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Parliament of Ukraine proposed to impose a tax on transactions from offshore jurisdictions

Published: 21/04/2016 | news

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The Parliament of Ukraine once again registered the Draft Law on Amendments to the Tax Code of Ukraine on April 13, 2016 on introduction of a tax on transactions from offshore jurisdictions number 4413, by N. Korolevskaya and Y. Solod (hereinafter - the "Project number 4413 "). A memorandum to the Project number 4413 proposeto introduce a tax on transactions from offshore jurisdictions from 1 January 2017. The rate of the tax is set at 15% of the payment amount payable to non-residents that have offshore status. According to the memorandum to the Anti-offshore law, taxpayers are entities who pay for goods (works, services) to non-residents with offshore status, or perform calculations by such non-residents or their bank accounts (including opened in banks of Ukraine), regardless of whether such payment is made directly or through other residents or non-residents. To ensure the tax on transactions from offshore jurisdictions the banks will be banned to accept vouchers to perform conversion of funds to non-residents with offshore status without simultaneous offshore tax payment to the state budget of Ukraine. Initiators stated that these changes will allow to...

The third international business forum in Kharkiv

Published: 21/04/2016 | news

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#Slovakia #Ukraine #USA

Attorneys of our company attended the third international business forum in Kharkiv which was held on 7 April this year. This forum is a response of Ukrainian business community to the situation in our country. Each year, this event is visited by more than three hundred and fifty directors and managers of different companies. Forum raised topical issues of the transformation of the Ukrainian business. Key issues of the forum - best practices for attracting investment, obtaining grants, development of business in crisis and access to the European market. Business Forum provided two program’s format in the usual forms, it is the speech of speakers and discussions, as well as have been introduced two new formats - "Investment Salon", where Ukrainian companies asked questions about raising grants and "projects Battle", where entrepreneurs present their startups. Also Ivan Miklos delivered a speech for the first time in Kharkov - he is the ex-finance minister of Slovakia and one of the authors of the "Slovak economic miracle". Its main purpose of a speech was a desire to share its experience and help Ukrainian businesses to successfully adapt to the economic...

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...

The avoidance of double taxation agreement, UAE – Ecuador

Published: 31/03/2016 | news

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#Double taxation #UAE

Representatives of the United Arab Emirates and Venezuela met at the end of March 2016, to discuss ways to strengthen economic and trade ties between the two countries. During the meeting, Obaid Humaid Al Tayer, UAE Minister of Finance emphasized the UAE's efforts to strengthen relations with various countries around the world and for the implementation of laws that support trade and investment and stimulate economic diversification. He noted that UAE is continuing its efforts to provide key benefits for both the public and private sectors, through the execution of agreements for the avoidance of double taxation, joint tax laws, as well as agreements to prevent tax evasion on income tax, which increases the economic growth and investment between the two countries. UAE and Ecuador in Quito signed an agreement on avoidance of double taxation on income dated September 1, 2012. Both sides stressed the importance of implementing the agreement. The total foreign trade between the two countries in the first nine months of 2015 amounted to only 40.3 million dollars, according to the UAE Ministry of Finance. Author: Olena Kutova senior lawyer of...

Singapore – the United Arab Emirates, Tax improvement agreement

Published: 22/03/2016 | news

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#Double taxation #Singapore #UAE

The second protocol to the double tax agreement between Singapore and the United Arab Emirates, entered into force on 16 March 2016 and will be effective from January 1, 2017, reducing tax rates and changing the rules of the permanent establishment (PE). The protocol, which was signed in October 2014, revises the conditions for the inclusion of longer periods of thresholds for determining the existence of a permanent establishment. For example, the report claims that the PE occurs where there is a building site; construction, assembly or installation project; or supervisory activities in connection with this lasts for more than twelve months, in contrast to the threshold of nine months. In addition, under the revised protocol, provision of services, including consultancy services, will be a PE if such activities continued throughout the aggregation of 300 days in any period of twelve months, compared to six months. The agreement also upgrades the position of the exchange of tax information. The protocol removes withholding tax on interest at source, provided that the interest income may be taxed only in the country of the recipient. Provisions establishing five...

Corporate tax 2016

Published: 21/03/2016 | news

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#Austria #Belgium #Hungary #Monaco #Slovakia

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...

Corporate Tax Rate 2016 Classical offshores

Published: 19/03/2016 | news

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#Cayman islands #Dominica #Gibraltar #Guernsey #Jersey #Labuan

Gibraltar - Corporate tax rate is 10%. Cayman Islands - No income tax. Dominica - Rate reduce from 28% to 25% on 1 January 2016/ Branch remittance tax of 15% also levied. Labuan - Tax rate is 3% or 20.000 MYR per year. Gibraltar - Corporate tax rate is 10%. Cayman Islands - No income tax. Dominica - Rate reduce from 28% to 25% on 1 January 2016/ Branch remittance tax of 15% also levied. Labuan - Tax rate is 3% or 20.000 MYR per year. Isle of Man - Standard income tax rate for companies is 0%. Income received in respect of licensed banking activity and retail profits for companies undertaking Isle of Man retail business where annual taxable profit from this business exceeds GBP 500,000 taxed at 10% rate. Profits from Isle of Man land and property taxed at rate 20%. Jersey - Standard rate of corporate income tax applying to Jersey resident companies or non-Jersey resident companies that have permanent establishment in Jersey is 0%. 10% rate applies to certain companies that meet definition of "financial services company" and 20% rate applies to certain companies that meet definition of "utility company." St. Kitts & Nevis - Rate is 33%. Remittances...

Abu Dhabi (UAE) Tax Free Zone is focused on the FinTech

Published: 12/03/2016 | news

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#Offshores #UAE

The Global Market of Abu Dhabi (ADGM), a new free zone in the United Arab Emirates (UAE), to strive to become a regional center of financial technologies, or "FinTech", said the Chairman Ahmed Al Sayegh, during a Global Financial Markets Forum 2016. Al Sayegh said that the investments in the global FinTech sector tripled between 2008 and 2014 reached $ 3 billion, And could double again by 2018. "However, now we have not seen a deep set FinTech ecosystems among the countries of Gulf Cooperation Council (GCC). The Chairman said that the world market in Abu Dhabi is committed to working with key stakeholders in order to create an environment conducive to FinTech sector. During his speech, Al Sayegh also drew attention to some of the events on the Global market. These include the Office of Financial Regulation and Supervision recognized as a member of the International Association of Insurance Supervisors and the Basel Consultative Group of the Basel Committee on Banking Supervision. The Global market for Abu Dhabi operating since October 2015. It offers companies a number of advantages, including tax exemptions for 50 years and acceptable...

Dividends paid to non-residents of Ukraine

Published: 09/10/2013 | news

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#Dividends #Taxation #Ukraine

In this article, we propose to consider the main issues related to the payment of dividends to non-residents of Ukraine, that is, the individuals / juridical persons who are representatives of other states. First of all, it should be noted that Ukrainian law provides the right of foreign investors to ensure they receive all the profits obtained in our country legally. This immediately indicates that the resident of Ukraine, being the actual issuer of corporate rights, who carries out the payment of dividends to non-residents, is subject to the general legislation on taxation. That means that regardless of the fact to whom the payment of dividends is made, the issuer is obliged to pay an advance fee of 25% without reducing the amount of dividends. International agreements related to the elimination or reduction of double taxation of income does not apply to this payment. Now let's discuss in more details the payment of dividends to legal entities which are non-residents of Ukraine. First of all, we emphasize that when paying dividends to non-resident, who is in fact a legal entity, but has no such status, the issuer of corporate rights is obliged to withdraw...

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