Search results for

Jim Fuller David Forst A fundamental principle of US transfer pricing rules is that transactions structured between related parties are to be respected unless the transactions lack economic substance (see Treasury Regulations §§ 1.482-1(d)(3)(ii)(B) and (iii)(B)). This is an important rule that respects a central pillar of the US tax system – separate entities should be treated separately. The rule also contributes to predictability and stability in worldwide tax administration.

There has been a complete paradigm shift in global taxation with the rise in audit risks caused by new global initiatives like the OECD’s BEPS Project. JD Choi, CEO at Tax Technologies, explores the technology solutions that should be administered to mitigate these audit risks in a post-BEPS world.

Lopatina Irina Georgia is becoming an increasingly popular jurisdiction for investments and export – import transactions with Commonwealth of Independent State (CIS) and EU countries. Among other factors, the attractiveness is also due to the absence of strict currency control rules and the availability of free trade regimes with European and other foreign countries. Additional advantages include the absence of corruption, the transparent conditions of conducting business, the signed association agreement with the EU, the introduction of a visa-free regime with the EU, the six fixed taxes and lowered tax rates, the significantly shortened list of licenses and permits, as well as simplified administration procedures. Georgia is among the top ranked countries in the World Bank's list on the ease of doing business. In addition, Georgia has significantly succeeded in establishing a business-friendly environment and maintaining a healthy, comfortable and attractive investment climate for foreign investors. In this regard, it is specifically worth mentioning the attractive investment opportunities in the Georgian free industrial zones (FIZ) regulated by the Law of Georgia on Free Industrial Zones, which aims to promote economic growth, enhance industrial competitiveness and attract foreign direct investments.

Alexander Linn Thorsten Braun The German Federal Tax Court has ruled that the existing administrative practice on the exemption of certain tax technical gains, triggered in restructurings of companies facing difficulties, lacks a legal basis and cannot be applied any longer (case: GrS 1/15). Shortly after the judgment, however, the German legislator introduced draft provisions that would reinstate the past administrative practice.

Dorina Asllani Ndreka Albania and Iceland signed an agreement for the avoidance of double taxation and the prevention of tax evasion regarding income tax (DTA) on September 26 2014, which was ratified by both countries and entered into force on January 6 2016. Under the treaty provisions, its general implementation has begun as of January 1 2017.

Read this month's special feature on New Zealand

Anne Bennett On February 22, the South African Minister of Finance delivered the 2017 budget, which proposed raising an additional ZAR 28 billion ($2.2 billion) primarily by collecting ZAR 16.5 billion more in personal taxes and ZAR 6.8 billion through an immediate increase in the dividend withholding tax rate from 15% to 20%. Apart from any treaty relief, profits extracted from South African companies will now suffer an effective rate of 42.4% (up from 38.8%) once 28% corporate tax and 20% dividends tax is accounted for.

As the EU takes the first major step towards introducing public country-by-country reporting (CbCR), many are asking what the EU’s plan really means. Keith Brockman considers the vision of the latest proposal.

Maria Sarantopoulou Zoe Kokoni Cyprus adopted the "start-up visa" plan (start-up permit scheme) on February 15 2017 for third country nationals interested in residing and investing in innovative businesses in Cyprus.

Gonzalo Gallardo At the end of 2016, a provision appeared in Royal Decree-law 3/2016 of December 3, introducing important changes to the Corporate Income Tax Law. Prior to that, Royal Decree-law 2/2016 of September 30 2016, had amended the prepayment system relating to this tax, establishing a minimum advance payment based on the income per books rather than the tax base. Both of those provisions are aimed at reducing the public deficit by immediately increasing the amount collected for corporate income tax, and mainly affect companies with high revenues and multinationals operating in Spain (large enterprises). In this commentary, we will highlight the three most relevant changes brought in by the new provision.