Taxation Law Articles
Articles written by lawyers and expert witnesses worldwide
explaining the different aspects of Taxation.
June 23, 2016 By Masson de Morfontaine
Leave or Remain? We will know the answer today! One can imagine that if UK leave the EU, the country is very likely to have their own tax and TP legislation. Facing the possible leave vote, MNCs may eager to determine the potential tax implications such as the absence of the EU Parent-Subsidiary Directive and the imposition of WHT on dividends.
The Singapore Government has recently announced in their budget that, the concessionary tax rate for corporate operations that qualify as Corporate Treasury Centre (CTC) would be 8%, decreased from 10%, and such move set the major tax rate to 0.25% lower than the level proposed by the Hong Kong Government as part of their CTC tax incentive measures which are still undergoing legislative process.
China is taking forward the Belt and Road initiative, the national strategy for long term development. It is certain that the emerging markets along the routes are likely to become the new catalyst for the future development of Hong Kong.
The Commissioner of Hong Kong Inland Revenue Department recently commented on the implementation of BEPS project in Hong Kong, particularly in the area of transfer pricing (TP). The Hong Kong Government regards TP legislation and TP documentation requirements are their top priority. The Commissioner also said that the simplified limitation on benefits (LOB) rule as well as the principle purposes test (PPT) will very likely be the norm for Hong Kong tax treaties in the coming future.
June 20, 2016 By Lexial
There is a Belgian paradox insofar as, every year, Belgium is ranked by OECD among the highest taxed countries, based on the ratio of the tax burden (state, regional and local taxes, social contributions) and gross domestic product; within the European Union, Belgium is also known for being the second country with the highest tax burden. But Deloitte and the European Commission refer to sophisticated mechanisms.
June 16, 2016 By GRP Rainer LLP
The reforms to inheritance tax need to be in place by June 30, 2016, yet company heirs in particular still do not know what burdens they will be faced with going forward.
June 9, 2016 By Patrikios Pavlou & Associates LLC
The Republic of Cyprus and the Government of the Republic of Latvia signed in Brussels, on 24 May 2016, a Treaty for the Avoidance of Double Taxation on Income (‘DTT’).
June 8, 2016 By GRP Rainer LLP
The so-called “Panama Papers” have the potential to reveal tax evasion on a massive scale. German tax evaders can return to a state of tax compliance by way of voluntary disclosure.
June 7, 2016 By Andreas Neocleous & Co LLC
According to reports in the Indian media, the Cyprus foreign ministry has confirmed that the Cyprus authorities have informed their Indian counterparts that they are ready to finalise the new double taxation agreement between the two countries, having accepted in principle the Indian government’s proposed changes regarding the taxation of capital gains.
June 6, 2016 By Jalsovszky Law Firm
According to [some] calculations there are presently 60 taxes in force in Hungary. Value added tax accounts for 25% of central tax revenues whereas the personal income tax accounts for 13%. However, most taxes account for less than 1% of these tax revenues. The figure of 60 different taxes seems slightly excessive also in an international context.
June 1, 2016 By Jurado & Farshchian, P.L.
Unfortunately, many people are still suffering from the housing market crash that began in 2006. It’s particularly painful if you owe more on your mortgage than your house is worth.
May 31, 2016 By Jalsovszky Law Firm
One of the most efficient ways to motivate employees is to make them owners. In Hungary, however, plenty of legal and tax obstacles have restricted the introduction of such incentive so far. Changes made to the legal and tax environment in the recent years may yet boost the spread of employee stock programmes in the future.
May 27, 2016 By Andreas Neocleous & Co LLC
ln December 2015 the Cyprus tax laws were amended to temporarily exempt loan restructurings from tax in order to facilitate and encourage the restructuring of non-performing loans. The amendments affect the lncome Тах Law, the Capital Gains Тах Law, the Special Defence Contribution Law, the Stamp Duty Law, the VAT Law, the Collection of Taxes Law and the Department of Lands and Surveys (Fees and Charges) Law.
May 27, 2016 By Aleksey Pukha & Partners
According to the requirements of the Tax Code of Ukraine taxpayers, whose amount of controlled transactions with one counterparty exceeds 5 million USD (excluding VAT), are required to present the report on controlled operations for reporting calendar year to central executive body that implements the state tax and the customs policy, before May, 1 of the year following the reporting by electronic means electronically in compliance with the law on electronic document and digital signature.
International Forwarder is Not Responsible for a Delay in the Release of Goods Due to the Holiday Season in Isreal
May 27, 2016 By Gill Nadel Law Office
We will review the case of a bicycle and electric vehicles importer ("the importer"), who hired the services of a forwarding and customs broker ("the forwarder"). The importer sued the forwarder for a delay in the release of goods from customs.
May 24, 2016 By Gill Nadel Law Office
The Tel Aviv Magistrate Court determined that an importer proved his claim regarding the essence of the goods and accepted the importer's classification. The court criticized the Customs Authority for its conduct in the case, as it failed to preserve samples of the product and submitted opinion reports based on theories and assumptions rather than facts.
May 23, 2016 By GRP Rainer LLP
Hesse’s Finance Minister, Dr. Thomas Schäfer, has announced that the fight against tax evasion will continue. Voluntary disclosure is still the only way out for tax dodgers.
April 26, 2016 By Valova & Angelova Law Firm
Importance of declaring both of the spouses in the property declaration.
April 17, 2016 By Soteris Pittas & Co L.L.C.
On the 30/12/2015, The Government of the Republic of Cyprus and the Government of the Federal Democratic Republic of Ethiopia have signed the Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income.
April 14, 2016 By GRP Rainer LLP
Investors in Scholz Holding GmbH bonds will not receive an interest payment on March 8. The due payment has been deferred until May 31, 2016.
March 31, 2016 By Kydalov & Partners
Remote trading in Ukraine is developing rapidly, created favorable conditions, therefore it would be reasonable it would be prudent for many companies of distant trade - non-residents to consider the Ukrainian market as one of the high-potential.
April 2, 2016 By GRP Rainer LLP
Be it Liechtenstein, Austria or Switzerland, many tax havens have had their day. Anyone who still has untaxed income in foreign accounts ought to consider voluntary disclosure.
March 29, 2016 By Youssry Saleh Law Firm
Under the Egyptian law there are different taxes that shall be paid for different transactions, estates’ registration and income tax.
Complex tax legislation and changes to the rules can result in mistakes being made by businesses when it comes to tax matters. An efficient tax compliance management system helps to prevent mistakes and avoid sanctions.
Tax Evasion: Automatic Exchange of Information to Trigger New Wave of Voluntary Declarations - Germany
Anyone who has evaded taxes is still able to submit a voluntary declaration that can lead to immunity. With the help of a successful voluntary declaration, it is possible to avoid a conviction for tax evasion.
Since December 2015, U.S. steel producers have filed cases charging foreign competitors with dumping products, U. S. government has twice penalized foreign steel producers as a result. Likewise, the Taiwan based steel manufacture, Chinese Steel Corporation (“CSC”), has filed a petition to the competent authority of Taiwan.
According to Jordanian Corporate law, the non-operating Foreign Company in Jordan is a Company or an entity which has its regional or representative office in Jordan for operations that it conducts outside the Kingdom for the purpose of using such a regional or representative office for managing its operations and coordinating them with its headquarters, and it is prohibited from carrying out any business or commercial activity inside the Kingdom.
Companies have been formed in the past for many reasons in Romania. Over the past few years the Romanian Trade Registry has endeavoured to clean up the number of Romanian dormant or non-trading companies which had been set up in the first flush of a free trade economy as shown on the register. In many cases the owners have let these companies die as they had no interest in them or their assets.
Value Added Tax (VAT) is the tax on the amount by which the value of an article/item has been increased at each stage of its production or distribution which means that taxes are applied to the difference between the seller-purchased price and the resale price. This is accomplished by taking full tax on all sales, but refunding the tax difference to the sellers.
People may not pay taxes for a variety of reasons. They may think that they will not owe anything and the cost to prepare them will outweigh whatever small return they might receive. A recent divorce or death may make the process confusing. Someone may know that they will owe taxes and may try to avoid tax liability by simply not filing. Whatever the reason, the consequences for not filing taxes can be very serious.
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.
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.
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.
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.
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.
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.
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.
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.
At the end of 2007, the Defense Export Control Law, 2007 (hereinafter: the "Law") entered into effect.
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)
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
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.
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.
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.
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.
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
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.
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.
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
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.