Asset finance and leasing
|
|
- Dylan Daniels
- 8 years ago
- Views:
Transcription
1 Asset finance and leasing Clarence Leung Director, Hong Kong Brian Leonard Partner, Ireland Lim Maan Huey Partner, Singapore
2 1. Introduction Clarence Leung Director, Hong Kong Brian Leonard Partner, Ireland brian.a.leonard@ie.pwc.com Lim Maan Huey Partner, Singapore maan.huey.lim@sg.pwc.com 2
3 Agenda 1. Developments and updates 2. BEPS recent developments 3. BEPS impacts network discussion 3
4 1.1 Developments and updates Hong Kong / China 4
5 Latest developments HONG KONG 5
6 Latest developments in Hong Kong 14 Jan 2015 Chief Executive, Mr. CY Leung, said that Hong Kong Government should promote aircraft and ship leasing to capture the opportunity in China 25 Feb 2015 Financial Secretary, John Tsang, echoed Chief Executive s message in the Policy Address on the Budget Day 1Apr th Protocol on the double tax treaty agreement between China and Hong Kong to reduce the withholding tax rate on aircraft and ship leasing to 5%, the lowest among the CDA signed by China 6
7 Reduced withholding tax on aircraft and shipping rentals Hong Kong signed the Fourth Protocol to the Arrangement for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income with the PRC Reduced PRC withholding tax on lease rentals from 7% to cap of 5% Hong Kong will be the jurisdiction with the lowest withholding tax applied by rentals paid by PRC lessees, followed by Singapore and Ireland of 6% withholding tax Boosts Hong Kong s development as an asset leasing hub 7
8 Latest developments CHINA 8
9 Developments in the Chinese factoring market 2009 to 2013 Total global factoring average annual growth rate was approximately 15%, while China s annual growth rate was 54% 2013 China accounted for 17% (about EUR378 bn) of the global factoring value (about EUR2.23 trillion) Since 2011, China has replaced UK as the world s largest factoring country China Global 9
10 Developments in the Chinese factoring market 2013 Chinese factoring market valued at EUR378.1bn (EUR295.4bn domestic, EUR82.7bn international) End of factoring companies registered in China, bringing the total number of Chinese factoring companies to 284 End of 2014 over 700 Chinese factoring companies (compared to 284 as at end of 2013) 2013 China factoring market Domestic International 10
11 Characteristics of the Chinese factoring market Number of factoring companies increasing rapidly, but banks are the main drivers of the factoring industry The factoring market in China is limited to a few type of products, and most of them are recourse factoring products 5% Factoring products 12% Recourse factoring Non-recourse factoring 14% Reverse factoring 69% Bank - Company cooperative factoring 11
12 Geographic location - important Free Trade Zones (FTZ) for leasing and factoring industry At the end of 2011, the Ministry of Commerce promulgated the Guidance on Promoting the Development of Financial Leasing Industry during the 12th five-years period. The guidance encourages the formation of the leasing industry development centers. Enhance the function of financial leasing in Qianhai, Shanghai and Tianjin 天 津 自 贸 区 四 川 上 海 自 贸 区 深 圳 前 海 北 京 石 景 山 重 庆 广 东 自 贸 区 Hong Kong is also mentioned. 香 港 Open up factoring business in Shanghai Pudong, Qianhai, Guangzhou, Tianjin Binhai, Beijing 福 建 自 贸 区 12
13 China trade factoring China tax considerations Buyer 1. Receivables 3. Credit investigation Seller Factoring company Corporate income tax at 25% Turnover tax at 5% VAT reform for the financial services sector to be implemented in 2015 Seller Financing charges and interest expenses will be deductible provided valid VAT invoices are obtained Bank Factoring company Funds Tax issues Should the seller or buyer repay the loan? Invoicing for sale Deductibility of input tax for the buyer Deductibility of interest expenses to the seller (whether the factoring company will issue tax invoices) 13
14 China factoring of leases China tax considerations Factoring company Corporate income tax at 25% Manufacturer Turnover tax at 5% VAT reform for the financial services sector to be implemented in 2015 Factoring company Transfer of lease interest and financing Financing costs Assets Lessor Lessee Lessor VAT of 17% for operating leases VAT of 17% for finance leases, with possibility of VAT refund Financing charges and interest expenses will be deductible Tax issues Should lessor or factoring company be receiving the lease income? Should the factoring company or the lessor be issued with the leasing tax invoice? Deductibility issues for the input VAT for the lessee? Deductibility of interest expenses to the lessor (whether the factoring company will issue tax invoices) 14
15 1.2 Developments and updates Ireland 15
16 Irish leasing tax regime overview Funds flowing into Ireland Taxation within Ireland Funds flowing from Ireland Extensive tax treaty network (72 signed) supplemented by access to EU Directives. Generally 0% withholding tax rates on inbound lease rentals. No capital duty on equity investments. Not considered a tax haven. No banking secrecy rules or exchange of information blockages. 12.5% trading corporate tax rate. Revenue published safe harbour trading rules for aircraft lessors. Efficient holding, securitisation and financing structures available, including tax neutral Section 110 vehicles. Fully deductible trade interest, no thin capitalisation issues or CFC rules. Tax losses available against prior profits, future profits, and can be grouped out. Legislation introduced to facilitate EETC arrangements. No capital duty/ net wealth taxes. Stamp duty exemptions and effective 0% VAT regime. 0% withholding tax rate on outbound lease rentals. Generally, no withholding tax on interest, dividends and royalties to EU and treaty countries. Ability to mitigate withholding tax to non treaty countries, particularly dividends, under domestic law. Manageable migration or exit planning. Tax-efficient restructuring options 16
17 Section 110 company What is a Section 110 company An Irish Special Purpose Vehicle (SPV) can be funded by way of external debt and/or internal debt/ equity. The SPV will use these funds to acquire assets (including aircraft/engines). The internal debt/equity generally takes the form of a profit participation loan (PPL) issued by the SPV. This PPL will be the mechanism used to extract surplus cash and/or taxable profits from the SPV. Takes the form of a normal Irish company. Flexibility in corporate structure - can be formed as limited or unlimited company, private or public. A Section 110 company must elect into the regime. To do so a number of conditions must be satisfied. The main conditions require that the company should (1) be tax resident in Ireland, (2) carry on a business of acquiring, holding or managing qualifying assets (can include the leasing of aircraft, engines, etc.) and (3) holds qualifying assets with a market value of not less than EUR10m on the day on which the assets are first acquired. 17
18 Section 110 company Taxation of a Section 110 company Section 110 companies are taxed on their profits at the higher rate of Irish corporation tax of 25%. Taxable profits are calculated under the rules applicable to normal trading companies. This means that tax deductions are allowable for normal trading expenses such as trading interest, broker fees, management fees, etc. In addition, a deduction is allowed for profit participating interest. Certain anti-avoidance provisions which restrict deductibility of interest paid need to be considered. Small taxable spread (typically EUR1,000/EUR5,000 annually) left at the level of the Section 110 company each year (the PPL is the mechanism used to achieve the small spread). Section 110 companies are entitled to tax depreciation/capital allowances where the usual prerequisite conditions are satisfied. Section 110 companies benefit from Ireland s DTA network and also EU Directives in respect of inbound flows of income or gains. Any tax losses incurred by the Section 110 may be carried forward against future taxable profits but cannot be carried back against the profits of an earlier accounting period or relieved against the profits of any other group company. 18
19 Section 110 structures Section 110 owning assets and leasing directly Parent company Intermediary group Co PPL Group/third party external senior debt Group treasury Co / external bank Irish leasing Co. Irish Section 110 (leasing vehicle) Lease A (Country A) Lease B (Country B) Lease C (Country C) Third party/group leases 19
20 Ireland treaty submission/ treaty updates Tax Director Network (1/2) Ireland established the Aviation Leasing Tax Director Network in The network comprises senior tax and finance professionals of the largest global aircraft lessors (based in Ireland and abroad) as well as major engine, helicopter and OEM lessors. The network was established to share Irish and international industry tax developments with a view to representing the industry at relevant governmental and OECD level where appropriate through round table discussions. While Ireland s double tax treaty continues to expand, (see further below), the network made a submission to the Irish Revenue with regard to specific double tax treaties which would be beneficial for the aircraft leasing industry in Ireland. 20
21 Ireland treaty submission/ treaty updates Tax Director Network (2/2) The submission was made to the Irish Revenue on 6 March 2015 and outlined a list of double tax treaties which the network believes require renegotiation (Japan, Australia and Malaysia). Also included in this submission was a list of territories with which Ireland does not currently have a double tax treaty but whose leasing business is steadily increasing and therefore Irish lessors would greatly benefit from double tax treaties with these countries (Indonesia, Brazil, Kazakhstan, Argentina, Nigeria, Taiwan and Mongolia). Ireland had a follow up meeting with the Irish Revenue in relation to the submission. 21
22 Ireland treaty submission/ treaty updates Treaty network recent developments Ireland has signed comprehensive double taxation agreements with 72 countries, of which 68 are in effect, which continues to expand. New agreements have been signed with Botswana, Thailand, Ukraine, Ethiopia, Zambia and Pakistan. Treaty discussions have commenced recently with Kazakhstan. A new agreement with Turkmenistan is expected to be signed shortly. Negotiations are ongoing for new treaties with Azerbaijan, Jordan and Ghana. 22
23 Domestic legislative and policy updates Employment Tax Special Assignee Relief Programme (SARP) Introduced in 2012 and extended to Removal of relief threshold amount of EUR500,000. Requirement not to be resident elsewhere removed. Relaxation for the requirement to perform all of their duties in Ireland as well as reduction in previous employment from 12 months to 6 months. Employment Tax Foreign Earnings Deduction (FED) Extended to 2017, allows a deduction of up to EUR35,000 per annum for employees who spend a minimum 40 days outside Ireland (reduced from 60 days). Qualifying countries extended to include Chile, Indonesia, Japan, Malaysia, Saudi Arabia, Singapore, United Arab Emirates and more. 23
24 Domestic legislative and policy updates Transfer Pricing TPCR (Irish Revenue Transfer Pricing Compliance Review) previously introduced however Irish Revenue now conducting field Audits. Domestic legislation in line with international standards. National Aviation Policy Ireland has also published a draft national aviation policy, which specifically endorses the aircraft leasing industry. Evidence of continued support from governmental and regulatory authorities. 24
25 1.3 Developments and updates Singapore 25
26 Offshore leasing Lease income from offshore leasing is taxed at 10%. Lessor Lease arrangement For equipment used outside Singapore Not a finance lease treated as a sale Lease payments Not in SGD Not deductible against Singaporesourced income Lessee 26
27 Offshore leasing Budget 2015 changes With effect from 1 January 2016, the concessionary tax rate for offshore leasing of plant or machinery will not be available. Lease arrangement For equipment used outside Singapore Not a finance lease treated as a sale Lessor Lessee Lease payments Not in SGD Not deductible against Singaporesourced income 27
28 Maritime sector tax concessions Owners/ operators Service providers Financing MSI Shipping Enterprise (SG Flag) (MSI-SRS) Tax exemption MSI Maritime Leasing (Ship) (MSI-ML) Tax Exemption on leasing income and 10% on managing shipping investment enterprise Change MSI Shipping Related Support Services (MIS-MSS) 10% on incremental qualifying income Automatic WHT exemption for qualifying financing arrangements Change MSI Approved International Shipping Enterprise (Foreign-Flag) (MSI-AIS) Tax exemption MSI ML (Container) 5% or 10% on leasing income and 10% on managing container investment enterprise Change 28
29 Factoring of trade receivables Singapore tax considerations Discount or commission Factor Seller Receivables Transfer of receivables Key issues Is the substance of the transaction a true sale or secured loan arrangement? Should withholding tax apply on the discount or commission borne by the seller where the factor is not resident in Singapore? Should the discount or commission be deductible against the seller s income? GST treatment of the discount or commission Customer 29
30 Singapore s treaty network Number of treaties 76 Number of treaties where Royalties article does not include consideration for use or right to use equipment Treaties entered into force in the past 12 months Treaties amended in the past 12 months but not yet ratified Treaties signed in the past 12 months but not yet ratified 16 (including Guernsey, Ireland, Jersey, South Africa, Spain, Switzerland, UK) Barbados* Liechtenstein* France UAE* Rwanda* Seychelles* Uruguay* Treaties where Interest article provides for withholding tax exemption for non-residents Mauritius Luxembourg* (treaty not yet ratified) * The Royalties article in these treaties does not include consideration for use or right to use equipment. 30
31 2. BEPS recent developments 31
32 The BEPS action plan Partly September 2014, partly September/December2015 September 2014 deadline September 2015 deadline ACTION 1: ACTION 2: ACTION 3: ACTION 4: ACTION 5: Address the challenges of the digital economy Neutralise the effect of hybrid mismatch arrangements Strengthen CFC rules Limit base erosion via interest deductions and other financial payments Counter harmful tax practices more effectively, taking into account transparency and substance ACTION 6: ACTION 7: ACTION 8: ACTION 9: ACTION 10: Prevent treaty abuse Prevent the artificial avoidance of PE status Assuring that TP outcomes are in line with value creation Intangibles Assuring that TP outcomes are in line with value creation Risks & capital Assuring that TP outcomes are in line with value creation Other high-risk transactions ACTION 11: ACTION 12: ACTION 13: ACTION 14: ACTION 15: Establish methodologies to collect and analyse data on BEPS and the actions to address it Require taxpayers to disclose their aggressive tax planning arrangements Re-examine transfer pricing documentation Make dispute resolution mechanisms more effective Develop a multilateral instrument 32
33 Responding to BEPS affected areas 33
34 Action 13 Transfer Pricing Documentation High risk actions Overall risk assessment There are a number of areas where BEPS could lead to adverseconsequences.theactionareasposingthegreatest material risk to the aircraft leasing industry are: Action 6 Treaty Abuse Action 7 Avoidance of PE Action 4 Interest Deductibility Action 13 TP documentation Action 15 Multilateral instrument Action 15 Multilateral Instrument Action 4 Interest Deductibility Overall Risk Action 6 Tax Treaty Abuse Action 7 Avoidance of PE This high-level assessments is designed to help give you a better understanding of the specific action areas we believe provide the highest potential risk to lessors in the Aircraft Leasing industry caused by the OECD BEPS action plan and other associated developments. Action 6 Tax Treaty Abuse Summary The implementation of a Limitation of Benefits clause (LoB) and/or principal purpose test (PPT) proposed by Action 6 could have a material impact on corporate structures within the aircraft leasing industry. Widespread implementation would threaten the sustainability of well established leasing arrangements such as the head lease/sub lease structure. Sufficient business activity may be required in order to avail of treaty benefits potentially requiring significant operational re-organisation in order to provide substance permitting the utilisation of favourable treaty benefits. Action 7 Artificial Avoidance of PE Summary The PE paper poses a risk to the operational and corporate structure of aircraft lessors due to the nature in which business is conducted within the industry. In the absence of mitigating measures, the implementation of this action maycreatetaxablepe sforaircraftlessorsacrosstheglobeincurring bothadministrationandcompliancecosts.in addition to this, additional risk is also created by the establishment of a PE with regards to local tax authorities determination of attributable profits. Action 4 Interest Deductions Summary The Interest Deductions paper poses a risk to group effective tax rates in the aircraft leasing industry. Affecting both related and third party funding of aircraft leasing groups, changes in the availability of deductions relating to interest expense payments may cause a material impact to the industry. Action 13 Transfer Pricing Documentation Summary Related party transactions are a common feature of the leasing industry, arising in the context of funding, asset servicing, credit approval, cross guarantees and head lease/sub lease structures. The introduction of country by country reporting requirements will place considerable pressure on existing resources to meet the administration obligations. Risk is further augmented due to potential scrutiny from tax authorities on foot of extensive TP documentation requirements. Action 15 Developing a Multilateral Instrument Summary In order to implement the above the BEPS actions, and in particular those mentioned above, changes to a network of over 3,000 bilateral agreements would be required. To overcome the burdensome and potentially inhibiting nature of such action, a multilateral instrument will instead be used to amend such agreements in one action facilitating the successful and timely implementation of the BEPS programme. 34
35 3. BEPS impact network discussion 35
36 Key considerations Final submissions/ representation on PE and Treaty Actions. Unilateral developments influenced by BEPS Agenda. Likely impact on corporate structure and business model. Questions for all: - Have government / tax authorities in your country been influenced by BEPS Actions to date / have they introduced any unilateral legislation or commented on BEPS? - Has there been a response by any of the lessors /lessees in your jurisdiction? - Are you considering ways to mitigate the potential effect of these developments or are you still adopting a wait and see approach? 36
37 Thank you. The information contained in this presentation is of a general nature only. It is not meant to be comprehensive and does not constitute the rendering of legal, tax or other professional advice or service by PricewaterhouseCoopers Ltd. (""). has no obligation to update the information as law and practices change. The application and impact of laws can vary widely based on the specific facts involved. Before taking any action, please ensure that you obtain advice specific to your circumstances from your usual client service team or your other advisers. The materials contained in this presentation were assembled in May 2015 and were based on the law enforceable and information available at that time All rights reserved. refers to the network and/or one or more of its member firms, each of which is a separate legal entity. Please see for further details.
An overview of using Hong Kong as a platform for trade and investment with China. Daniel Booth Director Vistra (Hong Kong)
An overview of using Hong Kong as a platform for trade and investment with China Daniel Booth Director Vistra (Hong Kong) Breda May, 2012 The role of Hong Kong A recognized and respected jurisdiction for
More informationMalta 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 informationTax Overview Setting up a Fund Manager in Singapore
www.pwc.com Tax Overview Setting up a Fund Manager in Singapore 8 July 2014 Singapore Agenda - Overview of Singapore tax system - Taxation of fund manager and individuals - Treatment of onshore and offshore
More informationMALTA 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 informationNews Flash Hong Kong Tax. November 2015 Issue 10. In brief. In detail. www.pwchk.com
News Flash Hong Kong Tax Understanding the IRD s views on emerging corporate tax issues, in particular the practice on processing Hong Kong tax resident certificate applications November 2015 Issue 10
More informationBEPS within the EU Framework Compatibility and Implementation
Univ.-Prof. DDr. Georg Kofler, LL.M. (NYU) BEPS within the EU Framework Compatibility and Implementation CFE Forum 2014 Policies for a Sustainable Tax Future Thursday, 27 March 2014 1 BEPS Report Addressing
More informationOECD BEPS Project - Impact on UK tax law. Munich, 21 April 2016
OECD BEPS Project - Impact on UK tax law Munich, 21 April 2016 Slide 3 5 Recent tax developments in the UK 6-8 Action 2 - Hybrid mismatch arrangements 9 10 Action 3 - CFC Rules 11 12 Action 4 - Interest
More informationHong Kong Taxation of Non- Residents
www.pwc.com Hong Kong Taxation of Non- Residents Fergus Wong National Tax Policy Services PricewaterhouseCoopers 28 August 2012 Agenda Treaty developments in Hong Kong Taxation issues of Treaty resident
More informationTax Reform in Brazil and the U.S.
Tax Reform in Brazil and the U.S. Devon M. Bodoh Principal in Charge Latin America Markets, Tax KPMG LLP Carlos Eduardo Toro Director KPMG Brazil Agenda Overview of Global Tax Reform Overview Organization
More informationAllow me to point out ten ways this can be done.
How Developing Countries can take Control of their own Tax Destinies By Krishen Mehta* July, 2014 Introduction: The question of how developing countries get a fair deal on tax justice is an important and
More informationTHE 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 information450 Lexington Ave 1350 I Street, NW Suite 3320 Suite 1100 New York, NY 10017 Washington, DC 20005
Eric van Aalst Mark Riedy Citco Corporate Services Inc. Andrews Kurth LLP 450 Lexington Ave 1350 I Street, NW Suite 3320 Suite 1100 New York, NY 10017 Washington, DC 20005 Structuring International Operations
More informationTax considerations for Pharmaceutical & Life Sciences Industry 27 November 2013 27 November 2013
www.pwc.com/sg Tax considerations for Pharmaceutical & Life Sciences Industry 27 November 2013 27 November 2013 Discussion points 1. Update on few key tax, TP and GST points from Singapore perspective
More informationAnnual 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 informationSri Lanka Tax Profile
Sri Lanka Tax Profile Produced in conjunction with the KPMG Asia Pacific Tax Centre Updated: September 2014 Contents 1 Corporate Income Tax 1 2 Income Tax Treaties for the Avoidance of Double Taxation
More informationNetherlands Country Profile
Netherlands Country Profile EU Tax Centre March 2012 Key factors for efficient cross-border tax planning involving Netherlands EU Member State Yes Double Tax Treaties With: Albania Czech Rep. Jordan Nigeria
More informationThailand Tax Profile. Produced in conjunction with the KPMG Asia Pacific Tax Centre. Updated: November 2013
Thailand Tax Profile Produced in conjunction with the KPMG Asia Pacific Tax Centre Updated: November 2013 Contents 1 Corporate Income Tax 1 2 International Treaties for the Avoidance of Double Taxation
More informationBelgium 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 informationBenefits of using HK company for entering into China consumer market
Intertrust Alex Cho November 2006 1 Benefits of using HK company for entering into China consumer market Alex Cho 28 November 2006 Intertrust Alex Cho November 2006 2 China Consumer Market restrictions
More informationNon-Resident Withholding Tax Rates for Treaty Countries 1
Non-Resident Withholding Tax Rates for Treaty Countries 1 firms Non-Resident Withholding Tax Rates for Treaty Countries 1 Country 2 Interest 3 Dividends 4 Royalties 5 Annuities 6 Pensions/ Algeria 15%
More informationImplications of change in Government
Australia 92 outstanding tax and superannuation measures revisited by new Government Implications of change in Government Since the last update, Australia has had a change of Government. The centre-right
More informationUAE TAX. Personal Tax
UAE TAX This document aims to provide a brief outline of the laws and treaties in force in the UAE, an overview of the taxation regime in the UAE including a summary of the UAE double taxation treaties
More informationImplementing a Diverted Profits Tax
Implementing a Diverted Profits Tax May 2016 Commonwealth of Australia 2016 ISBN 978-1-925220-92-6 This publication is available for your use under a Creative Commons Attribution 3.0 Australia licence,
More informationwww.pwc.com/sg Striking the right balance PwC Budget Seminar 1 March 2013 Transfer pricing plenary
www.pwc.com/sg Striking the right balance PwC Budget Seminar 1 March 2013 Transfer pricing plenary Q&A Q1 Which of the following best describes transfer pricing for you? a) A vague concept only relevant
More informationMALTA 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 informationPros and Cons. Moving your Company s operations and executives from Hong Kong to Singapore. Shanker Iyer Sanjay Iyer 9 February 2015 IYER PRACTICE
Moving your Company s operations and executives from Hong Kong to Singapore Pros and Cons Shanker Iyer Sanjay Iyer 9 February 2015 SINGAPORE HONGKONG 20 YEARS IN PRACTICE AGENDA 1. General Background 2.
More informationPros and Cons. Moving your Company s operations and executives from Hong Kong to Singapore. Shanker Iyer Sanjay Iyer 9 February 2015 IYER PRACTICE
Moving your Company s operations and executives from Hong Kong to Singapore Pros and Cons Shanker Iyer Sanjay Iyer 9 February 2015 SINGAPORE HONGKONG 20 YEARS IN PRACTICE AGENDA 1. General Background 2.
More informationHONG KONG Corporate information:
HONG KONG Corporate information: Hong Kong is the richest city in China, its economy is one of the most liberal in the world. It is a financial and commercial hub of global significance. Hong Kong is a
More informationSINGAPORE VS HONG KONG A Jurisdiction Analysis. Shanker Iyer 18 November 2013
SINGAPORE VS HONG KONG A Jurisdiction Analysis Shanker Iyer 18 November 2013 General background Non-tax factors Tax factors Conclusion 2 3 Area Singapore: 697 km2 Hong Kong: (80 km2/1,104 km2) Population
More informationSpain Tax Alert. Corporate tax reform enacted. Tax rate. Tax-deductible expenses. International Tax. 2 December 2014
International Tax Spain Tax Alert 2 December 2014 Corporate tax reform enacted Contacts Brian Leonard bleonard@deloitte.es Francisco Martin Barrios fmartinbarrios@deloitte.es Elena Blanque elblanque@deloitte.es
More informationDOING BUSINESS THROUGH MALTA - AN OVERVIEW
A. WHY MALTA 2 B. THE MALTESE COMPANY 2 C. MALTA TAX REFUNDS - LOWEST TAX IN THE EU 3 D. MALTESE TRADING STRUCTURE - 5% EFFECTIVE TAXATION Benefits and Uses of the Maltese Trading Company Basic Trading
More informationSpanish Tax Facts. The Expatriate Financial Guide to Spain
The Expatriate Financial Guide to Spain Spanish Tax Facts Introduction Tax Year Assessment Basis Taxation in Spain occurs at a national level and at a regional ( Autonomous Community ) or municipal level.
More informationSingapore vs. Hong Kong
Singapore vs. Hong Kong A Jurisdiction Analysis Shanker Iyer 17 October 2014 SINGAPORE HONGKONG 20 YEARS IN PRACTICE AGENDA 1. General Background 2. Non-Tax Factors 3. Tax Factors 4. Conclusion SINGAPORE
More informationHong Kong s Double Tax Treaty Network
TAX FLASH July 2010 TAX FLASH July 2010 Hong Kong s Double Tax Treaty Network To remain as an international financial and commercial centre, it has become important for Hong Kong to promote its transparency
More informationTURKEY CORPORATE TAX (KURUMLAR VERGISI) The basic rate of corporation tax for resident and non-resident companies in Turkey is 20%.
TURKEY CORPORATE TAX (KURUMLAR VERGISI) The basic rate of corporation tax for resident and non-resident companies in Turkey is 20%. Corporations in Turkey can be regarded as either limited or unlimited
More informationTaxation of Cross-Border Mergers and Acquisitions
KPMG INTERNATIONAL Taxation of Cross-Border Mergers and Acquisitions Panama kpmg.com 2 Panama: Taxation of Cross-Border Mergers and Acquisitions Panama Introduction The signing of several Free Trade Agreements
More informationHong Kong s Role Your China Market Entry & Strategies
Intertrust Katherine Chiu October 2007 1 Hong Kong s Role Your China Market Entry & Strategies Katherine Chiu Intertrust Katherine Chiu October 2007 2 Welcome to China!!! Intertrust Katherine Chiu October
More informationThe use of Cyprus structures in international tax planning
The use of Cyprus structures in international tax planning Tax and other advantages Tax planning ideas - structures 1 Terms of reference Purpose - basis of preparation - assumptions: This presentation
More informationBLUM Attorneys at Law
BLUM Attorneys at Law CORPORATE TAXATION SYSTEM IN SWITZERLAND Outline of Swiss Corporate Tax System Levels of Taxation in Switzerland Resident companies are subject to: federal corporate income tax, and
More informationManaging payments from and to Latin America: Reducing your company's tax burden
Managing payments from and to Latin America: Reducing your company's tax burden Latin America 2010: Proactive Strategies for Doing Business in Today's Changing Landscape Miami, Florida March 17, 2010 Why
More information13. PE & CF Conference Challenges of BEPS for PE Managers and Funds
Financial Services Tax 13. PE & CF Conference Challenges of BEPS for PE Managers and Funds Dieter Wirth Agenda Page 1 International Trend: BEPS 1 2 What could this mean for PE Managers and PE 5 Funds Section
More informationInternational aspects of taxation in the Netherlands
International aspects of taxation in the Netherlands Individuals resident in the Netherlands are subject to income tax on their worldwide income. Companies established in the Netherlands are subject to
More informationIndonesia Tax Profile
Indonesia Tax Profile Produced in conjunction with the KPMG Asia Pacific Tax Centre Updated: November 2013 Contents 1 Corporate Income Tax 3 2 International Treaties for the Avoidance of Double Taxation
More informationDOUBLE TAXATION AVOIDANCE AGREEMENT (DTAA) IN INDIA
DOUBLE TAXATION AVOIDANCE AGREEMENT (DTAA) IN INDIA Double taxation may arise when the jurisdictional connections, used by different countries, overlap or it may arise when the taxpayer has connections
More information35. Hong Kong. International Transfer Pricing 2013/14
35. Hong Kong Introduction The increasing cross-border activities of Hong Kong businesses with those in mainland China and the expansion of the Hong Kong treaty network have made transfer pricing a real
More informationRecent 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 informationEye-on-China Webinar Series. Befriend the Chinese Tiger Keep Risk At Bay and Optimize Your China Opportunities
Eye-on-China Webinar Series Befriend the Chinese Tiger Keep Risk At Bay and Optimize Your China Opportunities Eye-on-China Webinar Series Taxation of Foreign Investors in China: Dramatic Climate Change
More informationMalaysia Tax Profile. Produced in conjunction with the KPMG Asia Pacific Tax Centre. Updated: November 2013
Malaysia Tax Profile Produced in conjunction with the KPMG Asia Pacific Tax Centre Updated: November 2013 Contents 1 Corporate Income Tax 1 2 Income Tax Treaties for the Avoidance of Double Taxation 4
More informationInternational Tax Issues Affecting Multinationals. Presented by: Martin Kisuu, Director, Taxwise Consulting
International Tax Issues Affecting Multinationals Presented by: Martin Kisuu, Director, Taxwise Consulting Agenda International Tax issues affecting Multinationals At this point in time when many Kenyan
More informationReal 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 informationTAXATION OF INTEREST, DIVIDENDS AND CAPITAL GAINS IN CYPRUS
TAXATION OF INTEREST, DIVIDENDS AND CAPITAL GAINS IN CYPRUS LAWS AND DECREES The Income Tax (Amendment) Law of 2005 The Special Contribution for Defence (Amendment) Law of 2004 The Assessment and Collection
More informationHow To Get A Plane Lease In China
Yi Liu, Run Ming Law Office China s Legal System and Corporate Aircraft I. Chinese Regulatory Scheme relating to Aircraft Purchase, Finance & Leasing Import Approval - National Development and Reform Commission
More informationHong Kong (Brenda Chan, Nexia Charles Mar Fan & Co, brenda@charles-marfan.com) Reviewed January 2015
Hong Kong (Brenda Chan, Nexia Charles Mar Fan & Co, brenda@charles-marfan.com) Reviewed January 2015 I MAIN LEGAL FORMS Legal form Characteristics Partnership and Limited Liability Partnership (LLP) Private
More informationACCA 香 港 分 會 2016/17 年 度 財 政 預 算 案 建 議. ACCA Hong Kong Budget Submission 2016/17
ACCA 香 港 分 會 2016/17 年 度 財 政 預 算 案 建 議 ACCA Hong Kong Budget Submission 2016/17 EXECUTIVE SUMMARY... 1 PROPOSALS... 4 1 Business Enabling Environment... 4 1.1 One-Belt-One-Road Initiative... 4 1.1.1 Implementation
More informationINVESTING VIA THE NETHERLANDS OVERVIEW, FEATURES AND STRUCTURING POSSIBILITIES
INVESTING VIA THE NETHERLANDS OVERVIEW, FEATURES AND STRUCTURING POSSIBILITIES Contents 1. General: Tax rate and tax base, tax treaty 2. Trademark structure 3. Interest free loan structure 4. Confidentiality
More informationSYLLABUS 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 informationInvesting in Northern Ireland
Investing in Northern Ireland Key Tax Issues August 2012 kpmg.ie 1 1 Contents 1 Introduction 3 2 Corporation tax 4 3 Individual taxation 10 4 Other taxes 12 Appendix 1 - UK Tax Residence 13 2 1. Introduction
More information- Malta - Asset Trading & Holding Tax Efficient Structuring - an overview -
- Malta - Asset Trading & Holding Tax Efficient Structuring - an overview - Presentation provided for general informational purposes only; to provide a general overview of the pertinent aspects of Malta
More informationHolding companies in Ireland
Holding companies in Irel David Lawless Paul Moloney Dillon Eustace, Dublin Irel has long been a destination of choice for holding companies because of its low corporation tax rate of 12.5 percent, participation
More informationDividends Tax: Summary of withholding tax rates per South African Double Taxation Agreements currently in force Version: 2 Updated: 2012-05-22
Dividends Tax: Summary of withholding tax rates per South African Double Taxation Agreements currently in force Version: 2 Updated: 2012-05-22 Note: A summary of the rates and the relevant provisions relating
More informationJapan: Inbound Tax Alert 2015 Tax Reform Proposals - Announced
Japan: Inbound Tax Alert 2015 Tax Reform Proposals Announced January 2015, No.10 On 30 December 2014, the ruling coalition parties of Japan released the Outline of the 2015 Tax Reform Proposals (the, Proposal
More informationGreece 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 informationSlovenia. Chapter. Avbreht, Zajc & Partners Ltd. 1 General: Treaties. 2 Transaction Taxes. Ursula Smuk
Chapter Avbreht, Zajc & Partners Ltd. Ursula Smuk 1 General: Treaties 1.1 How many income tax treaties are currently in force in? 44 income tax treaties are currently in force in. 1.2 Do they generally
More informationTREATY 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 informationPeople s Republic of China Tax Profile
People s Republic of China Tax Profile Produced in conjunction with the KPMG Asia Pacific Tax Centre Updated: November 2012 Contents 1 Corporate Income Tax 1 2 Income Tax Treaties for the Avoidance of
More informationO MELVENY. Indonesian Equity Investments Selecting a Tax Efficient Holding Jurisdiction
O MELVENY Indonesian Equity Investments Selecting a Tax Efficient Holding Jurisdiction A comparison of Hong Kong and Singapore in light of the new Hong Kong-Indonesia tax treaty Joel Hogarth +65-6593-1866
More informationGlobal Effective Tax Rates
www.pwc.com/us/nes Global s Global s April 14, 2011 This document has been prepared pursuant to an engagement between PwC and its Client. As to all other parties, it is for general information purposes
More informationtax update October 2014
tax update October 2014 Summary Luxembourg news 3 Luxembourg budget 2015 3 Luxembourg-France Double Tax Treaty amended: capital gains on the disposal of shares in companies ultimately invested in French
More informationWHY INVEST IN HOLLAND? Tax Treaties and Withholding Taxes
WHY INVEST IN HOLLAND? Tax Treaties and Withholding Taxes Introduction Netherlands Foreign Investment Agency (NFIA) The NFIA (Netherlands Foreign Investment Agency) is an operational unit of the Dutch
More informationHong Kong. Country M&A Team Country Leader ~ Nick Dignan Guy Ellis Rod Houng-Lee Anthony Tong Sandy Fung Greg James Louise Leung Nicholas Lui
Hong Kong Country M&A Team Country Leader ~ Nick Dignan Guy Ellis Rod Houng-Lee Anthony Tong Sandy Fung Greg James Louise Leung Nicholas Lui Mergers & Acquisitions Asian Taxation Guide 2008 Hong Kong March
More informationHong Kong Companies. Their benefits for international investments, asset protection and market entry to China
Hong Kong Companies Their benefits for international investments, asset protection and market entry to China Presentation at the TaxPro 2013 Conference February 12, 2013 Kiev, Ukraine By Henning Schwarzkopf,
More informationRecent Development of Tax Related Legislation and Judicial Decisions in Korea (2015)
IBA National Report Recent Development of Tax Related Legislation and Judicial Decisions in Korea (2015) Sunyoung Kim, Tax Partner (sunnykim@deloitte.com) Justin Sinchul Kang, Attorney (New York) (sikang@deloitte.com)
More informationTHE TAXATION INSTITUTE OF HONG KONG CTA QUALIFYING EXAMINATION PILOT PAPER PAPER 5 ADVANCED TAXATION PRACTICE
THE TAXATION INSTITUTE OF HONG KONG CTA QUALIFYING EXAMINATION PILOT PAPER PAPER 5 ADVANCED TAXATION PRACTICE Advance Tax- pilot_1007_q&a_jy R28/3/2013 1 QUESTIONS Section A Case Answer Question 1 in this
More informationSubcommittee on Base Erosion and Profit Shifting Issues for Developing Countries
Subcommittee on Base Erosion and Profit Shifting Issues for Developing Countries A. Purpose This note provides information about the project established by the OECD and G20 to address global concerns with
More informationGLOBAL GUIDE TO M&A TAX
Quality tax advice, globally GLOBAL GUIDE TO M&A TAX 2013 EDITION www.taxand.com CYPRUS Cyprus From a Buyer s Perspective 1. What are the main differences among acquisitions made through a share deal versus
More informationCambodia Tax Profile. kpmg.com.kh
Cambodia Tax Profile kpmg.com.kh Content 1 2 Tax Profile Income Tax Treaties for the Avoidance of Double Taxation 6 Indirect Tax (e.g. VAT/GST) 7 8 Personal Taxation Other Taxes 9 11 Free Trade Agreements
More informationThe UK as a holding company location
The UK as a holding company location Tax May 2013 kpmg.com A key ambition is to create the most competitive tax system in the G20. As well as lowering tax rates, the Government wants to make the UK the
More informationAustria A perfect gateway between East and West
Austria A perfect gateway between East and West Erich Certified Baier, Tax MBA, Advisor LL.M. 1 / 58 1 /77 Austria A A perfect gateway between East East and and West Wie auch immer das ausschauen 25 th
More informationHong Kong China
Index In this time of financial crisis, China is seen as one of the least contaminated countries. It is perceived by many companies to be a springboard for growth and continues to offer development prospects
More informationStarting a Business in Israel
Starting a Business in Israel Inspiration Invention Innovation Content: Page 1. Business Entities....... 2 a. Company...... 2 b. Foreign Company (e.g. a branch)...... 2 c. Partnership...... 3 d. Self Employed......
More informationUpdated Regulations regarding Withholding Tax in China
Updated Regulations regarding Withholding Tax in China Fiona Fan Director, Accounting Services NCO China Oct 13, 2010 Agenda Key concepts and regulations about withholding tax in China Relationship between
More informationAsia-Pacific Asset Finance & Leasing Newsletter
www.pwchk.com Asia-Pacific Asset Finance & Leasing Newsletter March 2013 Issue 1 Foreword Welcome to PwC s first edition of the Asia-Pacific Asset Finance & Leasing Newsletter. Although Asset Finance &
More informationHow To Understand The Tax Laws In Ireland
Ireland Ireland as a Location for US Life Settlement Transactions 3870785.7 Page 1 Introduction Life settlements have become increasingly popular as an alternative asset class. Ireland is an internationally
More informationCREDIBLE RELIABLE CONNECTED
CYPRUS 2 CREDIBLE RELIABLE CONNECTED ALTER DOMUS Cyprus 3 ALTER DOMUS Alter Domus is a leading European provider of Fund and Corporate Services, dedicated to international private equity & infrastructure
More informationAustralia Tax Alert. Budget 2013-14 targets debt funding by multinationals. Thin capitalization rules. International Tax. 15 May 2013.
International Tax Australia Tax Alert Contacts Peter Madden pmadden@deloitte.com.au Claudio Cimetta ccimetta@deloitte.com.au Vik Khanna vkhanna@deloitte.com.au Alyson Rodi arodi@deloitte.com.au David Watkins
More informationDOING BUSINESS IN SINGAPORE
DOING BUSINESS IN SINGAPORE INTRODUCTION Singapore is often regarded as one of the world s easiest place to do business (e.g. Doing Business 2012 report by the World Bank). Singapore has excellent infrastructure,
More informationUtilising British Virgin Islands and Cayman Islands entities for Private Equity Investment into China
Utilising British Virgin Islands and Cayman Islands entities for Private Equity Investment into China Hong Kong/Investment Funds/525578 As offshore legal counsel based in Hong Kong, we commonly deal with
More informationCREDIBLE RELIABLE CONNECTED
HONG KONG CREDIBLE RELIABLE CONNECTED ALTER DOMUS Alter Domus is a leading European provider of Fund and Corporate Services, dedicated to international private equity & infrastructure houses, real estate
More informationHong Kong SAR Tax Profile
o Hong Kong SAR Tax Profile Produced in conjunction with the KPMG Asia Pacific Tax Centre Updated: November 2013 Contents 1 Corporate Income Tax 1 2 Income Tax Treaties for the Avoidance of Double Taxation
More informationLuxembourg-Hong Kong Double Tax Treaty: The Best of Both Worlds
Tax Practice Luxembourg-Hong Kong Double Tax Treaty: The Best of Both Worlds Gerald Pasquier, Daniel Boone and David Maria examine the potential benefits for business connections between Asia and Europe
More informationRevised 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 informationInsurance Europe response to the EC consultation on the re-launch of the Common Consolidated Corporate Tax Base (CCCTB)
Position Paper Insurance Europe response to the EC consultation on the re-launch of the Common Consolidated Corporate Tax Base (CCCTB) Our reference: Referring to: ECO-TAX-15-165 Date: 6 January 2016 European
More informationPERSONAL AND CORPORATE TAXATION J. E. Triay Triay & Triay 28, Irish Town Gibraltar The Basis of Taxation? Income tax is charged on the income of any person (includes a company) which either; Accrues in
More informationJapan Tax Profile. Produced in conjunction with the KPMG Asia Pacific Tax Centre. Updated: November 2012
Japan Tax Profile Produced in conjunction with the KPMG Asia Pacific Tax Centre Updated: November 2012 Contents 1 Corporate Income Tax 1 2 Income Tax Treaties for the Avoidance of Double Taxation 7 3 Indirect
More informationMonaco Corporate Taxation
Introduction Monaco is a sovereign principality. France is a guarantor of the sovereignty and territorial integrity of Monaco, while Monaco is to conform to French interests. Although the Prince is the
More informationUpdate on tax policy developments in the OECD (the 'BEPS' initiative) EC (agressive tax planning) and the Dutch response
Update on tax policy developments in the OECD (the 'BEPS' initiative) EC (agressive tax planning) and the Dutch response Caroline Silberztein (BM Paris), Erik Scheer and Wouter Paardekooper Current Tax
More informationTransfer Pricing Country Summary Australia
Page 1 of 6 Transfer Pricing Country Summary Australia 20 April 2015 Page 2 of 6 Legislation Existence of Transfer Pricing Laws/Guidelines Legislation pertaining to transfer pricing for income years starting
More informationOverview of the OECD work on transfer pricing
Overview of the OECD work on transfer pricing Written contribution to the Conference Alternative Methods of Taxation of Multinationals (13-14 June 2012, Helsinki, Finland) by Marlies de Ruiter, Head of
More information30 May 2012. Russia, 123001 Moscow Blagoveshchensky lane 5 INFO@IFFLA.NET WWW.IFFLA.NET. Tel.+7 495 650 5110, +7 495 699 7888 Skype/Twitter: IFFLA_RU
30 May 2012 Russia, 123001 Moscow Blagoveshchensky lane 5 Tel.+7 495 650 5110, +7 495 699 7888 Skype/Twitter: IFFLA_RU INFO@IFFLA.NET WWW.IFFLA.NET THANK YOU, PARTNERS: Fides Services Tailored Corporate
More informationLEGAL FLASH I SHANGHAI OFFICE
LEGAL FLASH I SHANGHAI OFFICE Special edition 2013 INDEX UPDATE ON TAX REGULATIONS 2013 2 INTERIM PROVISIONS ON LABOR DISPATCH 5 UPDATE ON TAX REGULATIONS 2013 We started our special edition updates last
More information