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Japan and Austria have agreed on an international agreement on the avoidance of double taxation

Published: 24.10.2016 | news

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The Government of Japan and Austria have agreed in principle to amend its dual agreement on the avoidance of taxation, in order to further develop trade and investment between the two countries. The new agreement will allow, in accordance with the procedure of mutual agreement, to ensure the settlement of the double tax disputes. Also, the new agreement will reduce the rate of withholding tax at the source of investment income (dividends, interest and royalties), as well as to expand cooperation between the tax authorities of the two countries by providing assistance in collection of taxes. The Organization for Economic Cooperation and Development, in its final report, recommended that countries adopt a binding international agreement on avoidance of double taxation, to the dispute resolution mechanisms have become more efficient. Japan and Austria are among the 20 countries which have declared their commitment to the project. Changes to the Agreement shall enter into force after the completion of the approval process in both countries. Author: Olena Kutova senior lawyer of the Finance Business Service company ...

Clinton and Trump on election policy

Published: 21.10.2016 | Без категории

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#USA

October 19 at the third and final debate before the election in the United States, the Republican candidate Donald Trump and the Democratic candidate Hillary Clinton confirmed each their widely differing tax policies, without providing any further details. In response to a question on tax policy, Clinton wants to provide a means for economic growth and "support of the middle class families," stating that "the rich should pay their fair share." He reiterated, however, that "will not raise taxes for those earning USD250,000 and a dime will no longer pay the state." In contrast, he said, the plan "Trump created for large tax cuts, which have ever been. His plan is to give the biggest tax breaks for all the rich and the great corporations, adding USD20 trillion of our debt. This action is not justified . We tried to do it, did not work." Trump said that his plan to raise taxes - it's a disaster. ... We're going to cut taxes massively. We will reduce taxes on business and on a large scale. We're going to return to USD2.5 trillion in the country that have left as a result of offshore business. We're going to start this process. He also said that he would re-negotiate the existing trade...

IRS Canada helps small and medium-sized enterprises (SME)

Published: 20.10.2016 |

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#Canada

Minister of Revenue of Canada, Diane Lebouthillier, assists the government, which is aimed at improving the interaction between the tax authority with SME. Diana Lebouthillier participated in a roundtable discussion with owners of small and medium-sized businesses in New Brunswick, where it drew attention to its mandate to modernize the Tax Office Canada (CRA). The Government's consultation is to gather information about how the CRA can make their programs and services more streamlined and focused on taxpayers. Diana Lebouthillier said: "Our government has made a commitment to make real changes. As for the Minister of National Revenue, one of my main priorities is to ensure that the Internal Revenue Canada became even more customer-oriented organization, so that Canadians and Canadian business owners feel more protected, respected and valued." Budgeted CAD 185.8 million (USD 141.98 million) for the period 2016-2021, and CAD 14.6 million currently. Author: Olena Kutova senior lawyer of the Finance Business Service company ...

Estonia – the most competitive countries in the tax system

Published: 19.10.2016 |

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#Estonia #Taxation

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...

The German parliament approved the reform of inheritance tax

Published: 18.10.2016 |

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#Germany #Reforms #Taxation

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...

Australia produces a third tranche of super tax reforms

Published: 17.10.2016 |

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#Australia #Reforms #Taxation

The Australian government issued the third tranche of its pension reforms, this time focusing on better targeting tax incentives. Last Exposure Draft reduce annual non-concessional (after tax) contribution limit of AUD180,000 (USD137,165) to AUD100,000. Government still intended to introduce a lifetime limit nepilhovu AUD500,000. In addition, people with superannuation balance over AUD1.6m no longer have the right to make non-concessional contributions from 1 July 2017. Treasurer Scott Morrison said: "The government is on the path to reform measures were introduced to parliament by the end of the year. This will allow taxpayers to confidently make decisions about your seniority." "The introduction of the legislation also provides for pension trustees with the confidence they need to implement these reforms." Consultation on the draft legislation will end on 21 October. Last month, the government published draft legislation which, if adopted, would reduce the limits on concessional contributions AUD25,000 a year, and enter the translation AUD1.6m balance to limit the people who can keep the pension phase. The legislation also reduce the income threshold at which individuals are...

The Irish financial system reduces the tax on workers

Published: 13.10.2016 |

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#Ireland #Taxation

Irish Finance Minister Michael Noonan put the budget 2017, which largely focuses on the reform of the income tax system and the competitiveness of the corporate tax regime. The sixth part of the Noonan's budget as Minister of Finance, includes tax reforms to "reduce the burden on taxpayers just under EUR 300 million (USD 330.6 million)." He explained that "these changes include around EUR 500 million in tax cuts, offset by measures to increase tax revenues in the amount of EUR 195 million." As expected, Noonan decided to reduce the Universal social charge (USC), albeit at a slower pace than indicated in the government's pre-election manifesto. Announcing the measures, he said: "Extremely high tax rates act as a brake on employment They distract people from the jobs and divert immigrants from returning home.". Noonan admitted that he had "limited resources to change the situation," but said that it will allocate EUR 335 million to reduce each of the three lower USC rates by 0.5 percent. As a result, these bids will now be 0.5 percent, 2.5 percent and five percent. The ceiling of the band, which decreased 2.5 percentage payable rate will be increased from EUR 18,668 to EUR...

Australia reforming the tax rules of wage funds

Published: 12.10.2016 |

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#Australia #Taxation

Tax rules in Australia classifies financial instruments such as debt (deductible interest) or equity in accordance with their economic content. They also contain rules of integrity to prevent taxpayers from the artificial division of a single scheme for several schemes to achieve favorable tax results. According to the Government, "the integrity of those rules were viewed to be immediate and created considerable practical difficulties for the taxpayers." Therefore, the government issued a draft law that, if implemented, will ensure that a number of schemes are treated as a single scheme only if it accurately reflects the economic and commercial nature of schemes. This is in accordance with the recommendations adopted by the Board of Taxes and Duties. Consultation on the proposals will be closed on November 21. The final legislation will be applied prospectively from the date of establishment, by proclamation, or six months after it receives royal assent, whichever is later. Author: Sergey Panovmanaging partner Finance Business...

Fund of Luxembourg is considering reducing taxes for Britain

Published: 11.10.2016 | Без категории

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#Funds #Luxembourg #Taxation #United Kingdom

Henderson Diversified investment trust said that it is considering the transfer of its Luxembourg subsidiary of the United Kingdom, referring to the growing fiscal risks in the Grand Duchy. In a statement released to the London Stock Exchange on October 7, Henderson said that some recent developments in tax law and practice of Luxembourg increased the legal risks of operating within the jurisdiction, including the transfer pricing. "The Board of Directors and its advisors continue to review these developments and the recently concluded that the existing structure of the company may include increased complexity and risk," said Henderson. "Accordingly, the Council examining the possibility of simplifying the tax structure by election and joining the UK investment trust tax regime, including changing its place of registration in the United Kingdom," added the firm. Such a move is likely to lead to the liquidation of its subsidiary in Luxembourg and the formation of a new company in the UK, which is expected to reduce its annual operating costs. The company said its investment management arrangements will not be affected by this reorganization. However, he confirmed that it will last...

Germany is preparing to publish the tax cuts

Published: 10.10.2016 |

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#Germany #Taxation

The German government is expected to soon announce the details of the reduction in the amount of tax in excess of EUR 6 billion (USD 6.7 billion), both in 2017 and in 2018. According to "Handelsblatt", a political agreement on the details of the proposed tax cuts was reached between the two main parties in the ruling coalition, paving the way for the tax reduction. Chancellor Angela Merkel also confirmed that the government has given permission for moderate tax benefits in 2017 and 2018 during a performance of business leaders on 6 October. Outlining the federal government's budget plan for 2017 in the Bundestag, the lower house of the German Parliament, 6 September, Finance Minister Wolfgang Schaeuble said that the tax cuts mainly comes from the weakening effect "bit transition", as a result, income tax It keeps pace with inflation, wages, so pushing people on relatively modest incomes in higher tax framework. Schaeuble also said that payroll taxes would be cut, despite the fact that more data is still awaited. Author: Sergey Panovmanaging partner Finance Business...

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