Benefits for Collective Investment Vehicles in the EU

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Benefits for Collective Investment Vehicles in the EU"

Transcription

1 Volume 68, Number 6 November 5, 2012 Benefits for Collective Investment Vehicles in the EU by Petrina Smyth and Eimear Burbridge Reprinted from Tax Notes Int l, November 5, 2012, p. 581

2 Benefits for Collective Investment Vehicles in the EU by Petrina Smyth and Eimear Burbridge Petrina Smyth and Eimear Burbridge are with Walkers in Dublin. The issue of treaty benefits and other domestic exemptions from withholding tax applicable to collective investment vehicles (CIVs) is a thorny topic. Over time, the trend has been increasingly toward denying relief for CIVs. However, some recent developments show that that trend has reversed. We have analyzed some of the recent developments, regarding both treaty benefits and domestic exemptions available within the European Union. I. Tax Treaty Benefits for CIVs The OECD published a report in May setting out detailed proposals for the granting of tax treaty benefits to CIVs. These proposals were incorporated into the 2010 commentary on the OECD model tax treaty. CIVs are defined in the OECD report as funds that are widely held, hold a diversified portfolio of securities and are subject to investor-protection regulation. The OECD model treaty in its current form contains no specific reference regarding how a CIV should be treated. In general, a CIV will be entitled to tax treaty benefits in its own right if it is treated as a person that is a resident of the state in question. However, it may also have to be the beneficial owner of the income in question in order to claim benefits. Historically, this has led to confusion and the nonapplication of tax treaty benefits to a large number of CIVs. The OECD report considered whether a CIV should be considered a person, a resident of a Contracting 1 The Granting of Treaty Benefits with respect to the Income of Collective Investment Vehicles. State, and the beneficial owner of the income it receives under income tax treaties that do not include a specific provision dealing with CIVs. A. Person The commentary to the model treaty states that the definition of the term person in the model treaty is not exhaustive and should be given a wide meaning. CIVs structured as companies constitute a person. The issue is less clear regarding trusts; however, in most cases, treaty benefits are not denied to trusts on the basis that a trust is not a person. B. Resident CIVs may be treated as residents of a contracting state depending on the tax treatment in the country of establishment. The OECD report states that for the purposes of the test of residence, the legal form the CIV takes will be relevant only to the extent this affects the taxation of the CIV in its state of establishment. Tax treaties stipulate that in order to be resident for the purposes of the treaty, a person must either be resident for the purposes of tax or, in some treaties, liable to tax in that jurisdiction (that is, the person is within the charge to tax in that particular jurisdiction). The liable to tax test is vague, and there is little OECD guidance on what this term actually means in practice. Case law suggests that entities may be considered liable to tax when they are exempt from tax. However, some jurisdictions take the view that entities exempt from tax are not liable to tax and therefore not entitled to treaty benefits. C. Beneficial Ownership The OECD report states that beneficial ownership is generally interpreted in accordance with the relevant TAX NOTES INTERNATIONAL NOVEMBER 5,

3 PRACTITIONERS CORNER jurisdiction s domestic law, since it is not defined in the model treaty. The report argues that a widely held CIV should be treated as the beneficial owner of the income it receives as long as the investment manager has discretionary powers to manage the CIV assets and the CIV itself is classified as a person and a resident of its state of establishment. Such a CIV should be able to claim treaty benefits in its own right. The OECD report also recommends that states discuss CIVs during treaty negotiations and that tax authorities clarify the treatment of specific types of CIVs in their respective countries, such as confirming whether the CIV is entitled to tax treaty benefits in its own right and providing for administratively feasible refund methods for the CIV. Further recommendations include having countries expressly providing for treaty entitlement by including a provision to this extent in tax treaties or exchanging notes to this effect. D. Implementation of the OECD Report Newer tax treaties negotiated among EU member states have included references to and definitions of collective investment schemes, which is a welcome development. For example, the Germany-Ireland income tax treaty 2 states that an Undertaking for Collective Investment in Transferable Securities (UCITS) established in either Ireland or Germany that receives income from the other contracting state will be treated as a resident of its state of establishment and the beneficial owner of that income but provided only that certain conditions are complied with. 3 The Germany- Ireland treaty also deals with Irish common contractual funds (CCFs) and states that Irish CCFs will be treated as fiscally transparent entities for the purposes of granting tax treaty benefits. This provision is also contained in the Hong Kong-Ireland, 4 Ireland-South Africa, 5 and Ireland-Qatar 6 tax treaties. The Ireland-Qatar tax treaty also states that a pension fund or CIV that is 2 Signed March 30, 2011, not yet in effect. 3 This will apply only to the extent that the beneficial interests in the UCITS are at least 95 percent owned by equivalent beneficiaries. Equivalent beneficiaries are defined under the treaty as: a resident of the state of establishment of the UCITS; and a resident of any other state who has an income tax treaty in place with either Ireland or Germany (depending on whether the income has arisen in Ireland or Germany) containing an information exchange provision and under which that resident would be taxed on that income at a rate at least as low as the rate under the Germany-Ireland tax treaty or the rate applicable under domestic German or Irish law (again depending on whether the income has arisen in Ireland or Germany). 4 Signed June 22, 2010, effective from January 1, Signed March 17, 2010, effective from April 1, Signed June 21, 2012, not yet in effect. controlled according to the laws of a contracting state will be regarded as a resident of that state for the purposes of the tax treaty. Under the Ireland-U.S. tax treaty, CIVs and any similar investment entities agreed on by the competent authorities of both Ireland and the U.S. will be considered to be residents for the purposes of the treaty. A limitation on benefits provision limits treaty benefits to those CIVs that can satisfy one of the safe harbors in the LOB provision. Similar to the Germany-Ireland treaty referred to above, a CCF neither will be treated as a resident of Ireland nor will be entitled to benefits in its own right because it is not treated as a resident of Ireland under the Ireland-U.S. competent authority agreement. While these tax treaty provisions may be helpful or unhelpful in terms of allowing the CIV to avail itself of treaty benefits, they at least provide some clarity in the area. II. Withholding Tax Refunds for CIVs Treaty benefits or domestic tax exemptions can be granted at source or by having the CIV make a refund application for the difference between the non-treaty rate and the treaty rate. Many jurisdictions have imposed burdensome administrative requirements on CIVs, thus making it virtually impossible to obtain refunds of withholding tax. The European Court of Justice has stated that such behavior by domestic tax authorities will no longer be tolerated. A number of recent ECJ judgments, particularly in Aberdeen, 7 have brought increased opportunity for withholding tax refund claims to be made on behalf of CIVs within the EU. Historically, the European Commission and the ECJ have focused on corporate investors that had incurred discriminatory withholding tax; however, their target has recently shifted toward withholding tax imposed on CIVs. When a higher rate of withholding tax is imposed in a jurisdiction on payments made to nonresident CIVs as opposed to equivalent resident CIVs, this may breach the nondiscrimination, freedom of establishment, and free movement of capital rules enshrined in the EC Treaty. The Aberdeen case was one of the first ECJ cases to consider the legality of an EU member state imposing withholding tax on dividends paid to nonresident CIVs while exempting domestic CIVs from such dividend withholding tax. The relevant provisions were Finnish domestic law provisions as opposed to an income tax treaty. Aberdeen was a Finnish resident real estate company that was owned by a Luxembourg SICAV (Société d Investissement à Capital Variable) real estate fund. Under Finnish withholding tax rules, dividends 7 Aberdeen Property Fininvest Alpha Oy (C-303/07), June 18, NOVEMBER 5, 2012 TAX NOTES INTERNATIONAL

4 paid by Aberdeen to its Luxembourg SICAV parent were subjected to withholding tax, whereas a Finnish CIV parent would not have been subject to the same withholding tax. Under EU law, persons that are objectively comparable are entitled to the same tax treatment. The ECJ stated that such discriminatory treatment was contrary to the freedom of establishment and free movement of capital. The ECJ held the following: Investment funds of differing legal form can be compared and this is not an argument for justifying a difference in treatment. A Luxembourg SICAV was considered comparable to a local CIV or company. Whether the recipient CIV is subject to domestic corporate tax in its jurisdiction of establishment is irrelevant when the jurisdiction of the dividendpaying company has chosen not to tax that dividend when it is received by a domestic entity. The taxation of the CIV at an investor level should not be taken into account. The risk of tax avoidance is not a sufficient reason to impose withholding tax. As a result of Aberdeen, it has become possible for CIVs to recover withholding tax incurred in other EU jurisdictions. Several countries are currently granting refunds of withholding tax on the basis of Aberdeen claims, including Poland, Finland, Hungary, Norway, and Austria. On March 9, 2012, the Dutch Court of Appeal ruled in a case 8 concerning a Finnish CIV that had requested a refund of Dutch withholding tax that it had incurred on distributions received from Dutch companies. The Finnish CIV was a tax-exempt entity and, as such, had no ability to recover the withholding tax incurred. In comparison, Dutch tax-exempt entities were entitled to withholding tax refunds. The Finnish CIV therefore argued that the withholding tax was contrary to the right to free movement of capital under EU law. The Dutch court found in favor of the CIV because it was in a comparable situation to a Dutch tax-exempt entity that would also be entitled to a full refund (even though Dutch CIVs are not entitled to withholding tax refunds under Dutch law) and stated that the CIV should be granted a refund of the withholding tax along with statutory interest. The decision has been appealed by the Dutch tax authorities to the Dutch Supreme Court and is unlikely to be heard before On May 10, 2012, the ECJ handed down its judgment in Santander. 9 The Santander case was made up of a number of joined cases in which Spanish, German, and Belgian UCITS and U.S. regulated investment 8 Den Bosch Court of Appeal, Mar. 9, Joined cases C-338/11 and C-347/11. PRACTITIONERS CORNER funds argued that the levy of French withholding tax (at the rate of 25 percent) on French-source dividends received by them was in breach of EU law, because such French-source portfolio dividends paid to French resident CIVs were fully exempt from French withholding tax. The ECJ referral resulted from the French tax authorities having rejected multiple Aberdeen-type claims filed by nonresident CIVs since the decision. The following questions were referred to the ECJ: whether the unit holders situation in the CIVs should be taken into account in order to assess the compatibility with the free movement of capital regarding withholding tax on dividends; and if so, when might the withholding tax levied on dividends be considered as contrary to the free movement of capital. The ECJ ruled that certain non-french resident CIVs were entitled to a full refund of the 25 percent French withholding tax on French-source portfolio dividends they received. The judgment of the ECJ supports the position of CIVs claiming refunds of withholding taxes incurred across Europe. The ECJ held that the difference in treatment constitutes a restriction on the free movement of capital. Such a difference in treatment cannot be allowed if the foreign and domestic CIVs are in a comparable situation and the restriction is not capable of being justified by reasons in the public interest. The ECJ stated that the French legislation made a distinction based on the place of residence of the CIV. In the ECJ s view, the position of the investors in the investment fund claiming the refund was irrelevant and the comparison should only be made at the level of the investment fund without taking into consideration the position of its investors. As a result, the ECJ ruled that the nonresident CIVs were comparable to French domestic CIVs, which are eligible for exemption from French withholding tax. The ECJ stated that the restriction could not be justified by an overriding reason in the public interest. As a result of the ECJ ruling, France has introduced legislation (effective from August 18, 2012) that exempts EU CIVs and CIVs located in jurisdictions with which France has signed a tax treaty containing an administrative assistance clause from withholding tax on dividends received from companies that are tax resident in France. The withholding tax exemption will apply when the CIV: has similar characteristics to a French UCITS, French real estate fund, or French fixed-capital fund; and raises funds from a number of investors and the CIV invests such funds in a manner that is in the interest of its investors. The legislation also introduced a 3 percent dividend levy on dividend payments made by French resident TAX NOTES INTERNATIONAL NOVEMBER 5,

5 PRACTITIONERS CORNER companies (other than small and medium-size enterprises) to resident and foreign shareholders. The 3 percent dividend levy will not apply to dividends distributed by a number of French CIVs, including French UCITS, French real estate funds, French fixed-capital funds, and French securitization vehicles. A. Commission Referrals to ECJ The European Commission has made requests to a number of member states to amend what it perceives as discriminatory domestic legislation regarding CIVs. Some member states have amended their national legislation as a result of such requests, while others have been referred to the ECJ by the European Commission for failure to respond to such requests as follows: The European Commission formally requested Estonia to amend its tax legislation on June 16, 2011, as under Estonian tax law, domestic CIVs are treated more favorably than comparable CIVs established in other EU member states or in countries of the European Economic Area. The European Commission formally requested Poland to amend its tax legislation on June 16, 2011, since it believes Poland currently discriminates against investment funds and pension funds from other EU countries and countries of the EEA. Under Polish tax legislation, domestic CIVs and pension funds are exempted from corporate income tax. However, CIVs established outside Poland can only benefit from this exemption under specific conditions that are not applied to Polish CIVs and will therefore incur withholding tax. The ECJ s decision in Santander is welcomed because it has provided greater clarity for CIVs regarding reclaims of withholding tax under domestic law provisions. From a tax treaty perspective, it is hoped that treaty negotiators of newer and updated income tax treaties will include specific references to CIVs in order to provide comfort to both the CIV itself and its investors. 584 NOVEMBER 5, 2012 TAX NOTES INTERNATIONAL

ECJ Finds Finnish Withholding Tax Rules Unacceptable in Luxembourg SICAV Case

ECJ Finds Finnish Withholding Tax Rules Unacceptable in Luxembourg SICAV Case Volume 55, Number 4 July 27, 2009 ECJ Finds Finnish Withholding Tax Rules Unacceptable in Luxembourg SICAV Case by Tom O Shea Reprinted from Tax Notes Int l, July 27, 2009, p. 305 ECJ Finds Finnish Withholding

More information

International Tax Alert

International Tax Alert Global Insights A Review of Key Regulatory Issues Impacting International Tax Practices European Union: German dividend withholding tax violates the principle of free movement of capital (ECJ, October

More information

Europe. NEW OPPORTUNITIES FOR DIVIDEND WITHHOLDING TAX REFUNDS EU / EEA Tax Exempt Entities Handbook

Europe. NEW OPPORTUNITIES FOR DIVIDEND WITHHOLDING TAX REFUNDS EU / EEA Tax Exempt Entities Handbook Europe NEW OPPORTUNITIES FOR DIVIDEND WITHHOLDING TAX REFUNDS EU / EEA Tax Exempt Entities Handbook 3rd Edition April 2012 I n t r o d u c t i o n We are pleased to present the third edition of this handbook,

More information

Belgian Dividend Tax Treatment of Nonresidents Illegal, ECJ Says

Belgian Dividend Tax Treatment of Nonresidents Illegal, ECJ Says Volume 68, Number 3 October 15, 2012 Belgian Dividend Tax Treatment of Nonresidents Illegal, ECJ Says by David Mussche Reprinted from Tax Notes Int l, October 15, 2012, p. 258 Reprinted from Tax Notes

More information

PwC NewsUpdate Financial Services/ EU Direct Tax Group

PwC NewsUpdate Financial Services/ EU Direct Tax Group May 2012 PwC NewsUpdate Financial Services/ EU Direct Tax Group Investment funds Investment funds can claim EU refunds of WHT on dividends Latest developments Did you know that based on EU Law you can

More information

Austrian Dividend Taxation Rules Are Partially Unacceptable, ECJ Says

Austrian Dividend Taxation Rules Are Partially Unacceptable, ECJ Says Volume 61, Number 12 March 21, 2011 Austrian Dividend Taxation Rules Are Partially Unacceptable, ECJ Says by Tom O Shea Reprinted from Tax Notes Int l, March 21, 2011, p. 927 Austrian Dividend Taxation

More information

Towards a Single Market for Occupational Pensions Without Tax Obstacles

Towards a Single Market for Occupational Pensions Without Tax Obstacles Towards a Single Market for Occupational Pensions Without Tax Obstacles May 25 9:00 AM 9:45 AM Peter Schonewille, European Commission, DG TAXUD/E/3 Competence Centre for Pension Research, University of

More information

COMMENTARIES ON THE ARTICLES OF THE MODEL TAX CONVENTION

COMMENTARIES ON THE ARTICLES OF THE MODEL TAX CONVENTION COMMENTARIES ON THE ARTICLES OF THE MODEL TAX CONVENTION COMMENTARY ON ARTICLE 1 CONCERNING THE PERSONS COVERED BY THE CONVENTION 1. Whereas the earliest conventions in general were applicable to citizens

More information

PwC NewsUpdate Financial Services / Insurance tax network

PwC NewsUpdate Financial Services / Insurance tax network PwC NewsUpdate Financial Services / Insurance tax network Insurance Financial institutions can claim EU refunds of WHT on dividends and interest Latest developments Did you know that based on EU Law you

More information

France Updates Foreign Tax Relief Rules for Residents

France Updates Foreign Tax Relief Rules for Residents Volume 80, Number 3 October 19, 2015 France Updates Foreign Tax Relief Rules for Residents by Philippe Derouin Reprinted from Tax Notes Int l, October 19, 2015, p. 261 France Updates Foreign Tax Relief

More information

Revised discussion draft on Action 6 (Preventing Treaty Abuse)

Revised discussion draft on Action 6 (Preventing Treaty Abuse) Marlies de Ruiter Head Tax Treaties, Transfer Pricing and Financial Transactions Division OECD / CTPA By Email taxtreaties@oecd.org Our Ref 12 June 2015 GT / OL Dear Ms de Ruiter Revised discussion draft

More information

Taxation of Collective Investment Funds and Availability of Treaty Benefits

Taxation of Collective Investment Funds and Availability of Treaty Benefits Ireland Articles David Lawless* and Sean Murray** Taxation of Collective Investment Funds and Availability of Treaty Benefits In this article, the authors outline the advantages of Ireland as an international

More information

DEPARTMENT OF THE TREASURY TECHNICAL EXPLANATION OF THE PROTOCOL BETWEEN THE UNITED STATES OF AMERICA AND

DEPARTMENT OF THE TREASURY TECHNICAL EXPLANATION OF THE PROTOCOL BETWEEN THE UNITED STATES OF AMERICA AND DEPARTMENT OF THE TREASURY TECHNICAL EXPLANATION OF THE PROTOCOL BETWEEN THE UNITED STATES OF AMERICA AND THE FRENCH REPUBLIC SIGNED AT WASHINGTON ON DECEMBER 8, 2004 AMENDING THE CONVENTION BETWEEN THE

More information

Collective Investment Vehicles in International Tax Law: The Swiss Perspective

Collective Investment Vehicles in International Tax Law: The Swiss Perspective ARTICLE Collective Investment Vehicles in International Tax Law: The Swiss Perspective Dr Reto Heuberger * & Stefan Oesterhelt ** With the Collective Investment Act Switzerland has introduced new types

More information

Fiscal operational guide: THE NETHERLANDS Monte Titoli S.p.A. April 2015 FISCAL GUIDE FOR DUTCH MARKET

Fiscal operational guide: THE NETHERLANDS Monte Titoli S.p.A. April 2015 FISCAL GUIDE FOR DUTCH MARKET FISCAL GUIDE FOR DUTCH MARKET 1. CONTENTS Below you find the types of securities involved and the procedure/s in place. Securities Relief at source Quick Refund Standard refund Bonds (*) Not Applicable

More information

Belgium in international tax planning

Belgium in international tax planning Belgium in international tax planning Presented by Bernard Peeters and Mieke Van Zandweghe, tax division at Tiberghien Belgium has improved its tax climate considerably in recent years. This may be illustrated

More information

THE GRANTING OF TREATY BENEFITS WITH RESPECT TO THE INCOME OF COLLECTIVE INVESTMENT VEHICLES

THE GRANTING OF TREATY BENEFITS WITH RESPECT TO THE INCOME OF COLLECTIVE INVESTMENT VEHICLES ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT THE GRANTING OF TREATY BENEFITS WITH RESPECT TO THE INCOME OF COLLECTIVE INVESTMENT VEHICLES (ADOPTED BY THE OECD COMMITTEE ON FISCAL AFFAIRS ON 23

More information

Taxation of Collective Investment Funds and Availability of Treaty Benefits

Taxation of Collective Investment Funds and Availability of Treaty Benefits Taxation of Collective Investment Funds and Availability of Treaty Benefits TAXATION OF COLLECTIVE INVESTMENT FUNDS AND AVAILABILITY OF TREATY BENEFITS Introduction Ireland has long been recognised as

More information

Implementation of the EU tax directives in Poland

Implementation of the EU tax directives in Poland Bartosz Bacia Implementation of the EU tax directives in Poland Since Poland joined the EU on May 1 2004, Polish tax law need to be adapted to the EU Council directives for the member states. The new legal

More information

TAX PLANNING INTERNATIONAL

TAX PLANNING INTERNATIONAL TAX PLANNING INTERNATIONAL EUROPEAN TAX SERVICE International Information for International Business >>>>>>>>>>>>>>>>>>>>>>>>>>>>> VOLUME 17, NUMBER 3 >>> MARCH 2015 www.bna.com EU Financial Transaction

More information

Brazilian interest payments on net equity (Juros sobre o capital próprio): an international perspective

Brazilian interest payments on net equity (Juros sobre o capital próprio): an international perspective Brazilian interest payments on net equity (Juros sobre o capital próprio): an international perspective 1. Interest on Equity and Dividends: the Brazilian perspective Brazilian companies have two main

More information

Fill the glass to the brim II: have we broken through?

Fill the glass to the brim II: have we broken through? Fill the glass to the brim II: have we broken through? An update on the tax implications of UCITS IV. March 2012 kpmg.com KPMG International Contents Foreword 3 Executive summary 4 Transposition of the

More information

Registered Investment Advisor Services

Registered Investment Advisor Services Registered Investment Advisor Services Table of Contents About Us... Withholding Tax Relief and Recovery... Registered Investment Advisors... Beneficial Owners... Endowments/Foundations... Pension Funds...

More information

APPENDIX 6 SURVEY DATA 11 OCTOBER 2011

APPENDIX 6 SURVEY DATA 11 OCTOBER 2011 APPENDIX 6 SURVEY DATA 11 OCTOBER 2011 Study on the impact of several alternative solutions to the double taxation problems presented by source country withholding taxes on cross-border dividends paid

More information

Corporate Tax Implications of Denmark s Unilateral Termination of its Tax Treaties with France and Spain

Corporate Tax Implications of Denmark s Unilateral Termination of its Tax Treaties with France and Spain Corporate Tax Implications of Denmark s Unilateral Termination of its Tax Treaties with France and Spain Tax Treaty Monitor Jakob Bundgaard and Katja Joo Dyppel* Denmark terminated its tax treaties with

More information

Spain s Dividend Taxation Rules Breach EU Law

Spain s Dividend Taxation Rules Breach EU Law Volume 59, Number 3 July 19, 2010 Spain s Dividend Taxation Rules Breach EU Law by Tom O Shea Reprinted from Tax Notes Int l, July 19, 2010, p. 185 Spain s Dividend Taxation Rules Breach EU Law by Tom

More information

News Analysis: ECJ Sorts Out Deductibility of University Fees

News Analysis: ECJ Sorts Out Deductibility of University Fees Volume 58, Number 11 June 14, 2010 News Analysis: ECJ Sorts Out Deductibility of University Fees by Tom O Shea Reprinted from Tax Notes Int l, June 14, 2010, p. 870 Reprinted from Tax Notes Int l, June

More information

2013 EATLP conference Lisbon Corporate Income Tax Subjects - Investment structures

2013 EATLP conference Lisbon Corporate Income Tax Subjects - Investment structures 2013 EATLP conference Lisbon Corporate Income Tax Subjects - Investment structures Hein Vermeulen 1 Please note that this article is a first draft only prepared for discussion purposes at the 2013 Conference.

More information

TREATY ENTITLEMENT OF NON-CIV FUNDS

TREATY ENTITLEMENT OF NON-CIV FUNDS TREATY ENTITLEMENT OF NON-CIV FUNDS 24 March 2016 BEPS CONSULTATION DOCUMENT ON THE TREATY ENTITLEMENT OF NON-CIV FUNDS Paragraph 14 of the final version of the report on Action 6 Preventing the Granting

More information

15. 2. 2. 2. Is Section 10d of the Corporate Income Tax Act consistent with Article 9 of the OECD Model Tax Convention?

15. 2. 2. 2. Is Section 10d of the Corporate Income Tax Act consistent with Article 9 of the OECD Model Tax Convention? CHAPTER 15. SUMMARY AND CONCLUSIONS 15. 1. Introduction The main question addressed in this PhD thesis is whether the restrictions placed by Dutch law on deducting interest for corporate income tax purposes

More information

tax update january 2013

tax update january 2013 tax update january 2013 Summary Luxembourg news 3 New tax measures for 2013 3 New Circular Letter on stock option plans 4 Circular Letter on loss carry-forward in the case of business succession 5 Use

More information

BEPS ACTION 6: PREVENT TREATY ABUSE

BEPS ACTION 6: PREVENT TREATY ABUSE Revised discussion draft BEPS ACTION 6: PREVENT TREATY ABUSE 22 May 2015 17 June 2015 22 May 2015 NEW DISCUSSION DRAFT ON ACTION 6 OF THE BEPS ACTION PLAN (PREVENT TREATY ABUSE) New discussion draft Paragraph

More information

FOLLOW UP WORK ON BEPS ACTION 6: PREVENTING TREATY ABUSE

FOLLOW UP WORK ON BEPS ACTION 6: PREVENTING TREATY ABUSE Public Discussion Draft FOLLOW UP WORK ON BEPS ACTION 6: PREVENTING TREATY ABUSE 21 November 2014 9 January 2015 TABLE OF CONTENTS Discussion draft (cover note)... 4 A. s related to the LOB provision...

More information

New tax regulations impacting investment funds. Germany India Ireland Netherlands Switzerland

New tax regulations impacting investment funds. Germany India Ireland Netherlands Switzerland New tax regulations impacting investment funds Germany India Ireland Netherlands Switzerland Germany Netherlands India Ireland Switzerland Germany New tax regulations under AIFM-StAnpG guidance from the

More information

Master Thesis. by Andriy Byelka

Master Thesis. by Andriy Byelka Master Thesis Problems of taxation of investment funds and underlying investors by Andriy Byelka Thesis submitted in partial fulfillment of the requirements for the degree of LLM Master s Programme in

More information

Recent Developments Regarding Entity Classification for UK Tax Purposes

Recent Developments Regarding Entity Classification for UK Tax Purposes Recent Developments Regarding Entity Classification for UK Tax Purposes Anson v. HMRC is a Delaware LLC tax-transparent? SUMMARY The question as to whether a non-uk entity such as a Delaware limited liability

More information

Fresh thinking and new trends in business tax. 2014 KPMG EMA Tax Summit

Fresh thinking and new trends in business tax. 2014 KPMG EMA Tax Summit Fresh thinking and new trends in business tax 2014 KPMG EMA Tax Summit Pending cases and recent rulings from the Court of Justice of the EU Robert van der Jagt Tax Partner and Chairman of KPMG s EU Tax

More information

Investment Funds How the Taxation Environment in Ireland continues to Lead the Way

Investment Funds How the Taxation Environment in Ireland continues to Lead the Way Investment Funds How the Taxation Environment in Ireland continues to Lead the Way 0 INVESTMENT FUNDS HOW THE TAXATION ENVIRONMENT IN IRELAND CONTINUES TO LEAD THE WAY Introduction Ireland has long been

More information

DRAFT CONTENTS OF THE 2010 UPDATE TO THE MODEL TAX CONVENTION

DRAFT CONTENTS OF THE 2010 UPDATE TO THE MODEL TAX CONVENTION ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT DRAFT CONTENTS OF THE 2010 UPDATE TO THE MODEL TAX CONVENTION CENTRE FOR TAX POLICY AND ADMINISTRATION 21 May 2010 DRAFT 2010 UPDATE TO THE OECD MODEL

More information

86, Jongno 5-gil, Jongno-gu Gwacheon City, Gyeonggi Province, 427-725 RE:

86, Jongno 5-gil, Jongno-gu Gwacheon City, Gyeonggi Province, 427-725 RE: By Electronic Delivery Mr. Seunghee Han Mr. Byung-Sik Jung, Director Assistant Commissioner for International Tax Division International Taxation Bureau Ministry of Strategy and Finance National Tax Services

More information

Income in the Netherlands is categorised into boxes. The above table relates to Box 1 income.

Income in the Netherlands is categorised into boxes. The above table relates to Box 1 income. Worldwide personal tax guide 2013 2014 The Netherlands Local information Tax Authority Website Tax Year Tax Return due date Is joint filing possible Are tax return extensions possible Belastingdienst www.belastingdienst.nl

More information

Highlights of the New Dutch Tax Treaty Policy

Highlights of the New Dutch Tax Treaty Policy Volume 62, Number 9 May 30, 2011 Highlights of the New Dutch Tax Treaty Policy by Jean-Paul van den Berg and Johan Vrolijk Reprinted from Tax Notes Int l, May 30, 2011, p. 727 Highlights of the New Dutch

More information

Recent developments regarding Mexico s tax treaty network and relevant court precedents

Recent developments regarding Mexico s tax treaty network and relevant court precedents Recent developments regarding Mexico s tax treaty network and relevant court precedents Mexico has a relatively short background on the negotiation and application of treaties for the avoidance of double

More information

Analysis of the Tax Implications of UCITS IV EFAMA / KPMG

Analysis of the Tax Implications of UCITS IV EFAMA / KPMG Analysis of the Tax Implications of UCITS IV EFAMA / KPMG This report reflects tax legislation as per June 2010 Analysis of the Tax Implications of UCITS IV EFAMA / KPMG Analysis of the tax implications

More information

United Kingdom Taxation

United Kingdom Taxation United Kingdom Taxation FUNDS AND FUND MANAGEMENT 2010 3.1 Taxation of funds Authorized open-ended mutual funds in the United Kingdom are organized as authorized unit trusts (AUTs) or open-ended investment

More information

ECJ Rules Dissolution of a Company Not the Same as Liquidation

ECJ Rules Dissolution of a Company Not the Same as Liquidation Volume 69, Number 7 February 18, 2013 ECJ Rules Dissolution of a Company Not the Same as Liquidation by Tom O Shea Reprinted from Tax Notes Int l, February 18, 2013, p. 675 ECJ Rules Dissolution of a Company

More information

AVIATION FINANCE THE IRISH SECTION 110 REGIME

AVIATION FINANCE THE IRISH SECTION 110 REGIME AVIATION FINANCE THE IRISH SECTION 110 REGIME Ireland - A Leading Aviation Jurisdiction Ireland is one of the leading locations in the world for all forms of aircraft finance and leasing activities. This

More information

25 NOVEMBER 2009 TO 31 JANUARY 2010

25 NOVEMBER 2009 TO 31 JANUARY 2010 ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT DISCUSSION DRAFT ON THE APPLICATION OF TAX TREATIES TO STATE-OWNED ENTITIES, INCLUDING SOVEREIGN WEALTH FUNDS 25 NOVEMBER 2009 TO 31 JANUARY 2010

More information

Car tax refund on export

Car tax refund on export Car tax customer bulletin 13 Car tax refund on export www.tulli.fi 1 January 2015 Replaces the bulletin from August 2014 Car tax refund on export This bulletin applies to getting refund on export if a

More information

Luxembourg holding companies: competitive and tax-efficient

Luxembourg holding companies: competitive and tax-efficient Luxembourg holding companies: competitive and tax-efficient June 2009 Table of contents 1. Introduction...3 2. Standard holding company (SOPARFI)...3 3. Double taxation treaties...3 4. Registration taxes...3

More information

United States Tax Alert

United States Tax Alert International Tax United States Tax Alert Contacts Harrison Cohen harrisoncohen@deloitte.com Gretchen Sierra gretchensierra@deloitte.com Brian Leonard bleonard@deloitte.es Andy Christiansen anchristiansen@deloitte.com

More information

German Tax Facts. The Expatriate Financial Guide to Germany

German Tax Facts. The Expatriate Financial Guide to Germany The Expatriate Financial Guide to Germany German Tax Facts Introduction Tax Year Assessment Basis Income Tax Taxation in Germany occurs at a national and municipal level. The Ministry of Finance controls

More information

REPORT BY THE PILOT GROUP ON IMPROVING PROCEDURES FOR TAX RELIEF FOR CROSS-BORDER INVESTORS

REPORT BY THE PILOT GROUP ON IMPROVING PROCEDURES FOR TAX RELIEF FOR CROSS-BORDER INVESTORS ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT REPORT BY THE PILOT GROUP ON IMPROVING PROCEDURES FOR TAX RELIEF FOR CROSS-BORDER INVESTORS POSSIBLE IMPROVEMENTS TO PROCEDURES FOR TAX RELIEF FOR

More information

French Withholding Tax on Dividends Paid to Collective Investment Funds: Where Do We Stand After the May 10, 2012 Santander Case?

French Withholding Tax on Dividends Paid to Collective Investment Funds: Where Do We Stand After the May 10, 2012 Santander Case? Tax Management Memorandum 2012 09/24/2012 MEMORANDUM 53 Tax Management Memorandum 363 French Withholding Tax on Dividends Paid to Collective Investment Funds: Where Do We Stand After the May 10, 2012 Santander

More information

The marketing of participations in foreign private equity funds from an Austrian tax perspective

The marketing of participations in foreign private equity funds from an Austrian tax perspective Seite 1 von 6 www.altassets.net The case for countries - Austria The marketing of participations in foreign private equity funds from an Austrian tax perspective Gerald Gahleitner, Gerald Toifl, Leitner

More information

European Union Law and Online Gambling by Marcos Charif

European Union Law and Online Gambling by Marcos Charif With infringement proceedings, rulings by the European Court of Justice (ECJ) and the ongoing lack of online gambling regulation at EU level, it is important to understand the extent to which member states

More information

EU State Aid and Tax Law

EU State Aid and Tax Law European Court finds that Spanish tax rules were not unlawful state aid because they did not give a selective advantage SUMMARY In two recent cases on fiscal state aid, the General Court of the European

More information

Restriction Analysis in ECJ Tax Jurisprudence relating to the Freedom of Establishment: Is the Court reinventing the wheel?

Restriction Analysis in ECJ Tax Jurisprudence relating to the Freedom of Establishment: Is the Court reinventing the wheel? Restriction Analysis in ECJ Tax Jurisprudence relating to the Freedom of Establishment: Is the Court reinventing the wheel? Gabrielle Pizzuto 1 1. Recent ECJ cases Two recent cases delivered by the ECJ

More information

TAX DEVELOPMENTS IN POLAND UPDATE 2009

TAX DEVELOPMENTS IN POLAND UPDATE 2009 TAX DEVELOPMENTS IN POLAND UPDATE 2009 WARDYŃSKI & PARTNERS TAX PRACTICE APRIL 2010 1/8 INTRODUCTION The purpose of this report is to present key tax developments in Poland in 2009 which may be relevant

More information

TAXATION OF CROSS-BORDER DIVI-

TAXATION OF CROSS-BORDER DIVI- DG Taxation and Customs Union TAXATION OF CROSS-BORDER DIVI- DEND PAYMENTS WITHIN THE EU IMPACTS OF SEVERAL POSSIBLE SOLUTIONS TO ALLEVIATE DOUBLE TAXATION 22 JUNE 2012 COLOPHON Disclaimer This report

More information

55 Amendment of section 1 (interpretation) of the VAT Act 1972

55 Amendment of section 1 (interpretation) of the VAT Act 1972 54 Interpretation (Part 3) This section contains definitions of the legal citations used in Part 3. This is a conventional provision in Finance Acts. It allows abbreviated terms to be used in reference

More information

The coordination of healthcare in Europe

The coordination of healthcare in Europe The coordination of healthcare in Europe Rights of insured persons and their family members under Regulations (EC) No 883/2004 and (EC) No 987/2009 Social Europe European Commission The coordination of

More information

Case C-82/10: ECJ rules that Irish Government s exemption of VHI from EU insurance rules is unlawful

Case C-82/10: ECJ rules that Irish Government s exemption of VHI from EU insurance rules is unlawful Case C-82/10: ECJ rules that Irish Government s exemption of VHI from EU insurance rules is unlawful Case C-82/10: ECJ rules that Irish Government s exemption of VHI from EU insurance rules is unlawful

More information

EXTRATERRITORIAL ENFORCEMENT OF TAX LAWS

EXTRATERRITORIAL ENFORCEMENT OF TAX LAWS EXTRATERRITORIAL ENFORCEMENT OF TAX LAWS Rita Correia da Cunha 1- ABSTRACT Extraterritorial enforcement of tax laws refers to the attempt of states to collect revenue beyond their territories. It is a

More information

Introducing SIR/GVV: the new Belgian REIT status

Introducing SIR/GVV: the new Belgian REIT status Introducing SIR/GVV: the new Belgian REIT status July 2014 1 Disclaimer This presentation (the Presentation) has been prepared by members of the working group (the Company) in connection with the adoption

More information

MALTA TRADING COMPANIES IN MALTA

MALTA TRADING COMPANIES IN MALTA MALTA TRADING COMPANIES IN MALTA Trading companies in Malta 1. An effective jurisdiction for international trading operations 410.000 MALTA GMT +1 Located in the heart of the Mediterranean, Malta has always

More information

THE ADVANTAGES OF A UK INTERNATIONAL HOLDING COMPANY

THE ADVANTAGES OF A UK INTERNATIONAL HOLDING COMPANY THE ADVANTAGES OF A UK INTERNATIONAL HOLDING COMPANY Ideal Characteristics for the Location of an International Holding Company Laurence Binge +44 (0)1372 471117 laurence.binge@woolford.co.uk www.woolford.co.uk

More information

ODIN Eiendom. ( the Fund )

ODIN Eiendom. ( the Fund ) If you are in any doubt about the contents of this Supplementary Prospectus you should consult a person authorised for the purposes of the Financial Services and Markets Act 2000 who specialises in advising

More information

EU Fiscal State Aid and the impact on the overall economic growth and fair competition

EU Fiscal State Aid and the impact on the overall economic growth and fair competition EU Fiscal State Aid and the impact on the overall economic growth and fair competition Robert van der Jagt Chairman of KPMG s EU Tax Centre Tax Partner, KPMG Meijburg & Co VanderJagt.Robert@kpmg.com Athens,

More information

TAXATION OF CROSS BORDER PENSION PROVISION Danish National Report

TAXATION OF CROSS BORDER PENSION PROVISION Danish National Report TAXATION OF CROSS BORDER PENSION PROVISION Danish National Report Professor, dr. jur. Niels Winther-Sørensen Law Department, Copenhagen Business School 1. Danish Schemes for Pension Provision The Danish

More information

A 5.5% solidarity surcharge is imposed on the income tax liability of all taxpayers.

A 5.5% solidarity surcharge is imposed on the income tax liability of all taxpayers. Worldwide personal tax guide 2013 2014 Germany Local information Tax Authority Website Tax Year Tax Return due date 31 May 2013 Is joint filing possible Are tax return extensions possible 2013 income tax

More information

Schedule of rates and charges for securities transactions

Schedule of rates and charges for securities transactions Schedule of rates and charges for securities transactions January 01, 2015 Orders Euronext... 2 Foreign stock exchanges... 3 Eurobonds... 4 KBC Investment Funds... 4 KBC Investment Products issued by KBC

More information

CLARIFICATION OF THE MEANING OF BENEFICIAL OWNER IN THE OECD MODEL TAX CONVENTION

CLARIFICATION OF THE MEANING OF BENEFICIAL OWNER IN THE OECD MODEL TAX CONVENTION ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT CLARIFICATION OF THE MEANING OF BENEFICIAL OWNER IN THE OECD MODEL TAX CONVENTION DISCUSSION DRAFT 29 April 2011 to 15 July 2011 CENTRE FOR TAX POLICY

More information

MALTA: A JURISDICTION OF CHOICE

MALTA: A JURISDICTION OF CHOICE MALTA: A JURISDICTION OF CHOICE LONDON - September 2012 Doing business from Malta can make a huge difference for your business UHY BUSINESS ADVISORY SERVICES LIMITED Updated September, 2012 An attractive

More information

Annual International Bar Association Conference 2014. Tokyo, Japan. Recent Developments in International Taxation. Portugal. Guilherme Figueiredo

Annual International Bar Association Conference 2014. Tokyo, Japan. Recent Developments in International Taxation. Portugal. Guilherme Figueiredo Annual International Bar Association Conference 2014 Tokyo, Japan Recent Developments in International Taxation Portugal Guilherme Figueiredo Eurofin Capital S.A. gfigueiredo@eurofincapital.com 1. RECENT

More information

Principles of International and Comparative Taxation

Principles of International and Comparative Taxation Overview and Learning Objectives This course is designed to provide participants with the basic concepts and principles of international tax law from a truly international perspective. It examines the

More information

Tax competition in Europe National Report Switzerland

Tax competition in Europe National Report Switzerland Robert Waldburger University of St. Gallen Tax competition in Europe National Report Switzerland I. General aspects of the domestic tax situation 1. The notion of 'tax competition' in domestic legal and

More information

Freedom to Provide Services. Henriette Boecken

Freedom to Provide Services. Henriette Boecken Freedom to Provide Services Henriette Boecken Table of Contents A. Freedom to Provide Services, Art. 56 TFEU B. Case: Bundesdruckerei vs. Stadt Dortmund C. Opinions on the Issue D. Situation in Germany

More information

Proposal for a COUNCIL DECISION

Proposal for a COUNCIL DECISION EUROPEAN COMMISSION Brussels, 13.2.2012 COM(2012) 39 final 2012/0018 (NLE) Proposal for a COUNCIL DECISION on the conclusion of the Agreement on certain aspects of air services between the European Union

More information

Malta Companies in International Tax Structuring February 2015

Malta Companies in International Tax Structuring February 2015 INFORMATION SHEET No. 126 Malta in International Tax Structuring February 2015 Introduction Malta is a reputable EU business and financial centre with an attractive tax regime and sound legislative framework.

More information

UNITED KINGDOM LIMITED LIABILITY PARTNERSHIPS

UNITED KINGDOM LIMITED LIABILITY PARTNERSHIPS UNITED KINGDOM LIMITED LIABILITY PARTNERSHIPS Background A United Kingdom Limited Liability Partnership (LLP) has become a very popular vehicle for international commercial activity. This is because the

More information

CYPRUS TAX CONSIDERATIONS

CYPRUS TAX CONSIDERATIONS TAXATION The following summary of material Cyprus, US federal income and United Kingdom tax consequences of ownership of the GDRs is based upon laws, regulations, decrees, rulings, income tax conventions

More information

SYLLABUS BASICS OF INTERNATIONAL TAXATION. ! States levy taxes by virtue of their sovereignty

SYLLABUS BASICS OF INTERNATIONAL TAXATION. ! States levy taxes by virtue of their sovereignty SYLLABUS BASICS OF INTERNATIONAL TAXATION! States levy taxes by virtue of their sovereignty! Tax sovereignty, however, is not unlimited. There must either be a personal or an objective connection between

More information

Greece Country Profile

Greece Country Profile Greece Country Profile EU Tax Centre March 2013 Key factors for efficient cross-border tax planning involving Greece EU Member State Double Tax Treaties With: Albania Estonia Lithuania Serbia Armenia Finland

More information

www.pwc.com/globalmobility Global Social Security Newsletter June 2014

www.pwc.com/globalmobility Global Social Security Newsletter June 2014 www.pwc.com/globalmobility Global Social Security Newsletter June 2014 2 Introduction Welcome to the June 2014 edition of our global social security newsletter, bringing you updates on changes in the social

More information

Real estate acquisition structures in Europe: the main tax issues

Real estate acquisition structures in Europe: the main tax issues Real estate acquisition structures in Europe: the main tax issues The increasing budget requirements of European countries and their implications for taxpayers CMS Annual Tax Conference - Thursday 9 February

More information

Tax Relief for Gifts To European Charities. UK tax law provides a number of reliefs and exemptions connected to charities.

Tax Relief for Gifts To European Charities. UK tax law provides a number of reliefs and exemptions connected to charities. Tax Relief for Gifts To European Charities Introduction UK tax law provides a number of reliefs and exemptions connected to charities. For example, the Gift Aid scheme allows donations to be deducted from

More information

Facts on Taxation in Denmark

Facts on Taxation in Denmark Facts on Taxation in Denmark Updated by Njord Law Firm, December 2015 www.investindk.com Contents Corporate taxation... 2 Tax liability for different corporate forms... 2 Full or limited tax liability...

More information

The Danish parliament has passed two bills that

The Danish parliament has passed two bills that Out of Denmark Dividend Withholding Taxation Expanded by Jens Wittendorff Jens Wittendorff is an international tax partner with Deloitte Copenhagen and an honorary professor with the Department of Business

More information

The positioning of Cyprus as a leading international business centre has been

The positioning of Cyprus as a leading international business centre has been European directive helps The incorporation into local law of the EU merger directive has created the possibility of tax-neutral international mergers using, explains Sophie Stylianou of Eurofast Taxand

More information

Conflicts and Issues under The U.S. - India Tax Treaty

Conflicts and Issues under The U.S. - India Tax Treaty TAX TREATIES Conflicts and Issues under The U.S. - India Tax Treaty Shefali Goradia*, Carol P. Tello** When the income tax treaty between India and the United States ( Treaty ) was negotiated in the late

More information

MALTA TRADING COMPANIES

MALTA TRADING COMPANIES MALTA TRADING COMPANIES Malta Trading Companies Maltese Registered Companies and Trading Operations in Malta Malta, an EU Member State since May 2004, has developed into a leading and reputable financial

More information

Guide for Mobile European Workers

Guide for Mobile European Workers Guide for Mobile European Workers CES CONFEDERATION EUROPEENNE DES SYNDICATS Guide for Mobile European Workers Bart Vanpoucke FGTB & Ger Essers FNV-Bruxelles CONFEDERATION European Trade EUROPEENNE Union

More information

What is a Contracting Authority?

What is a Contracting Authority? Brief 3 January 2011 Public Procurement What is a Contracting Authority? CONTENTS General definitions: a public authority; a body governed by public law Joint purchasing and central purchasing Contracting

More information

UBS (Irl) Fund plc. Supplement dated 2 July 2015 to the Prospectus dated 27 April 2015

UBS (Irl) Fund plc. Supplement dated 2 July 2015 to the Prospectus dated 27 April 2015 UBS (Irl) Fund plc Supplement dated 2 July 2015 to the Prospectus dated 27 April 2015 This Supplement is part of the English language Prospectus (the "Prospectus") dated 27 April 2015 of UBS (Irl) Fund

More information

Ireland. Place of Supply of Services: New VAT Rules Applying in the European Union. By Brian Butler

Ireland. Place of Supply of Services: New VAT Rules Applying in the European Union. By Brian Butler Ireland By Brian Butler Place of Supply of Services: New VAT Rules Applying in the European Union INTERNATIONAL TAX JOURNAL Brian Butler is the head of VAT in the firm of A & L Goodbody Solicitors, Dublin,

More information

Life Settlements: Using Irish Vehicles to minimise US Taxes on Life Settlement Payments

Life Settlements: Using Irish Vehicles to minimise US Taxes on Life Settlement Payments Life Settlements: Using Irish Vehicles to minimise US Taxes on Life Settlement Payments LIFE SETTLEMENTS: USING IRISH VEHICLES TO MINIMISE US TAXES ON LIFE SETTLEMENT PAYMENTS Introduction We have seen

More information

Belgium Taxation. 3.1 Taxation of funds. FCP (investment fund) BEVEK/SICAV (investment company)

Belgium Taxation. 3.1 Taxation of funds. FCP (investment fund) BEVEK/SICAV (investment company) Belgium Taxation FUNDS AND FUND MANAGEMENT 2010 3.1 Taxation of funds Open-ended collective investment funds are organized either as an FCP (investment fund fond commun de placement) with a variable number

More information

Definition of Public Interest Entities (PIEs) in Europe

Definition of Public Interest Entities (PIEs) in Europe Definition of Public Interest Entities (PIEs) in Europe FEE Survey October 2014 This document has been prepared by FEE to the best of its knowledge and ability to ensure that it is accurate and complete.

More information