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LHV UK received a UK banking license one year after applying. Source:https://www.altfi.com/article/10667_lhv-bank-lands-uk-banking-license LHV Bank, as it is now known, is the UK arm of the Estonian financial services giant AS LHV Pank, but will now operate as a standalone bank. The bank will start accepting retail customer deposits later in 2023 when it transitions from the temporary permit regime as a branch of an Estonian bank. LHV has been operating in the UK since 2018 and says it works with over 200 fintech companies including Airwallex, Currencycloud, Truelayer and Wise. It is a member of all major UK and EU payment schemes, allowing it to provide real-time multi-currency cloud payments as well as broader banking infrastructure services such as checking and savings accounts, acquiring, indirect scheme access, open banking and FX services. “In addition to our existing banking and SME lending services, we plan to begin accepting retail deposits later this year and expand our banking services to offer e-commerce businesses while maintaining the same level of convenience, reliability and security that our existing clients receive. ”, said Erki Kilu, CEO of...

The Financial Services and Markets Act, which affects the regulation of the cryptocurrency sector in the UK, has been finally approved. Source:https://www.gov.uk/government/news/rocket-boost-for-uk-economy-as-financial-services-and-markets-bill-receives-royal-assent The approval was preceded by the adoption of a comprehensive document that updated the supervision of the financial industry after Brexit. The Financial Services and Markets Act allows regulators to develop a framework for the digital asset sector. It aligns with Prime Minister Rishi Sunak's ambition to turn the UK into a global crypto hub. The document allows the creation of regulatory sandboxes that allow experimentation with blockchain use cases in financial markets. It also secures the status of a means of payment for stablecoins. After parliamentary consideration, the bill was amended to consider all cryptocurrencies as a regulated activity and give authorities the power to oversee their advertising. “The passage gives us control over the financial services rulebook – the law supports businesses and consumers, and also stimulates economic growth. Repeal of old EU regulations will attract...

A minimum corporation tax bill for large corporations was submitted to the House of Representatives of the States General on May 31, 2023. The document sets the minimum effective CIT rate at 15%, the qualifying condition is a minimum income of at least EUR 750 million. Source:https://internationalwealth.info/offshore-tax/v-niderlandah-predstavlen-zakonoproekt-vvodjashhij-minimalnyj-korporativnyj-nalog/ Extended obligations under CIT (Corporate Incom Tax) arise only if the corporate group in the Netherlands to which the foreign company belongs pays tax at a rate of less than 15%. The additional tax rate will be determined by the formula: The minimum corporate tax rate (15%) is the real tax rate in the country of incorporation of the subsidiary. For example, a parent company in the Netherlands has a subsidiary in a low-tax/tax-free zone where the CIT rate is below 15% (for example, in Gibraltar, where the CIT is 12.5% from August 1, 2021). If the bill is approved, then under the new rules, the amount of additional tax will be 15% - 12.5% = 2.5%. Why is there a minimum corporate tax for large corporations: active opposition to aggressive tax practices; ...

Participants of the Digital Money forum, organized by the Association of Ukrainian Banks, reported that after the full launch of the electronic hryvnia in Ukraine, a decrease in the volume of money transfers through commercial banks is expected. Source:https://t.me/uafic/1983 E-hryvnia should allow such transactions without the mediation of financial institutions, which will eliminate the risk of losing funds in the event of bankruptcy of the latter. At the same time, banks will still be able to provide customers with deposit, credit and other services, including using e-hryvnia. Also, banks will be able to develop modern financial products, such as: digital wallets for e-hryvnia; customer identification services; mobile service delivery platforms; new payment methods; investment advice; custodial and brokerage services for users of virtual assets; secure smart contracts and other software products for the digital economy. Forum participants believe that the banks most adapted to the new conditions will form a new niche of financial services, including the use of e-hryvnia and virtual...

FATF at its third ordinary plenary meeting decided to include Croatia in the "grey list", along with Cameroon and Vietnam. Countries on the "grey list" are "highly monitored jurisdictions". Croatia thus became the only EU member on this list, and the stated reason is shortcomings in the prevention of money laundering and terrorist financing. Source:https://www.fatf-gafi.org/en/publications/Fatfgeneral/Increased-monitoring-june-2023.html The FATF has its own set of standards for assessing the legitimacy of each country's money transactions. The review process is based on the threats, vulnerabilities or special risks that arise in a given jurisdiction. T. Raja Kumar, chairman of the organization, said that Croatia had committed to develop an action plan to improve compliance with the organization's recommendations, and urged the country to implement this plan "as soon as possible". The Croatian Action Plan includes, among other things, an assessment of the risks associated with the misuse of legal persons and legal mechanisms and the use of cash in the real estate sector. What could be the consequences? The legislation of most European countries obliges financial...

JPMorgan has expanded its project to introduce blockchain technology into traditional banking services and began to conduct payments in euros for corporate clients in the digital currency JPM Coin. Source:https://www.bloomberg.com/news/articles/2023-06-23/jpmorgan-jpm-switches-on-jpm-coin-payments-system-in-euros#xj4y7vzkg JPM Coin was launched in 2019 to transfer dollars. The digital currency has now begun supporting euro transactions, Basak Toprak, head of Europe, the Middle East and Africa at JPMorgan Coin Systems, said. The German company Siemens has already made the first payment in euros on the bank's platform. The system allows the bank's corporate clients to transfer funds between different JPMorgan accounts around the world or make payments to other clients using the blockchain. Transactions in JPM Coin are carried out around the clock and are faster than regular payments. The stablecoin is part of the Onyx blockchain-based platform. It was launched in 2020 to improve the quality of bulk transfers. As of April 2023, with the help of Onyx, the bank has issued short-term loans in the amount of about $700 billion. Note that in June 2023, JPMorgan entered into...

Presidential Resolution 7300, which was recently announced, extends the deadline for applying for a tax amnesty for outstanding government receivables. Reported by the Turkish Tax Authority (TRA). Source:https://internationalwealth.info/offshore-tax/turcija-objavila-o-prodlenii-sroka-priema-zajavok-na-nalogovuju-amnistiju/ According to Law No. 7440 of March 9, 2023, Turkey has a tax amnesty regime for persons with tax arrears. Initially, applications for participation were accepted until May 31 of the current year. However, the Turkish authorities decided to meet the needs of private business representatives and extend the deadlines: acceptance of applications - until June 30 inclusive; payment of the first installment - until July 31 inclusive. The new tax amnesty program regulated by Law No. 7440 covers the following government fees and requirements: taxes; insurance premiums; customs duties; administrative fines. As part of the tax amnesty, taxpayers have access to: restructuring of outstanding tax and payables to the state; settlement of current tax disputes; voluntary increase in the tax base in exchange for a ban...

The Verkhovna Rada reported that from July 1, no changes will be made to the tax policy. What does it mean? "single tax 2%" will not be canceled; will not cancel tax benefits for the 1st and 2nd groups; will not resume documentary checks; will not return penalties for violation of the use of cash registers. Tax refund is one of Ukraine's obligations under the memorandum with the IMF, but it is still unknown when exactly they will become "pre-war"...

The Spanish State Tax Agency published Order HFP/523/2023 dated May 22, 2023, approving the forms of declarations for corporate and income tax from non-residents for 2022. Source: Document HFP/523/2023 regulates the filing of tax returns for the last year by permanent establishments and organizations registered abroad but operating in Spain. It describes the conditions and procedure for submitting documents in electronic form. Order HFP/523/2023 comes into force on 1 July. In addition, the order includes samples of: forms provided for the provision of information on certain corrections and deductions in the profit and loss account in an amount not exceeding 50,000 euros; an annual report on the work performed, projects and studies that are subject to social security bonuses; reserve for investment in the Canary Islands. The Order contains the following forms (modelos) of tax returns: Form 200 - Declaration of corporate and income tax from non-residents, permanent establishments and organizations established abroad, but operating in Spain; Form 206 - Declaration of payment or refund of income tax from a non-resident; Form 220 -...