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Canada will review preferential tax arrangements

Published: 17.06.2016 |

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The Organisation for Economic Cooperation and Development (OECD) said that government of Canada need to include Preferential Tax of small business in planned review of tax expenditures. This recommendation was make in the last economical overview OECD of Canada and added that this capital taxable income is not sufficiently focused. "The main aim of this agreement to save small business in a big amount for investing and its make this program more effective. OECD said that depend of analysis result according to decision of federal budget in 2016 to defer a series of scheduled increases to the SBD and it will be seen as moving in a right direction. It added that the Government should also "review its targeted measures and adapt them as necessary to ensure that they correct clear market failures efficiently." The 2016 Budget deferred any further reductions in the small business income tax rate and committed the Government to undertaking a review of the tax system within the coming year, with a view to eliminating poorly targeted and inefficient tax measures. Author: Sergey Panovmanaging partner Finance Business...

Japanese Sales Tax Delay Bad For Credit Rating

Published: 16.06.2016 |

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#Japan #Taxation

Fitch Rating approved long-term credit rating to June 13, but outlook it in the negative light due to recent Shinzo Abe's decision to postpone an increase the consumption tax rate due to take effect in April next year. Eight percent the rate for consumption tax rate was programme to incrase to ten percent in October 2015, but it impossible to do till October 2019. Abe also said that government provide additional actions of financial in this year for resiting continuing economic uncertainties. In press-release credit agency approved taht the outlook revision followed the delay to the tax hike being made without "identifying any specific offsetting measures. Increasing of consiting tax is an essential element in ficsual strategy of government consoladation, the main aim is to to bring the primary deficit of the general account of the central and local governments into balance by the fiscal year from April 2020 to March 2021 (FY20), against a 3.3 percent deficit in FY15," Fitch added. The agency noted that expected for increasing tax rate to get approximatly 0,8 percent of of gross domestic product for deficit reduction. When announcing the delay, the Government said...

Australia Explains New Digital Tax Regime

Published: 15.06.2016 |

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#Australia #Taxation

The Australian Taxation Office (ATO) has issued guidance on a new law that will apply the goods and services tax (GST) to international sales of services and digital products from July 1, 2017. This change will touch a wide range of goods including streaming and downloading films, music, applications, games and e-book and also architectural and legal services. The seller of digital products and services for Australian customers need to register for GTS witj ATO if there sales during 12 months will AUD75,000 or more. After registration they need to report with minimal proof of identity, lodge and pay GST and will not need to provide a a tax invoice or adjustment note to their customers. The GST rate in Australia is 10 percent. As the ATO explained, "1/11th of the amount you charge for sales of digital products or services to Australian consumers will be the GST amount you must pay." Australian consumers are Australian residents who are not registered for GST. ATO says that sallers can The ATO said that sellers can comply with the new rules. It added that obtaining an Australian Business Number and statement from their customer that they are GST registered will...

Latvian banks demanded the Ukrainian to disclose tax information

Published: 14.06.2016 | Без категории

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#Banks #Financial statements #Latvia

Ukrainian clients of Latvian banks have received letters demanding to talk about his tax residence. These data are the local State Revenue Service promises to transfer FTS. Latvia Banks sent Ukrainians requirements to disclose tax and financial information about themselves. In one of these letters, which received a bank customer Rigensis (have RBC), said that since January 1, 2016 Latvia acceded to the standard automatic exchange of financial information (Automatic Exchange of Information or AEOI). In a letter to his client Rigensis Bank warns that it must pass the data of the State Revenue Service of Latvia (SRS). And that, in turn, is obliged to send this information to the tax authorities of the relevant jurisdiction. In other words, in those countries where the owners Rigensis bank accounts - tax residents, written in the letter. The first reports on the new (opened in 2017) and large accounts (balance at 31 December 2015 of more than $ 1 million) Rigensis transmit SRS in 2017, stated in the letter. For all the rest - in 2018. At the same time Ukraine is likely to begin to exchange tax information with Latvia within the AEOI, said in response to the SRS request RBC...

EU Parliament approves rules against tax avoidance practices

Published: 13.06.2016 |

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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 | news

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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 | Без категории

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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...

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