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Government Approved the Rate on Installment Plan on VAT Payment for the Import of Production Equipment

Published: 23/02/2018 | news

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On February 21, 2018, the Resolution of the Cabinet of Ministers of 7.02.2018 No. 85 came into force, approving the procedure for granting an installment plan for VAT payment when importing the equipment for own production into Ukraine (hereinafter - Procedure) in accordance with clause 65, subsection 2, section XX of the TCU, No.2245-VIII of 07.12.2017. The Procedure provides that in order to receive an installment plan for the payment of value-added tax, when importing equipment into the customs territory of Ukraine, the payer is obliged to submit an application to the customs office, which form must be also approved by the above-mentioned resolution. The application must specify the term of the installment plan, name, quantity, cost and code of the the UCG FEA of the imported equipment, its location, the purpose of importation, the CFEA of the payer, etc. The payer must attach the following to the application: business project, business plan or other document with a detailed description of the technological process (with economic calculations) and expected performance; available conclusions of state bodies, expert institutions, organizations, state standards and...

UK Toughens Requirements for Trusts

Published: 13/02/2018 | news

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#Trusts #United Kingdom

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...

MFU Has Developed a Draft Resolution for the Operation of VAT Risk System

Published: 13/02/2018 | news

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#Taxation #Taxes #VAT

The Ministry of Finance of Ukraine has developed a draft Resolution on the further operation of the VAT risk system. This mechanism is a necessary measure aimed at the prevention of VAT embezzlement schemes and uninterrupted process of automatic VAT refund. We remind that in December last year, the work of the VAT risk system was suspended in order to develop a coordinated effective solution which would not entail new risks. So, the MFU together with the SFS have developed and agreed upon a decision that was made public on the official website of the Ministry on February 9, for public discussion. Now the draft Resolution is under consideration of people’s deputies of the Tax and Customs Policy Committee. It includes the following changes: In order to reduce the cases of suspension of the registration of tax invoices, a “cutoff criterion” of 3% and a threshold of the volume of supply for the month of 500 thousand UAH are established. Earlier, the coordination of evaluation criteria continued for some time, that allowed some payers to use a fictitious loan. It is proposed the SFS to establish criteria for risk assessment for a prompt response. In order to ensure the...

EU Mitigates the Rules of Taxation for Small Business

Published: 24/01/2018 | news

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#EU #Taxation #VAT

The European Union announced its intention to expand the powers of Member States with respect to changing the rates of VAT and mitigating the rules of taxation for small businesses. These changes are only part of a large-scale plan on revision of the European VAT system aimed at creating a single VAT zone. We remind that the general rules of VAT in the European Union were agreed in 1992. According to the European Commission, they became obsolete and, in addition, too limited. The EU Commissioner for Taxation, Pierre Moscovici, noted: “Today we are taking another step towards the creation of a single VAT zone in the European Union with simplified rules for our Member States and, in particular, companies. These proposals will give EU countries greater freedom with regard to application of preferential VAT rates to specific products or services. At the same time, they will enable to reduce the number of bureaucratic mechanisms for small enterprises engaged in cross-border activities, thereby contributing to their growth and job creation”. The Commission proposed to give EU Member States the opportunity to introduce certain benefits, along with a standard VAT rate of at least...

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...

Singapore Has Launched Automatic Exchange of Tax Information with 61 Jurisdictions

Published: 16/01/2018 | news

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#Singapore #Tax reporting #Taxation

The government of Singapore stated that the process of automatic exchange of tax information with 61 states has been launched within the framework of the program to avoid tax evasion and financial crimes in the territory of the country. Data exchange will take place in accordance with the CRS - Common Reporting Standard of the OECD for the exchange of tax information. This standard assumes that an automatic exchange of information occurs between the territories that have agreed on the exchange of data in the automatic mode. The use of appropriate mechanisms and systems for collecting information on financial accounts is regulated by the Common Reporting Standard of the OECD for the exchange of tax information (CRS Regulations), which came into effect at the beginning of this year. The process of exchange of information with most states started on January 1. The government has approved the exchange of tax and financial information with the following jurisdictions: Australia Argentina Barbados Belgium Bermuda Bulgaria Brazil United Kingdom Germany Guernsey Greece Denmark Jersey India Indonesia Ireland Iceland Spain Italy Cayman...

A Number of Agreements on Automatic Exchange of Tax Information Entered into Force in Switzerland

Published: 12/01/2018 | news

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#Switzerland #Tax planning #Tax reporting #Taxation

A number of agreements on Automatic Exchange of Information (AEOI) on taxation issues, concluded by Switzerland with other jurisdictions, entered into force on January 1, 2018. Data exchange will be carried out in accordance with the Common Reporting Standard of the OECD, which provides for the possibility of automatic exchange of information between the territories that have agreed to such an exchange. Switzerland starts to exchange tax information this year with respect to data on accounts collected for some partners under previously signed agreements, namely Australia, Canada, the European Union, Guernsey and Jersey, the Isle of Man, Iceland, Japan, Norway and South Korea . More complete list of jurisdictions with which Switzerland plans to establish automatic exchange of information since 2019 was published on the website of the State Secretariat for International Finance. In order to fulfill its obligation to exchange information automatically with these territories, Swiss financial institutions will be demanded to comply with the new requirements on information collection from January 1, 2018 for the accounts of taxpayers from such countries as Andorra, Argentina,...

Campaign “Declaration of incomes of citizens – 2018” Has Started

Published: 11/01/2018 | news

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#Tax disputes #Tax reporting #Ukraine

As the main office of the SFS in Kyiv reports, from January 1, 2018, the campaign of declaring incomes of citizens, received during 2017, has started which will last until May 1, 2018. We would like to note that the citizens are obliged to submit an annual Declaration on Property and Income in case if they received in 2017: separate incomes, from which income tax on natural persons was not withheld in the calculation and payment during the year 2017; income from natural persons who do not have the status of tax agents (for example, income from the provision of real estate for rent to a natural person who is not a subject of business activity); foreign incomes; other incomes, which declaration is provided by the current legislation. Such citizens are obliged to deposit the amount of such income in the total annual taxable income and submit before May 1, 2018 the annual tax declaration on the property status and income based on the results of 2017, as well as to calculate and pay a tax on such income at a rate of 18% to the budget until August 1 2018 and military duty at a rate of 1.5%. We also remind that citizens willing to exercise their right to a tax discount...

The Cabinet of Ministers Has Approved a List of States (Territories) Where the Operations with Residents are Recognized as Controlled for the Purposes of TP

Published: 28/12/2017 | news

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#Seminar #Tax disputes #Tax reporting #Taxation #Ukraine

On December 27, 2017, the Cabinet of Ministers of Ukraine approved a new list of states (territories) where the operations with residents are recognized as controlled for the purposes of transfer pricing. It was due to the recent changes in the selection criteria. The new list was formed according to the following criteria: state (territories) where the corporate income tax rate is 5 and more percentage points lower than in Ukraine (that is, below 13%); states with which Ukraine has not concluded international agreements containing provisions on the exchange of information; states which competent authorities do not provide timely and complete exchange of tax and financial information for the requests of the SFS. When considering the criterion of the rate of corporate income tax, not only basic but also preferential rates for individual industries, territories, and types of activities were taken into account. Operations with a counterparty registered in the state (in the territory) entered in the approved list are recognized as controlled ones for the purposes of transfer pricing from the 1st of January of the reporting year, following the calendar year in which the...

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...

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