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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 |

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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...

Reform of tax regulations in Australia

Published: 08.04.2016 |

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#Australia #Reforms

The Australian Treasury has issued a draft law on the reform, namely the rules in respect of incurring losses by the company. Treasury said that the reforms would "stimulate entrepreneurship allowing loss-making enterprises to seek new opportunities to return to profitability." The proposed measures are part of a government program aimed at innovation and science. In accordance with current regulations, the Company has the right to use the losses over the past year to reduce taxable income provided that retained the same interest from the date of loss. New developments allow the company to use the losses of previous years to reduce taxable income but during this period the company may not conclude new transactions or types of business activities. This will allow companies to adapt and change their business. Commenting on the draft legislation, Mark Molesworth, said that while these measures are a step in the right direction but problems still remain. He explained: "This bill is very restrictive and can cause suffocation introduction of innovation in order to provide access to the existing losses and will also require significant compliance costs in relation to such...

United Kingdom, the rules against tax evasion

Published: 07.04.2016 | news

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#Taxation #United Kingdom

The UK government has published a policy paper which explains the introduction of a new trust rules against tax evasion, designed to prevent attempts to use the disguised remuneration schemes. Estimated change was included in the budget 2016 and new rule applies from 16 March 2016. The Government stated that one type of disguised scheme of tax evasion, remuneration avoidance, seeks to exploit weaknesses rules. Currently, section 552Z8 for income tax reduces the amount of charge in a disguised remuneration subject to certain conditions. The Government explained that the new rule will put beyond doubt that this scheme does not work by preventing the relief from being available where there is a connection, direct or indirect, with the mechanism of tax evasion. The Finance Bill 2016, stated that a transitional relief will be charged on investment income after 30 November 2016. Those who used the disguised remuneration scheme prior to the introduction of new rules can get the relief adopted after their settlement. According to the Finance Bill 2016, it will be restricted to the value of disguised remuneration. Any increase in investment on the disguised remuneration will be...

The agreement on the avoidance of double taxation changes, Ukraine – Cyprus

Published: 06.04.2016 |

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#Double taxation

The Ukrainian government has announced a change to the existing agreements on avoidance of double taxation signed with Cyprus. The revised text will close a loophole that led to the fact that the income from immovable property situated in Ukraine avoid taxation in Ukraine. Income derived by a Cyprus resident from the sale of shares or other corporate rights will be subject to taxation in Ukraine if more than 50 percent of this revenue is directly or indirectly related to income immovable property situated on the territory of Ukraine. The minimum rate on dividends is increased from two percent to five percent. This low rate is used when the recipient owns 20 or more percent of the company distributing dividends and investment at least EUR 100,000 to obtain holding. The tax rate of ten percent is used otherwise. The revised section on dividends will come into effect not earlier than 1 January 2019. Other changes proposed to bring in agreement with the latest international tax standards developed by the Organization for Economic Cooperation and Development. The amendment has been sent to the Ukrainian legislators for approval. Author: Sergey Panovmanaging partner Finance...

Costa Rica. Tax reform plan

Published: 05.04.2016 |

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#Costa Rica #Reforms #Taxation

President of Costa Rica, Luis Guillermo Solís, addressed to the deputies to approve plans for tax reform before the end of the year. The head of state said at a press conference that the approval of the tax reform is a top priority. He noted that after a two-year moratorium on the tax increase, the time has come for the implementation of austerity measures. Last year, the tax reform bill was forwarded to the legislature. The bill contains a proposal for the replacement of 13 percent tax on the general sales with a value added tax with an initial rate of 14 percent. The rate will be increased to 15 percent in the second year. The bill also includes an increase of individual income tax rate ranging up to 25 percent. However, the rating agency said that Costa Rica is unlikely to hold significant fiscal reform in the near future due to the country's fragmented Congress and the protracted process for agreeing upon legislation. As a result, the agency expects the general government deficit in Costa Rica will continue to rise and this year will exceed seven percent of the gross domestic product (GDP). The International Monetary Fund said in a statement in March that Costa Rica has...

United Kingdom, reducing taxes on business

Published: 04.04.2016 | Без категории

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#Reforms #Taxation #United Kingdom

Since April 1 entered into force a number of tax reforms "that will support millions of businesses to create more jobs and to enhance their duties," said David Gauke, Financial Secretary of the Treasury. In a statement, the government said: "The changes will help entrepreneurs and businesses create new jobs, it will include measures that will help to reduce labor costs, taking the very smallest businesses out of employer National Insurance contributions (NICs). Will be extending business rates relief ahead of permanent major rates cuts. The following measures have come into force: The Small Business Relief Scheme will be extended for another year, in anticipation of the introduction of business rates cuts in April 2017; NICs will be abolished for apprentices under the age of 25 years; The employment allowance for businesses and charitable organizations, will be increased from 2000 GBP to 3000 pounds, to encourage the hiring of staff; Capital gains tax will be reduced from 28 to 20 percent; The duty on fuel will be frozen for the sixth consecutive year. "The companies are the lifeblood of the economy, so we try to provide them with financial support as the enterprise and...

Changes to the tax laws of Hong Kong

Published: 01.04.2016 |

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#Hong Kong

The Hong Kong Special Administrative Region (HKSAR) Government wants more multinational enterprises (MNEs) to call Hong Kong home. Recent financial budgets have contained important tax initiatives to encourage MNEs (including Chinese enterprises) to establish their asset management businesses, corporate treasury centers and intellectual property holding hubs in Hong Kong. Under existing Hong Kong tax law, income earned by a group treasury company from its ordinary course of corporate treasury management and money lending activities carried out in Hong Kong is subject to profits tax at the rate of 16.5%. However, any interest payment made by such a group treasury company to its overseas group companies is not tax deductible because such interest is not chargeable to Hong Kong profits tax in the hands of the overseas recipients. This asymmetrical tax treatment has resulted in Hong Kong being a less attractive location for corporate treasury operations. In the 2016 Budget, the Financial Secretary also sought to provide a more commercially friendly environment for operating an intellectual property (IP) hub in Hong Kong, with a view to attracting MNEs to hold their IP in Hong...

The avoidance of double taxation agreement, UAE – Ecuador

Published: 31.03.2016 |

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#Double taxation #UAE

Representatives of the United Arab Emirates and Venezuela met at the end of March 2016, to discuss ways to strengthen economic and trade ties between the two countries. During the meeting, Obaid Humaid Al Tayer, UAE Minister of Finance emphasized the UAE's efforts to strengthen relations with various countries around the world and for the implementation of laws that support trade and investment and stimulate economic diversification. He noted that UAE is continuing its efforts to provide key benefits for both the public and private sectors, through the execution of agreements for the avoidance of double taxation, joint tax laws, as well as agreements to prevent tax evasion on income tax, which increases the economic growth and investment between the two countries. UAE and Ecuador in Quito signed an agreement on avoidance of double taxation on income dated September 1, 2012. Both sides stressed the importance of implementing the agreement. The total foreign trade between the two countries in the first nine months of 2015 amounted to only 40.3 million dollars, according to the UAE Ministry of Finance. Author: Olena Kutova senior lawyer of the Finance Business...

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