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CMU Has Approved the Concept and Action Plan for Development of Digital Economy in Ukraine until 2020

Published: Olena Kamenetska | 18.01.2018 |

Yesterday, on January 17, the Cabinet of Ministers of Ukraine approved an order “On the approval of the development concept of the digital economy and society of Ukraine for 2018-2020 and approval of a plan of action for its implementation”. This is reported by the IA “RBC-Ukraine”. The project is mainly aimed at implementing the initiatives of the “Digital Agenda of Ukraine-2020” in order to remove the barriers for the digital transformation of Ukraine in the most promising fields by stimulating the economy and attracting investments, as well as overcoming the digital inequality, deepening cooperation with the EU in the digital sphere and developing innovative infrastructure of the country and digital transformations. The Prime Minister of Ukraine Vladimir Groysman wrote about it on his Facebook page: “The adopted Action Plan is very ambitious and innovative - it provides for the development of Industry 4.0, smart factory, digital jobs, STEM-education and digital educational services, digital infrastructures for the Internet things, blockchain, eHealth and e-security, etc. Ukraine is obliged today to launch a large-scale digitization of all branches of the economy...

New european legislation on regulation of financial services markets will soon come into effect

Published: Olena Vydysh | 29.09.2017 | blog

On January 3, 2018, a new MiFIDII will come into force, significantly changing the existing requirements on regulating the financial markets in the EU. We will consider in today's blog what exactly is MiFIDII and how the regulation of the European financial markets will change. The MiFIDII (Markets in Financial Instruments Directive) is the common name for a complex network of legislation, which includes two Directives and three EU Regulations, supported by a number of technical standards and guidelines of the European Securities and Markets Authority (ESMA). The measures provided for in the Regulations are directly applied in the EU member states. For the implementation of other standards and harmonization of the national legislation, the updated requirements are established by the competent authorities in each Member State. The current MiFID was adopted in 2004 and it operates with small updates of the end of 2007. Thus, the MiFID not only preceded the financial crisis, but it also did not consider many business models and technologies, which today became a common phenomenon. Consequently, there was an extreme need for such an update. When developing the new provisions, the EU...

Amendments to federal law on gambling are likely to be adopted at next parliamentary session of Australia

Published: Olena Vydysh | 18.09.2017 | blog

Recently in Australia, the reform of the regulatory environment concerning online gambling has been started. The proposed amendments to the basic federal law on gambling (Interactive Gambling Act - IGA) are at the final stage of consideration by the Australian parliament and are likely to be adopted at the next parliamentary session. The purpose of the bill on amending the IGA (hereinafter - the Bill) is the combat with illegal offshore gambling and provision of additional enforcement powers to the federal regulator - the Australian Communications and Media Authority (ACMA). 1. Requirement for licensing in Australia The draft law defines the concepts "regulated interactive gambling services" and "prohibited interactive gambling services". The main difference between these two categories of services is that it is not allowed to provide prohibited interactive gambling services to the individuals in Australia, while regulated online gambling services may be provided, but only by the operators licensed by the Australian regulator and authorized to provide data services in accordance with the terms of their license. Previously, the certain services classified according to the Bill were...

Improving investment climate in Ukraine

Published: Olena Vydysh | 07.09.2017 |

At the end of June, the President signed a law on removing the barriers for the foreign investors, which amends a number of existing legislative norms. In this publication we try to understand what it means for the investors themselves. So, the main achievements of the law are the establishment of the procedure for obtaining the work permit for a foreign investor at the legislative level, as well as determination of the possibility to obtain a residence by the investor (hereinafter - residence), not only permanent but also temporary. As for the work permit: the law clearly stipulates the procedure, all the necessary documents and requirements. Among the main documents are only four: 1. Application of the employer in the prescribed form 2. Copies of the passport of a foreigner with the translation 3. Color photo of a foreigner 3,5x4,5 4. Draft employment contract with a foreigner The additional documents (listed in the law) are required only for certain categories of the foreigners. It is also important that the law explicitly prohibits authorities demanding any other documents not provided for by law from the foreigners or their employers (both when...

Australia needs tax reform

Published: Sergey Panov | 20.12.2016 | Без категории

James Pearson, the CEO of the Australian chamber of commerce and the industry (ACCI) told that the country "needs tax reform on a wide basis, but not gradual approach for the purpose of stimulation of economic growth". The real gross internal product (GIP) as predict, grows for two percent in 2016-17, and for 2.75 percent in 2017-18. The main cash deficit as expect, will fall from 2.1 percent of GDP in 2016-17 to 0.5 percent in 2019-20. The net debt as it is supposed, will reach a maximum in 19 percent of GDP in 2018-19, and then will decrease for the medium-term period approximately to 10 percent. The size on recovery of the budget that took place from a general election in May, costs more than 22 billion Australian dollars (16 billion US dollars). The treasurer Scott Morrison told that for maintenance of economic growth, the government will continue to perform the plan for workplaces and growth that will allow to raise level of living and will support a profit increase. He told that the government remains careful in taxation by high taxes of the Australian economy on the ground that it limits growth and therefore the income. This assumption provides to the government...

EU Council approves the following actions of international tax reform

Published: Sergey Panov | 09.12.2016 |

On December 6 meeting, the EU's Economic and Financial Affairs Council (ECOFIN) approved a number of measures for improvement international observance of the tax legislation. Specifically, the ECOFIN provides access for tax authorities to information, held by authorities responsible for prevention of money laundering; reached a consensus on the Directive project that aimed at closing of “hybrid mismatches” with the taxation systems of three countries; also made the decision concerning the offer to recommence the common consolidated corporate tax base (CCCTB). The Directive on exchange of information on beneficial owners of the companies it is intended to support tax authorities controlling the correct application of tax rules, thereby helping to prevent tax avoidance and tax fraud. At the second stage after the intensive discussions, Council agreed to stabilize the document for the majority of provisions Directive's plan about hybrid mismatches, leaving only two questions to solve them on the next weeks: rules that would allow Member States to apply the limited benefits and date of realization. “This directive will prevent corporate taxpayers for exploiting disparities...

Australian pension tax reforms are approved

Published: Sergey Panov | 01.12.2016 |

On November 23 the amendment of Treasurer laws (fair and stable pension) the bill of 2016 and contributions to the pension fund (excess tax balance transfer) taxation bill in 2016 was adopted. In joint release, the Treasurer Scott Morrison and the minister of the income Kelly O'Dwyer told: "The package of proposals on reform of pension fund contributions, the best purpose of tax benefits to make our pension system fair and stable as aging of the population and tax difficulties increase." The legislation performs following operations: allows for pensioners to make, "approximation" to concessional contributions with balance below 500,000 Australian dollars; introduce the maximum amount of the transfer balance of 1.6 million Australian dollars, sets the amount of restriction, which person can transfer into the pension phase of the non-taxable income; removes "10 percent rule" (the profitable test) to provide equal conditions for access to pension fund contributions of tax benefits, irrespective of a situation of employment person; introduces tax compensation of the pension low income. Such measures will come into force since July 1, 2017. "Ninety six percent of people of the...

Kevin Brady:” The American tax reform won’t influence the income of the state”

Published: Sergey Panov | 18.11.2016 |

The representative of the budget committee Houses of Representatives Kevin Brady pointed out, that the American tax reform, which he expects to offer at the beginning of 2017, "will break even" on a dynamic basis of winning, which is additional revenue from increased economic growth. During a television interview with Fox News on November 16, Brady discussed how the Republican faction and president-elect Donald Trump will "co-operate to ensure for pro-growth tax reform." He explained that "we provide tax code so honestly and simply, that 95 percent of Americans will be able to use a file with a card system. Second, we reduce the rates for our local businesses and redesigning the way they are taxed, so that they can compete and win anywhere in the world, but especially here at home. And finally ... we propose to destroy the IRS, to redesign it in a much smaller, bespoke agency focused on customer service. This is our 'Built for Growth' tax plan." He told that the plan instead of reducing the tax revenue and to increase the American financial deficit, "will become profitable within the budget, knowing that from it the economy will grow. By our estimates, it will raise economy in...

The Swiss government supports corporate tax reform

Published: Sergey Panov | 31.10.2016 | news

The Swiss Federal Council announced its support for the proposed changes to the corporate tax base in Switzerland, known as - Corporate Tax Reform III (CTR III), on the eve of a referendum on the issue, which will be held early next year. CTR III cancel corporate tax arrangements, which are no longer in line with international standards. These primarily include the cantonal tax status, for possession of residential and mixed companies. "With regard to measures of tax legislation, the focus is on the promotion of innovation," said Federal Department of Finance on 27 October. "In general, the reform will allow Switzerland to remain an attractive location for companies, and for each canton, the ability to adapt their fiscal policies in the economic and financial situation," said a department statement. "Reform will prevent a mass exodus of existing companies with the status and thus, the possible tax losses amounting to more than CHF 5 billion (USD 5 billion) for the Federation, the cantons and communes." Author: Sergey Panovmanaging partner Finance Business...

The German parliament approved the reform of inheritance tax

Published: Sergey Panov | 18.10.2016 | news

The upper house of the German parliament, the Bundesrat (Federal Council) approved a bill to tighten eligibility criteria for inheritance tax incentives for family businesses. These changes mean that the tax exemption will be abolished inheritance in excess of EUR 90 million (USD 98.7 million). In total, the exemption from inheritance tax will be applied in most cases, but only if the company has been working for at least seven years, and retains the same level of employment. Companies in which five employees are working, or less, will be automatically exempt from inheritance tax without any limitation, as compared to 20 employees in accordance with the existing rules. The new law will be applied retrospectively (ex-post), with the July 1, 2016. Changes in the rules of inheritance tax in Germany, was caused by the decision of the Constitutional Court in 2014, stating that the existing rules violate the principle of fiscal equality. Inheritance tax benefited thousands of family firms, which employ more than 50 percent of the German workforce. However, they also talk about the consolidation of inequality and the accumulation of wealth among a relatively small number of...

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