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UK Toughens Requirements for Trusts

Published: 13/02/2018 | news

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The United Kingdom of Great Britain and Northern Ireland has introduced new requirements for registration and reporting regarding the trust management mechanisms both within the state and outside it. The introductions stipulate that British and non-British trustees are obliged to register all corresponding to these requirements trusts in the new service (register) on disclosing information on Trust Reporting Service by March 5, 2018, in accordance with these requirements. Otherwise, there is a threat of imposing fines. The scope of application of the rules is quite wide. Thus, all the so-called “express trusts” (trusts established according to the intentions of the parties and recorded verbally or in writing, in contrast with the trust by court order) created anywhere in the world that have undertaken the corresponding tax liabilities under the UK law within the tax period (April 6 - April 5) and meet a number of other conditions, are demanded to register and report the information about the trust, its founders, beneficiaries and assets. These data will be kept in the registry of the UK government, which is available to law enforcement and tax authorities. The following taxes...

Cyprus Imposes 19% VAT on Building Land

Published: 19/01/2018 | news

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#Cyprus #Taxes #VAT

From January 2, 2018 in Cyprus, the new VAT Law has entered into force, providing for changes in the main VAT Law No.95(I)/2000. The document introduces VAT at a standard rate for the sale of building land, as well as leasing/rental of business premises on the conditions specified in the law. It also introduces the reverse charge mechanism for VAT-subject supplies of land and property under a loan restructuring/force-sale arrangement, which will mostly influence financial institutions. Imposition of VAT at the standard rate of 19% on building land The standard VAT rate of 19% will be applied in the following cases: transfer of ownership; transfer of indivisible land portion; transfer of ownership via contract or sale agreement or agreement which specifies that the ownership will be transferred in the future or leasing agreement with buyout option. The above shall apply to non-developed building land which is meant for the construction of one or more structures in the course of carrying out a business activity. More clarifications are still needed for the application of the law, such as the circumstances whereby a transfer is not considered to be a part of a person’s...

The Isle of Man Toughens Measures against Crimes in the Financial Sphere

Published: 22/12/2017 | news

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#Legislation #United Kingdom

Recently, the government of the Isle of Man has made public the draft law on Anti-Money Laundering and Other Financial Crime of 2017 (Miscellaneous Amendments) Bill 2017). The proposed legal act is based on the recommendations of the Council of Europe Committee of Experts on the Evaluation of Measures to Combat Money-Laundering and Funding of Terrorism - MONEYVAL - and it assumes the improvement of mechanisms for compliance with international standards in this field. The draft law offers new measures aimed at regulating the activities of trustees operating for personal reasons and foreign trustees, including the requirements for record keeping. In addition, the document introduces additional requirements for accounting for the funds and changes clarifying the powers of the Registrar of Companies on examination of the documents filed with the Register and conduction of relevant investigations. The introductions proposed by the bill also concern raising the level of financial sanctions for the untimely provision of access to information to law enforcement agencies. The legislative act also specifies that a number of crimes (theft, forgery, etc.) identified in accordance with the...

Ministry of Finance Reforms Institution of Financial Liability for Tax Violations

Published: 30/11/2017 | news

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#Cyprus #VAT

Recently the Ministry of Finances of Ukraine, together with the experts from the interactive tax platform TaxLink, has developed a bill “On Amendments to the Tax Code of Ukraine regarding the improvement of the prosecution system for violation of tax laws”. The essence of the document is to reform the liability for tax violations provided by the current legislation. First of all, the bill introduces more effective mechanisms for the settlement of tax disputes in cases when the violation of tax law happened not due to the fault of the payer. In addition, it is proposed to introduce the principle of fault liability of taxpayers which is inherent in all branches of Ukrainian legislation, in contrast to the current liability of the payer without fault. Therefore, the last one will be considered guilty if found guilty that he was able to comply with the relevant rules and regulations, but did not take the necessary measures for this. In this regard, when considering the verification materials by the supervisory authority, the documents of the taxpayer may be subject to the examination that show his due diligence. Another significant innovation is the introduction of the system of...

Government of Great Britain plans to raise taxes

Published: 01/09/2017 | news

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#Taxation #United Kingdom

The British government is concerned about the state budget deficit which currently reaches 2.5% of GDP. The authorities do not exclude the option to solve the current economic situation by raising the tax rates. The Chancellor of the British Treasury Philip Hammond hinted unambiguously with his statement: "We never said that we would not raise taxes". In the near future, a program will be developed to reduce the budget deficit, according to which the policy of the state can change in the direction of increasing taxes and reducing the financing of a number of industries. According to the official, reducing expenses and obtaining new sources of replenishment of the state treasury will allow the UK to solve the existing financial problems and renew the financing of the leading sectors of the economy of the...

Undistributed profit in Latvia is exempt from CIT

Published: 01/09/2017 | news

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#CIT #CIT #Dividends

On the 4th and 11th of July, 2017 the Cabinet of Ministers of Latvia approved a number of draft laws providing for the significant changes in the tax legislation of the country which will enter into force on January 1, 2018. The most significant of them will be the application of the CIT 0% rate for the reinvested profits. In other words, the enterprise will be subject to the corporate income tax only if it pays dividends or other payments for the purpose of actual distribution of the profits (conditionally distributed profit). Therefore since 2018, the company's profits are exempted from CIT, but it has to pay 20% of the income tax from the amount of dividends. At the same time, the shareholders will not have to pay personal income tax (PIT). Although, according to the bill, the CIT rate is 20%, and the tax base should be divided by a factor of 0.8, the effective tax rate actually equals 25%. It is notably that CIT will be applied not only to the dividends in the traditional sense, but also to the "deemed dividends", which are considered a new concept in Latvian tax legislation, and comparable with the dividends to the costs. Here it is important to note that the last ones...

HMRC publishes guidance on a tax-free trade

Published: 09/08/2016 | news

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#United Kingdom #VAT

The tax authority and the Tax and Customs Service of the United Kingdom released a practical guide by the UK's special scheme which allows to non-EU countries taxpayers to reimburse VAT on goods purchased in some UK stores. VAT Notice №704 / 1, issued August 7 discusses how those who live outside the European Union may return the value added tax (VAT) paid for goods purchased in stores of Great Britain, which in turn provide retail products without VAT. Tax free retail trade allows individuals traveling to the European Union (EU) to obtain a VAT refund on goods bought in the UK and take home. However, it can not be used for any service. In most instances store or refund from the company will charge a payment for use of the taxpayer in its stores and tax-free goods can take the fee out of the money paid to the VAT refund. The manual discusses the right to use this circuit, which products satisfy the set requirements, the time required for export, as well as the requirements for receiving the refund. Author: Sergey Panovmanaging partner Finance Business...

Changes in order payment of dividends by joint stock companies

Published: 03/06/2016 | news

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#Dividends #Ukraine

May 27, 2016 came into force The order payment of dividends by joint stock company, which is approved by the National Commission on securities and stock market from 12.04.2016 number 391. In particular, on the relevant general meeting of shareholders is defined by a specific method of payment of dividends concerning the entire issue of shares - through the depository system of Ukraine or directly to shareholders. Implementation of dividend payments by joint stock company is going through the payment of the entire amount in full or in part, certainly if it is provided by the general meeting of shareholders or the supervisory board of the company. At the same time, in the case of decision-making by the joint stock company to pay dividends to shares, the payment could made proportionally and simultaneously to all persons who are entitled to receive dividends. Regarding the payment of dividends directly to shareholders. Payment of dividends to shareholders who are entitled, namely the transfer of the amounts of funds to all shareholders shall be effected by the transfer of funds to the shareholders during the relevant time and date that does not exceed six...

Puerto Rico’s VAT plans was declined by lawmakers

Published: 31/05/2016 | news

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#Puerto-Rico

Puerto Rico will no longer accept the value added tax, after lawmakers in the Senate voted in favor of the overthrow of the attempts of the governor of Puerto Rico, Alejandro Garcia Padilla, to veto the previously adopted law on the abolition. Puerto Rico was to introduce value added tax at the point of sales and use tax from 1 of June The Senate of Puerto Rico, May 5, 2016, unanimously supported the earlier legislation with the support of the lower house of Parliament on 2 May to prevent value-added tax from being introduced.. The governor then vetoed the legislation. However, the legislation is only necessary to collect two-thirds support to override this veto. May 26, 2016, the Senate voted to abandon plans for VAT 21 votes to 1. Author: Sergey Panovmanaging partner Finance Business...

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

Published: 06/04/2016 | news

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#Cyprus #Double taxation #Ukraine

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...

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