Search

This article offers an overview of the tax system in France in 2011. It discusses the enforcement of taxes on foreign investments in the country. It expects the number of tax audits to increase during the year. In addition, the article indicates the effort of the government to address the issue of tax havens and its plan to reform the taxation of partnerships. The taxation services offer by several companies in the country, including Arsene Taxand, Ernst & Young and Simmons & Simmons, are described.

This article presents an overview of the tax system in Canada in 2011. It discusses some taxation developments that will have an impact on international investment in the country. It cites a number of technical amendments to the Income Tax Act. It also explores the imposition of a property tax on residents and non-residents. Moreover, the article describes the business tax services offer by several firms in the country, including Blake Cassels & Graydon, PricewaterhouseCoopers and Fraser Milner Casgrain.

This article presents a taxation guide to the leading tax firms and tax advisers in Austria in 2010. It highlights the Tax Reform Act that modified the rules of the Austrian group taxation regime. It also discusses the implementation of tax exemptions including to dividends received from a foreign subsidiary. The issuance of tax reclaims regulations for foreign investment vehicles such as investment companies, collective investment funds and trusts, is also indicated. In addition, the article presents a directory of tax firms and consultants operating in the country.

This article presents legislative developments in international taxation in Canada and features several tax firms and advisers in the country as of September 2005. A review of Canadian tax developments for the past year highlighted three legislative developments: the introduction of a package of draft technical amendments to the Income Tax Act; proposed legislation to provide for a cap on deductibility of losses derived from interest and other expenses; and proposals for the taxation of foreign investment entity participation and of non-resident trusts. Leading tax firms in Canada Davies Ward Philips & Vineberg, Ostler Hoskin & Harcourt, Ernst & Young; and KPMG.

Details the changes in the corporate taxation system for foreign investors in Brazil. Foreign currency fluctuations; Social contribution tax; Modification of withholding tax levied on overseas remittances; Deductibility of interest payments; Transfer pricing control; Distribution of profits accrued abroad.

Discusses several issues related to tax in the United States (US) as of January 2000. Efforts of the US Tax Court to curb corporate tax shelters; Clarification from the US Internal Revenue Service on foreign tax credit; Modifications in the Foreign Investors in Real Property Tax Act. INSETS: Compaq's foreign tax credits;Tax treaties;Taxpayer may change methods for interest expense allocation.

Reports that merger and acquisition opportunities have become move availabile in Korea, since the Korean government eased restrictions on foreign investment, highlighting the tax structures. Details on issues which should be considered when selling shares or assets; Examination of the importance of Korean tax issues for a foreign corporation. INSETS: The reform porgramme;Yuhan-Hoesa--a corporation treated as a partnership for US tax....

Provides a tax guide to foreign investors with acquisition plans in Japan. Factors that contributed to the opening of opportunities for foreign corporate investors and financial institutions to acquire businesses in Japan; Deciding whether to structure the transaction as a sale of shares or assets; Provisions under the Corporate Tax Law; Liberal Democratic Party's proposed reduction in the combined corporate tax.

Considers the issues that affect foreign investment decisions in Singapore. Status of holding companies; Liability to income tax; Treatment of dividends; Singapore double tax agreements; Management fees and head costs; Tax benefits from being an OHQ, a Singapore company whose business is the provision of management and other headquarters related services; Qualification requirements.

Outlines fundamental information about the tax environment and a number of tax strategies which may be used by foreign investors entering the Japanese market. Local participation requirements; Exchange controls; Types of entities; Corporate income tax; Comparison of branch and subsidiary; Investment incentives; Net operation losses; Related-party debt; Tokumei kumiai (TK) contract; Mergers and acquisitions.

Identifies the direct and indirect taxes which affect foreign investment decisions in China. Relevant industry sector; Preference for direct and indirect investment; Taxation of foreign imported goods; Geographical location for investment; Tax planning opportunities.

Explores various aspects of Australia's system of taxation for foreign investors. Advantages being offered by Australia to foreign investors; Comparison with other Asian countries; Foreign investment policy in Australia; Corporate income tax; Financing issues; Acquisition finance; Transfer pricing; Withholding taxes; Anti-avoidance rules; Tax rates on profit distribution.

Provides information on issues related to beneficial ownership of royalties upon the expansion of businesses in foreign markets. Relation of beneficial owner and economic power according to the International Bureau of Fiscal Documentation; Laws under the Organization for Economic Cooperation and Development which elaborates the definition of beneficial ownership; Main characteristics of beneficial ownership as summarized in court cases.

Looks at Israel's tax regime and assesses the impact of the taxation system proposals on foreign investors. Aspects of taxation in Israel that are relevant to foreign investors; Tax reform proposals of the Ben Basat Commission or the Public Commission for the Reform of Income Tax; Double taxation treaties of Israel.

Details the changes in foreign investments taxation system in Russia that will be implemented on January 1, 2001. Value-added tax changes; Changes in withholding tax obligations; Reduction of social fund charges; Elimination of the social infrastructure tax from the turnover tax regime.

Examines United States statutory provision and temporary US Treasury regulations concerning passive foreign investment companies (PFIC). Taxpayers' option to make a mark-to-market election for `marketable' PFIC stock; Non-requirement for taxpayers to file detailed financial information in connection with making a qualified electing fraud (QEF) election; Opportunity for retroactive QEF elections.

Looks at ways in which foreign investors can optimize the available tax benefits in Australia. Advantages offered by the sale of government-owned assets to foreign investors; Transitional tax issues associated with business transfer; Specific rules in relations to the depreciation cost base of the assets within the privatized company.

Describes some tax issues involved in making an investment decision in the Philippines. Provisions of the Tax Code; Attribution of sales to Philippine branches of foreign corporation; Services versus royalties; Business acquisition; Secondment of expatriates; Thin capitalization rule.

Highlights the tax rules that apply to international business in Hong Kong. Cross-border structuring issues; Tax treaties; Branch versus subsidiary; Deductibility of related-party interest expense; Maximizing tax-free offshore profits.

The article discusses the tax bulletin that was published in January 2018 regarding the annual meeting held between the Hong Kong Institute of Certified Public Accountants (HKICPA) and the Hong Kong Inland Revenue Department (IRD). Topics mentioned include the tax exemptions on offshore funds, the exemption on offshore private equity (PE) funds, and the effectivity of the Hong Kong Financial Reporting Standard (HKFRS) 16 on January 1, 2019.

The article reports the tax reform by French government in the 2018 budget. It discusses changes related to foreign investment, innovation, taxation of household wealth and corporate tax rate. Comments by minister of public action and accounts Grald Darmanin and lawyer David Chaumontet, are included.

The article discusses the move by the German Federal Ministry of Finance (BMF) as of June 2017 to issue a guidance on the implementation of the Foreign Tax Act (AStG) on the use of brand name, trademark rights, and intangible assets. Also cited are the court cases decided by the Federal Tax Court (BFH) on the use of brand name, as well as such topics as transfer pricing adjustment, taxable license fees, and the arm's-length principle.

The article reports on the fiscal incentives and measures introduced by Malta's Minister for Finance as of June 2017 to attract local and foreign investment on the Malta Stock Exchange (MSE). Also cited are the Budget Measures Implementation Act of 2017, as well as the provisions of the Income Tax Act on capital gains tax and risk capital for approximating neutrality between debt and equity financing.

The article explains why Netherlands will remain a prime location for multinational enterprises and foreign investors as governments worldwide transition towards the tax rules under the Organisation for Economic Co-operation and Development's (OECD) Base Erosion and Profit Sharing (BEPS) Project. Topics discussed include Netherland's business friendly corporate income tax system, its attractive innovation and research and development incentives, and its cooperative tax authorities.

The article reports on the opening of the Shenzhen-Hong Kong Stock Connect on December 5, 2016. Topics discussed include trading of selected A-shares listed on the Shenzhen Stock Exchange (SSE) via the Hong Kong Stock Exchange, the Shanghai-Hong Kong Stock Connect mechanism, and the temporary exemptions from Chinese income taxes and value added tax for trading gains arising to foreign investors on SSE-listed shares.

The article reports on the decision of the New Zealand Inland Revenue to increase the number of large taxpayers that it monitors as part of its Basic Compliance Package (BCP). Topics discussed are the approach of Inland Revenue towards large taxpayer compliance, expansion of the BCP to include all foreign-owned multinational groups that have a turnover of more than 21 million dollars, and the Organization for Economic Cooperation and Development's (OECD) guidance on tax control frameworks.

The article reports on the 2017 state budget proposals of the government of Norway that may include general corporate tax cut and financial activities tax for corporate foreign investors. It identifies two elements for the implementation of financial activities tax and outlines the two exemptions from this tax rule. It informs about the application of financial activities tax for financial services offered in Norway on an entity level.

This article explores the amendments to the Polish tax acts concerning personal/corporate income. It highlights the deletion of the discriminatory treatment of foreign investment and pension funds by the amendments. It discusses the payment of dividends, royalties and interest by Polish companies to avoid withholding tax. In addition, the article notes the tax exemption for funds received by individuals from employees of pension plans. The neutrality of contribution of assets in kind to partnerships under the country's income tax legislation is noted.

This article discusses amendments to the specific tax on mining activities proposed by the government of Chile in 2010. The amendments are part of mining royalty legislation introduced following the February 27, 2010 earthquake. The legislation replaces the country's fixed tax rate for the mining industry. The bill also contains a number of tax invariability regulations applicable to foreign investments, including the signing of a foreign investment contract by foreign investors under Decree Law No. 600.

The article reports on the four-phase strategy implemented by the U.S. Internal Revenue Service (IRS) for increasing withholding of income taxes on payments to foreign persons. It states that under the industry issue focus programme, the IRS large and midsize business (LMSB) has three separate compliance tier designations for issues it considers important. It mentions that tier I issues are considered significant and can impact one or more industries. Under the Internal Revenue Code (IRC), U.S. persons who make payments of certain types of U.S.-source income to non-residents are subject to withhold tax at a rate of 30% on such payments, unless there are exemptions or applicable treaty provisions allowing for a rate reduction.

The article reports on a double tax treaty signed by Ireland with the Republic of Moldova. The treaty complies with the Organization for Economic Co-operation and Development (OECD) model convention in dealing with several major issues, such as residence and permanent establishment. Reduced rates of withholding tax on dividends, interest and royalties are also provided by the treaty. The article also discusses the practical implications of the treaty for Irish resident companies that are investing in Moldova.

The article reports on the proposal for new tax treatment for certain loans in Sweden. Under the current Swedish tax rules, so-called prohibited loans are taxable for Swedish borrowers. The Swedish government has now proposed that loans advanced by foreign legal entities after February 12, 2009 will be taxable in the hands of the Swedish borrower, if such taxation would have been imposed had the lender been a Swedish company. According to the article, a financial assistance prohibition could be applicable when a Swedish company receives a loan from a foreign company with the aim of acquiring shares in the lender or a superior company within the same Swedish group.

The article discusses a court case wherein Castleton Investment received a positive decision from the Indian Supreme Court regarding its dispute on minimum alternate tax (MAT) with the Indian government. Topics discussed include the court adjourning in August 2015 to allow more time for the court to consider recommendations made by Justice A. P. Shah that the MAT should not be applied to foreign institutional investors (FIIs) or foreign portfolio investors (FPIs).

The article offers a look at the taxation of non-resident investors in South Africa in the absence of a double tax agreement. Non-resident investors are subject to South African tax in respect of any South African-sourced income, or income deemed to be sourced from here. In determining the source of the income from investments into South African assets, it is generally necessary to determine the originating cause of such income.

The article presents information on the Russian tax system. The system does not envisage a participation exemption regime for dividends received and realized capital gains. Dividends received from Russian companies are taxed at 9%.. Dividends received from foreign companies are subject to 15% tax with a credit for foreign tax withheld if an applicable double tax treaty so provides.

The article reports that Mexico has adopted a legislation concerning payments to or investments in preferred tax regimes (PTR) to discourage investments in territories with preferential tax rates in order to prevent tax evasion or income tax avoidance. The Mexican legislation establishes that the PTR will not apply to income that is not passive when the income is generated in countries with which Mexico has signed a broad exchange of information agreement.

Focuses on the thin capitalization rules included in the proposed amendments to the Russian Tax Code. Deb-to-equity ratio on which the calculation of maximum tax deduction is based; Percentage of share capital for loans issued to resident companies by a foreign investor.

Provides information on tax rulings in India. Rule held by the Indian Supreme Court on India-Malaysia tax treaty; Provision of the Authority for Advance Ruling on liaison offices established by foreign companies in the country; Discussion of the rulings.

Reports the circular issued by the Chinese State Administration of Taxation in October 2003 to clarify tax treatment of mergers and acquisitions of domestic enterprises by foreign investors. Issue confirmed by the circular; Other points clarified by the circular.

The article discusses the Delhi High Court (HC) of India's ruling that gains from the sale of Compulsory Convertible Debentures (CCD) would be capital gains and not taxable in India by virtue of the India-Mauritius tax treaty. Topics discussed include the background of the case involving Zaheer Mauritius which invested in a joint venture Indian company and the Authority for Advance Rulings' (AAR) decision that CCD sales gains is regarded as interest under the Indian Tax Laws (ITL).

Examines Russia's tax treaty program for foreign investors. Renegotiated double tax treaties; Replacement of the old USSR-CMEA tax treaties; Comparative analysis of the withholding tax provisions under the double tax treaties; Tax rate for dividends.

Looks at opportunities, criteria for qualification and the interaction of the available tax incentives offered by China to foreign investors. Provisions under the Implementation Rules for the PRC Enterprise Income Tax Law for Foreign Investment Enterprises and Foreign Enterprises; Exemption and reduction period concerning foreign investment enterprises (FEI); Taxation for advanced technology enterprise. INSET: Regional incentives..

The article discusses the comments made by Robert Stack, U.S. Treasury deputy assistant secretary for international tax affairs, on the base erosion and profit shifting (BEPS) project of the Organisation for Economic Co-operation and Development (OECD). It mentions that Stack elaborates on the challenges the U.S. is facing in its engagement on BEPS. It also notes that Stack shared the U.S. government's support for stronger rules on controlled foreign corporations (CFC) to address BEPS concerns.

The article discusses international tax developments in the U.S. in 2013. It elaborates on draft legislation to reform the U.S. international tax rules filed in November 2013 by Democrat Senator Max Baucus, chairman of the Senate Finance Committee. It also reviews several foreign tax credit cases, including Bank of New York Mellon Corp. versus (v.) Commissioner, Salem Financial, Inc. v. U.S. and American International Group, Inc. v. U.S.

The article discusses the developments in the area of taxation in Vietnam as of mid-2013. It claims that the country has signed double taxation agreements (DTA) with over 60 countries in order to eliminate double taxation of international income and promote foreign direct investment. It examines the various official rulings issued by the General Department of Taxation (GDT) concerning such issues related to the so called permanent establishment (PE).

The article discusses the developments in the area of taxation in the U.S. as of mid-2013. It focuses on the private letter ruling (PLR) issued by the Internal Revenue Service (IRS) stating that an inbound reorganisation of a publicly traded non-U.S. company that indirectly own a substantial amount of real property in the country will be exempted from tax. It claims that the taxpayer should comply with the Foreign Investment in Real Property Tax Act (FIRPTA) rules.

The article discusses the implications to businesses of the new Carrez Amendment provision of the tax law in France. The Carrez Amendment limits the tax deduction of a French company's interest expenses incurred in relation to its acquisition of certain shares. The amendment aims to control the tendency of foreign investors to use a French company to purchase shares with the aim of getting complete tax deduction of the interest expenses. The limitation applies to expenses incurred in buying shares considered as titres de participation for tax purposes.

The article explores the impact of tax reforms in Spain on international investments in Spanish real estate assets and debt in 2012. It discusses the need of Spanish banks to raise the coverage of their real-estate risk exposure through provisions and capital buffer. It also assesses the impact on the tax reforms of rules concerning the deductibility of financial expenses by Spanish companies. In addition, the article discusses how foreign investors in Spain can comply with changes in the tax rules.

The article discusses the imposition of tax incentives for foreign investments in Bosnia and Herzegovina. The incentives offer same rights and obligations to both foreign and domestic investors. The government also introduces corporate income tax reduction against a foreign profit tax paid by investors.

The article reports on the finalization of two tax determinations by the Australian Taxation Office (ATO), which are relevant for the taxation of gains made by other non-resident investors. Tax determination (TD) 2011/24 confirms ATO's view that the source of profit derived by a non-resident from the sale of shares in an Australian corporate group, which are acquired by a private equity fund or in a leveraged buy-out, does not depend solely on the location of the execution of the purchase and sale contracts. Moreover, TD 2011/25 confirms the view that a business profits article can apply to a foreign limited partnership (LP)'s Australian sourced business profits, wherein the LP is treated as fiscally transparent in a country where Australia has entered into a double tax agreement (DTA).