies won't have any more an opportunity to play with borders it isn't enough to pay a tax or in general not to pay it. Besides, the Commission plans to publish "black list" of the tax havens as 'naming and shaming' is a powerful tool which we shall be ready to use. Moscovici said that the EU "should unite the problem of a stronger tax administration into negotiations with uncooperative territories." Author: Olena Kutova senior lawyer of the Finance Business Service company ...

Switzerland and Austria dissolve the agreement withholding tax

Published: Sergey Panov | 14.11.2016 | news

Agreement withholding tax (WHT) between Switzerland and Austria, will be phased out from 1 January 2017, when the agreement between Switzerland and the EU on the automatic exchange of tax information comes into force. 11 November 2016, Switzerland and Austria signed an agreement to ensure a smooth transition between the two modes. Austrian authorities, it regulates the arrangements for the transmission of the final amount of taxes and shipping the latest voluntary agreement. "The provisions of a tax treaty withholding will be applied on all the facts and legal rights that materialize during the period of its validity," said the Swiss Federal Council.Withholding tax agreement between Switzerland and Austria came into force on 1 January 2013. It provided for the regularization of assets held in Switzerland Austrian taxpayers and taxation of income derived from these assets. Austrian taxpayers have been an option either to pay by WHT, imposed directly on their accounts and transferred anonymously to the Austrian authorities, or to make a voluntary disclosure. The Swiss Federal Council said that this model is "generally loses its sense of existence with the introduction of an...

ATR warns about a new property tax

Published: Sergey Panov | 03.11.2016 | news

1 November, the president of "Americans for Tax Reform" (ATR), Grover Norquist submitted a comment to the letter dated US Treasury Secretary Jacob Lew, counteracting the proposed decision, which will lead to an increase in the property tax (or "tax on death," as it is called). Under the current tax rules of real estate in accordance with Section 2704 of the Code of Internal Revenue, the fair market value of a share in the family business, which shall be held no current market - is not available on the basis of the test is "ready-seller willing-buyer". However, the proposed changes would allow the Internal Revenue Service in the future to produce much higher estimates, limiting the use of discounts. Norquist explained that "for families affected by the tax on the death of the two allowed discounts when determining the value of their property, lack of control discount and lack sold off. The lack of control discount can be claimed when the family has a minority ownership stake in the asset as a result of then a lower cost on the open market in holding the asset. The lack of marketability discounts apply when the asset is owned by the family and can not be easily eliminated due to...

Western Australia: tax of salary

Published: Sergey Panov | 01.11.2016 | news

Western Australian citizens have announced plans for "radical changes" payroll tax system of the State, which will be financed by tax increases for iron ore. Party leader Brendon Grylls proposals outlined in his speech at the annual conference of state citizens. He explained: "According to our plan, WA Nationals increase exemption from payroll tax from AUD850,000 (USD645,873) to AUD5m during the two financial years. He will also see declining threshold for companies with between POF and AUD5m AUD7.5m, offering further tax relief." When Grylls was elected leader in August, he said that citizens will be aimed at increasing the production of public rental agreements with Rio Tinto and BHPB iron ore iron ore from 25 cents to AUD5 per tonne. He claimed at the time that this measure will return the budget to surplus and give us the opportunity to discuss the new policy settings, as a reduction of payroll taxes for small and medium-sized businesses." In his speech to the conference participant, Grylls confirmed that the envisaged tax reform payroll will be financed through leases trailer production. "It is our goal to put the reform of payroll tax in the longer term, however, this can...

Estonia – the most competitive countries in the tax system

Published: Sergey Panov | 19.10.2016 | news

Estonia is the most competitive tax system in the world, largely thanks to its 20-percent income tax and a "well-structured" personal income tax system. The third annual International Competitiveness Fund measures how well the country's tax system contributes to sustainable economic growth and investment. The report looks at 40 variables of tax policy in five categories, including corporate income taxes, individual taxes, consumption taxes, property taxes, as well as the treatment of foreign exchange earnings. According to the Fund, Estonia's position at the beginning of 2016 the list of the year is mainly the result of four factors, including "its low percentage of corporate tax, well-structured, 20 percent tax rate on personal income tax, property tax is only applied to the cost of land, rather than the real value of the property or capital, as well as a well thought out territorial tax system." New Zealand and Latvia take the next two places in the list. In contrast, France is at the end of the table due to its high corporate rate - 33.33 per cent of the taxes, "high and poorly structured" property taxes, and "progressively higher individual tax rates." The United States this...

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