Taxation Law Articles
Articles written by attorneys and experts worldwide
discussing legal aspects related to Taxation.
February 12, 2016 By Hammond, Minciu and Associates
One of the current most challenging issues on the incorporation of a company in Romania is the immediate tax impact on the company and its profitability. The majority of Romanian companies were incorporated with the minimum capital of two hundred (200) RON. This means a minimum capital of approximately forty five (45) Euros. This is still the case.
February 9, 2016 By Kinanis LLC
New laws have recently been enacted in Cyprus, effecting important changes to the Income Tax Law and Capital Gains Tax Law. In addition, a serious change has been effected on the procedure followed by the Income Tax Authorities in issuing tax residency certificates with the aim to secure that the management and control of the tax resident companies is indeed exercised in Cyprus.
February 8, 2016 By Petrelli Law, PC
You may be ready to start your taxes. You’ve collected your W-2, 1099’s and other documents. You have last year’s tax form for guidance. But, if you’ve gotten divorced in the last year, this year’s taxes may be very different.
February 2, 2016 By Masson de Morfontaine
Hong Kong and Russia have entered into a Comprehensive Double Tax Agreement (“CDTA”) on Jan 18, 2016. This is the 34th CDTA that Hong Kong has signed with its trading partners. The CDTA sets out clearly the allocation of taxing rights between the two jurisdictions and thus will help investors better assess their potential tax liabilities from cross-border economic activities.
February 1, 2016 By Canosa Abogados
On January 1, 2015, Law No. 5493 entered into force, introducing amendments to the Tax Code of the Autonomous City of Buenos Aires (“TC”) concerning the Stamp Tax.
February 4, 2016 By Gill Nadel Law Office
Parallel import in Israel is a growing and expanding phenomenon. Many brands are imported not only by official/exclusive importers, but by other importers as well.
January 30, 2016 By Gill Nadel Law Office
Those who are engaged in the import of goods from countries with which Israel has entered into trade agreements, enjoy customs exemption on a regular basis, but are constantly exposed to the risk that such customs benefits will be revoked retroactively.
January 27, 2016 By Gill Nadel Law Office
On September 7, 2014, the Israel Tax Authority published a new procedure for voluntary disclosure of previously unreported income and assets, as well as a temporary order to replace the previous procedure, which was in effect since 2005, and the temporary order, which was in effect since 2011.
February 5, 2016 By Gill Nadel Law Office
At the end of 2007, the Defense Export Control Law, 2007 (hereinafter: the "Law") entered into effect.
January 11, 2016 By Geni & Kebe LLP
On regional level, Cote d’Ivoire belongs to three major regional entities: The Economic Community of West African States (ECOWAS), The West-African economic and monetary Union (WAEMU). These countries share the same currency, the same central bank (BCEAO), and the same business law. The Organisation for the Harmonisation of Business Law in Africa (OHADA)
January 8, 2016 By Geni & Kebe LLP
Cameroon is described as the largest economy of Central Africa because of its demographics (20 million), with an area of 475,442 km², and a diversified economy. As a state party to the Organisation for the Harmonisation of Business Law in Africa (OHADA) and the Economic and Monetary Community of Central Africa (CEMAC), Cameroon has adopted financial regulations enacted for the whole countries of CEMAC.
Landmark Case Confirms the Tax Exemption to the Internal Reorganization of an Economic Group in Argentina
January 7, 2016 By Canosa Abogados
On September 7th, 2015, the Federal Court in and for the City of Mar del Plata ruled in favor of the merger between business entities owned by the same economic group. Such decision was based on Law No. 20,628 about income tax (the “income tax law”), its regulatory decree, and precedents from the Argentine Supreme Court of Justice.
December 22, 2015 By Andreas Neocleous & Co LLC
In July 2015 the Cyprus government submitted a number of draft laws to parliament to implement the new provisions of the EU Parent-Subsidiary Directive, to simplify the tax regime and make it more attractive, fair, and effective, with the aim of stimulating economic activity and attracting inward direct investment.
December 17, 2015 By Masson de Morfontaine
Nowadays, owing to the growing importance of the Asian market, multinational corporations are encouraged to set up their corporate treasury centres (“CTC”) in the region.
December 17, 2015 By GRP Rainer LLP
Be it as a result of the purchase of CDs containing information on tax evaders or cooperation among countries, things are becoming increasingly difficult for tax evaders. Voluntary disclosure represents the only way out for them.
November 29, 2015 By Advokatska Kancelarija Prnjavorac
Indirect Taxation Authority is responsible for the collection of all customs duties.
Tax Evasion in Germany: Investigators’ Nets Becoming Ever More Tightly Knit – Voluntary Disclosure Loophole
December 1, 2015 By GRP Rainer LLP
Whether it be untaxed illicit earnings or untaxed income from capital, tax evaders are taking a big risk. They can address the risk of being convicted with a voluntary declaration.
November 30, 2015 By GRP Rainer LLP
Tax dodgers who have already closed their accounts with untaxed income from capital in Austria or Switzerland still need to worry about detection. Voluntary disclosure continues to present a way out.
November 17, 2015 By Christos Paraskevas LLC
The formation of a company in Cyprus is a simple and straightforward process and offers huge tax advantages.
Time Is Running Out for Concealed Untaxed Income from Capital in Germany – Voluntary Disclosure on Account of Tax Evasion
November 22, 2015 By GRP Rainer LLP
It is now almost impossible for untaxed income from capital in foreign accounts to remain concealed from the German exchequer. As long as the tax evasion has not yet been detected, a voluntary declaration can still be submitted.
A Trust is an arrangement whereby a person known as the ‘Settlor’ transfers ownership of property to another person or persons, the 'Trustees’ for them to hold on behalf of third persons, the ‘Beneficiaries’. The assets are placed under the control of the Trustees for the benefit of the beneficiaries or for a specified purpose.
According to the China central government’s 13th five-year plan, it has showed its full support for Hong Kong to participate in the nation's "One Belt One Road" development strategy, in which Hong Kong is going to play a bigger role in China's opening up to the rest of the world.
Ever since the first CD on tax evaders was purchased in 2006, the number of voluntary declarations concerning tax evasion has risen dramatically. This remains the only way of returning to a state of tax compliance.
Bulgarian businesses are subject to VAT registration under specific rules. A brief overview of the requirements for a VAT registration in Bulgaria.
The recent amendment of the Luxembourg - Hungary double tax treaty will result in a sharp decrease of Luxembourg-based schemes for Hungarian real estate transactions. Those groups which currently use such schemes for holding their Hungarian real estates will need to react fast.
Voluntary declarations with respect to tax evasion have not come to an end this year, which indicates that untaxed income in foreign bank accounts is becoming a burden on those concerned.
Representing yourself or your company in an audit initiated by the Internal Revenue Service (“IRS”) is likely to be an exercise in futility. The IRS employs highly skilled revenue agents who will seek to take advantage of taxpayers who, understandably, are not knowledgeable on the rights and powers of the IRS.
In part because of the high levels of noncompliance with foreign tax reporting requirements (oftentimes out of innocent ignorance), the IRS has developed voluntary disclosure programs that allow taxpayers to come forward, correct their past mistakes, pay past-due taxes, and pay a set penalty (or, in some circumstances, pay no penalty).
The IRS collection process is a series of actions that the IRS can take to collect taxes that taxpayers owe if they do not voluntarily pay them. Generally, a taxpayer is required to pay a tax along with filing a tax return. The IRS will assess a taxpayer’s delinquent tax obligation if the taxpayer fails to pay a tax obligation when due. Subsequently, the IRS will send a notice and demand for payment to the taxpayer.
Cyprus International Trusts feature essential regulatory, confidentiality and tax advantages, providing interested settlors and beneficiaries with unparalleled tax planning possibilities and an estate planning solution of impeccable quality.
On 5 October 2015, the Organisation for Economic Cooperation and Development (OECD) issued a final report with regards to its Action Plan to address Base Erosion and Profit Shifting (BEPS), as well as a plan for follow-up work and a timetable for implementation. In this article, we shall focus on the action plan regarding transfer pricing (TP) and its tax implications to China and Hong Kong.
Foundations based in Switzerland need to pay tax on their income generated in Germany, even if they pursue non-profit causes.
Today it is not a secret that the "raider / unlawful seizures" have become the norm and rather the rule of doing business than the exception to the rule, and both domestic enterprises and large foreign investors are suffering from unlawful seizures. What can be attributed to the notion of "raider seizure". Raider seizure - unlawful seizure of real estate, corporate law, intellectual property by other economic entities, physical entities and public authorities.
Italians Can Derive Tax Benefits from the Newly Enforced Double Tax Treaty with HK when Investing in China
The agreement between Hong Kong and Italy for the avoidance of double taxation with respect to taxes on income and the prevention of fiscal evasion has entered into force.
When a Thai company engages the services of another company, it must comply with a few tax obligations under the Revenue Code. It must withhold and remit a tax of 3% of any fees paid for services, it must itself pay a value-added tax of 7% on those fees, and the contract as well may be subject to a stamp duty depending on the transaction. But what are the implications for a Thai company that engages the services of a company overseas?
New Resolution Imposes the Electronic Billing System to Contributors Registered in the Value-Added Tax - Argentina
On March 11, 2015, the Tax Authorities (hereinafter “AFIP”) issued General Resolution No. 3749/2015 (“GR”) which obliges contributors registered in the Value-Added Tax (from now on “VAT”) to apply the electronic invoices’ system to support operations within the framework of the internal market, having to comply since July 1st of this year.
The tax authorities are increasingly applying time-series comparisons as a method of estimation in the context of external audits, but according to the Bundesfinanzhof (German Federal Fiscal Court), this is only permissible under certain conditions.
The Ministry of Finance of Cyprus announced on 08 September 2015 the conclusion of the negotiations with Ukrainian Ministry of Finance. The two Contracting States agreed to a Protocol that will amend the Convention for the Avoidance of Double Taxation and the prevention of fiscal evasion with respect on taxes on income when it expire.
Receiving an inheritance can be a blessing, but there are typically tax obligations involved including the inheritance of an IRA. If you inherit an IRA, you should check with an attorney or financial advisor as soon as possible to find out what your options are.
During a recent visit of a senior Iranian delegation to Cyprus, the Cyprus-Iran DTT was signed. The DTT is yet to be ratified or come into force, a fact that is expected to happen in the next few months.
The European Union wants to change its tax policy. One of its aims is for businesses in future to pay tax on their profits in the state in which they are generated.
On 17 July 2015, the Hong Kong Government gazetted the Inland Revenue (Amendment) (No.2) Ordinance 2015 (“the Ordinance”), which extended the profits tax exemption for offshore funds to private equity (“PE”) funds.
Depending on the extent of a couple’s assets, a divorce can raise some very complicated financial questions.
The much awaited indirect tax reform in India will be further delayed.
A new law went into effect in New Jersey last year, which makes it a criminal offense to issue a bad electronic funds transfer.
Islamic finance is one of the fastest growing sectors in the international financial market. Given the strategic importance and influence of the Middle East investors, Islamic finance is increasingly in demand by investors wanting investment and financing products compliant with Islamic law (known as “Shariah”).
On July 1, 2015, the President of Cyprus forwarded several proposed tax law amendments to the Cyprus Parliament for ratification. Provided the parliament enacts them into law which is a certainty they will take effect upon publication in the Official Gazette of Cyprus.
Article 528-A of the Commercial Code, added by Act 85 of 2012, deals with the dissolution of companies and explains causes and effects of their permanence in time to the end of the liquidation of its assets, after collecting their debt and pay its liabilities.
The prohibition of tax deductibility of bribes and the risk of claiming these payments as "expenses" in order to get a tax return under the Greek law.
The application for the tax benefit must clearly state the provisions supporting the right for the benefit.
Hong Kong was named among the thirty uncooperative tax jurisdictions in the European Commission’s (“EC”) tax haven blacklist released on June 17, 2015. The tax jurisdictions on the aforesaid list had been flagged up by ten or more European Union member states. Six of the thirty countries blacklisted are former British territories. Countries notable by their absences include Jersey, Luxembourg and Switzerland, whose secretive tax system are well-known to the world.
Capital amnesty law is adopted granting release from criminal, administrative and tax liability for individuals who have voluntarily declared their property.
The Chinese real estate boom in Australia will only be accelerating. It is predicted that an additional $70 billion demand for real estate from Chinese HNWI investors and immigrants over the next five years to 2020. It is an inevitable trend since China is undergoing its unprecedentedly greatest wealth creation, and Australia is on China’s doorstep.
Over the last fifteen years Canadian tax law has undergone a remarkable evolution in the legal remedies available to assist in fixing tax mistakes. Over this period, tax rectification has developed from being virtually unknown, to being a potent addition to tax lawyers' arsenal of tools available to fix tax problems.
Any state cannot exist without taxes and control over the timely treasury reimbursement and taxes are conducted by state revenue bodies. One of the instruments of tax policy is tax inspections. Our last dispute practice between tax authorities and entrepreneurs on the additional charges based on the results of the tax inspections shows that entrepreneurs in general are always "at gunpoint" of the tax authorities and they are not protected from repeated for the same period inspections.
Granting Preferences to Kazakhstani Legal Entities in Connection with their Investments in Kazakhstan
The issues related to the provision of preferences to Kazakhstani legal entities in connection with their investments in Kazakhstan are mainly governed by the Law of the Republic of Kazakhstan “On Investments” dated January 8, 2003 (hereinafter the “Investment Law”) and the Code of the Republic of Kazakhstan “On Taxes and Other Obligatory Payments to the Budget” dated December 10, 2008 (hereinafter the “Tax Code”).
By MMLC Group
The State Council of China has recently issued several decisions for the purpose of further decentralization and the abolishment of tax administrative approval and registration requirements.
The “anti-offshore” law relating to the use of public funds, introduced in 2011, aimed to prevent off-shore companies with unidentifiable ownership structure from acquiring grants out of domestic and EU public funds. The original intention of the legislation seriously distorted, however. Numerous innocent foreign-owned firms, including Hungarian subsidiaries of US-based multinational firms got trapped by the rules.
Investors from different countries are continuing to establish their offices in Kazakhstan and many companies are willing to do business here. The rate of success stories for investors in Kazakhstan is good enough. However, there is always something new and unexpected when a foreign investor starts its business in an unknown country.
How many taxes do you have to pay? And where can you actually pay fewer taxes? The “Swiss Tax Report 2015″, from the highly regarded auditing and consulting firm KPMG, provides you with all the answers.
In light of increased recent interest in incorporating corporations in Hong Kong and in Singapore, we have summarized briefly hereunder the procedures and the advantages of such corporations, as follows:
The new year of 2015 also marks the implementation of the Cyprus – Lithuania Double Tax Treaty (DTT), which was initially signed in June, 2013.
Business expenses are the associated costs of carrying on a business. Such expenses are typically deductible if a business is operated to make a profit.
Foreign companies wishing to open a branch in Ecuador, should be incorporated in their country of origin as a trading company, may be of limited liability or a Inc and consider the following issues.
They are frequently in the news, passing out fliers about not paying taxes, and conducting meetings in local hotels and restaurants about not being beholden to the government. Often referred to as “sovereign citizens,” these groups believe that they have found loopholes that exclude them from following laws by which they do not wish to abide. But, are sovereign citizen groups right, or is their interpretation of the law off base?
Firstly, is important to understand the cause of money laundry crime. Usually, is related to drugs traffic, terrorism, trafficking of humans, others international crimes. In 1989, the group of seven (G-7), composed in those days by Italy, United Kingdom, France, Canada, United States, West Germany and Japan, create Financial Action Task Force (FATF).
The Cyprus International Trust is a powerful asset protection tool because it effectively removes the assets from a less favorable jurisdiction, and places the ownership of the assets in the Trust.
Lease services often lead to uncertainty from a VAT perspective. Some services which seem like lease at first glance do not meet the criteria “lease” for VAT purposes. The improper classification can lead to surprises: on the one hand the lessor’s deduction right can be challenged, on the other hand a seemingly VAT-exempt transaction could trigger VAT liability. A recent ECJ decision will set standards for these situations.
Turkey aims to encourage production and export activities, fasten the entrance of foreign capital and technology in Turkey and develop the international trading activities through the grant of incentives to the investors. In the light of that, the local and foreign investors have equal access to the investment incentives system in Turkey.
Information about the tax liabilities of foreign investors in Turkey.
Proposed Price Changes for Medicinal Products and Medical Devices in National and Foreign Currency in the Ukraine
On March 13, 2015 on the web-site of the Ministry of Healthcare of Ukraine the draft of the Regulation of the Cabinet of Ministers of Ukraine was published, which is consider to change the Regulation of the Cabinet of Ministers of Ukraine “On reference pricing for medicinal products and medical devices procured by the state and local budgets”, dated 02.07.2014 N 240, in the aspect of the declaring currency of wholesale and selling price (hereafter as the Draft of Regulation).
As the world seems to develop faster and faster, a new gadget has been placed to the disposal of the foreigners and non-resident persons in Estonia, namely the digital identity card also known as e-residency.
Cyprus and Barbados announced earlier this month, that they are to begin negotiating a double taxation treaty to strengthen economic relations between them.
Switzerland has perhaps had its day as a tax haven. According to media reports, Swiss investigators are supporting German tax investigators in searching several banks.
Deforestation Tax in the Democratic Republic of the Congo: Problematic of Tax Liability of Mining Titleholders
For some time, mining companies in the Democratic Republic of the Congo are facing the National Forest Fund, (“Fonds Forestier National”), a technical and financial public establishment set up by the law N° 011/2002 of 29 August 2002 relating to the Forestry Code (“Forestry Code”) for the payment of the “deforestation tax” as a result of the deforestation made by them concerning the mining areas covered by their mining titles.
The choice for the appropriate legal structure to transact business in the United States (“U.S.”) depends on a combination of factors relevant to a specific activity or sector, as well as on the needs and goals of the investor.
The Hungarian government just recently finalised the new rules for the controversial EKAER system.
The Cyprus Ministry of Finance officially announced on 09 March 2015 that the Republic of Cyprus and the Kingdom of Bahrain signed a Treaty for the Avoidance of Double Taxation on Income and on Capital.
A Cyprus company can be registered within two working days provided the pertinent documentation is submitted to the Registrar of Companies.
It is possible to evade taxes even in the absence of intention. In these cases, an amended tax return is preferable to a voluntary declaration.
Wealthy Florida residents who are married or planning to get married might want to consider creating a prenuptial or postnuptial agreement before they consult their financial advisor to plan their tax strategy for the coming years.
Software developer companies fall under a very favourable corporate income taxation in Hungary. Moreover, their income is local business tax exempt. Surprisingly, however, most of such companies are not aware of their beneficial status, losing billions of forints as a consequence.
It's not a secret that Ukraine is still one of the market dark horses in context of entrepreneurship. Not many of large companies venture to base their businesses here despite of the wide range of potentially profitable areas for investment. The events of winter and spring of 2014 scared even those who worked steadily for our economy for years. However, now due to the current European course, there are good prospects for the climate improvement in this area
Cyprus features the most efficient tonnage tax scheme in the EU, approved by the European Commission.
Legal action can be taken even against the assessment notice of a tax office. Those who get involved in a tax dispute normally require plenty of stamina and competent legal representation.
Due to a number of important Supreme Court decisions in the 21st century, married same-sex spouses are entitled to a number of benefits that were previously outside their reach. While domestic partners may be entitled to some benefits, married spouses are typically eligible for more benefits. Marriage is a factor in many federal benefits.
Beginning in 2015, the general rate will be 24% instead of the current rate of 24.75%.
By LPA Law Firm
Foreigners who wish to reside in Albania on a long-term basis (in any case more than three months within each six-month period) are issued a residence permit.
Tax implications on certain immigrants and non-immigrants.
The recently adopted tax law changes significantly expand the definition of related parties. As of 2015 not only those companies will qualify as related parties which are connected in their ownership chain, but also those with an overlap in their management. As a result, the number of transactions where parties have to apply arm’s length pricing will increase. The new definition may, however, cause uncertainties as well.
If you own a property in Spain and you are non resident at tax purposes here, you are obliged to present and pay the Non Resident Tax Return, which must be filed and presented before the 31st of December each year.
When the business faces a cash flow problem, many business owners use the payroll taxes collected but not yet turned over to the IRS.
It is becoming increasingly difficult for tax evaders to remain undetected due to the automatic exchange of information between EU member states, particularly as Switzerland has signalled its willingness to cooperate.
Unpaid Income Tax Establishes Liability of the Managing Director of a German Limited Liability Company
In terms of the overall responsibility, a managing director is also liable for the income tax of employed workers that is not paid to the tax office.
North Rhine-Westphalia’s (NRW) Minister of Finance, Walter Borjans, announced in the Rheinischen Post Online that NRW will continue purchasing CDs with data on suspected tax evaders.
The number of amended tax returns in cases of tax evasion continues to rise. According to media reports, it doubled in the first half of the year 2014 compared with the same period of the previous year.
In the case of inheritance, there is a risk of becoming guilty of tax evasion, particularly if the estate could include illicit earnings.
Turkish parliament has enecated the Law No: 6552 that has been promulgated as of September 11, 2014 and provides restructuring for unpaid tax debts and administrative penalties.
Tax evasion has represented a lucrative, albeit criminal, business not only for tax evaders but also some banks. An amended tax return can present a path to legality.
Tax evasion is a criminal offence which not only entails heavy financial penalties, but also custodial sentences. By submitting an amended tax return, you can obtain an exemption from punishment.