By Stefano Loconte and Emanuele Tozzi
With effect from 1 January 2016 (for calendar year taxpayers) Italian enterprises with a foreign permanent establishment can opt for the branch exemption regime (Art. 14, Legislative Decree no. 147/2015). Under this optional regime the income attributable to the foreign branch will be treated as tax exempt income in Italy. Of course, in case of a tax loss, it will not be deductible from the taxable income of the head office.
By Stefano Loconte and Emanuele Tozzi
By Aditya Kumar, Ashwani & Associates
Base Erosion in Profit Sharing (BEPS) is a Package, negotiated in just over two years, which includes reports on fifteen “actions” ranging from countering harmful tax practices and treaty shopping to addressing transfer pricing, interest deductibility, and transparency in exploring the tax implications of the digital economy.
By Timothy W. Clarke, Moodys Gartner Tax Law LLP
A trust is an obligation binding the trustee to deal with property for the benefit of one or more beneficiaries. A trust is formed when the settlor conveys property to a trustee to be held and used for the benefit of the beneficiary -- or a settlor indicates an intention to hold property for the benefit of the beneficiary by words or conduct. The terms of a trust are frequently governed by a written declaration or deed conveying the property and describing the obligations imposed on the trustee. In such circumstances there is little question as to the trust’s existence. But in cases involving aggressive tax plans, the tax authorities occasionally challenge the existence of a trust because it is a “sham”.
By Bernhard Schwechel, FACT GmbH
Multinational groups often hold their domestic and foreign sub-subsidiaries by an intermediary holding company, which is resident in a different country (e.g. Luxembourg) to its parent company (Germany). In this case, a tax-optimised profit repatriation from the sub-subsidiaries to their grandparent company depends on the conditions of the double tax treaties (DTA). But often, due to anti-treaty shopping rules, the foreign intermediary holding is not able to benefit from a reduced withholding tax rate stipulated in the DTA.
By José Carreras Benitez, Integroup S.C.
The Mexican economy is and has consistently been growing as a result of the rapid expansion of the middle class due to education and the maturing of Mexico as an economic powerhouse. Companies from Europe and the USA are investing billions of dollars into the Mexican economy. Mexican government knows that global businesses are coming and the Base Erosion and Profit Shifting (BEPS) Action Plan suggestions have been implemented in order to protect the tax system as well as giving same protection to the Mexican partners of the Organisation for Economic Co-operation and Development (OECD). Below is a brief description of one of them:
By Dr Massimiliano Russo, Studio Signori
After a recent debate as to the possible introduction of new tax tools and incentives to attract foreign investments in Italy as well as a long period in which we have seen measures increasing the tax burden for both companies and individuals, this newly introduced legislation on the Patent Box Regime as a tax incentive is most welcome (in the following also referred to as the “incentive”). Unfortunately, as with most the newly introduced legislation in Italy, some aspects have not yet been committed and will be further regulated in future ministerial decrees. The interpretation of the newly introduced rule by tax authorities is also still awaited.
On 1st May a Royal Decree was published, implementing incentives for companies establishing their international headquarters (IHQ) and international trading centres (ITC) in Thailand. The idea behind the scheme is to attract businesses to establish their headquarters or a trading hub in Thailand, thus bringing more tax revenues, skilled jobs and know-how to the Land of Smiles.
By Ashish Bairagra, PeriGrow Consulting
Since 2012, India has been levying tax on transactions which involve transfer of shares or interest in a foreign entity, if it derives its value substantially from assets located in India (the Vodafone controversy). However, there was ambiguity about the term substantially.
By Sergio Guerrero Rosas, Guerrero y Santana, S.C.
In order to make its tax terms more attractive to foreign investors, Mexico has altered its adjustment mechanism (similar to the windfall profits tax in other countries) for oil exploration bidders, which will occur should oil prices rise beyond certain levels or if hydrocarbon discoveries turn out to be greater than anticipated. As a result,
a pre-tax profit margin of 20% (up from 15%) has been set before that adjustment mechanism kicks in.
By Artur Plutowski, EFS Group Sp.z.o.o.
On 1 January 2015, Poland introduced the Controlled Foreign Corporations (CFC) regime. Clarifications to the CFC were recently published by the Ministry of Finance (MF). Among others, the CFC regime is applicable if the following conditions are met (cumulatively):
More Articles ...
- Overseas property owners in the UK: The honeymoon is over!
- Mexico’s tax reforms to date and what to expect next
- South African incentives for headquarters in Africa
- Pierre Gramegna ended a niche tax exemption
- Expo Milano 2015 — tax implications for participants
- The New UK CFC Rules – A Brief Overview
- Czech R&D tax incentives
- UK Private Company Ownership going public – threat or opportunity?
- International labour dispatch within corporate groups: Who is the employer for tax purpose?
- Changes in corporate taxation in Switzerland
- Challenges in transfer pricing (TP) documentation
- Poland introduces CFC and GAAR
- Goods and Services Tax in Malaysia
- A Practical Guide to The Department of Treasury’s Amendment
- Foreign companies in Switzerland
- HM Revenue & Customs in the UK scour the world for non-compliant taxpayers
- The international standard ruling procedure
- Encouraging innovation in the UK – the new Patent Box
- Mexico "sugar tax" is in fact extensive tax reform
- Trusts and international tax planning: a brief world tour perspective
- OECD presents united front against aggressive tax optimization
- New Tax Regime in the Republic of Cyprus
- German Tax Regulations on Hidden Reserves come before the EuGH
- The UK’s secret international trading vehicle
- Poland has become a tax haven
- UK Budget Changes Affecting UK Property
- EU Parliament in favor of common corporate tax base
- Important Recent Developments for Investors into the United Kindom
- Double taxation hampers the single European market
- German-French tax harmonization should not disadvantage companies