Offshore News, Tax, Corporate Law - Finance Business Service

Parliament of Ukraine proposed to impose a tax on transactions from offshore jurisdictions

Published: 21.04.2016 |

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The Parliament of Ukraine once again registered the Draft Law on Amendments to the Tax Code of Ukraine on April 13, 2016 on introduction of a tax on transactions from offshore jurisdictions number 4413, by N. Korolevskaya and Y. Solod (hereinafter - the "Project number 4413 "). A memorandum to the Project number 4413 proposeto introduce a tax on transactions from offshore jurisdictions from 1 January 2017. The rate of the tax is set at 15% of the payment amount payable to non-residents that have offshore status. According to the memorandum to the Anti-offshore law, taxpayers are entities who pay for goods (works, services) to non-residents with offshore status, or perform calculations by such non-residents or their bank accounts (including opened in banks of Ukraine), regardless of whether such payment is made directly or through other residents or non-residents. To ensure the tax on transactions from offshore jurisdictions the banks will be banned to accept vouchers to perform conversion of funds to non-residents with offshore status without simultaneous offshore tax payment to the state budget of Ukraine. Initiators stated that these changes will allow to tighten control...

The third international business forum in Kharkiv

Published: 21.04.2016 |

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#Slovakia #United Kingdom #USA

Attorneys of our company attended the third international business forum in Kharkiv which was held on 7 April this year. This forum is a response of Ukrainian business community to the situation in our country. Each year, this event is visited by more than three hundred and fifty directors and managers of different companies. Forum raised topical issues of the transformation of the Ukrainian business. Key issues of the forum - best practices for attracting investment, obtaining grants, development of business in crisis and access to the European market. Business Forum provided two program’s format in the usual forms, it is the speech of speakers and discussions, as well as have been introduced two new formats - "Investment Salon", where Ukrainian companies asked questions about raising grants and "projects Battle", where entrepreneurs present their startups. Also Ivan Miklos delivered a speech for the first time in Kharkov - he is the ex-finance minister of Slovakia and one of the authors of the "Slovak economic miracle". Its main purpose of a speech was a desire to share its experience and help Ukrainian businesses to successfully adapt to the economic transition. At the...

Canada adopted the latest tax transparency standard

Published: 20.04.2016 |

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#Canada #Tax reporting

The Government of Canada released draft legislative proposals to implement common standards of tax reporting, which will enter into force on 1 July 2017. As of this date, Canadian financial institutions are required to have procedures to identify accounts belonging to non-residents. Then they must report certain information to the Agency of Canada revenue. Canada is one of more than 90 jurisdictions that are committed to the implementation of accounting standards. Agreement on the exchange of statements from other jurisdictions will strive to ensure that each jurisdiction has adequate capacity and guarantee for the exchange of information. Department of Finance said that the information received from the tax returns of the partners jurisdictions, will help Canada to better fight against tax evasion and ensure tax compliance and protect the integrity of the tax system. Consultations will be closed July 15, 2016. These consultations will announce new measures to combat tax evasion. The government also stated that it will establish an advisory offshore committee which will develop a strategy to help alleviate and prevent offshore non-compliance with tax reporting and will...

Corporate tax cut, Slovakia

Published: 19.04.2016 |

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#Slovakia #Taxation

The newly formed coalition government of Slovakia has agreed to reduce the corporate tax rate in the recently agreed economic program. According to the plan, the four canoes coalition led by Prime Minister Robert Fico, and with the participation of parties of center-right and center-left political spectrum, corporate tax will be reduced by one percent to 21 percent in 2017, a further reduction of corporate tax could be considered at a later stage. In addition, the program provides for the reduction of the administrative burden for businesses in an effort to stimulate growth and reduce unemployment. Nevertheless, the plan also weakens efforts to reduce the budget deficit in Slovakia, the budget surplus is not expected until 2020, two years more than the previous period. In comments made after a "marathon negotiations" between four governing partners, Fico said: "The timetable within which the declaration of the program was adopted is an important signal to Europe that Slovakia is a politically stable country and this is particularly important in light of the Slovak Presidency of the Council EU ". Author: Olena Kutova senior lawyer of the Finance Business...

Hong Kong – Latvia, the avoidance of double taxation agreement

Published: 18.04.2016 | news

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#Double taxation #Hong Kong #Latvia

It has been signed an agreement on avoidance of double taxation between Hong Kong and Latvia on 13 April, Riga. This is the 35th contract that Hong Kong has signed with its trading partners. The Treaty establishes a clear allocation of taxation rights between the two jurisdictions and it helps investors better assess their potential tax liabilities. It has been signed an agreement on avoidance of double taxation between Hong Kong and Latvia on 13 April, Riga. This is the 35th contract that Hong Kong has signed with its trading partners. The Treaty establishes a clear allocation of taxation rights between the two jurisdictions and it helps investors better assess their potential tax liabilities. In the absence of an agreement on avoidance of double taxation the profits of Hong Kong companies which operate through a permanent establishment in Latvia, were taxed in both places if the income comes in Hong Kong. Similarly, revenues received Latvian residents in Hong Kong are subject to tax in Latvia. Under the new agreement, the tax rate in Latvia for royalty (currently different rates to 23 per cent in some cases) will be reduced to zero percent for companies and a maximum of...

The corporate tax rate for small businesses in Canada

Published: 15.04.2016 | Без категории

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#Canada #Taxation

Canada's Liberal government froze the tax rate for small businesses, despite a campaign promise to reduce it over the next three years. The Minister of Finance pointed out that the corporate tax rate for companies earning less than $ 500,000 a year will remain at the level of 10.5 percent. This is lower than the 15 per cent rate of the total corporate tax but will be abolished reducing to 9 percent. "This is a great breach of promise," said Dan Kelly, president of the Canadian Federation of Independent Business. Around 3.5 million companies are classified as small enterprises including 2.4 million private entrepreneurs. As a result of the freezing rate small businesses will pay about $ 900 million more in taxes in 2019, compared with what was planned. The government also expects to collect more than $ 11 billion over the next five years through a variety of measures aimed at tightening the corporate tax system, including hard inspections of companies and closing loopholes that use transnational corporations to shield income from taxation. Government restores federal tax credit of up to $ 5,000 for individual investors in 2016. Author: Olena Kutova senior...

Simplifying the tax rules in New Zealand

Published: 14.04.2016 |

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#New Zealand #Reforms #Taxation

The package of tax reforms aimed at supporting small and medium-sized enterprises (SMEs) has been submitted to the Prime Minister of New Zealand, John Key, 13 April 2016. It includes measures to simplify the taxation of small and medium-sized businesses, as well as reduce the cost of compliance with the requirements, said Finance Minister Bill English and Revenue Minister Michael Woodhouse. "These measures will make tax easier and reduce the burden of interest and penalties, as well as help small businesses to carry out individual payments to their circumstances," said English. "We want to make the tax system could fit into how the business works, not the other way around." The main measures included to the proposal: Reform of the temporary tax, the new payment. The elimination or reduction of the use of interest for use of funds for the vast majority of taxpayers. The ability of contractors to choose the tax rate that corresponds to their needs. Cancel the current one percent monthly penalty from 1 April 2017, although the direct penalties and interest charges for late payments will continue to apply. Woodhouse said the changes are part of a wider program of business...

Scotland, income tax plan

Published: 13.04.2016 |

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#Scotland #Taxation

From 6th April 2016 the Scottish Parliament determine their income tax rate, part of the proceeds of the income goes to the coffers of Scotland and the rest to the Britain in the general treasury. Not taxable premium bonds, as well as income in the accounts that are exempt from tax (individual savings accounts, etc.). First Minister of Scotland Nicola Sturgeon announced plans to freeze the income tax rate. However, the British government this offer will only accept within the established framework. The exact level of rates should be set by the Scottish Government every year. However, the Scottish Government believes that their offer is a more balanced approach that will be fair to taxpayers and increase rates at the same time generate additional revenue to be invested in public services in Scotland. Along with the tax proposals First Minister published an analysis of the additional rate which showed that the rate does not increase to the year 2017/18. Instead of offering large tax cuts in the next year the threshold of taxation will be from 43,000 GBP. Author: Olena Kutova senior lawyer of the Finance Business Service company ...

EU, a new VAT plan

Published: 12.04.2016 | Без категории

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#EU #Taxation #VAT

The European Commission has issued a VAT Action Plan which sets out plans for the next two years for the modernization of VAT in the European Union. The Commission should propose legislation and to introduce common EU-wide measures to simplify the rules to help small and start-up businesses in e-commerce and streamline audits for companies engaged in this sector by the end of 2016. In addition, the Commission will seek to improve cooperation between tax administrations including countries outside the EU, customs and law enforcement agencies, in order to strengthen the capacity of tax administrations to combat fraud. The Commission will also provide an opportunity to have a lot of freedom for setting rates of value added tax for the states of the European Union. Existing rules on tax rates that have been developed over two decades ago, in order to ensure neutrality, simplicity and adaptability to the VAT system. The Commission has proposed the freedom to establish rates subject to appropriate safeguards to prevent excessive complexity and distortions of competition and that there was no impact on the functioning of the single market. The Commission has put forward two...

2016 Singapore budget announced

Published: 11.04.2016 |

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#Financial statements #Singapore

Singapore’s Minister for Finance delivered the 2016 budget statement on 24 March 2016. The budget’s goals include transformation of the economy through enterprise and innovation. A number of measures would benefit small and medium-sized enterprises, including an enhancement of the corporate income tax rebate. The relevant tax proposals that would affect businesses also include changes to tax incentives (including the expansion and extension of several incentives) and measures affecting intellectual property rights. An automation support package would be introduced to support companies’ efforts to automate, increase productivity, scale up and expand overseas. It would offer a 100% investment allowance for qualifying capital expenditure of up to SGD 10 million per project, and grants of up to SGD 1 million and enhanced financing support also would be available. It is unclear if all the proposed benefits could be applied at the same time, and the effective date for the measures is yet to be announced. No changes are proposed to the corporate income tax rate (17% with a partial tax exemption on a company’s first SGD 300,000 of normal chargeable income), but the corporate...

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