Recent News

On May 26, the government approved a draft letter to the Global Forum on Transparency and Exchange of Information for Tax Purposes requesting that the date of the first automatic exchange of information on financial accounts be postponed. Source:https://finclub.net/ua/news/uriad-prosyt-vidterminuvaty-obmin-danymy-pro-finansovi-rakhunky.html "The draft letter proposes to postpone the date of the first automatic exchange of information on financial accounts for tax purposes from September 2023 to September 2024," MP Taras Melnychuk specified. In April, the Verkhovna Rada adopted a law aimed at implementing by Ukraine the Common Reporting Standard and Due Diligence on Financial Accounts, approved by the OECD Council (Common Reporting Standard CRS), which provides for the annual international automatic exchange of financial account data. Earlier, the Ministry of Finance reported that the introduction of the requirements of the CRS common reporting standard into national legislation will ensure Ukraine's accession to the international system for the exchange of information with the participants of the Multilateral Agreement of Competent Authorities on the automatic...

Raiffeisen Bank International will step up steps to transfer its Russian division to shareholders. Source:https://www.reuters.com/markets/deals/austrias-raiffeisen-attempts-last-ditch-russian-spin-off-sources-2023-05-23/ The Austrian group Raiffeisen Bank International, after several months of searching for a third-party buyer, was inclined to transfer the Russian "daughter" of Raiffeisen to its own shareholders. The Austrian authorities agree with such a scheme, but it may encounter obstacles from the European Central Bank (ECB) and the United States. As one of the sources explained, Washington fears that it will not be able to check the organization for money laundering. If the scheme is approved, then RBI shareholders will receive shares in a new company registered in Vienna. This company will be given the Russian business. However, it is not clear how independent it will be from the RBI, because if the degree of independence is high enough, then new business will not fall under the direct supervision of the...

On May 19, the Ministry of the Interior of Germany published a draft law that should simplify the process of submitting an application for citizenship. Thus, Berlin strives to stimulate migration and open the labor market in Europe's largest economy. Source:https://www.reuters.com/world/europe/german-cabinet-publishes-draft-legislation-new-citizenship-rules-2023-05-19/ The project offers the option of obtaining multiple citizenships and reduces the number of required years of residence before naturalization to five or three years from the previous eight. Requirements for knowledge of the German language for obtaining citizenship will also be eased. "We want people who have become part of our society to be able to help shape our country democratically," Interior Minister Nancy Feiser said in a statement, adding that examples from countries such as Canada show that this prospect was crucial to attracting qualified workers, which Germany needs. Last year, the German government agreed on plans to reform immigration legislation. Erlyn aims to open up the labor market to badly needed workers from outside the European Union to fill hundreds of thousands of vacancies in...

The ruling clarifies the rules for applying corporate taxation to individuals who receive income from a business or related activity. At the same time, it is clarified that personal income of an individual received from real estate or investments is not subject to taxation. Individuals engaged in business or entrepreneurial activities will only be subject to corporation tax and registration if their combined turnover exceeds AED 1 million in a calendar year. Source:https://internationalwealth.info/offshore-tax/porjadok-uplaty-korporativnogo-naloga-fizicheskimi-licami-v-oaje/ For example, if an individual resident in the UAE is engaged in an online business, the total annual turnover of which exceeds 1 million dirhams, then according to the new decision, such income will be subject to corporate tax. However, if the UAE resident also earns income from property rentals and personal investments, these sources of income will not be taxable as they fall under categories outside the...

The fight against tax evasion is intensifying in France The official representative of the government, Gabriel Attal, presented the plan to combat tax evasion. A new tax intelligence service will be created to search for information and enforce the work of the Financial Investigation Service (SEJF). It mobilizes the methods prescribed by the Homeland Security Code to investigate and prevent the most complex and serious tax frauds. These methods will be directed against the hiding of assets abroad in tax havens, using trusts and other abuses of large multinational corporations. Who will be checked: wealthiest citizens and large multinational corporations that use fraudulent schemes. By 2027, the number of tax audits of individuals, the largest taxpayers, will increase by 25%. Also, 100,000 files of individuals will be processed. Priority will also be given to inspections of the largest companies while strengthening the tax support of companies: by 2027 - 8,500 small and medium-sized enterprises and 160 large groups. The introduction of electronic invoicing should make it possible to obtain additional income in the amount of 3 billion euros. From 2024, a reform aimed...

As the press service of the NBU reported, in accordance with the Law of Ukraine "On Protection of the Interests of Subjects of Submission of Reports and Other Documents During the Period of Martial Law or State of War", the NBU extended the period of non-application of influence measures for untimely submission of financial statements and consolidated financial statements by non-banking institutions for 2023. Source:https://bank.gov.ua/ua/news/all/natsionalniy-bank-ne-zastosovuvatime-do-nebankivskih-ustanov-zahodiv-vplivu-za-porushennya-strokiv-podannya-finansovoyi-zvitnosti-u-2023-rotsi This also applies to the rules regarding the deadlines for submitting consolidated financial statements in 2023 due to the gradual implementation by insurers of IFRS 17 "Insurance Contracts". After all, from January 1, 2023, International Financial Reporting Standard 17 "Insurance Contracts" is mandatory for use in the insurance market. "In the conditions of martial law, the financial and time resources of insurers, necessary for the development and implementation of new procedures, IT solutions, processes for the purpose of implementing IFRS 17 "Insurance Contracts", are limited. Most of...

The innovation under the rules for the payment of corporate tax in Singapore will not spread. However, it always arouses close interest from the business community. The Singapore Revenue Authority (IRAS) carefully considers all changes in an effort to minimize potential harm, and therefore they almost never pose a threat to stability and security. This is confirmed by the new guidance on filing corporate income tax returns. Which areas of domestic tax policy in Singapore are covered by the updated guidance: submission of corporate income tax returns; rules and recommendations for preparing a tax report; declaration status; the subtleties of the interpretation of the current tax code in Singapore In general, there were no global changes, but a certain "work on the bugs" was done. Clarifications on the submission of the declaration: updated regulations through the IRAS web portal; clarification regarding the declaration (C-S, light C-S, C); the need to file a declaration for 2023 (fiscal year 2022). Explanations on the specifics of preparing a declaration/tax report: qualification of income subject to taxation; ...

On May 12, the press service of the State Tax Service of Ukraine published a reminder on the taxation of income of resident individuals received from sources outside Ukraine. Source:https://tax.gov.ua/media-tsentr/novini/676493.html What should you pay attention to? Individuals with permanent residence on the territory of Ukraine have the right to carry out foreign economic activity if they are registered as entrepreneurs. The principles of currency regulation provide for the right of resident individuals and legal entities to conclude agreements with residents and (or) non-residents and fulfill obligations associated with these agreements in national currency or foreign currency, including opening accounts in financial institutions of other countries. Residents, subject to the restrictions determined by Law No. 2473 and other laws of Ukraine, have the right to open accounts with foreign financial institutions and carry out currency transactions through such accounts. Settlements on foreign economic transactions are made exclusively through bank accounts, funds from a non-resident on the operations of a resident on the export of goods are subject to crediting to a...

On July 25, Cyprus will join the Schengen Information System (SIS). SIS is an information exchange system for security and border control. It contains more than 90 million files on wanted persons, missing persons or illegal migrants. In September, the final check of the country for compliance with the criteria necessary for joining the Schengen area should begin. Why is it important? One of the positive aspects is that after joining the Schengen area, holders of a residence permit in Cyprus (including holders of "golden visas") will be entitled to visa-free travel to 27 European countries. Cyprus has been a member of the European Union since 2004, and at the same time assumed obligations to join the Schengen area. In 2014, the Republic allowed holders of a Schengen visa of category C to enter the island, but even neighboring European countries cannot provide a visa-free regime, since Cyprus is still a candidate, not a member. In order for a country to be accepted into the Schengen area, it must meet the following criteria: Protection of personal information The interaction of the Cypriot police with the police departments of the Schengen countries ...