By Jimmy Budhi, KAP Jimmy Budhi & Rekan
Indonesia entered into an international tax treaty taxation which required the country to participate in the implementation of the Automatic Exchange of Financial Account Information and established legal legislation concerning access to financial information for tax purposes prior to 30 June 2017.
By Ashishkumar Bairagra, M L BHUWANIA AND CO LLP
In dia is known for its strict international tax compliance applicable to residents as well as non-residents who are liable to file their tax returns in India. Landmark judgements include the case of Vodafone (on indirect purchase), Asia Satellite (on satellite charges), Formula One (on permanent establishment [PE]), Morgan Stanley (on dependent agent PE) and the most recent case of Master Card (on service PE).
By Mauricio Ramos Jimenez, Guerrero y Santana, S.C.
On 01 December 2018, Andrés Manuel López Obrador (or AMLO as he is commonly known) became president of Mexico after two consecutive unsuccessful presidential campaigns. AMLO has always had a leftist and populist agenda, and many feared he would make radical changes in several areas, including taxes, but what has really changed in the first months of his presidency? From a taxation perspective, not much has changed, at least not as a direct consequence of the new government.
By Dr Anita Ihász Kovácsné, KRS Attorneys at Law
The main international tax compliance act (Act XXXVII) shall be applied to certain matters relating to the assessment of taxes, the collection of taxes and other charges, and the avoidance of double taxation, between EU member states and other international administrative cooperation. Those legal EU acts which affect the taxation procedure and cooperation between the tax authorities of EU member countries are mainly regulated in Act CL of 2017 on the rules of taxation. Moreover, Hungary has concluded international treaties for the avoidance of double taxation with more than 80 foreign countries – including all countries of the EU. The EU directives on taxation are implemented regarding taxation of companies in the Act on Corporate Tax and Dividend, regarding private individuals in the Act on Personal Income Tax, and regarding VAT in the Act on Value Added Tax.
By Ricky W. P. Wong, Wong Brothers CPA Limited
Hong Kong adopts a territorial basis for taxing profits derived from a trade, profession, or business carried on in Hong Kong under Section 14(1) of the Inland Revenue Ordinance (“IRO”). Profits tax is only charged on profits which arise in or are derived from Hong Kong. No tax is levied on profits arising abroad, even if they are remitted to Hong Kong.
By Brigitte Jakoby, Jakoby Dr Baumhof – Wirtschaftsprüfer Steuerberater Rechtsanwälte
The German Federal Fiscal Court (BFH) decided on 23 October 2018 that a company with a seat outside Germany becomes taxable in Germany if its manager has a private (second) home in Germany and is doing business for the company in Germany. In its decision, the BFH dealt with a limited capital company formed under the laws of Luxembourg. The business was conducted in Luxembourg by the managing partner. The business address in Luxembourg was also the private residence of the managing partner. But he also had a private residence in Germany and regularly visited the German suppliers in Germany.
By Oliver Biernat, Benefitax GmbH
When foreigners want to do business in Germany, they have several possibilities. The basic form of doing business is to sell to German customers and meet the conditions to register for Value Added Tax purposes only. This may also apply to online sellers as operators of internet marketplaces have to provide information on companies whose turnover is subject to German turnover tax. Those affected need to apply for a VAT ID number and submit regular VAT declarations.
By Prof Robert Anthony, Anthony & Cie
France is a member of the OECD and has signed an exchange of information agreement and complies with base erosion profit shifting agreements, known as BEPS. It has transfer pricing legislation, anti-tax avoidance legislation, and, of course, a considerable number of tax treaties to avoid double taxation. This can apply to inheritance tax (which is less frequent) as well as corporate and personal taxation. France is a member of the European Union and complies with sales tax legislation as well as foreign-controlled corporation rules.
By Richard Jahoda, Grinex Czech Republic
The Czech Republic is one of the most developed industrialised countries in Central and Eastern Europe. Its strong industrial tradition dates to the nineteenth century, when the region was the economic motor of the Austro-Hungarian Empire. Czechoslovakia was the most prosperous country in the Eastern Bloc and after its dissolution the Czech Republic continued achieving economic success.
By Fernando Lopez, Prager Metis International LLC
While organisations often overlook tax-compliance requirements related to business travel, the days of simply traveling to and working in a different state or country for business without a thought to tax liabilities are coming to an end. Looking for additional tax revenue, US state taxing authorities are becoming stricter and more vigilant in monitoring business travel.