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The bill, the Global Floor Tax on Transnational Business Groups and Large Domestic Groups in the Union Act of 2023, is intended to provide a global floor on taxation. multinational enterprise groups and large domestic groups in the EU. The bill proposes rules governing the introduction of minimum effective taxation for large multinational and domestic groups with annual consolidated income of €750 million. It sets out two rules: income inclusion rule (IIR); under-taxed profit rule (UTPR). An “additional tax” must be levied whenever the effective tax rate of a multinational company in a particular jurisdiction is reduced to less than 15%. If a company pays a tax rate of less than 15% in one country, then its parent company or other related company in another country must pay the difference of up to 15%. These two rules work together to ensure that international companies do not avoid the minimum tax by transferring their profits to low-tax countries. The draft law under discussion includes all the provisions of the Directive and has been supplemented by some provisions of the OECD administrative guidance, as well as provisions regulating administrative...

The FTA has issued new Guidance with clarifications and 41 examples for individuals and legal entities that are non-resident for UAE corporate income tax purposes and receive UAE source income. Source:https://tax.gov.ae/DataFolder/Files/Guides/CT/Taxable%20Non-Resident%20Person%20-%20EN%20-%2008%2010%202023.pdf Let's look at some examples. Non-resident individual: is required to register for corporate income tax purposes and obtain a tax registration number if the non-resident's turnover attributable to its permanent establishment (PE) in the UAE exceeds AED 1 million during a calendar year. Non-resident entity: once it can determine that the activity will result in the establishment of a permanent establishment in the UAE or the existence of a “link” to the UAE, will be considered a non-resident entity under the Corporation Tax Law (CTA) and must register with the FTA to avoid any or delays in compliance, which may result in administrative penalties. Examples in the Guide also include: Some issues that may arise in determining whether a non-resident has a PP in the UAE - the above examples must be “tested” taking into account the facts and context of a...

PayPal and Venmo users can now add their credit and debit cards to Apple Wallet to make payments in stores, online or in apps. They will continue to earn rewards, discounts and cashbacks on their eligible purchases. You can add a PayPal card to Apple Wallet in the usual way. After that, users can immediately start using Apple Pay to pay for purchases with a PayPal or Venmo debit or credit card. The use of mobile wallets continues to gain popularity. It's fast, convenient and safe. When paying for a purchase using Apple Pay, transactions are secure because they're verified using Face ID, Touch ID, or your device's passcode, as well as a one-time, unique dynamic security code. PayPal, for its part, provides transaction protection for both smartphone and physical card...

In September, the Romanian Ministry of Finance presented a bill aimed at ensuring the long-term financial sustainability of the state. The proposed bill makes some changes to the tax system. From January 1, 2024, it is planned to introduce a minimum turnover tax for taxpayers whose turnover in the previous year exceeded 50 million euros. An additional tax will also be levied on credit institutions. In addition to income tax, credit organizations will have to pay turnover tax, which is calculated as 1% of turnover. New tax rates for micro-enterprise profits are provided. An income tax at a rate of 1% will be levied on micro-enterprises whose annual turnover does not exceed 60 thousand euros. A tax at a 3% rate will be applied to companies with an annual turnover of over 60 thousand euros or to enterprises that carry out the types of activities established in the Bill. The bill also proposes other measures to support efforts to recover the budget deficit, including measures to combat tax evasion and other offenses. The Romanian Ministry of Finance has launched consultations on the proposed financial sustainability...

The government has announced that the Netherlands investor visa will be closed to new applicants from 1 October. Since 2013, exactly ten investors have received the right to a residence permit thanks to the program. Secretary of State Erik van der Burg cited two main reasons for the decision: the limited economic impact of the program and EU hostility towards the golden visa sector. He also noted that the program showed "no evidence of criminal abuse" and said that the cancellation of the scheme was not due to insufficient capacity to vet candidates by the authorities. In order to obtain a Dutch residence permit, applicants had to meet two conditions: Invest €1.25 million in a local startup or venture capital fund. Moreover, do this BEFORE applying for a residence permit. These investments must be placed in a bank account in the Netherlands or another EU bank with a branch in the Netherlands. After receiving approval, you had to buy or rent real estate for 8 months (after receiving a visa). There were no requirements for the value of real...

The European Commission has initiated an “infringement procedure” against Portugal regarding visas for citizens of the Community of Portuguese-speaking Countries (CPLP), launched in March last year. Soon, SEF launched a procedure for automatically converting them into residence permits, which 151 thousand people managed to take advantage of. The Commission "urges Portugal to harmonize the provisions" of these visas with EU law. “Portugal has not fulfilled its obligations under Regulation 1030/2002, which establishes a uniform residence permit model for third-country nationals.” In a notice sent to the State Secretariat for European Affairs, the body considers that “the residence permit does not correspond to the model established” in the European rules. In addition, it adds, “both residence permits and long-term employment visas for citizens of CPLP states do not allow their holders to travel within the Schengen area.” A residence permit for CPLP immigrants costs 15 euros, and you can receive the document in electronic format within 72 hours. In addition to Portugal, the CPLP includes Angola, Brazil, Cape Verde, Guinea-Bissau, Equatorial Guinea,...

Rishi Sunak is reportedly considering cutting inheritance tax as he tries to woo voters and create a dividing line with the Labor Party, which is comfortably ahead in the polls. Source:https://www.theguardian.com/money/2023/sep/24/sunak-considering-inheritance-tax-cut IHT is currently levied at 40% on properties valued at more than £325,000 for a single person or £650,000 for a couple. If inheritance tax is scrapped, the UK will join Australia and Canada, which have done so previously. Proposals under consideration include an announcement of an intention to phase out the tax by cutting the 40 per cent rate of inheritance tax in the March 2024 Budget, as well as a plan to abolish it entirely later. The Office for Budget Responsibility (OBR) estimates that IHT generates around £5.4 billion a year. Although it represents less than 1% of total tax revenue, the repeal could still leave a negative mark on UK public...

The Bank for International Settlements (BIS), the central banks of France, Singapore and Switzerland have successfully completed testing of cross-border trading and settlement operations in wholesale CBDCs. Cross-border trading and settlement of wholesale wCBDC between financial institutions using new DeFi concepts on a public blockchain were tested. The parties agreed on a common technical standard wCBDC, bridges for the transfer of CBDC between different blockchains. Also agreed upon is the use of an automated market maker (AMM), a special type of decentralized exchange for automated trading and settlement of spot foreign exchange trades. BIS said: for the purposes of the project, AMM combined the liquidity of hypothetical wCDBC in Swiss francs, euros and Singapore dollars using algorithms that allow automatic evaluation and execution of foreign exchange transactions in real time. Let us recall that BIS President Agustin Carstens previously called on countries around the world to modernize legislation in order to legalize the introduction of digital currencies of central...

Spain's new wealth tax, introduced to reduce the cost of living for ordinary Spaniards amid high inflation, has already raised €632 million this year. Source:https://www.zawya.com/en/world/uk-and-europe/spains-new-wealth-tax-raises-676mln-euros-exccm3ee At the end of 2022, the left-wing government introduced a temporary solidarity tax for high net worth owners for 2023 and 2024, effectively ending regional exemptions from the existing wealth tax like those in Madrid, which rivals Miami in attracting wealthy Latin American taxpayers. The tax applies to wealth exceeding €3 million and can be as high as 3.5% depending on the size of the individual's wealth. In total, 12,010 wealthy people paid the new tax, representing 0.1% of all taxpayers in Spain, mainly in Madrid, Andalusia and Galicia. According to government forecasts, there is a potential opportunity to collect 1.5 billion euros in tax on large fortunes if extended to all...