Offshore News, Tax, Corporate Law - Finance Business Service

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...

Singapore include tax incentives in the budget 2016

Published: 30.03.2016 |

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#Funds #Offshore schemes #Singapore

On March 24, 2016 was released a budget that includes measures to expand and strengthen the financial sector, as well as tax incentives for international trade. It will be extended by a double tax deduction for the Internationalization Scheme for four years from 1 April 2016 to 31 March 2020. This will cover the cost of qualifying activities such as participating in the development of foreign business and investment research. The budget also proposes not to impose the company's profits from the sale of its equity investment until 31 May 2022, which will help to provide certainty for the advance of corporate restructuring. The Minister also proposed to extend the Finance and Treasury scheme until 31 March 2021 where since March 25, 2016 includes the following enhancements took effect: Concession rate has been reduced to eight percent. In order to qualify for the preferential terms of the tax rate will be allowed to receive funds indirectly from authorized offices and associates. The amount of exemptions granted in accordance with Article 13 (4). The volume will be expanded to cover the interest payments on deposits, provided that the funds are used for qualifying activities...

UK Tax Changes in 2016

Published: 29.03.2016 | Без категории

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#Taxation #United Kingdom

The UK government has introduced legislation on March 28, 2016 to implement a number of fiscal measures including changes in the corporate tax. Finance bill will reduce the lower income tax rate to 17 percent by 2020. Earlier it was planned to be reduced to 18 percent. Currently, the rate is 20 percent. In addition, the legislation will alter the oil and gas tax regimes. It will be twice the additional fee has been reduced which is paid to gas companies from 20 percent to 10 as well as tax on profits from oil and gas production from 35 percent to zero rate. The bill also contains a number of measures to combat tax evasion. The new rules will solve the hybrid mismatch arrangements and ensure that the payments for the use of intellectual property abroad are subject to taxation. The bill assumes that the profits from property development in Britain should always be taxed and focused on evasion of value added tax foreign sellers and online trade. Provided the growth of the personal allowance without paying taxes since 2017. In addition, the legislation increases the threshold for a "higher" tax rate (40 percent) from 42.382 pounds to 45,000 pounds. Financial Secretary of the...

Scotland, tax issues

Published: 28.03.2016 |

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#Scotland #Taxation #VAT

Institute of Chartered Accountants of Scotland published an article that explains the problems facing the country before the devolution of tax powers. The document, prepared by the Tax Committee, calls for the publication of five-year RoadMap which explains the purpose of the Scottish fiscal policy. Currently, the Scottish Parliament is responsible for the Scottish income tax rate applicable to the April 6, 2016. The UK government will deduct £ 0.10 from three British income tax rates. The Scottish Parliament will be able to charge a Scottish rate that will apply equally across these bands. The rate will be set at 10 percent which means that there will be no change in the level of tax for individuals pay. But in April 2017, the Scottish Parliament will be able to set the rate over income tax bands. According to the Tax Committee, "if the income tax rate will deviate from the British then it needed for clear explanations and instructions to reassure taxpayers." Furthermore, from 2019-20 Scottish Government will assigned a decrease in the standard rate from 0.10 pounds to 0.25 pounds. Tax Committee said that "the purpose of assignment of VAT is to harmonize the tax revenue...

Changes to the tax base in Poland

Published: 25.03.2016 | news

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#Poland #Taxation OECD

The new government of Poland will require higher tax revenue for the planned economic reforms, said the Organization for Economic Cooperation and Development (OECD). OECD Economic Survey of Poland said that the Polish authorities should remove the value added tax (VAT) exemptions and reduced rates that were more than 2.5% of gross domestic product (GDP). This should bring higher revenues than planned increase taxes on banks and retail and will simplify the tax system. The report recommended an increase in property taxes to make them on the basis of market value. Green taxes can also increase revenue, in particular, it is recommended to remove the exemption from taxes on fuel use, increase taxes on air and water pollution, as well as to increase the tax on emissions by vehicles. These measures could bring additional revenue equivalent to nearly 1.5% of GDP in 2025. The report said that the government's plan to focus on improving tax compliance for the creation of additional income is appropriate. VAT evasion has increased considerably over the past few years. Author: Olena Kutova senior lawyer of the Finance Business Service company ...

Canadian Budget focuses on tax compliance

Published: 24.03.2016 |

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#Canada #Investments #Taxation

The budget was provided by the Minister of Finance Bill Morneau on March 22, 2016. The government has invested about 339.6 million dollars to the Canadian Revenue Agency. The measures included in the budget: The Government will undertake a review of the tax system in the next year in order to eliminate inefficient tax measures. To postpone any further reduction in the tax rate on business income. Introduce an exemption from income tax in respect of capital gains on certain private equity or real estate corporations, where receipts are donated by a registered charity within 30 days. Canada Revenue Agency will lead the fight against tax evasion. The money will be used to hire additional auditors and experts to develop robust business intelligence infrastructure. It will also be invested in improving the ability to collect outstanding tax debts. The Government will implement a number of recommendations made by the Organization for Economic Cooperation and Development. New legislation to strengthen the transfer pricing documentation, demanding accountability from large multinational corporations will be presented. Author: Sergey Panovmanaging partner Finance Business...

UK published Tax Planning RoadMap

Published: 23.03.2016 |

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#Royalty #Taxation #United Kingdom

RoadMap includes at least two proposals, which contain the measures to combat tax evasion, namely, methods for solving hybrid mismatch arrangements and measures that limit the deductibility of corporate interest. In addition, RoadMap includes specific changes to enhance tax regime for royalty payments. RoadMap states that the government will present in April 2017, a fixed rule limiting the deductibility of interest for the largest companies, to 30 percent of UK income. Next, RoadMap includes plans for the elimination of tax benefits arising from the use of hybrid mismatch arrangements involving permanent establishments (PEs). This measure is aimed at complex structures that allow some multinational corporations to avoid paying any taxes. Finally, RoadMap states that the government will seek to expand the tax lien so that the payments for the use of intangible assets such as trademarks, trade names, made to overseas persons will be subject to withholding tax. Chancellor George Osborne said that the RoadMap "establish a low tax regime which will attract multinational companies that we want to see in the UK, but we want to make sure that the taxes they pay here....

Singapore – the United Arab Emirates, Tax improvement agreement

Published: 22.03.2016 | Без категории

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#Double taxation #Singapore #Taxation #UAE

The second protocol to the double tax agreement between Singapore and the United Arab Emirates, entered into force on 16 March 2016 and will be effective from January 1, 2017, reducing tax rates and changing the rules of the permanent establishment (PE). The protocol, which was signed in October 2014, revises the conditions for the inclusion of longer periods of thresholds for determining the existence of a permanent establishment. For example, the report claims that the PE occurs where there is a building site; construction, assembly or installation project; or supervisory activities in connection with this lasts for more than twelve months, in contrast to the threshold of nine months. In addition, under the revised protocol, provision of services, including consultancy services, will be a PE if such activities continued throughout the aggregation of 300 days in any period of twelve months, compared to six months. The agreement also upgrades the position of the exchange of tax information. The protocol removes withholding tax on interest at source, provided that the interest income may be taxed only in the country of the recipient. Provisions establishing five percent tax...

Corporate tax 2016

Published: 21.03.2016 |

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#Austria #Belgium #Hungary #Monaco #Slovakia #Taxation

Austria - Rate is 25%. Minimum corporate income tax of EUR 1,750 for limited liability company and EUR 3,500 for joint stock company. Belgium - Corporate tax rate is 33%. Surcharge of 3% on income tax due makes effective tax rate 33,99%. Reduced rates may be available for companies whose taxable income does not exceed EUR 322,500. Germany - Tax rate is 15%. Solidarity surcharge of 5,5% also levied on corporate income tax. Municipal trade tax imposed at rates between 14% and 17%, with rates determined by municipalities. Combined rate approximately 30% to 33%. Hungary - 10% rate applies to tax base up to HUF million, 19% rate applies to tax base exceeding this amount. Denmark - Rate reduced from 23,5% to 22% on 1 January 2016. Macao - Rate is 0% on assessable profit up to MOP 600,000; 12% rate applies to assessable profit over that amount. Monaco - Rate is 33,33% Netherlands - Rate is 20% on taxable profits up to EUR 200,000 and 25% on taxable profits exceeding that amount. Slovakia - Corporate tax rate is 22%. Luxembourg - 21% rate applies to companies whose taxable income exceeds EUR 15,000; otherwise, rate is 20%. Surtax of 7% to unemployment fund and municipal...

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