Newsletter UK Tax Update 2009
|
|
- Stephanie Atkins
- 8 years ago
- Views:
Transcription
1 May 2009 Ernst & Young Shinnihon Tax JAPAN Newsletter UK Tax Update 2009 Contents 1. Dividend exemption 2. Worldwide Debt Cap ( WWDC ) 3. Tax and Risk Management The UK Government has recently published the Finance Bill 2009 which includes the draft laws to implement proposed changes to UK tax law. These laws are expected to receive final approval of Parliament in late July However, some laws will be effective from an earlier date. The Finance Bill legislation, combined with other recent changes to tax and the approach adopted by HM Revenue and Customs ( HMRC ), represent the most significant changes to the UK tax regime in recent years. The two key areas of change are the treatment of foreign profits (along with related debt cap measures) and tax risk management. Both areas will be of significance to Japanese multinationals with operations in the UK, particularly when one considers the significant changes to the Japanese tax regime. In this brief summary we highlight three key areas of interest to Japanese owned companies.
2 1. Dividend exemption The Budget confirmed, and the Finance Bill includes, a dividend exemption for dividends payable on or after 1 July This is a 100% exemption, on most types of dividend received by a UK company, with no minimum shareholding period or percentage. The key attributes of the system can be summarised in the following diagram: Dividend Exemption Exemption for dividends (UK and overseas) Overseas dividends Payer obtains tax deduction for dividend; or Recipient is a small company (without a tax treaty) and directly/indirectly controls at least 10% of voting power in payer* Dividend exemption will not apply; existing double tax relief rules continue Dividend falls within an exempt class Exempt classes dividends in respect of: Controlled companies Non-redeemable ordinary shares Portfolio holdings (<10% holding) Transactions not designed to reduce tax Shares accounted for as liabilities *The small company definition applies to groups not individual entities so most Japanese companies will not be small. Targeted anti-avoidance rules may mean the exemption does not apply 100% exemption to corporate tax replaces current tax credit system. No Minimum % shareholding requirement Commencement date: 1 July 2009 Targeted anti-avoidance rule Dividend part of scheme with main purpose of obtaining tax advantage and Prescribed scheme relates to distribution The dividend exemption, combined with the Japanese dividend exemption, should mean that for Japanese MNC s with a UK holding company, the overall tax burden on repatriation of low tax overseas profits will no longer be a minimum of approximately 41%, under the current tax and credit regime. Rather, where there is no tax haven apportionment at the Japanese or UK level, and no withholding tax on payment of dividends to the UK, the effective rate will be reduced from 41% to the local rate + (41% x 5%). This combined with the UK domestic exemption to withholding tax on dividends should make the UK a more attractive location for a European holding company for Japanese groups. 2
3 One area to consider is that there may be Japanese tax haven implications of the lack of a minimum shareholding. Analysis of the impact of this should be undertaken based on the facts of each group, and where issues arise, planning can be considered to manage the potential exposure. The Finance Bill includes the possibility of a company electing out of the exemption. This means that a company can elect to be taxed on the dividend income and to claim double tax relief for underlying tax and withholding taxes. The rationale for opting out of the exemption should be considered along with the tax implications to the overall group. 2. Worldwide Debt Cap ( WWDC ) The UK tax authorities acknowledge that they will be reducing tax receipts by introducing the dividend exemption. They have therefore introduced a debt cap rule, in addition to the existing UK thin capitalisation rules, to balance out this reduction to tax revenues. The new rules are designed to prevent groups with low finance requirements from pushing debt into the UK. The key characteristics of the debt cap are summarised in the diagram below: Worldwide Debt Cap Tested amount less Available amount = Total disallowed amount Sum of net financing expense for every relevant group company. A relevant group company can only be a member of one worldwide group at a time. Sum of total debits less total credits in respect of: Loan relationships, excluding impairment losses and foreign exchange gains/losses ( Amount A ) Derivative contracts in intra-group hedging relationships that only impact one company and only affect interest amounts payable/receivable ( Amount B ) Financing cost in all finance leases ( Amount C ) Financing cost on intra-group debt factoring ( Amount D ) Gross worldwide consolidated finance expense of group (including finance expenses capitalised in accounts under J GAAP) If net amount is negative = nil Commencement date: period of account beginning on or after 1 January 2010 Government Intention: The measure prevents a group putting a greater amount of debt into the UK part of its group than the group as a whole has borrowed The legislation regarding this area is still draft and changes and additions are expected during the committee stage of review by parliament. However for the purposes of Japanese MNCs the proposed rules can be summarised as follows: 3
4 The limitation on interest will apply, if relevant, for accounting periods beginning on or after 1 January The WWDC rules will apply to a group where UK net debt of the group exceeds 75% of the worldwide gross debt of the group for an accounting period. The UK net debt is the sum of the net debt of amount of all relevant UK companies in the group. Where the provisions apply, UK tax deductions will be disallowed to the extent that the tested expense amount (broadly financing expenses relating to loans, finance leases and debt factoring) exceeds the available amount (broadly, the sum of the worldwide group s debits on amounts borrowed from third parties, including where the borrower is a UK company). The draft legislation does not yet include an exemption for financial services businesses this is to be introduced later. An exemption will be provided for companies with net financing income / deduction of less an 500,000 these companies will not be included in the overall debt cap calculations. A group treasury company (as defined) can elect for its financing income / expense to be excluded. Overall the UK tax authorities are seeking to streamline their approach to corporation tax. By identifying the tax-payers who they see as higher risk, putting the burden on the corporate taxpayer to self certify their tax reporting systems, transfer pricing documentation and level of debt, and by identifying tax planning which they wish to target, they will be more targeted in their operations in future. Some Japanese MNCs will need to develop their tax function in the UK if they wish to avoid increased attention from the UK Inspectors of Taxes, for others there is already sufficient tax resource in-house in the UK to deal with these changes, and indeed the changes may allow a welcome acknowledgement of overall compliance with UK tax requirements and a corresponding reduction in future enquiries into their tax affairs. The changes to the foreign profits rules, combined with this year s changes in Japan, should mean opportunities for Japanese MNCs to increase bottom line profit after tax results, through reduction of the overall tax burden on overseas profits. The benefit of reducing overseas tax will be of increasing importance to groups going forward, although it will be necessary to keep a careful eye on the potential to create tax haven issues in Japan. Most Japanese MNCs with UK presence are already considering what their tax charge will look like under the new rules, and where tax risks lie. This should help them to avoid unwelcome surprises and to maximise post tax profits in these challenging times. 4
5 3. Tax and Risk Management The traditional system of interaction between the UK corporate taxpayer and HMRC saw tax returns submitted to HMRC, with enquiries made by the Inspector of Taxes dealing with that specific case and being dealt with by tax advisors or the company directly. This system is quite different to the system of tax audit in Japan. In an effort to make companies dealings with HMRC more standardised and to create more transparency, HMRC has made a number of significant changes to the way in which this relationship operates. The interactions between HMRC, the taxpayer and the advisor can now be summarised in the following diagram: Tax and risk management H REPORTING ANNUAL CERTIFICATION COMPANY SAO M R C RISK RISK ASSESSMENT AND REVIEW COMPLIANCE AND CONTROVERSY CORPORATE TAX RETURNS VAT RETURNS WWDC HMRC ENQUIRIES PLANNING TAX AVOIDANCE DISCLOSURE UK COMPANY TAX ADVISOR Tax Avoidance Disclosure The system of disclosure was introduced in 2004, under this system arrangements which give rise to a tax effect with certain hallmarks are reported to HMRC by advisors and companies. In this way HMRC can understand tax planning ideas and adopt their stance on areas of interpretation where they determine tax avoidance to be taking place. This system is being updated in 2009 and changes regarding the timing of reporting and notification methodology have effect from 1 April
6 Large and Complex Risk Ratings As part of an ongoing process HMRC is determining a tax risk rating for all large and complex UK companies. This will be based on an analysis of all taxes, not just corporation tax and the result will determine how the company is to be treated for tax purposes going forward. It will therefore impact the amount of enquiry and potential speed of obtaining certainty on tax in transactions. Potential areas of difficulty for Japanese groups have been the potential for a higher risk rating based on complexity of the business, lack of coherent UK tax function and strategy and lack of UK based tax resource. A higher risk rating will result in more interventions by HMRC in more areas involving more Inspectors of Taxes. Senior Accounting Officer (SAO) certification In future an SAO will have to be responsible for the tax reporting and returns of his employer. The precise details of these arrangements are now subject of a period of Consultation. However, in summary, the Finance Bill requires that companies take reasonable steps to ensure that appropriate tax accounting arrangements are in place. The SAO is to be required to provide a certificate that the appropriate accounting arrangements are in place. The SAO will be the most senior person whose responsibility for the company s accounting arrangements. In most cases, this will be the Chief Financial Officer or equivalent. These rules will also apply to VAT and PAYE returns. The SAO individually, could be liable to three types of penalty of 5,000 each for either or all of failing to comply with their duties of maintaining appropriate tax accounting, providing explanations of accounting arrangements and providing certification to HMRC. These penalties are in addition to any penalties on the company. More detailed guidance regarding SAO certification is expected from HMRC by the end of July Publication of the names of companies deliberately understating tax Under existing law, a company may be charged a penalty for deliberately understating tax due, or overstating claims or losses. The Finance Bill includes a clause allowing HMRC to publish the names of such companies where the potential lost revenue is more than 25,000. This will represent some reputational risk in future for companies which have misstated tax or losses. 6
7 Overall the UK tax authorities are seeking to streamline their approach to corporation tax. By identifying the tax-payers who they see as higher risk, putting the burden on the corporate taxpayer to self certify their tax reporting systems, transfer pricing documentation and level of debt, and by identifying tax planning which they wish to target, they will be more targeted in their operations in future. Some Japanese MNCs will need to develop their tax function in the UK if they wish to avoid increased attention from the UK Inspectors of Taxes, for others there is already sufficient tax resource in-house in the UK to deal with these changes, and indeed the changes may allow a welcome acknowledgement of overall compliance with UK tax requirements and a corresponding reduction in future enquiries into their tax affairs. The changes to the foreign profits rules, combined with this year s changes in Japan, should mean opportunities for Japanese MNCs to increase bottom line profit after tax results, through reduction of the overall tax burden on overseas profits. The benefit of reducing overseas tax will be of increasing importance to groups going forward, although it will be necessary to keep a careful eye on the potential to create tax haven issues in Japan. Most Japanese MNCs with UK presence are already considering what their tax charge will look like under the new rules, and where tax risks lie. This should help them to avoid unwelcome surprises and to maximise post tax profits in these challenging times. 7
8 Contact Ernst & Young Shinnihon Tax Kasumigaseki Bldg. 32nd Floor, 3-2-5, Kasumigaseki, Chiyoda-ku, Tokyo About Ernst & Young Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 135,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential. For more information, please visit International Tax Services (ITS) Kazuhiro Mukaida, Partner kazuhiro.mukaida@jp.ey.com Joachim Stobbs, Senior Manager joachim.stobbs@jp.ey.com Shaun De Boo, Director sdeboo@uk.ey.com Hiroshi Nakagawa, Manager hiroshi.nakagawa@jp.ey.com Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. About Ernst & Young Shinnihon Tax Ernst & Young s tax professionals in Japan provide you with deep technical knowledge, both global and local, combined with practical, commercial and industry experience. Our highly regarded tax and M&A advisory, compliance and transfer pricing professionals, consistent methodologies as well as unwavering commitment to quality service help you to build the strong compliance and reporting foundations and sustainable tax strategies that help your business achieve its ambitions. It s how Ernst & Young makes a difference Ernst & Young Shinnihon Tax All Rights Reserved. Comments or general inquiries regarding this newsletter may be directed to our Corporate Communication team at: Tax.Marketing@jp.ey.com This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither Ernst & Young Shinnihon Tax nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor.
Reform of Taxation of Foreign Profits. The Worldwide Debt Cap. July 2009. Osborne Clarke
Reform of Taxation of Foreign Profits The Worldwide Debt Cap July 2009 Taxation of Foreign Profits Taxation of Foreign Profits Proposals It has been confirmed that certain elements of the taxation of foreign
More informationWorldwide debt cap. The Bad bit of Foreign Profits 10 July 2009 Bill Dodwell
Worldwide debt cap. The Bad bit of Foreign Profits 10 July 2009 Bill Dodwell Debt Cap WW debt cap - introduction Timeline Overall concept What s in the Finance Bill? Next steps Trailed at PBR2006 and Budget2007,
More informationThe world-wide debt cap a fundamental change to the tax deductibility of finance costs in the UK
The world-wide debt cap a fundamental change to the tax deductibility of finance costs in the UK Since 2007, HM Revenue & Customs ( HMRC ) has been consulting with business on reforms to the taxation of
More informationPAPER IIA UNITED KINGDOM OPTION
THE ADVANCED DIPLOMA IN INTERNATIONAL TAXATION June 2008 PAPER IIA UNITED KINGDOM OPTION ADVANCED INTERNATIONAL TAXATION TIME ALLOWED 3¼ HOURS You should answer FOUR out of the seven questions. Each question
More informationLegislative Council Panel on Financial Affairs. Proposal to Attract Enterprises to Establish Corporate Treasury Centres in Hong Kong
CB(1)870/14-15(04) For discussion on 1 June 2015 Legislative Council Panel on Financial Affairs Proposal to Attract Enterprises to Establish Corporate Treasury Centres in Hong Kong PURPOSE In his 2015-16
More informationUK corporation tax on dividends
October 2009 slaughter and may UK corporation tax on dividends Graham Airs, Partner The rules for the taxation of dividends received by UK resident companies (and, in those few cases where relevant, non-uk
More informationInternational Business Tax Services
International Business Tax Services Introduction There are many reasons why the UK is an ideal location in which to trade. The UK itself offers a home market of approximately 62 million people, and can
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 informationWhat Are the Tax Reasons Favouring the United Kingdom as a Holding Company Location for International Groups?
UK CLIENT MEMORANDUM ENGLISH LAW UPDATES What Are the Tax Reasons Favouring the United Kingdom as a Holding Company Location May 13, 2014 AUTHOR Judith Harger Recent activity in the merger and M&A space
More informationAmendments to the Tax Treatment of Financing Costs and Income (Debt Cap)
Amendments to the Tax Treatment of Financing Costs and Income (Debt Cap) Who is likely to be affected? Large groups of companies that are subject to the debt cap. General description of the measure This
More informationTaxation of loan relationships
Taxation of loan relationships Produced by Tolley in partnership with Sue Mainwaring Reed Elsevier (UK) Limited trading as LexisNexis. Registered office 1-3 Strand London WC2N 5JR Registered in England
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 informationUNITED 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 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 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 informationTAX LAWS AMENDMENT (TAX INTEGRITY MULTINATIONAL ANTI-AVOIDANCE LAW) BILL 2015 EXPOSURE DRAFT EXPLANATORY MATERIAL
TAX LAWS AMENDMENT (TAX INTEGRITY MULTINATIONAL ANTI-AVOIDANCE LAW) BILL 2015 EXPOSURE DRAFT EXPLANATORY MATERIAL Table of contents Glossary... 1 Tax integrity multinational anti-avoidance law... 3 Glossary
More informationMacau SAR Tax Profile
Macau SAR Tax Profile Produced in conjunction with the KPMG Asia Pacific Tax Centre Updated: June 2015 Contents 1 Corporate Income Tax 1 2 Income Tax Treaties for the Avoidance of Double Taxation 5 3 Indirect
More informationDeduction of income tax from savings income: implementation of the Personal Savings Allowance
Deduction of income tax from savings income: implementation of the Personal Savings Allowance Consultation document Publication date: 15 July 2015 Closing date for comments: 18 September 2015 Subject of
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 informationUK Worldwide Debt Cap
Revised UK Tax Rules on the Deductibility of Interest and other Financing Costs SUMMARY From a date expected sometime in 2009, the UK will be introducing significant additional restrictions on the ability
More informationUK Tax Flash. Foreign Profits Update. Contents. Background
UK Tax Flash. Foreign Profits Update The eagerly anticipated draft legislation outlining a new regime for the taxation of foreign profits was published on 9 December 2008. A summary of the provisions is
More informationtechnical factsheet 177 Company purchase of own shares
technical factsheet 177 Company purchase of own shares CONTENTS 1. Introduction 2. Legal aspects 3. Taxation 4. Accounting 5. Reporting 6. General business planning issues 7. Ethical considerations for
More informationAppendix 3. The metric
Appendix 3 A consistent and useful effective tax rate methodology to assess the global tax performance of multinationals in relation to Australian-linked business operations 1 The purpose of this paper
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 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 informationCIOT Examination: Advisory Advanced Corporation Tax
CIOT Examination: Advisory Advanced Corporation Tax QUESTION 1: Note Prepared by: Tax Manager Subject: Group Relief This file note sets out the position on the availability of group relief from the Albinoni
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 informationThe key budget changes
The key budget changes Taking into account Finance Bill 2009 May 2009 Contents 4. Mainstream Corporation Tax 5. briefing on the key expected corporation tax changes 19. briefing on other expected corporation
More informationDeduction of income tax from interest: peer-topeer
Deduction of income tax from interest: peer-topeer lending Consultation document Publication date: 15 July 2015 Closing date for comments: 18 September 2015 Subject of this consultation: Scope of this
More informationTransition to International Financial Reporting Standards
Transition to International Financial Reporting Standards Topps Tiles Plc In accordance with IFRS 1, First-time adoption of International Financial Reporting Standards ( IFRS ), Topps Tiles Plc, ( Topps
More informationCYPRUS 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 informationTax Risk Management. From risk to opportunity. Edited by Anuschka Bakker and Sander Kloosterhof IBFD
Tax Risk Management From risk to opportunity Edited by Anuschka Bakker and Sander Kloosterhof IBFD Foreword Acknowledgements v ix Chapter 1: Introduction to Tax Risk Management 1. 2. 3. 4. 5. 6. 7. 8.
More informationWorldwide Debt Cap Section 35 & Schedule 15 Finance Act 2009
Worldwide Debt Cap Section 35 & Schedule 15 Finance Act 2009 Olswang LLP 2010 www.olswang.com 1 Worldwide Debt Cap Mark Joscelyne and Hugo Webb of Olswang LLP discuss the worldwide debt cap in Schedule
More informationEarn-out arrangements in a business combination impact of the revised IFRS 3
ey.com/ifrs Negotiation series Earn-out arrangements in a business combination impact of the revised IFRS 3 January 2010 When negotiating a business acquisition, the potential consequences of the accounting
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 informationNew United Kingdom Tax on Cross-Border Tax Planning: Diverted Profits Tax
UK CLIENT MEMORANDUM ENGLISH LAW UPDATES New United Kingdom Tax on Cross-Border Tax Planning: Diverted Profits Tax 5 February 2015 AUTHOR Judith Harger Introduction Following heated press coverage and
More informationUnited 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 informationIncome 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 informationReal Estate Investment Trusts
Real Estate Investment Trusts What are REITs? 1. REITs or Real Estate Investment Trusts to give them their full title are now common to many economies with a developed property market. Generally they are
More information2013 Japan tax reform outline
March 2013 Japan tax newsletter 2013 Japan tax reform outline Content I. Corpo taxation II. Inheritance tax and gift tax III. Income tax IV. ation of finance and securities V. International taxation VI.
More informationTAX CARD 2015 GREECE. Table of Contents
GREECE TAX CARD TAX CARD 2015 GREECE Table of Contents 1. Individuals 1.1 Personal Income Tax 1.1.1 Employment and Pension Income 1.1.2 Income from Individual Practices and Freelance Professions 1.1.3
More informationHow Canada Taxes Foreign Income
- 1 - How Canada Taxes Foreign Income (Summary) Purpose of the book The purpose of writing this book, entitled How Canada Taxes Foreign Income is particularly for the benefit of foreign tax lawyers, accountants,
More informationDiverted Profits Tax: Guidance
Diverted Profits Tax: Guidance This document updates the interim guidance (published in March 2015) on the Diverted Profits Tax that was introduced in the Finance Act 2015. It replaces all previously published
More informationThe Netherlands as the European business hub for Indonesian companies
The Netherlands as the European business hub for Indonesian companies a tax perspective 2012 edition By Vinod Kalloe, KPMG Meijburg & Co Netherlands Amsterdam 19 September 2012, Jakarta, Indonesia Content
More informationTaxation (International and Other Provisions) Act 2010
Taxation (International and Other Provisions) Act 2010 CHAPTER 8 Explanatory Notes have been produced to assist in the understanding of this Act and are available separately 43.50 Taxation (International
More informationSurvey on the tax deductibility of interest payments
Survey on the tax deductibility of interest payments Please note: This survey will only provide for a very basic high-level overview of the most relevant rules regarding the tax deductibility of interest
More informationSetting up your Business in SINGAPORE Issues to consider
SINGAPORE is commerce, industry, heritage, culture and entertainment all rolled into a little island of slightly over 700 square kilometres with a population of 5.4 million. Here at the crossroads of Asia,
More informationHow To Lower Tax Burden For More Companies
April 2011 Tax Insights Ernst & Young LLP s analysis of four hypothetical companies shows Wyden-Coats tax reform plan would lower tax burden for more companies than Deficit Commission plan Tom Neubig,
More informationTax Guide for Individuals Moving to the UK
Tax administration and allowances The UK taxing authority is known as Her Majesty s Revenue and Customs (or HMRC for short) and the tax year runs from 6 April to the following 5 April. There is no system
More informationDraft Examples Clause 33: Hybrid and other mismatches
Draft Examples Clause 33: Hybrid and other mismatches The following draft examples are provided to assist understanding of the application of the draft hybrids mismatch legislation published on 9 December
More informationLease accounting update
Financial Executives International 22 March 2012 Agenda Where are we now? Timing? What are the proposed changes to lease accounting? Overview of implications and considerations What are companies doing
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 informationRESIDENTIAL LANDLORDS TAX INFORMATION
RESIDENTIAL LANDLORDS TAX INFORMATION The following notes are intended to provide a useful background for investors buying and letting individual residential properties. Independent advice, tailored to
More informationThe Advantages of the UK as a Location for a Holding Company. David Gibbs May 2015
The Advantages of the UK as a Location for a Holding Company David Gibbs May 2015 The UK is an attractive location to site an international holding company since not only does it offer a relatively stable
More informationFEDERAL TAXATION OF INTERNATIONAL TRANSACTIONS
Chapter 10 FEDERAL TAXATION OF INTERNATIONAL TRANSACTIONS Daniel Cassidy 1 10.1 INTRODUCTION Foreign companies with U.S. business transactions face various layers of taxation. These include income, sales,
More informationTAX AND SUPERANNUATION LAWS AMENDMENT (2014 MEASURES NO.#) BILL 2014: EXPLORATION DEVELOPMENT INCENTIVE EXPLANATORY MATERIAL
TAX AND SUPERANNUATION LAWS AMENDMENT (2014 MEASURES NO.#) BILL 2014: EXPLORATION DEVELOPMENT INCENTIVE EXPLANATORY MATERIAL Table of contents Glossary... 1 Chapter 1 Exploration development incentive...
More informationUnited States Corporate Income Tax Summary
United States Corporate Income Tax Summary SECTION 1: AT A GLANCE CliftonLarsonAllen LLP 222 Main Street, PO Box 1347 Racine, WI 53401 262-637-9351 fax 262-637-0734 www.cliftonlarsonallen.com Corporate
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 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 informationDouble taxation relief: revenue protection
Double taxation relief: revenue protection Who is likely to be affected? Companies which make claims for double taxation relief (DTR) may be affected by this measure. General description of the measure
More informationIncome tax for individuals is computed on a monthly basis by applying the above progressive tax rates to employment income.
Worldwide personal tax guide 2013 2014 China Local information Tax Authority Website Tax Year Tax Return due date Is joint filing possible Are tax return extensions possible State Administration of Taxation
More informationMALTA: 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 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 informationStep 1: Visit www.gov.im/onlineservices and register for Isle of Man Government online services by selecting Income Tax service.
GuiDance notes, Gn1S ReTuRn form GuiDe SimPlifieD 15-16 important information TO assist WiTh The completion Of YOuR ReTuRn form Why use Online Tax Services? Because you can: File your return efficiently
More informationTax Planning Checklist
Tax Planning Checklist For the year ended 31 March 2014 Contents Year end tax planning checklist 1 General tips on minimising tax 4 Help us to process your records efficiently and quickly 5 Help yourself
More informationSolvency II and the Taxation of Life Insurance Companies
Solvency II and the Taxation of Life Insurance Companies Who is likely to be affected? This measure is relevant to UK life insurance companies and Friendly Societies. It will also affect overseas life
More informationFRS1 FINANCIAL REPORTING STANDARDS ACCOUNTING STANDARDS BOARD OCTOBER 1996 FRS 1 (REVISED 1996)
ACCOUNTING STANDARDS BOARD OCTOBER 1996 FRS 1 (REVISED 1996) Financial Reporting Standard 1 (Revised 1996) is set out in paragraphs 1-50. The Statement of Standard Accounting Practice set out in paragraphs
More informationTHIN CAPITALISATION LEGISLATION. A BACKGROUND PAPER FOR COUNTRY TAX ADMINISTRATIONS (Pilot version for comments)
THIN CAPITALISATION LEGISLATION A BACKGROUND PAPER FOR COUNTRY TAX ADMINISTRATIONS (Pilot version for comments) Initial draft - August 2012 1 THIN CAPITALISATION Introduction This paper, which has been
More informationPartnerships review: limited liability partnerships: treatment of salaried members
Partnerships review: limited liability partnerships: treatment of salaried members Who is likely to be affected? Individual members of a limited liability partnership (LLP) who work for the LLP on terms
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 informationThis chapter outlines the key issues that are peculiar to partnerships. There are five main types of partner in a conventional partnership:
Introduction A business partnership is a relationship between two or more persons who are in business together with a view to making a profit. Those persons may be individuals, companies or possibly even
More informationIndividual Savings Account Supplementary Terms
Individual Savings Account Supplementary Terms Individual Savings Account Supplementary Terms and Conditions for Stocktrade Retail Clients forming part of the Agreement between Stocktrade (a division of
More informationShare purchase or asset purchase: tax issues
Share purchase or asset purchase: tax issues This practice note looks at:1. The main tax advantages for the buyer and seller of a share purchase.2. The main tax advantages for the buyer and seller of an
More informationBest location for regional headquarters? Hong Kong vs Shanghai vs Singapore
Best location for regional headquarters? Hong Kong vs Shanghai vs Singapore Clement Yuen and Wilson Cheng 17 June 2013 Agenda Criteria Comparison Application Page 2 Key Criteria Proximity to markets Business
More informationDOING BUSINESS IN GERMANY Overview on Taxation
DOING BUSINESS IN GERMANY Overview on Taxation March 2015 1. Introduction 1.1. Generally, taxes are administered and enforced by the competent local tax office. These local tax offices administer in particular
More informationCorporation tax ( 329,080 x 26%) 85,561
Answers Professional Level Options Module, Paper P6 (UK) Advanced Taxation (United Kingdom) December 2012 Answers 1 Flame plc group (a) Report to the Group Finance Director of Flame plc (i) Flame plc sale
More informationA QUICK GUIDE TO DIVIDENDS TAX
A QUICK GUIDE TO DIVIDENDS TAX i A QUICK GUIDE TO DIVIDENDS TAX 1. INTRODUCTION TO DIVIDENDS TAX In 2007, the Minister of Finance announced that Secondary Tax on Companies (STC) would be replaced by Dividends
More informationCyprus in International Tax Planning
Seize the advantage of our expertise Technical Report This publication should be used as a source of general information only. It is not intended to give a definitive statement of the law. For the specific
More informationUK Real Estate Investment Trusts
Property Group 2006 UK Real Estate Investment Trusts By Ian Nisse & Iain Scoon In December 2005, the UK Government finally announced that it would bring forward legislation for the introduction of Real
More informationSupreme Court Decision on Delaware Limited Partnerships
Supreme Court Decision on Delaware Limited Partnerships Issue 113, August 2015 In brief On July 17, 2015, the Japan Supreme Court overturned a lower court (Nagoya High Court) decision and determined that
More informationThames Water Utilities Cayman Finance Limited. Annual report and voluntary financial statements for the year ended 31 March 2009
Thames Water Utilities Cayman Finance Limited Annual report and voluntary financial statements for the year ended 31 March Registered no: MC-187772 (Cayman Islands) Thames Water Utilities Cayman Finance
More informationRESIDENTIAL LANDLORDS TAX INFORMATION
RESIDENTIAL LANDLORDS TAX INFORMATION The following notes are intended to provide a useful background for investors buying and letting individual residential properties. Independent advice, tailored to
More informationFor the year ended 31 March 2015. Guide to year end tax planning
For the year ended 31 March 2015 Guide to year end tax planning Contents Introduction Year end tax planning checklist 5 Current income tax rates 9 Provisional tax overview 11 Penalties regime 13 Record
More informationProfits from Trading in and Developing UK Land
Profits from Trading in and Developing UK Land 16 March 2016 Technical Note 1 Contents Summary Chapter 1 Chapter 2 Current legislation Details of the new legislation 2 SUMMARY Some property developers
More informationMaintaining the Momentum of Business TAX REFORM
Maintaining the Momentum of Business TAX REFORM Senator The Hon Helen Coonan Minister For Revenue & the Assistant Treasurer 1 Maintaining the Momentum of Business Tax Reform The Minister for Revenue and
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 informationTobacco levy: consultation
Tobacco levy: consultation December 2014 Tobacco levy: consultation December 2014 Crown copyright 2014 This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise
More informationBEPS ACTION 4: INTEREST DEDUCTIONS AND OTHER FINANCIAL PAYMENTS
Public Discussion Draft BEPS ACTION 4: INTEREST DEDUCTIONS AND OTHER FINANCIAL PAYMENTS 18 December 2014-6 February 2015 WORK IN RELATION TO INTEREST DEDUCTIONS AND OTHER FINANCIAL PAYMENTS In July 2013,
More informationPacific Association of Tax Administrators (PATA) Transfer Pricing Documentation Package
Pacific Association of Tax Administrators (PATA) Transfer Pricing Documentation Package I. Introduction The PATA members, which include Australia, Canada, Japan and the United States, are providing principles
More information31 October (paper filing) 31 January (Electronic Filing)
Worldwide personal tax guide 2013 2014 United Kingdom Local information Tax Authority Website Tax Year Tax Return due date Is joint filing possible HM Revenue and Customs (HMRC) www.hmrc.gov.uk 6 April
More informationTHE BEGINNERS GUIDE TO IR35
TO CONTENTS Introduction - What is? Chapter 1 - Know your status Chapter 2 - The cost of non compliance Chapter 3 - Selecting your operating structure Chapter 4 - Investigations Using this guide You can
More informationIntegrating the operation of income tax and National Insurance contributions. A call for evidence
Integrating the operation of income tax and National Insurance contributions A call for evidence July 2011 Integrating the operation of income tax and National Insurance contributions A call for evidence
More informationWorldwide personal tax guide 2013 2014. Japan. Local information. 2013 National Income Tax Rates Taxable Income Band National Income Tax Rates
Worldwide personal tax guide 2013 2014 Japan Local information Tax Authority Ministry of Finance Website www.mof.go.jp Tax Year 1 January to 31 December Tax Return due date 15 March Is joint filing possible
More informationWhy Spain? Why Austria?
Briefing Overseas investments by Brazilian corporations Summary In this briefing we look at how the Austrian and Spanish domestic tax regimes for holding companies may be relevant when structuring international
More informationA History of Controlled Foreign Corporations and the Foreign Tax Credit
A History of Controlled Foreign Corporations and the Foreign Tax Credit by Melissa Redmiles and Jason Wenrich A s U.S. corporations have expanded their businesses overseas in the last several decades,
More informationSetting up your Business in Australia Issues to consider
According to a recent International Monetary Fund study, Australia is in the top ten wealthiest countries in the world. With an educated and skilled workforce, it presents great opportunity for expansion.
More informationThailand. Thailand General Insurance. International Comparison of Insurance Taxation* May 2009. *connectedthinking. Definition Accounting Taxation
Thailand International Comparison of Insurance * May 2009 Thailand General Insurance Definition Definition of property and casualty insurance company Companies having been licensed to engage in the non-life
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 informationFinance Act 2011. Structured Finance (Section 110) Regime Amendments
Finance Act 2011 Structured Finance (Section 110) Regime Amendments Contents Finance Act 2011 Structured Finance (Section 110) Regime Amendments Introduction Page 3 Qualifying Assets Page 3 Tax deductibility
More information