By Graeme Saggers, Nolands SA
South Africa has concluded a treaty with the United Arab Emirates (UAE) which was effective from the 1st of January 2017. This treaty is largely based on the OECD Model Tax Convention; some of the defining features of the treaty are as follows.
By David J Kidd, Citroen Wells
After a long period of consultation, the UK controlled foreign company (CFC) rules have been substantially overhauled. The new legislation applies for accounting periods beginning after 1st January 2013. This means that implementation at a detailed compliance level is now beginning for the first time for many UK companies. Thus a brief overview of the essential elements of the new rules may be of interest.
By Mark Pattimore, Heritage Corporate Services Limited
Britain is pressing ahead with plans to have a publicly-accessible, central register of the individuals who ultimately own, and control, UK companies. Will this move to transparency increase trust in UK business as the government hopes or have investors running for cover?
By Jonathan Ackerman, Kelly + Partners
Over the last couple of years, the Australian Federal Government has introduced a comprehensive regime to ensure that overseas suppliers apply Australian Goods and Services Tax (GST) to goods and digital products sold to Australian consumers and to online bookings for Australian hotels.
By Brigitte Jakoby, Jakoby Dr. Baumhof Wirtschaftsprüfer Steuerberater Rechtsanwälte
The VAT taxation of public authorities has been reformed by deleting § 2 para. 3 UStG (German VAT Act) and creating the new rule § 2 b UStG. With this change, public authorities are facing a major turning point.
By Peter J. Scalise, Prager Metis International LLC
The United States Research and Experimentation Tax Credit (hereinafter “RTC”) Program was added to the U.S. Internal Revenue Code (hereinafter “I.R.C.”) in 1981 to incentivize qualified research and development expenditures within the United States and its possessions (e.g., United States Virgin Islands, Puerto Rico, Guam, etc.). As a direct result of the overwhelming success of the program at the Federal-level, most states now offer a research tax incentive (e.g., credit or deduction) as well. These combined Federal and Multi-State research tax incentives exponentially help companies tax effect their actual expenditures to design and develop their next generation “best in class” products as well as their manufacturing process improvements.
By Prof Robert Anthony, Anthony & Cie
I would just like to offer you a few thoughts concerning the evolution of legislation. As in many countries, France has been tightening up its laws to stop taxpayers from manipulating their affairs to avoid tax.
EU residents receiving goods from Germany will have to get used to confirming the delivery an extra time on a new form for the German minister of finance. Without this so-called confirmation of delivery for exports to the EU, VAT for the goods will remain payable in Germany for the supplier in the future.
By Rodolfo Sánchez-Arellano, New Corporate Approach, S.C.
In February of this year, the OECD released the Standard for Automatic Exchange of Financial Account Information, which is starting to be known as GATCA as its goals are similar to the FATCA legislation which was recently implemented in the USA. The OECD recently announced that 47 countries declared an automatic exchange of information between their jurisdictions on 6 May 2014.
By Laurie B. Kazenoff, Moritt Hock & Hamroff LLP
In its ongoing effort to protect taxpayers from identity theft, the US Internal Revenue Service announced it will stop its tax transcript faxing service on 28 June 2019 and will amend the Form 4506 series (tax return copy requests) to end third-party mailing of tax returns and transcripts in July.
By Marián Augustín, AT Partners, k.s.
The latest amendment to the Slovak VAT Act has introduced customer liability for VAT charged on goods or services supplied in Slovakia, if the supplier has not paid (or has become unable to pay) the VAT when the customer knew or should have known that the VAT could not be paid to the tax authority.
By Graeme Saggers, Nolands SA
Section 31 of the Income Tax Act, which addresses transfer pricing in South Africa, was recently amended and has been in effect as of March 2014. Prior to that, the law included a 3:1 ratio of loan-to-equity safe harbour provision, which meant that the interest incurred by a South African company on the portion of a loan that exceeded three times the value of equity would be deemed to be excessive.
By Graeme Saggers, Nolands SA
Strictly speaking, what has been announced is not an amnesty but a “Special Voluntary Disclosure Programme (SVDP)”. However, it will operate in a similar manner to an amnesty, representing an opportunity for taxpayers to declare previously undeclared offshore income and benefit from reduced penalties and protection from criminal prosecution.
By Pablo Garciga, Funaro & Co. PC
Owning property in a state generally establishes tax nexus. This is true even if a Treaty between the US and a foreign country creates the legal fiction that the limited activities of the foreign vendor are not deemed to create a Permanent Establishment in the US for federal income tax purposes. Since the number of online vendors have increased, the situation often arises whereby an outof- state vendor owns inventory held by an online marketer (e.g. Amazon) at the marketer’s warehouse. This situation has the potential of creating nexus for the out-of-state vendor in many states.
By Eddie Lee, Robert Yam & Co.
Generally, GST is levied at the current rate of 7% on the:
- Local supply of goods and services in Singapore by any taxable persons in the course, or furtherance of a business; and
- Import of goods into Singapore by any persons.
As a major source of governmental revenue, GST is the same as Value Added Tax in many other countries and is charged to buyers and end-consumers when goods and services are procured, used, or when goods are imported into Singapore. GST is collected at multiple levels from the purchases of materials, at every stage of production to the different stops of the distribution chains, until final consumption in Singapore.
By Tony Nunes, Kelly+Partners Chartered Accountants
On 1 October 2018 Australia’s new hybrid mismatch laws officially came into force. The new rules are intended to implement BEPS Action 2, “Neutralising the effects of hybrid mismatch arrangements”.
By Edith Huber-Wurzinger, Gaedke & Angeringer Steuerberatung GmbH
Austria presses ahead with a new tax on advertising service of internet giants after plans for an EU-wide levy fell. From the beginning of 2020, therefore, Austria will tax firms like Google, Amazon, Facebook, and Alibaba, 5% of their advertising revenue from within Austria.
By Carina Langegger & Manfred Leitinger, Prodinger & Partner
Following the amendments made to the Austrian VAT Act in 2012, changes occurred for the worse with regards to VAT on rentals and to the input VAT adjustment period, in cases of change of property use.
By Alexander Marino JD, LLM (US Tax) and Kevin Kirkpatrick JD, MBA, Moodys Gartner Tax Law LLP
Oscar Wilde’s characters remarked in several of the playwright’s works that “when good Americans die they go to Paris.” Wilde also made observations about taxes, but he probably was not aware that even the supposedly good Americans who make it to the City of Light are followed there—during life and after death—by the IRS.
By Filip Camps, Acco
As from January 1, 2013, a new Belgian law entered into force that changed the Belgian VAT-code. In particular, it regulates the new measures regarding the invoicing rules and changing the applicable rules in relation to self-billing. The VAT authorities consequently issued an official announcement in 2013 on the subject to the simplified self-billing rules in which the amended measures were explained.