By Graeme Saggers, Nolands
The Zambian Government announced the termination of the Double Taxation Agreement (“DTA”) between the Government of the Republic of Zambia and the Government of the Republic of Mauritius on the 22nd of June 2020 by way of a written notice of termination given to Mauritius.
By Brigitte Jakoby, Jakoby Dr Baumhof – Wirtschaftsprüfer Steuerberater Rechtsanwälte
In the matter “Aures Holdings” (AH), the European Court of Justice (ECJ) had to evaluate whether the transfer of the administrative seat of a company from one Member State to another could involve the transfer of losses between Member States. AH is a company incorporated under the Netherland’s law, whose registered seat and place of effective management were originally located in the Netherlands. AH was a tax resident of the Netherlands (unlimited tax liability) and incurred a loss of EUR 2,792,187.00 in the financial year 2007. On 01 January 2008, AH initially set up a permanent establishment in the Czech Republic and on 01 January 2009 transferred its place of effective management to the address of the permanent establishment. In this context, AH also transferred its tax residence to the Czech Republic and applied to the Czech tax authorities for the deduction of the loss which had been incurred in the Netherlands until 2007.
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).
