By Patrick J. McCormick, Drucker & Scaccetti
A threshold consideration sometimes inadequately explored by practitioners is how a foreign structure will be classified under United States tax rules. Frequently, advisors defer to foreign classification without fully examining details that could dictate alternative United States results. This article explores methods for determining classification, options for altering the default classification of an entity, implications of certain classification types, and considerations where the choice of entity classification is possible.
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.
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 Sergio Guerrero Rosas, Guerrero y Santana, S.C.
Last December, the Chamber of Deputies approved the federal budget of 2019 for the first year of the government of the new President Andrés Manuel López Obrador (AMLO), which fixes a total net expenditure of 5 trillion 838 billion pesos. That is 23 billion 768 million pesos more than that proposed by the Ministry of Finance, as well as the Income Law of 2019, whose validity began on 1 January 2019.
By Carlos Frühbeck Olmedo, Ficesa Treuhand, S.A.P.
July 2018 marked a year since the implementation in Spain of the Immediate Supply of Information (SII) on value added tax.
By Robert Crowley, Prager Metis CPAs
Recently, we have seen a growth in the sale or exchange of cryptocurrency, or the use of cryptocurrency to pay for goods or services. Unfortunately, guidance from the Internal Revenue Service (IRS) pertaining to related US income tax issues has not kept pace with the proliferation of cryptocurrency trading. This article highlights fundamental income US tax compliance issues for investors dealing or transacting in cryptocurrency.
By Rikesh Patel, Lawrence Grant, Chartered Accountants
“Cash is king” is one of the key expressions used by clients to express the importance of cash flow for businesses. As the world changes and technology advances, I wonder if in future the expression will change to “crypto is king”.
By Marcel M.S. Bollen, Baat accountants & adviseurs
In late 2008 the concept of cryptocurrencies emerged out of nowhere and gained instant popularity. An explanation of the concept of cryptocurrencies can be found in the introduction of this series.
By Santiago Lapausa, JC&A Abogados
In the absence of a definition in Spanish law of what is meant by cryptocurrencies, Spain takes the concept from the proposal of EU Directive 2015/849.
By Graeme Saggers and Simphiwe Mili, Nolands
There has been a prominent controversy around the issue of cryptocurrencies in South Africa. On 6 April 2018 the South African Revenue Service (SARS) released a statement presenting the position that they had chosen to adopt on the treatment of cryptocurrencies for the purposes of determining taxable income.