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

Published: 13/02/2018 | news

Tags:

#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...

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...

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

Published: 12/01/2018 | news

Tags:

#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,...

Procedural Codes will Undergo Another Changes

Published: 21/12/2017 | news

Tags:

#Tax disputes #Tax exemptions #Taxes #Ukraine

The Verkhovna Rada of Ukraine has registered changes in the Code of Civil Procedure, the Code of Economic Procedure and the Code of Administrative Court Procedure provided for by three relevant draft laws. We remind that on December 15, the Law which had already been amended by these codes came into effect. However, as it was noted in the explanatory notes to the latest drafts, it was adopted in violation of the regulation. In addition, the Law contains a number of contradictory norms, on the correction of which the proposed changes are aimed. In general, it is proposed to rewrite the editions of the CCP, CEP and CACP, which have just come into effect. During the consideration of the procedural codes in the parliament, none of the amendments proposed by the deputies was adopted, although several thousand amendments were submitted at the stage of their preparation. Instead, before voting for the Law as a whole, only amendments were brought to a vote approved by the profile...

Sales Threshold without Cash Registers Has Been Raised to 250-500 thousand UAH per Year

Published: 20/12/2017 | news

Tags:

#Tax disputes #Tax planning #Taxes #Ukraine

The Cabineta of Ministers of Ukraine has increased the threshold of the annual sales volume without using the RCT (registrar of clearing transactions) from 75-200 thousand UAH up to 250-500 thousand UAH per one structural subdivision of the subject, depending on its organizational form and activity. Such changes are provided for by the Resolution of the CMU, as reported by the information agency “Interfax-Ukraine”. As noted, it will enable business entities that have several separate objects of trade (provision of services) not to use the RCT in the event that none of them exceeds the threshold of clearing transactions. According to the explanatory note, which the IA possesses, the Resolution also provides that the enterprises which annual income exceeds UAH 1 million are required to use cash registers, regardless of the type of their activity. The document does not apply to economic entities that carry out retail trade of excisable goods, as well as technically complex household goods. The Resolution defines a list of activities that are exempted from compulsory use of the RCT, in particular the provision of public services on the territory of villages. According to the...

Automatic Blocking System of TI Will Be Temporarily Suspended

Published: 13/12/2017 | news

Tags:

#Tax disputes #Tax exemptions #Taxation #Taxes #Ukraine

The changes provided by the amendments to the draft Law “On Amendments to the Tax Code of Ukraine regarding the Balance of Budget Revenues in 2018” has been made in the procedure of the blocking system of tax invoices. According to the announcement made on December 7, 2017, the following has been done: 1. Clause 74.2 of the TCU has been deleted, which stipulates that the URTI ensures constant automated monitoring of the compliance of TI/AC with the criteria for assessing the degree of risk sufficient to suspend the registration. This provision will come into force on the day following the day of the publication of the Law. It is also noted that, within two months from the date of entry into force of the Law, the Cabinet of Ministers must: determine the procedure for suspension of the registration of TI/AC in the URTI in accordance with clause 201.16 of the TCU; ensure the revision and bringing of the normative legal acts in compliance with this Law by the ministries and other central executive bodies. In addition, the Cabinet is obliged, within a period of three months from the date of entry into force of this Law: to adopt the normative legal acts which are...

Switzerland and Austria dissolve the agreement withholding tax

Published: 14/11/2016 | news

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#Austria #Switzerland #Taxation

Agreement withholding tax (WHT) between Switzerland and Austria, will be phased out from 1 January 2017, when the agreement between Switzerland and the EU on the automatic exchange of tax information comes into force. 11 November 2016, Switzerland and Austria signed an agreement to ensure a smooth transition between the two modes. Austrian authorities, it regulates the arrangements for the transmission of the final amount of taxes and shipping the latest voluntary agreement. "The provisions of a tax treaty withholding will be applied on all the facts and legal rights that materialize during the period of its validity," said the Swiss Federal Council.Withholding tax agreement between Switzerland and Austria came into force on 1 January 2013. It provided for the regularization of assets held in Switzerland Austrian taxpayers and taxation of income derived from these assets. Austrian taxpayers have been an option either to pay by WHT, imposed directly on their accounts and transferred anonymously to the Austrian authorities, or to make a voluntary disclosure. The Swiss Federal Council said that this model is "generally loses its sense of existence with the introduction of an...

The Swiss government supports corporate tax reform

Published: 31/10/2016 | news

Tags:

#Reforms #Switzerland

The Swiss Federal Council announced its support for the proposed changes to the corporate tax base in Switzerland, known as - Corporate Tax Reform III (CTR III), on the eve of a referendum on the issue, which will be held early next year. CTR III cancel corporate tax arrangements, which are no longer in line with international standards. These primarily include the cantonal tax status, for possession of residential and mixed companies. "With regard to measures of tax legislation, the focus is on the promotion of innovation," said Federal Department of Finance on 27 October. "In general, the reform will allow Switzerland to remain an attractive location for companies, and for each canton, the ability to adapt their fiscal policies in the economic and financial situation," said a department statement. "Reform will prevent a mass exodus of existing companies with the status and thus, the possible tax losses amounting to more than CHF 5 billion (USD 5 billion) for the Federation, the cantons and communes." Author: Sergey Panovmanaging partner Finance Business...

The changed tax rules for Swiss banks

Published: 04/10/2016 | news

Tags:

#Banks #Switzerland

Switzerland has amended the "too large to fail" legislation to reduce the tax burden in some banks. The Swiss Federal Council requested the Federal Department of Finance to prepare a draft consultation document on changes to the position of participations in the deductions TBTF legislation. He noted that the proposed reform would "not allow the tax load of the leading holdings of systemically important banks from raising together with the conditional issuance of convertible securities (CoCos), written off bonds and bail bonds." The Federal Council has proposed that the interest payments on cocos, decommissioned bail bonds and bonds, were not taken into account when calculating the deduction. In accordance with current regulations, the deduction is reduced, because the interest in cocos, written off bonds and bail bonds, regarded as financing costs. The Federal Council said: "The deduction - a system associated with the current legislation, ie all interest on debt capital lead to a reduction in the gross income of all corporations and cooperatives This can lead to a higher tax burden.". The Federal Council said that some banks are required by supervisory law circulate such...

Switzerland amends for keeping tax resolution

Published: 27/09/2016 | news

Tags:

#Switzerland

Swiss Federal Council proposed an amendment to the tax deduction management, maintenance is easier finance group. The Council noted that the group created in Switzerland often carry out targeted measures to finance overseas, thus avoiding any deductions that would be related to funding issues, conducted by a group of companies established in Switzerland. The Council added that the Swiss economy as "pass some of the value added in this sector." The proposed amendment to the Retention Tax Resolution can affect groups in which the Swiss group companies (guarantor) provides a guarantee for bonds of foreign companies and groups (the issuer), belonging to the same group. According to the amendment, interest payments within the group made Swiss guarantee will no longer be subjected to withholding taxes. In December 2014, the Federal Council proposed move to a paid agent of the system under which the debtor will transfer all worth paying agent (usually a bank). Implementation of the proposals but has been suspended pending the results of the referendum on popular initiative. Federal Council announced that its 2014 proposal would solve the issue of improving the financing of the...

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