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Abu Dhabi (UAE) Tax Free Zone is focused on the FinTech

Published: 12.03.2016 |

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The Global Market of Abu Dhabi (ADGM), a new free zone in the United Arab Emirates (UAE), to strive to become a regional center of financial technologies, or "FinTech", said the Chairman Ahmed Al Sayegh, during a Global Financial Markets Forum 2016. Al Sayegh said that the investments in the global FinTech sector tripled between 2008 and 2014 reached $ 3 billion, And could double again by 2018. "However, now we have not seen a deep set FinTech ecosystems among the countries of Gulf Cooperation Council (GCC). The Chairman said that the world market in Abu Dhabi is committed to working with key stakeholders in order to create an environment conducive to FinTech sector. During his speech, Al Sayegh also drew attention to some of the events on the Global market. These include the Office of Financial Regulation and Supervision recognized as a member of the International Association of Insurance Supervisors and the Basel Consultative Group of the Basel Committee on Banking Supervision. The Global market for Abu Dhabi operating since October 2015. It offers companies a number of advantages, including tax exemptions for 50 years and acceptable rules on profit...

Tax legislation in Wales

Published: 11.03.2016 |

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#Taxation #Wales

Welsh Assembly passed a law on the establishment of the Welsh tax department which will have the right to collect and manage two decentralized taxes. In April 2018, the UK Government will transmit Wales duties on stamp duty land tax and environmental tax. These taxes will be replaced by two new ones. Tax legislation was approved by the Welsh Assembly 8th of March. It will also put in place the mechanisms necessary for the collection and tax management. There's also a charter of taxpayers which will set out the relationship between the tax department and taxpayers. Minister of Finance and Business Jane Hutt said: "The tax law allows to make the necessary arrangements for our new decentralized tax liabilities and paves the way for us to put in place taxes that for Wales are more suitable than the first Welsh Tax. This new tax law will make real changes in life". "We have worked closely with those who will be affected by these new powers and responsibilities during the development of the tax law. Civil society, business and taxpayers deserve a fundamentally simple, fair and transparent system of taxation. This new law will help to achieve: to minimize...

Additional VAT withholding agents designated

Published: 10.03.2016 | news

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#Tax planning #Taxation #VAT

The Government has enacted regulations, based on paragraph 4 of the Tax Code, extending VAT withholding mechanisms to enterprises explicitly appointed by the Revenue Office as withholding agents that meet the criteria of making annual purchases of USD 10,000,000 or greater. This mechanism also applies to entities that administer processing and payments through credit and debit card platforms. Under the VAT withholding mechanisms, VAT withholding agents must withhold a portion of the VAT charged to them in respect of supplies of goods and services, and remit it to the Revenue Office instead of paying the total VAT applicable to the supplier of service provider. The amount to be withheld will be equivalent to 50% of the tax rate applicable to the transaction. Administrators or issuers of credit and debit cards that manage the processing of payments are also required to act as withholding agents of the VAT triggered by the sale of taxable goods and services paid by way of a credit or debit card. During a transitional period, which will run from 1 February to 31 December 2016, the amount to be withheld will correspond to 2% of the total sales transaction. Starting 1 January...

MNCs corporate taxation

Published: 04.03.2016 | Без категории

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#Taxation #United Kingdom

On March 1, 2016, UK's HM Revenue and Customs (HMRC) published a policy document explaining how the rules of corporate tax in the country apply to transnational corporations. The article states that, as a rule, the foreign company must pay UK corporation tax, if it has a permanent establishment (PE) in the UK, or economic profitable activity is carried out in the UK. The document stresses that the many different elements contribute to the economic activity of the multinational company, including sales, employees, technology, physical assets and intellectual property. It says that if a company has a customer in the UK, it does not mean that it carries out its economic activity there. The document also explains the example of the fact that the presence of the British web site does not mean that non-resident company has a permanent place of business or a dependent agent in England. HMRC says that the concept of PE and as a multi-national company are taxed in different countries is not new, but noted that "what has changed is the way in which businesses operate, not least because of their ability to make sales online in many different countries. This raises questions...

Switzerland, US Agree FATCA

Published: 03.03.2016 | Без категории

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#FATCA #Switzerland #Tax reporting #Taxation #USA

Switzerland and the United States agreed on a new Foreign Account Tax Compliance Act (FATCA), with the exception of accounts belonging to lawyers and notaries. In accordance with the provision of the agreement, an account maintained for specific purposes by lawyers and notaries to their customers (ie accounts that are for certain activities) will be excluded from the scope of the new law. The financial institution account management will not be required to identify interested customers by providing written confirmation of a lawyer or notary that the accounts fall under the scope of the exemption clause. According to the Swiss Federal Council, this will ensure that professional confidentiality of lawyers and notaries will be maintained under Swiss law. Swiss Bankers Association will amend the relevant processes documentation to allow banks implement new products. Negotiations on the introduction of the new agreement are underway. In contrast to the current transaction, the new agreement will provide for the automatic exchange of information between the tax authorities. Author: Olena Kutova senior lawyer of the Finance Business...

Luxembourg announces corporate tax reduction

Published: 02.03.2016 |

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#Luxembourg #Taxation

The Luxembourg government has announced a package of tax measures that will be introduced next year including the reduction of the corporate tax and changes to the personal income tax. The government plans a gradual corporate tax rate reduction by three percent. Starting with the two percent cut to 19 percent by January 1, 2017. And since January 2018, the rate will drop to 18 percent. In addition, a lower rate of 15 percent will be available for the "young, innovative companies ", annual taxable income that does not exceed EUR 25,000 per year. Nevertheless, the company's ability to carry losses forward to offset against future income will be limited in 2017. Existing law allows unlimited number of losses of previous years. Starting next year, the accumulated losses can be carried forward only for 10 years and use to compensate for a maximum of 80 percent of profits. The government also intends to revocation of provisional 0.5% percent crisis tax in 2017 and make income tax system more "fair" by reducing tax rates. However, the tax on high incomes which exceed EUR 150000 would be 41% and revenues more than EUR 200,000 - 42 percent. Author: Sergey Panovmanaging...

EU, EFTA discuss free trade

Published: 02.03.2016 |

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#EU #Investments

Legislators of the European Free Trade Association (EFTA) met with European Union Trade Сommissioner to discuss priorities in the free trade zone. EFTA Parliamentary Committee met with Commissioner Cecilia Malmstrom on February 23. They discussed a new strategy of Commission, "Trade for all" which aims to make EU trade policy more effective in providing new economic opportunities, as well as more transparent, in terms of opening negotiations to strengthen public control. Rather than focus on the interests of the EU trade policy will uphold EU values. The participants discussed the ongoing negotiations on the partnership of the transatlantic trade and investment partnership. The Committee also met with sever members of the European Parliament including Viviane Reding, the rapporteur on the Provision of trade services agreement. Also, Committee members found out how the European Parliament is involved in the international negotiations of a trade agreement. EFTA countries are Iceland, Liechtenstein, Norway and Switzerland. Author: Olena Kutova senior lawyer of the Finance Business Service company ...

Double tax treaty between Cyprus and Switzerland

Published: 01.03.2016 |

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#Double taxation #Switzerland #Taxation

The first Cyprus-Switzerland double tax treaty (DTT), signed in 2014, entered into force in October 2015 with its provisions taking effect as from January 1, 2016. Under the treaty there is no withholding tax (WHT) on interest and royalties. There is also no WHT on dividends in those cases where the beneficial owner of the dividends is: a company (other than a partnership), the capital of which is wholly or partly divided into shares, holding directly at least 10% of the capital of the company paying the dividends for an uninterrupted period of at least one year (the time period criterion may be satisfied post the date of the dividend payment), or a pension fund or similar institution recognized as such for tax purposes, or the government, a political subdivision, local authority, or the central bank of one of the two Contracting States. Per the treaty, a 15% WHT on dividends applies in all other cases. Irrespective of this, per the provisions of Cyprus’ domestic tax legislation, Cyprus does not apply WHT on dividend payments out of Cyprus at all times. Author: Sergey Panovmanaging partner Finance Business...

Held a debate on the future of VAT in the EU

Published: 29.02.2016 |

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#EU #Reforms #VAT

The European Commission held a debate on reform of the VAT framework on February 24. The Commission was preparing to publicate an Action Plan on VAT. The European Union's value-added tax system "needs reform", said the commission. It needs to close the difference between theoretical VAT revenue receipts and the actual. This was estimated at EUR180bn (USD198bn) in 2013. It was result from avoidance, cheating and providing by the states of the European Union of reduced VAT and tax benefits. The VAT system creates administrative burdens nowadays, noted the European Commission, especially for small businesses and online companies. It said, that the VAT system should to be modernized in today's digital environment because of innovative business models and technological progress. The Commission issued a Roadmap earlier on February. Roadmap of the release of its Action Plan for a simple and efficient system of VAT to the single market that is going to be in March 2016. The Action Plan is intended to summarize the achievements made since the 2011 and set out the direction for future work. The principle of the new rules it is the destination principle. It provides that...

Financial Institutions Tax (FIT) in Poland

Published: 29.02.2016 |

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#Poland #Taxation

The Polish Parliament adopted the bill introducing a new tax on financial institutions (called also a bank levy). The bill was passed for signature of the President. It entered into force from February 1, 2016. Generally, the tax applies to banks, credit unions, lending institutions, as well as insurance/reinsurance companies. The new tax applies also to Polish branches of foreign banks (credit institutions) and foreign insurance/reinsurance companies. The funds are out of scope. According to the new law, the tax base is defined as the surplus of total assets disclosed in the financial institution’s accounting books exceeding certain amount calculated at the end of each month. In the case of banks and credit unions, as a rule, the tax base will be decreased by the amount of their equity. Author: Sergey Panovmanaging partner Finance Business...

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