Taxation

Highlights of the South Africa – United Arab Emirates – Income Tax Treaty

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.

The New UK CFC Rules – A Brief Overview

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.

UK Private Company Ownership going public – threat or opportunity?

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?

Australia beach

‘Netflix tax’ - new cross border rules in Australia

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.

§ 2 b German VAT Act: Significant adjustment effort for corporations under public law

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.

A Practical Guide to The Department of Treasury’s Amendment

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.

Provence

Abuse of Law France and Letter Box Companies

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.

Additional Signature for Goods from Germany


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.

After FATCA comes GATCA

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.

Amendment to the Slovak VAT Act has introduced joint liability for Slovak VAT

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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.

Amendments to thin capitalisation legislation

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.

Amnesty announced for South Africans with undisclosed offshore assets

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.

online marketer

Amnesty: US Multistate Tax Commission Offers Remote Sellers an Opportunity

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.

Merlion fountain, Singapore

AN OVERVIEW ON GOODS AND SERVICES TAX (“GST”) IN SINGAPORE

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.

Sydney

Australia’s Anti-Hybrid Mismatch Rules

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”.

Austria: VAT on real estate

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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.

Before the Devil Knows You’re Dead? Renunciation of U.S. Citizenship as an Estate Planning Tool

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.

Belgium: new and simplified rules for VAT “self-billing”

By Filip Camps, Acco

As from January 1, 2013, a new Belgian law entered into force[1] 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.[2]

Moscow

Beneficial ownership concept and how this could affect your business in Russia

By Valeria Khmelevskaya, KBK Accounting

Nearly every Russian company belonging to multinational enterprises (MNE) has inter-company or cross-border arrangements or pays out dividends which might be especially attractive due to applicable double taxation treaty (DTT) incentives allowing reduced withholding tax rates or taxation only in the country of the recipient of such income. To apply such DTT incentives, a foreign recipient should provide a Russian company with the certificate of tax residency and confirmation of the recipient's actual right to such income prior to payment, otherwise the withholding tax (WHT) based on the Russian Tax Code shall apply (15% for dividends, 20% for other payments from Russian sources). Later on, a foreign company may still claim back the relevant WHT.

Brexit: Your Client Needs You

By Steve McCrindle, Haines Watts

With Brexit set for 29 March 2019 and with no approved agreement yet between the EU and the UK on post-Brexit VAT, Customs and Border conditions, what have your affected clients done to prepare?

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