Сергей Панов, Author at Finance Business Service

The Canadian tax benefits are profitable for rich persons

Published: Sergey Panov | 12/12/2016 | news

Tax expenditures on the income of physical persons of Canada bring benefit for more than 50 percent of persons which gain income, according to the new report of the Canadian center of political alternatives (CCPA). Using data of 2011, it was established that 59 of 64 tax expenses, provide more benefit to 50 percent of the persons gaining income. It shows that in 2011 39 percent of profitable tax expenses provided to more than 10 percent of persons which gain income, and less affluent taxpayers saw only 16 percent of the benefits. The report states that there are only five taxes: a tax on working income, a guaranteed income without tax, social security without taxation, reimbursement of medical costs and disability tax credit - they can be described as "relatively progressive" with maximum benefit CAD1,110 ($ 840 USA). The Canadian government is currently carrying out a comprehensive review of federal tax expenditures. The goal is to ensure that the tax costs are fair, effective and have financial responsibility. The Canadian center of political alternatives has recommended that the annual tax expenditure report from Finance Canada, included the distribution of tax...

Hungary plans the lowest corporate tax of the EU

Published: Sergey Panov | 21/11/2016 | news

Mihaly Varga, Hungary's Minister of National Economy, announced about decision of government to reduce the corporate tax rate lower than 10 percent next year. On November 18, behind the scenes of the Regional Digital Conference in Budapest, he made the announcement during which he unveiled the plan of the government to impose a single rate for nine percent of the corporate tax. Now, the headline shows, that the rate of Hungary of the corporate tax constitutes 19 percent, and there is lower level of the income tax of 10 percent on the first 500 million Hungarian forints (1.7 million US dollars) of the income. Dramatic movement would give Hungary one of the lowest corporate tax rates in the world and one of the lowest in the European Union "onshore" jurisdictions. Varga said that this measure will save companies about 145 billion HUF (500 million US dollars) a year tax. The Government expects to compensate the shortfall through controlled growth to increase tax revenues. The government plans to introduce a new tax rate of 1 January 2017. Author: Olena Kutova senior lawyer of the Finance Business Service company ...

Australia publishes the conclusions of the review of tax credit

Published: Sergey Panov | 05/10/2016 | news

The Australian Government has published a review of research and development tax credit. The Australian Government has published a review of research and development tax credit. The review was commissioned in December 2015 as part of the agenda of the Government of National Innovation and Science (NISA). The goal was to determine how the efficiency and integrity of the research and development tax credit can be improved. The Commission has made six recommendations. They said that the government should: - Set a single premium of up to 20 per cent non-refundable tax refund; - Enter the maximum in order AUD2 million on an annual refund; - Enter the one - or two percent limit for recipients of the non-refundable component of the research and development tax credit; - If the intensity threshold is set to increase the threshold to AUD200 million of expenditure; - Explore options for better management in the research and development tax incentives, including the establishment of a single application process, developing a single framework of this program, as well as the optimization of processes to verify compliance with established rules and...

Parliament of Holland approves gambling tax

Published: Sergey Panov | 18/07/2016 | news

The lower house of Dutch parliament approved rule, which can regulate and provide online gambling taxation. Remote Gambling Bill has plan to open Dutch gambling market for foreign outer gambling companies which provide taxation about 29 percent of gamble gross revenue, the same way of taxation have had already gamble land-based operators. According to previous version of draft law, tax for online gambling fixed about 20 percent. The acting coalition included remark to legislation in the beginning of this year for agreement this tax. Nevertheless, the final version of this law approved by the law house 7 July contains measure of decreasing about 25 percent at the end of three years period. In this proposing for the first time was planned to go into force this rule in 2015, but now they were waiting for voting in the Senate. In case of approving by upper house, expect that the process of application submission a new license for gambling in the first half of the next year, and that this new regime will fully up in the middle of 2017 year. Author: Olena Kutova senior lawyer of the Finance Business Service company ...

EU reaches agreement on Anti-avoidance package

Published: Sergey Panov | 22/06/2016 | news

European Union (EU) member states have reached a compromise agreement on a proposed new anti-tax avoidance directive. The European Council reached a broad agreement on the draft directive on June 17, subject to a silence procedure. Further details of the arrangements were released on June 21. The directive will be submitted to a forthcoming Council meeting for its formal adoption. The directive sets out five key anti-avoidance measures, which all member states will be required to apply. They are: A controlled foreign company (CFC) rule to deter profit shifting to no- or low-tax jurisdictions. The rule will allow the member state where a parent company is located to tax certain profits that the company "parks" in a no- or low-tax country. It will be triggered if the tax paid in the third country is less than half of that which would have been paid in the member state in question. The company will be given a tax credit for any taxes it paid abroad. An exit tax on assets moved from an EU member state's territory, based on the value of the assets at that point in time. Companies will be obliged to send tax authorities their balance sheets, containing information on...

Canada will review preferential tax arrangements

Published: Sergey Panov | 17/06/2016 | news

The Organisation for Economic Cooperation and Development (OECD) said that government of Canada need to include Preferential Tax of small business in planned review of tax expenditures. This recommendation was make in the last economical overview OECD of Canada and added that this capital taxable income is not sufficiently focused. "The main aim of this agreement to save small business in a big amount for investing and its make this program more effective. OECD said that depend of analysis result according to decision of federal budget in 2016 to defer a series of scheduled increases to the SBD and it will be seen as moving in a right direction. It added that the Government should also "review its targeted measures and adapt them as necessary to ensure that they correct clear market failures efficiently." The 2016 Budget deferred any further reductions in the small business income tax rate and committed the Government to undertaking a review of the tax system within the coming year, with a view to eliminating poorly targeted and inefficient tax measures. Author: Sergey Panovmanaging partner Finance Business...

Hong Kong: a new tax benefit for companies

Published: Sergey Panov | 09/06/2016 | news

June 3, 2016 in the official government publication in Hong Kong were published changes in the tax law, introducing a tax break for companies that perform the function of the treasury center. The changes were adopted by the Legislative Council of Hong Kong on May 26, 2016. Now, the company engaged in Hong Kong treasury activities (namely intra-group financing business, the provision of treasury services and conducting treasury operations), under certain conditions, are able to take into account the the interest paid by them on loans as an expense for tax purposes. Under the changes, the Hong Kong companies, which meet the criteria of corporate treasury center will pay income tax at a reduced rate, in the amount of 8.25% (the standard corporate tax rate in Hong Kong is 16.5% rate). The reduced rate of corporation may be applied against to income from treasury activity, obtained from April 1, 2016 and later. The new rules on percent accounting in the composition of expenditure of companies involved intragroup funding, will also be applied in respect of amounts accrued for payment on April 1, 2016 or later. By introducing new benefits Hong Kong trying to increase...

Tax breaks in Hong Kong’s double tax agreements

Published: Sergey Panov | 24/05/2016 | news

Recently Hong Kong has signed DTA with Romania and Russia, which will cut tax for cross-border trade and investors. Due to Romanian double tax agreement, income tax of Romania can be paid from any other tax which has the same income. Withholding of tax in Romania will cut to current 16 percent to 5 or even 3 percent. The income profit earned by Hong Kong's residents will be enjoying to for full tax exemption. Due to Russian DTA from Hong Kong will income tax paid by Russian residents or companies shall be allowed as a credit against any tax payable in respect of the same income in Russia. Withholding of tax in Russia will cut from current 20 percent or 30 to even 3 percent. The cap of 5 percent will be allowed if even one of the official owner has more than 15 percent of common profit of the company. Profit from international shipping transport also will be enjoying to for full tax exemption. Hong Kong airlines which operating in Russia will pay tax only due to Hong Kong's tax rate. Author: Sergey Panovmanaging partner Finance Business...

Hong Kong, free trade negotiations with Georgia and the Maldives

Published: Sergey Panov | 11/05/2016 | news

The government announced that in Hong Kong in the near future there will be an agreement on free trade after negotiations with Georgia and the Maldives. The government also prepared a document for consultation to interested parties could submit proposals for the areas to be covered in the two agreements. "Georgia and the Maldives is the emerging markets with the potential for further growth. The conclusion of free trade agreements with these two countries is of strategic importance for Hong Kong. These agreements after their signing will enhance Hong Kong's trade network in their respective regions, including Eurasia" the spokesman said. "In order to minimize the risk of marginalization, it is important for Hong Kong to participate in the negotiation of free trade agreements. The negotiations with the mainland of China which is our largest trading partner, accounting for about 50 percent of the total trade, have a special importance for maintaining Hong Kong's position as a major trade and logistics center, "he added. The provisions of the two new free-trade agreements will include the elimination or reduction of tariffs; the liberalization of non-tariff...

Corporate tax 2016

Published: Sergey Panov | 21/03/2016 | news

Austria - Rate is 25%. Minimum corporate income tax of EUR 1,750 for limited liability company and EUR 3,500 for joint stock company. Belgium - Corporate tax rate is 33%. Surcharge of 3% on income tax due makes effective tax rate 33,99%. Reduced rates may be available for companies whose taxable income does not exceed EUR 322,500. Germany - Tax rate is 15%. Solidarity surcharge of 5,5% also levied on corporate income tax. Municipal trade tax imposed at rates between 14% and 17%, with rates determined by municipalities. Combined rate approximately 30% to 33%. Hungary - 10% rate applies to tax base up to HUF million, 19% rate applies to tax base exceeding this amount. Denmark - Rate reduced from 23,5% to 22% on 1 January 2016. Macao - Rate is 0% on assessable profit up to MOP 600,000; 12% rate applies to assessable profit over that amount. Monaco - Rate is 33,33% Netherlands - Rate is 20% on taxable profits up to EUR 200,000 and 25% on taxable profits exceeding that amount. Slovakia - Corporate tax rate is 22%. Luxembourg - 21% rate applies to companies whose taxable income exceeds EUR 15,000; otherwise, rate is 20%. Surtax of 7% to unemployment...

Author: Сергей Панов