By Irina Orlova-Panina, Nektorov, Saveliev & Partners
Russian tax authorities started to apply rules introduced in 2017 that establish the limits by which taxpayers can reduce their tax base. Now more efforts should be made by taxpayers to prove the “good faith” of their counterparties and business substance of the transactions. Taxpayers should proactively mitigate tax risks for previous and future tax periods.
By Oliver Biernat, Benefitax GmbH
COVID-19 effects have led to a number of questions of doubt when preparing annual financial statements and tax declarations. Here are some answers for Germany (but be aware that other solutions may apply in other countries):
By Valeria Khmelevskaya, KBK Accounting
One of the major conditions currently necessary in Russia for application of the incentives provided by double taxation treaties (DTT) is the “actual right of the company to the income” obtained from the sources in Russia. This is the statutory naming for a beneficial ownership concept (BO) in Russia, which continues to develop and evolve after introduction into legislation in 2015.
By Roberto M. Cagnazzo, Studio Tributario Cagnazzo
A decision of the Lombardy Tax Court examined the topic of repetitive losses in intra-group transactions under the domestic transfer pricing rules.
By Dr Sergio Finulli, COMMA 10
Italy has recently adjusted the tax legislation for companies which transfer their headquarters from Italy to a foreign country (exit tax) and for foreign companies which move to Italy.
By Robert Jacobson, Kutchins, Robbins & Diamond, Ltd. (KRD)
Foreign nationals looking to start a business in the US often find that operating as a C Corporation is most desirable. One of the benefits of becoming a C Corporation is that they can issue Qualified Small Business Stock (QSBC). A QSBC is a US C Corporation that, upon sale, can have a 100% Federal capital gain exclusion for both regular and alternative minimum tax purposes.
By Bernhard Schwechel, FACT GmbH
Pillar Two calls for a coordinated set of rules to address ongoing risks from structures that allow multinational entities (MNEs) to shift profits to jurisdictions where they are subject to no or very low taxation:
By Brigitte Jakoby, Jakoby Dr Baumhof – Wirtschaftsprüfer Steuerberater Rechtsanwälte
On 25 July 2019, the EU Commission decided to initiate formal infringement proceedings against Germany regarding the non-recognition of profit transfer agreements which are in accordance with the laws of another EU member state. The background is that profit transfer agreements in Germany must be registered at the seat of the company. Furthermore, the contract must originally be concluded under German law – relevant to 291 AktG (Stock Corporation Act).
By Alun Griffths, Forward Group Limited
The Council of the EU adopted a resolution on a Code of Conduct for business taxation, the aim of which was counteracting the effects of zero tax and preferential tax regimes around the world. In 2017, the Code of Conduct Group (Code Group) investigated the tax policies of both EU member states and third countries, assessing:
By Bhavesh Jindal, Ashwani & Associates, Chartered Accountants
The history of the highest corporate tax rates in India goes back to 1997, with an effective corporate tax rate of 38.05%. However, in recent times, there has been a progressive shift in this trend, wherein India is becoming a more preferred nation for investment, bolstering investor sentiment by way of various regulatory and tax reforms. The central government, basing their optimistic approach on the main theme of “Made in India” as a means of nation building, has introduced a new tax regime, slashing the corporate tax rates in India by 8%, from the prevailing 30% to 22%. Even further, for a newly set up manufacturing company incorporated on or after 01 October 2019, the tax rates have been reduced to as low as 15%.