(Proposed) bank levies Update

Transcription

1 (Proposed) bank levies Update With this schedule PwC provides you with a plete updated overview. May 0

2 Following the financial crisis and the subsequent imbalances for financial institutions and even national economies, legislators all over the world have introduced various measures concerning the regulation and supervision of financial institutions and financial markets. In this context, some countries have introduced bank levies some of which have been given the form of a tax while some others are regulatory levies. Therefore the following schedule presents an overview of the introduced bank levies in the most relevant European countries and the US (proposed legislation). The information has been gathered with the support of the respective countries PwC member firms. Should more detailed information on single countries legislation be needed, please make use of the relevant contact details presented in the schedule.

3 Austria January 0 0.0% 0.08% depending on certain thresholds Belgium () Payable each year as from the st of January following their registration with the Belgian Financial Services and Markets Authority. The tax must be liquidated at least before March. () Payable each year as from st of January. The tax must be liquidated no later than st of July of the related year. () Payable each year as from st of January. The contribution must be liquidated no later than st of July of the related year. () Payable as from st of January. 0.0% based on their nominal value % surcharge of total levy () Capital assets (based on the unconsolidated balance sheet total) Tax on capital assets shall be calculated on a modified average unconsolidated balance sheet total. () Derivatives in the Trading Book. Base for the surcharge is the total levy calculated for the respective year. () 0.08% () Annual tax on undertakings for collective investment, credit institutions and insurance panies: applies to a portion of the total amount, as per st January of the assessment year concerned, of the regulated savings deposits as referred to in section, of the Belgian Ine Tax Code (hereafter referred as BITC ), excluding interests related to the previous year. That portion is being equal to the proportion between (i) the total of the ine paid which is not taxable under section, BITC and (ii) the total amount of the ine attributed on these deposits during the year preceding the assessment year. () 0.0% to be multiplied by a weighted ratio which is inversely proportional to the ration A to B, whereas (i) A equals the monthly average (determined on an annual basis) of the European loans granted to non financial institutions at the end of the period preceding the assessment year and (ii) B equals the total amount of the exempted payments made on regulated savings deposits at the end of the period preceding the assessment year. () Annual tax on credit institutions: the tax base is the same as the tax base of the annual tax on undertakings for collective investment, credit institutions and insurance panies mentioned under point (). () 0.0% () Financial Stability Contribution: the tax base is calculated on the total of liabilities at December of the preceding year decreased by the sum of (i) the deposits eligible for repayment by the Special Fund for the protection of deposits and life insurance and (ii) the regulatory capital ( fonds propres réglementaires/ reglementair eigen vermogen ). () 0.% for financial year 0; 0.08% for financial year 0 onwards () Deposit Protection Fund Contribution: the tax base is calculated on the outstanding amount of the deposits eligible for reimbursement on December of the previous financial year. < billion ($. billion) allowance allowance for derivatives Applies for the period 0 0 () This tax applies a.o. to the credit institutions governed by the Act of March 99 relating to the status and the super vision of the credit instiutions, which distributes ine of dividends as referred to in section, and BITC. ()This tax applies to (i) the credit institutions which are mentioned on the list as referred to in section of the Act of March 99 relating to the status and the supervision of the credit institutions, (ii) Belgian branches belonging to credit institutions established in another member state of the EEA and which are authorized to provide services in Belgium in accordance with section of the abovementioned Act of March 99 and (iii) Belgian branches belonging to credit institutions established outside the EEA and which are authorized to provide services in Belgium in accordance with section 9 of the abovementioned Act of March 99. () This contribution applies to credit institutions incorporated under Belgian law as referred to in Title II of the Act of March 99 relating to the legal status and the supervision of credit institutions, with the exception of electronic money institutions as laid down in Title II of said Act. () This contribution applies a.o. to (i) Belgian credit institutions as referred to in section 0 of the Act of March 99 relating to the legal status and the supervision of the credit instutions, (ii) branches of credit institutions operating in Belgium but established in another Member State of the EEA, which suscribed on a voluntary basis to the Deposit and Financial Instrument Protection Fund. Contributes to the Austrian Treasury/Budget (no specific funds/purpose). The surcharge for 0 0 contributes to a special federal funds ( Fonds für Maßnahmen gemäß Bundesgesetz zur Sicherung und Stabilität des Finanzmarktes (FinStaG) ) for the specific purpose of measures regarding the stability of the financial market. () () Tax to be paid to the Belgian Treasury. () () Tax to be paid to the Belgian Treasury. () () Contributions to be made to the Resolution Fund created within the Belgian Deposit and Consignment Fund. () () Contributions to be made to a Special Deposit Protection Fund created within the Belgian Deposit and Consignment Fund. Thomas Strobach thomas.strobach@at.pwc. Tel Hannes Rasner hannes.rasner@at.pwc. Tel Olivier Hermand olivier.hermand@be.pwc. Tel. + 0 One should note that for Belgian credit institutions, the tax base is multiplied by a weighted ratio which corresponds to the risk profile of the credit institution concerned.

4 Cyprus January 0 December 0 Denmark January 0 February 0 (date of basis for negotiations issued by the Danish Government). Please note: This is solely a proposal for negotiation set out by the Danish government. Finland January 0 (temporary in force through December 0) France Tax was due for the first time on 0 April 0, based on 00 balance sheet. The tax is due each 0 April based on the balance sheet of the previous fiscal year and shall be paid no later than the 0 June of each year. If the entity has suffered a similar tax outside of France, such tax may give rise to a tax credit in France. 0.09% (total levy not to exceed 0% of taxable profits in the year that it is paid as determined by final assessments issued by the Ine Tax Office) 0.% From the current 0.9% to.% in 0 All Deposits excluding inter bank deposits. All Deposits excluding inter bank deposits. Payroll levy 0.% Total amount of risk-weighted assets at year-end: All banks report quarterly their amount of risk-weighted assets to the Finnish regulatory body for purposes of calculating the banks stability ratios. The reported amount for the last quarter of the calendar year (amount of RWA per December) is used for calculation of the bank tax (0.% of the RWA). As from January 0, the rate of the tax amounts to 0,0% Minimum equity requirement., however it reduces the amount of profits subject to deemed dividend distribution. Applicable from tax year 0 onwards., however it reduces the amount of profits subject to deemed dividend distribution. There is no specific bank levy in Denmark, but N/A currently the financial sector is subject to payroll levy (instead of VAT). The government has as a basis for negotiation proposed a reduction of the Danish corporation tax from % to % (from 0 to 0). However, the financial sector is not supposed to benefit from the corporation tax reduction. For this reason, the payroll levy rate is proposed to be raised along with the gradual reduction of the corporation tax. This means that the payroll levy rate would be increased from the current 0.9% to.% in 0, i.e. an increase in the payroll levy by approx. 0%, when fully phased in by 0 pared to the current level. The % of the.% proposed increase would be a consequence of the reduction in the corporation tax, while the remaining.% is due to an already agreed increase that was part of a tax law amendment in 0. The tax would concern only Finnish deposit banks (as defined) and their foreign branches, but not their foreign subsidiaries. Correspondingly, the tax would be applicable to Finnish subsidiaries, but not to Finnish branches of foreign banks. The tax would be repealed after EU-level measures (introduced in the draft Commission directive (COM(0)80 final) for establishing a framework for the recovery and resolution of credit institutions and investment firms are in place. If the EU-level framework would fail to be created, then the proposed bank tax would be replaced by a permanent stability levy. The calculation of the tax base could be challenged by the French tax authorities (first of all by the Prudential Supervisory authorities ( Autorité de Contrôle Prudentiel ) and then by the French tax authorities). Contributed to Special Fund for the stability of the banking sector. Contributes to Special Fund for the stability of the banking sector. Contributes to Treasury (can be utilised for purposes of domestic fiscal crises, if a need arises). Please note that there is no specific allocation for the French bank levy. During the parliamentary debates on the provisions introducing the levy, it has been decided that the proceed of the tax should contribute to the French overall budget. Panicos Kaouris panicos.kaouris@cy.pwc. Tel Morten Bang Mikkelsen morten.bang.mikkelsen@dk.pwc. Tel Samuli Makkonen samuli.makkonen@fi.pwc. Tel Laura Peltonen laura.peltonen@fi.pwc. Tel Philippe Vaysse philippe.vaysse@fr.landwellglobal. Tel. + -0

5 Germany January 0 0.0% 0.0% depending on certain thresholds 0.000% Hungary September 00 0.%.%, different rates apply to different institutions. Netherlands October 0 0,0% for short-term non-secured debts (less than year). Portugal January 0 0.0% 0,0% applies to long-term non-secured debts. The tax rates are increased with 0% (to 0,08% and 0,0%) if the variable remuneration of one or more of the bank s executive directors exceeds 00% of the director s annual fixed remuneration. () Balance sheet (unconsolidated HGBbalance sheet) less liabilities to customers (except liabilities to entities with shareholding relationships), less certain other items, less equity. () Derivatives (notional amount outstanding). For credit institutions in 0 the special bank tax base is the adjusted balance sheet total calculated from the figures of the 009 financial statements. For financial enterprises, the special tax base in 0 is the interest ine and the ine from fees and mission based on the figures of the 009 financial statements. The tax is calculated over the non-secured liabilities on the consolidated balance sheet of the Dutch bank (or branch) and its subsidiaries in excess of 0 billion. n-secured liabilities are the banks total liabilities (i.e. credit side) less equity (Tier I and II), less the debt covered by a Deposit Guarantee Scheme and liabilities related to insurance activities. For a Dutch branch of a non-dutch bank, only the balance sheet items allocable to the Dutch branch are considered. () Total liabilities minus Tier and Tier capital minus client deposits guaranteed by the relevant deposit-guarantee funds. Excluded from the taxable base are, amongst others, items that are accounted for as equity, liabilities for defined benefit retirement plans, provisions, liabilities concerning the revaluation of financial derivatives % () tional amount of the off-balance sheet derivatives, except hedging and back-to-back derivatives. Sweden 0 December % Total amount of debt and provisions less intra group liabilities and certain other items. UK January 0 Currently 0.0% (0.0% for long term liabilities). Rising to 0.% (0.0% for long term liabilities) from January 0. Global consolidated Balance Sheet liabilities less Tier capital, insurance liabilities, protected deposits, sovereign repo liabilities and other items. Settlement balances (incl. derivatives) on a net basis. 00m levy-free allowance; Cap annual levy: 0% of the net profit/ other items, but at least % of the regular annual levy; Convention between UK and Germany for the avoidance of double charging of bank levies. Different rates and tax base apply to different types of institutions. Rate of special tax in the case of credit institutions is 0,% of the tax base up to 0 billion forint and 0,% for any sum over 0 billion forints. From January 0 insurance panies are no longer required to pay the special tax, but they have to pay a new tax on insurance products (insurance tax). The Dutch banking levy applies only to licensed banks, i.e. banks that have a Dutch banking license or banks operating on the Dutch market with an EU branch passport. SPV s of foreign banks, leasing panies, market makers, broker dealers or other entities that do not have a banking license (e.g. a holding pany with foreign subsidiaries that are involved in banking activities outside of the Netherlands) should not be impacted, unless these panies are part of a Dutch banking group. It is possible to obtain a functional currency ruling to calculate the bank levy in a different currency. The taxable base is calculated by reference to annual average of the monthly balances of the qualifying items, as reflected in the accounts approved regarding the year to which the bank levy relates to. The bank levy is technically not a tax and is not collected as a tax, but paid to the National Swedish Debt Office. Long vs short term funding. 0 billion ($ billion) allowance. Legislation is plex, particularly for netting and inbound branches. Double levy relief provisions agreed with France and Germany. Contributes to Restructuring Fund (Restrukturierungsfonds). Ulrich Ammelung ulrich.ammelung@de.pwc. Tel Wolfgang Frank wolfgang.frank@de.pwc. Tel André Fest andre.fest@de.pwc. Tel Contributes to Treasury János Kelemen janos.kelemen@hu.pwc. Tel Tamas Lőcsei tamas.locsei@hu.pwc. Tel Márton Kovarik marton.kovarik@hu.pwc. Tel Contributes to General Treasury. Contributes to Resolution Fund (Fundo de Resolução) created in 0, which may be used to provide financial support when implementing resolution measures. Contributes to a Stability Fund which is administrated by the National Swedish Debt Office. The purpose of the fund is to finance governmental support in cases of bank crises. Remco van der Linden remco.van.der.linden@nl.pwc Job Hoefnagel job.hoefnagel@nl.pwc Jasper van Schijndel jasper.van.schijndel@nl.pwc Jorge Figueiredo jorge.figueiredo@pt.pwc. Tel Christiane Wolf christiane.miranda.wolf@pt.pwc. Tel Stefan Carlsson stefan.b.carlsson@se.pwc. Tel Contributes to Treasury. Matthew Barling matthew.barling@uk.pwc. Tel Peter Maybrey Tel peter.c.maybrey@uk.pwc. Anne-Marie Stomeo anne-marie.stomeo@uk.pwc. Tel

6 US The Obama administration continues to propose a Financial Crisis Responsibility Fee. It is unlikely to be acted upon in the near term, however, due to a lack of a political consenus in the Congress. 0.% ( basis points); a 0% discount would apply to more stable sources of funding, including long-term liabilities. Assessed on Covered Liabilities, defined generally as the consolidated risk-weighted assets of a financial firm, less its capital, insured deposits and certain loans to small business. For insurance panies, certain policy reserves and other policyholder obligations also would be deducted in puting covered liabilities. Adjustments would also be provided to prevent avoidance. The proposed fee would apply to US-based bank holding panies, thrift holding panies, certain broker-dealers, panies that control certain broker-dealers and insured depository institutions. Firms with worldwide consolidated assets of less than $0 billion would not be subject to the fee for the period when their assets are below this threshold. US subsidiaries of foreign firms that fall into the aforementioned categories and that have assets exceeding $0 billion would also be covered. twithstanding the stated policy reasons for the proposed fee(*), any revenue would not be earmarked for a particular purpose or use; it would be part of the government s general operating budget. (*) Stated policy reasons for the proposal include (i) recoupment of government assistance to large banks during the financial crisis, and (ii) deterrence of excessive risk-taking by the largest firms. Mike Gaffney mike.gaffney@us.pwc. Tel.+ - Kenneth Shives kenneth.shives@fr.landwellglobal. Tel Ken Busey ken.w.busey@us.pwc. Tel.+ 0 0

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