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EU Parliament approves rules against tax avoidance practices

Published: 13.06.2016 | Без категории

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#EU #Taxation

Parliament calls for crackdown on corporate tax avoidance. The EU Commission proposal for an EU anti-tax avoidance directive was welcomed by Parliament in a resolution voted on Wednesday. MEPs nonetheless advocated stricter limits on deductions for interest payments and tougher rules on foreign income. They also called for more transparency for trust funds and foundations, common rules for “patent box” tax reductions on intellectual property earnings, and an EU blacklist of tax havens and sanctions against uncooperative jurisdictions. The anti-tax avoidance directive reflects the OECD's action plan to limit tax base erosion and profit shifting (BEPS) and follows recommendations made by Parliament in November (TAXE 1 report) and December (legal recommendations drafted by EP rapporteurs Dodds and Niedermayer) last year. The resolution was passed by 486 votes to 88, with 103 abstentions. The proposal builds on the principle that tax should be paid where profits are made and includes legally-binding measures to block the methods most commonly used by companies to avoid paying tax. It also proposes common definitions of terms like “permanent establishment”, “tax...

Tax talks between Switzerland and India

Published: 10.06.2016 |

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#India #Switzerland #Taxation

Switzerland's and Indian government expressed their decision to take actions against tax fraud and tax avoidances. Swiss President, Johann N. Schneider-Ammann invited Indian Prime Minister Narenda Modi for an official meeting on June 6. Speaking after talks Modi said that fighting against with danger of black money and tax avoidances is on the first place now. We discuss need the early exchange of information for to take to justify tax offenders. The early start of talks about automatic exchange of information agreement will be important right now, added Schneider-Ammann stressed that the desire of Switzerland to make more stronger efforts for free trade agreement. He hopes that visit to India on this week Switzerland's State Secretariat for Economic Affairs will be a step toward the resumption of negotiations. Modi said that India "has affirmed its readiness to resume FTA talks with EFTA." Author: Olena Kutova senior lawyer of the Finance Business Service company ...

Hong Kong: a new tax benefit for companies

Published: 09.06.2016 | Без категории

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#Hong Kong #Tax exemptions

June 3, 2016 in the official government publication in Hong Kong were published changes in the tax law, introducing a tax break for companies that perform the function of the treasury center. The changes were adopted by the Legislative Council of Hong Kong on May 26, 2016. Now, the company engaged in Hong Kong treasury activities (namely intra-group financing business, the provision of treasury services and conducting treasury operations), under certain conditions, are able to take into account the the interest paid by them on loans as an expense for tax purposes. Under the changes, the Hong Kong companies, which meet the criteria of corporate treasury center will pay income tax at a reduced rate, in the amount of 8.25% (the standard corporate tax rate in Hong Kong is 16.5% rate). The reduced rate of corporation may be applied against to income from treasury activity, obtained from April 1, 2016 and later. The new rules on percent accounting in the composition of expenditure of companies involved intragroup funding, will also be applied in respect of amounts accrued for payment on April 1, 2016 or later. By introducing new benefits Hong Kong trying to increase its appeal to...

Singapore and France, double taxation avoidance agreement enters into force

Published: 08.06.2016 |

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#Double taxation #France #Singapore #Taxation

Ddouble taxation avoidance agreement between this countries entered into force on June 1,2016 Under this agreement tax withholding capped 15 percent in general and 5 percent where the beneficial owners is a companies owned at least 10 percent from all capital of company. Withholding will arise rate of 10 percent. Then, agreement provides that royalties arising in beneficial company will be taxable only in that country.However royalties had getting like award for using or taking rights for using any copyrights of literary or artistic work, including cinematograph films and tapes for television or broadcasting, or for information concerning commercial experience may be taxed in accordance with the law of the country in which they arise. Treaty also includes provisions to prevent treaty abuse. Also exchange tax information between tax administration of both countries. The new provisions of this agreements will be enter into force from January 1, 2017. Author: Olena Kutova senior lawyer of the Finance Business Service company ...

Suspension of tax increases in Japan

Published: 07.06.2016 |

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#Japan #Taxation

Moody’s said that the prime minister of Japane was delay raising of consumption tax rate. Eight percent of rate in Japane programmed special for incrising to 10 percent in October 2015. Also Moody’s said that In a statement, Moody's commented that "the combined move is credit negative as it raises further questions over the Government's ability and willingness to meet its stated fiscal consolidation goals. By delaying the tax hike, we estimate the administration will forego additional revenues worth around one percent of gross domestic product per year. The stimulus will constitute a further unknown cost." In Flitch Ratings also reported to have expressed some concern over the delay to the tax rate increase, as it could erode confidence in the Government's dedication to its fiscal consolidation targets. On the other hand, in an interview with CNBC, Kim Eng Tan, Senior Director of Sovereign Ratings at S&P Global Ratings, was more understanding of Abe's decision to postpone the tax rate increase. He said it "doesn't spell the end of efforts by the Government at fiscal consolidation," as the hike will still occur when Japanese economic conditions have improved. Until then,...

General information about the global standard automatic exchange of information on accounts (AEOI & CRS)

Published: 06.06.2016 |

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#Exchange of tax information #Offshores

What is the Global standard of automatic exchange of information about financial accounts (AEOI & CRS) (hereinafter - the "Global standard")? The global standard of automatic exchange of information on financial accounts (original title in English - Global Standard for Automatic Exchange of Financial Account Information in Tax Matters and Common Reporting Standard) is an international political initiative of the G20 member countries and countries participating in the Organization of Economic Cooperation and development (OECD / OECD), aimed at joint international fight against tax evasion and the illegal concealment of undeclared income in foreign financial institutions. How the requirements of Global standard implemented in real life? The OECD has developed and published the fundamentals and practical tools implementation of the Global standard, which were endorsed by the member countries of G20 at summit in September 2014. International obligations of countries participating in the global standard, in the vast majority are fixed in the form of accession to the Convention on mutual administrative assistance in the tax area on 25.01.1988 and by the signing and ratification of...

Changes in order payment of dividends by joint stock companies

Published: 03.06.2016 |

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#Dividends

May 27, 2016 came into force The order payment of dividends by joint stock company, which is approved by the National Commission on securities and stock market from 12.04.2016 number 391. In particular, on the relevant general meeting of shareholders is defined by a specific method of payment of dividends concerning the entire issue of shares - through the depository system of Ukraine or directly to shareholders. Implementation of dividend payments by joint stock company is going through the payment of the entire amount in full or in part, certainly if it is provided by the general meeting of shareholders or the supervisory board of the company. At the same time, in the case of decision-making by the joint stock company to pay dividends to shares, the payment could made proportionally and simultaneously to all persons who are entitled to receive dividends. Regarding the payment of dividends directly to shareholders. Payment of dividends to shareholders who are entitled, namely the transfer of the amounts of funds to all shareholders shall be effected by the transfer of funds to the shareholders during the relevant time and date that does not exceed six months from the date...

In Ukraine abolished the order of registration of public investment

Published: 03.06.2016 |

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#Investments

31.05.2016 Supreme Rada of Ukraine approved at the plenary session a draft law number 2763 "On amendments to certain Legislative Acts of Ukraine concerning the abolition of mandatory state registration of foreign investments." The main purpose of this draft law is the maximum simplification of the investments order that are extremely important for entering to the Ukrainian market foreign investments. Obligation of such registration additionally made the barriers for doing business in Ukraine. The document is aimed before all at improving the promotion of foreign investments in Ukraine economy by simplifying the procedure of their involvement, including the introduction of application principle of state registration, that is supplying only appropriate forms and timing of statistical reporting of foreign investments which already done. However, achieving this goal is only possible through the abolition of the relevant articles regarding mandatory state registration of investments, including foreign ones. In this way, we can conclude that a draft law number 2763 will allow to attract foreign investments through the elimination of pre-registration, which will also facilitate...

Shorten said that the process of cutting income tax is difficult

Published: 02.06.2016 | news

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#Australia #Taxation

The leader of labor party, Bill Shorten has said that his party would like to reduce Australia's marginal rates of taxation, but if only the budget can afford it. Shorten was quizzed according their position at «nearly 50%» top marginal income tax rate during a doorstop interview on the campaign trail in Cairns. Shorten replied that it would be great to cut marginal rates of taxation, but you can do it only if you can pay for it. Shorten said that the Prime Minister Malcolm Turnbull were returned to Government, all earning more than AUD1m (USD726,337) a year would "get a AUD17,000 tax cut." He argued that it is a bad idea...when you will cut benefits payments for people on AUD60,000 a year." Shorten also added: "Each one percent income for the very rich people to not well-off between AUD6bn and AUD7bn a year off the bottom line Author: Sergey Panovmanaging partner Finance Business...

The EU and Japan jointly declared the free trade agreement

Published: 01.06.2016 |

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#EU #FATCA #Japan

The leaders of Japan, the European Union (EU), France, Germany, Italy and the UK have confirmed that the obligation to achieve a free trade agreement between the EU and Japan (FTA) "as early as possible in 2016 year." The obligation announced in a joint statement issued on the sidelines of G7 summit in Japan. The leaders said they instructed their respective negotiators to speed up negotiations that began in March 2013. "With our full support negotiators have to make efforts in the coming months to move forward with the process of negotiations, setting the way for an agreement that covers all types of tariffs and non-tariff measures on schedule," the statement said. The statement also said that the talks will be held "in a constructive manner based on mutual trust" to achieve "a comprehensive, high-level and balanced agreement, which further consolidates our strong trade and economic cooperation." Author: Olena Kutova senior lawyer of the Finance Business Service company ...

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