Category: Tax Exempt

Why Indonesia’s domestic tax haven is a bad idea

In the latest move to revamp the tax system in Indonesia, the government is considering setting up tax haven areas to entice home money that was stashed abroad. The idea was initiated by former finance minister Bambang Brodjonegoro who believed that the distinct region could facilitate the investment of funds… – Continue reading

EU considers blacklisting NZ over tax laws

Possible EU sanctions against New Zealand could make travel harder and have a massive effect on the economy. New Zealand is under investigation by the EU as it prepares a blacklist of global tax havens, Newshub revealed on Monday night. The grouping of 28 European nations has compiled a list… – Continue reading

Brexit – The UK and International Tax Consequences

The political, economic and constitutional fallout of the UK’s referendum decision to leave the European Union (Brexit) will continue for some time. In addition to considering some of the possible domestic UK tax implications of Brexit, this OnPoint also considers some of the potential tax implications from the perspective of… – Continue reading

Taiwan-Italy Tax Treaty Takes Effect from 1 January 2016

With an aim to avoiding double taxation, improving the investment environment for Taiwan, and increasing the attractiveness of foreign investment into Taiwan, the Ministry of Finance in recent years has focused on entering into tax treaties with other jurisdictions. Following tax treaties signed with Italy and Austria, Taiwan entered into… – Continue reading

Tax conundrum for Indian-focused offshore private equity funds

Foreign private equity investors typically set up offshore pooling vehicles for routing investments into India, which offer them twin advantages of ease of administration and single window compliance with the Indian regulatory regime. Setting up such pooling vehicles in a tax favourable jurisdiction ensures that the interposition of the pooling… – Continue reading

Mauritius pact: A laudable reform

Last month the government announced an amendment to the Double Tax Avoidance Agreement between India and Mauritius. The DTAA was signed between the two countries in August 1982 and notified in December 1983. For the past thirty-three years it has been a key factor affecting foreign investment flows into India…. – Continue reading

Cyprus agrees to amend tax treaty ahead of GAAR with caveat

Ahead of India’s rolling out of anti-tax avoidance regulations, Cyprus has shown eagerness to amend the bilateral tax treaty allowing New Delhi to tax capital gains. In turn, has pitched to be taken off the blacklist or being considered a “notified jurisdiction” for not sharing tax information, which implies increased… – Continue reading

India-Mauritius tax treaty: An end and a new beginning

Recent news of India and Mauritius signing a Protocol to amend their 33 year old tax treaty caused seismic changes in the tax world. Though not completely unanticipated, the change is significant for foreign investors to go back to the drawing board and reassess their structures. The tax treaty between… – Continue reading

FBR seeks powers in Finance Bill to prevent tax evasions

The FBR has proposed powers through Finance Bill 2016-17 for entering into treaty with bilateral or multilateral forums for exchange of information to ensure prevention of tax evasions in the aftermath of Panama Leaks disclosure that many Pakistani influential owned offshore companies abroad. In totality, the FBR took tax measures… – Continue reading

After Mauritius, now government wants to amend Dutch tax treaty; asks Netherlands to resume talks

India has asked the Netherlands to resume negotiations on amending their bilateral tax treaty as the government extends its efforts to plug loopholes in such accords to curb misuse. The Dutch tax treaty , which allows exemption from capital gains and a lower rate of tax on dividends, has led… – Continue reading

EU finance ministers fail to agree on anti tax avoidance directive

The EU’s Economic and Financial Affairs Council (ECOFIN) has been unable to reach agreement on the European Commission’s proposed anti tax avoidance directive. The issue has therefore been postponed until the next ECOFIN meeting in June. The European Commission announced its proposed anti-tax avoidance directive (ATAD) in January. The proposed… – Continue reading

Ireland delays EU corporate tax deal

Ireland has helped delay an EU deal on corporate tax-dodging over fears it could harm the economy. Finance Minister Michael Noonan told his EU counterparts in Brussels he would not sign up to the deal because it affects Ireland’s sovereign right to set tax rates. “We want to make sure… – Continue reading

‘New tax treaty has plugged the loophole of double non-taxation’

Tax Treaty between India and Mauritius for avoidance of double taxation had become a double non-taxation treaty. Under this treaty, India could not tax the gains from sale of shares in Indian companies by a Mauritius resident, who is also not subject to any tax in Mauritius as such gains… – Continue reading

India gearing up to apply Mauritius tax treaty fix to double taxation avoidance accord with Cyprus

NEW DELHI: Now that loopholes in the tax treaty with Mauritius have been plugged, the Indian government is gearing up to apply the same fix to its accord with Cyprus. Talks to amend the double taxation avoidance treaty are at an advanced stage and the two sides will soon exchange… – Continue reading

Reasons behind decrease in effective rate of sales tax identified

The effective rate of sales tax is within the range of 3 to 3.5 percent as compared to the standard rate of 17 percent sales tax due to massive tax evasion and illegal/inadmissible input tax adjustment claimed by the unscrupulous elements. Official sources told Business Recorder here on Saturday that… – Continue reading

Canadian Budget Focuses On Tax Compliance

The first Budget tabled by Canada’s new Liberal Government provides for a major crackdown on tax evasion and avoidance, and streamlines the domestic tax credits system. The Budget was delivered by Finance Minister Bill Morneau on March 22, 2016. He told Parliament: “Today, we begin to restore hope for the… – Continue reading

Central Board of Direct Taxes eases tax framework to attract offshore fund houses

NEW DELHI: India has substantially liberalised the tax framework to extend exemption to fund houses owned by a single institutional entity, a move aimed at attracting offshore fund management activity into the country. The Central Board of Direct Taxes (CBDT), the apex direct taxes body, has announced rules to implement… – Continue reading

EPF tax row: Will it lead to double taxation?

Even employees earning below Rs 15,000 a month will be impacted if the Centre sticks to the plan of taxing 60% of EPF withdrawals The Budget has proposed significant changes on taxation of Employees’ Provident Fund (EPF). Given that EPF is at the core of the Indian social security system… – Continue reading

Pakistanis welcome tax exemption

ABU DHABI // Pakistani expatriates have been reassured that new taxation laws will not apply to them. Anti-corruption campaign group Transparency International (TI) said Pakistanis residing in the UAE need not worry about double taxation laws. Syed Gilani, former chairman of TI, said that Pakistani laws state that anyone working… – Continue reading

French Tax Update – Recent Case Law and Other Noteworthy Publications

The present French Tax Update will focus on an overview of several noteworthy publications, including decisions issued during the past few months by the French Administrative Supreme Court (Conseil d’Etat) and French Constitutional Court (Conseil Constitutionnel), as well as the European Commission decision in respect of the Belgian Excess Profit… – Continue reading

PROPERTY TAX POST: ROLL OF THE ‘D.I.C.E.’ —BUSINESS PERSONAL PROPERTY TAX RELIEF IS A CRAP SHOOT

Each year, states enact tax law changes and create local government programs that provide personal property tax breaks for businesses. These concessions come in various forms—deductions, incentives, credits and exemptions (i.e., D.I.C.E.), and they have a significant impact on whether businesses remain viable. Many states commonly impose ad valorem tax… – Continue reading

Property groups say Beps will cost UK sector £660m

UK property companies are seeking changes to the proposed implementation of a global agreement to fight tax avoidance that is set to add £660m to their annual tax bill. Private equity and infrastructure companies are also among those groups facing additional payments under OECD rules on base erosion and profit… – Continue reading