Сергей Панов, Author at Finance Business Service

Corporate tax cut, Slovakia

Published: Sergey Panov | 19/04/2016 | news

The newly formed coalition government of Slovakia has agreed to reduce the corporate tax rate in the recently agreed economic program. According to the plan, the four canoes coalition led by Prime Minister Robert Fico, and with the participation of parties of center-right and center-left political spectrum, corporate tax will be reduced by one percent to 21 percent in 2017, a further reduction of corporate tax could be considered at a later stage. In addition, the program provides for the reduction of the administrative burden for businesses in an effort to stimulate growth and reduce unemployment. Nevertheless, the plan also weakens efforts to reduce the budget deficit in Slovakia, the budget surplus is not expected until 2020, two years more than the previous period. In comments made after a "marathon negotiations" between four governing partners, Fico said: "The timetable within which the declaration of the program was adopted is an important signal to Europe that Slovakia is a politically stable country and this is particularly important in light of the Slovak Presidency of the Council EU ". Author: Olena Kutova senior lawyer of the...

Hong Kong – Latvia, the avoidance of double taxation agreement

Published: Sergey Panov | 18/04/2016 | news

It has been signed an agreement on avoidance of double taxation between Hong Kong and Latvia on 13 April, Riga. This is the 35th contract that Hong Kong has signed with its trading partners. The Treaty establishes a clear allocation of taxation rights between the two jurisdictions and it helps investors better assess their potential tax liabilities. It has been signed an agreement on avoidance of double taxation between Hong Kong and Latvia on 13 April, Riga. This is the 35th contract that Hong Kong has signed with its trading partners. The Treaty establishes a clear allocation of taxation rights between the two jurisdictions and it helps investors better assess their potential tax liabilities. In the absence of an agreement on avoidance of double taxation the profits of Hong Kong companies which operate through a permanent establishment in Latvia, were taxed in both places if the income comes in Hong Kong. Similarly, revenues received Latvian residents in Hong Kong are subject to tax in Latvia. Under the new agreement, the tax rate in Latvia for royalty (currently different rates to 23 per cent in some cases) will be reduced to zero percent for companies and a maximum of...

The corporate tax rate for small businesses in Canada

Published: Sergey Panov | 15/04/2016 | news

Canada's Liberal government froze the tax rate for small businesses, despite a campaign promise to reduce it over the next three years. The Minister of Finance pointed out that the corporate tax rate for companies earning less than $ 500,000 a year will remain at the level of 10.5 percent. This is lower than the 15 per cent rate of the total corporate tax but will be abolished reducing to 9 percent. "This is a great breach of promise," said Dan Kelly, president of the Canadian Federation of Independent Business. Around 3.5 million companies are classified as small enterprises including 2.4 million private entrepreneurs. As a result of the freezing rate small businesses will pay about $ 900 million more in taxes in 2019, compared with what was planned. The government also expects to collect more than $ 11 billion over the next five years through a variety of measures aimed at tightening the corporate tax system, including hard inspections of companies and closing loopholes that use transnational corporations to shield income from taxation. Government restores federal tax credit of up to $ 5,000 for individual investors in 2016. Author:...

Simplifying the tax rules in New Zealand

Published: Sergey Panov | 14/04/2016 | news

The package of tax reforms aimed at supporting small and medium-sized enterprises (SMEs) has been submitted to the Prime Minister of New Zealand, John Key, 13 April 2016. It includes measures to simplify the taxation of small and medium-sized businesses, as well as reduce the cost of compliance with the requirements, said Finance Minister Bill English and Revenue Minister Michael Woodhouse. "These measures will make tax easier and reduce the burden of interest and penalties, as well as help small businesses to carry out individual payments to their circumstances," said English. "We want to make the tax system could fit into how the business works, not the other way around." The main measures included to the proposal: Reform of the temporary tax, the new payment. The elimination or reduction of the use of interest for use of funds for the vast majority of taxpayers. The ability of contractors to choose the tax rate that corresponds to their needs. Cancel the current one percent monthly penalty from 1 April 2017, although the direct penalties and interest charges for late payments will continue to apply. Woodhouse said the changes are part of a...

Scotland, income tax plan

Published: Sergey Panov | 13/04/2016 | news

From 6th April 2016 the Scottish Parliament determine their income tax rate, part of the proceeds of the income goes to the coffers of Scotland and the rest to the Britain in the general treasury. Not taxable premium bonds, as well as income in the accounts that are exempt from tax (individual savings accounts, etc.). First Minister of Scotland Nicola Sturgeon announced plans to freeze the income tax rate. However, the British government this offer will only accept within the established framework. The exact level of rates should be set by the Scottish Government every year. However, the Scottish Government believes that their offer is a more balanced approach that will be fair to taxpayers and increase rates at the same time generate additional revenue to be invested in public services in Scotland. Along with the tax proposals First Minister published an analysis of the additional rate which showed that the rate does not increase to the year 2017/18. Instead of offering large tax cuts in the next year the threshold of taxation will be from 43,000 GBP. Author: Olena Kutova senior lawyer of the Finance Business Service company ...

EU, a new VAT plan

Published: Sergey Panov | 12/04/2016 | news

The European Commission has issued a VAT Action Plan which sets out plans for the next two years for the modernization of VAT in the European Union. The Commission should propose legislation and to introduce common EU-wide measures to simplify the rules to help small and start-up businesses in e-commerce and streamline audits for companies engaged in this sector by the end of 2016. In addition, the Commission will seek to improve cooperation between tax administrations including countries outside the EU, customs and law enforcement agencies, in order to strengthen the capacity of tax administrations to combat fraud. The Commission will also provide an opportunity to have a lot of freedom for setting rates of value added tax for the states of the European Union. Existing rules on tax rates that have been developed over two decades ago, in order to ensure neutrality, simplicity and adaptability to the VAT system. The Commission has proposed the freedom to establish rates subject to appropriate safeguards to prevent excessive complexity and distortions of competition and that there was no impact on the functioning of the single market. The Commission has put...

2016 Singapore budget announced

Published: Sergey Panov | 11/04/2016 | news

Singapore’s Minister for Finance delivered the 2016 budget statement on 24 March 2016. The budget’s goals include transformation of the economy through enterprise and innovation. A number of measures would benefit small and medium-sized enterprises, including an enhancement of the corporate income tax rebate. The relevant tax proposals that would affect businesses also include changes to tax incentives (including the expansion and extension of several incentives) and measures affecting intellectual property rights. An automation support package would be introduced to support companies’ efforts to automate, increase productivity, scale up and expand overseas. It would offer a 100% investment allowance for qualifying capital expenditure of up to SGD 10 million per project, and grants of up to SGD 1 million and enhanced financing support also would be available. It is unclear if all the proposed benefits could be applied at the same time, and the effective date for the measures is yet to be announced. No changes are proposed to the corporate income tax rate (17% with a partial tax exemption on a company’s first SGD 300,000 of normal chargeable income), but the...

Reform of tax regulations in Australia

Published: Sergey Panov | 08/04/2016 | news

The Australian Treasury has issued a draft law on the reform, namely the rules in respect of incurring losses by the company. Treasury said that the reforms would "stimulate entrepreneurship allowing loss-making enterprises to seek new opportunities to return to profitability." The proposed measures are part of a government program aimed at innovation and science. In accordance with current regulations, the Company has the right to use the losses over the past year to reduce taxable income provided that retained the same interest from the date of loss. New developments allow the company to use the losses of previous years to reduce taxable income but during this period the company may not conclude new transactions or types of business activities. This will allow companies to adapt and change their business. Commenting on the draft legislation, Mark Molesworth, said that while these measures are a step in the right direction but problems still remain. He explained: "This bill is very restrictive and can cause suffocation introduction of innovation in order to provide access to the existing losses and will also require significant compliance costs in relation...

United Kingdom, the rules against tax evasion

Published: Sergey Panov | 07/04/2016 | news

The UK government has published a policy paper which explains the introduction of a new trust rules against tax evasion, designed to prevent attempts to use the disguised remuneration schemes. Estimated change was included in the budget 2016 and new rule applies from 16 March 2016. The Government stated that one type of disguised scheme of tax evasion, remuneration avoidance, seeks to exploit weaknesses rules. Currently, section 552Z8 for income tax reduces the amount of charge in a disguised remuneration subject to certain conditions. The Government explained that the new rule will put beyond doubt that this scheme does not work by preventing the relief from being available where there is a connection, direct or indirect, with the mechanism of tax evasion. The Finance Bill 2016, stated that a transitional relief will be charged on investment income after 30 November 2016. Those who used the disguised remuneration scheme prior to the introduction of new rules can get the relief adopted after their settlement. According to the Finance Bill 2016, it will be restricted to the value of disguised remuneration. Any increase in investment on the disguised remuneration...

The agreement on the avoidance of double taxation changes, Ukraine – Cyprus

Published: Sergey Panov | 06/04/2016 | news

The Ukrainian government has announced a change to the existing agreements on avoidance of double taxation signed with Cyprus. The revised text will close a loophole that led to the fact that the income from immovable property situated in Ukraine avoid taxation in Ukraine. Income derived by a Cyprus resident from the sale of shares or other corporate rights will be subject to taxation in Ukraine if more than 50 percent of this revenue is directly or indirectly related to income immovable property situated on the territory of Ukraine. The minimum rate on dividends is increased from two percent to five percent. This low rate is used when the recipient owns 20 or more percent of the company distributing dividends and investment at least EUR 100,000 to obtain holding. The tax rate of ten percent is used otherwise. The revised section on dividends will come into effect not earlier than 1 January 2019. Other changes proposed to bring in agreement with the latest international tax standards developed by the Organization for Economic Cooperation and Development. The amendment has been sent to the Ukrainian legislators for approval. Author: Sergey...

Author: Сергей Панов