Category: Tax treaties

Panama, Vietnam Conclude DTA Negotiations

July 1 — Officials from Panama and Vietnam June 26 concluded the second round of negotiations and reached an agreement on the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income, the Panama government announced June 26. The agreement was initialed by the Minister of… – Continue reading

China’s new Enterprise Income Tax regulation and its impact on international transportation business

As reported in Clyde & Co’s 2011 article titled ‘Chinese charterers deducting taxes from hire payments’ (click here to view), foreign vessel owners engaged in business with Chinese charterers have long faced China’s Enterprise Income Tax regime (“EIT”). That regime looks set to extend further into the international transportation sector… – Continue reading

Govt using information from various nations to check tax evasion

New Delhi: The government on Tuesday said it is effectively using the information received from various countries to combat the menace of tax evasion and avoidance. “Effectively utilising the information received from treaty partners to combat tax evasion and avoidance,” Minister of State for Finance Nirmala Sitharaman said in a… – Continue reading

ICC Tells Countries To Resist Exit Taxes On MNEs

The International Chamber of Commerce, in a policy statement on July 15, 2014, has advised countries not to adopt exit taxes, to ensure that double taxation is avoided and to promote the free movement of capital. In its statement, entitled “Exit taxes: Serious obstacles for international business restructurings and movements… – Continue reading

Don’t get taxed by a foreign stint

An overseas assignment is definitely exciting, but it pays to understand the double taxation issues that might arise Even with a lucrative compensation package, an assignment overseas could be taxing if there are unplanned outflows, particularly on account of double taxation. Here’s a couple of commonplace situations you might find… – Continue reading

Isle of Man: FATCA Update

Two important dates have now passed in relation to Foreign Account Tax Compliance Act (“FATCA“) – 30 June 2014 when Financial Institutions were required to capture details of their existing customers for remediation purposes and 1 July 2014 when Financial Institutions were required to have procedures in place which would… – Continue reading

Switzerland, Iceland Sign Double Tax Pact

Switzerland and Iceland have signed a new double taxation agreement (DTA) which lowers withholding tax rates and provides for the exchange of information in line with international standards. It will replace the existing DTA, signed in 1998. The treaty sets a withholding tax exemption for dividend payments from significant holdings… – Continue reading

US turning the screws on tax cheats

Sweeping rules aimed at stopping tax evasion took effect on Tuesday, ushering in a new system that Obama administration officials say will leave tax cheats with fewer havens overseas. The Foreign Account Tax Compliance Act, one of President Obama’s initiatives for fighting offshore tax evasion, is arriving after multiple delays,… – Continue reading

Calls to review taxation agreement

AN area for immediate consideration and co-operation is a review of the New Zealand-Fiji double taxation avoidance agreement (DTAA). Speaking at the Fiji-New Zealand Business Council conference on Saturday, Ministry of Industry and Trade permanent secretary Shaheen Ali said it was woefully out-of-date and needed revision. He said this was… – Continue reading

QROPS Growing in the USA

Qualifying Recognised Overseas Pension Schemes (QROPS) are becoming increasingly popular in America, due to the loophole represented by a double-tax treaty signed with Malta – a country in the top three jurisdictions of choice since QROPS were introduced. Previously it was largely viewed as near-impossible to arrange for a viable,… – Continue reading

Your Taxes: Israel to sign tax treaty with Panama

With regard to business operations, a resident of one country (e.g., Panamanian company) may be taxed in the other country (e.g., Israel) if it has a “permanent establishment” (PE) in the other country. Panama is famous for its canal, colorful history and cool offshore tax regime. To that we can… – Continue reading

New Zealand Joins OECD In Plan To Stop Multinational Profit Shifting

WELLINGTON, June 23 (Bernama) — New Zealand tax officials are helping the Organisation for Economic Co-operation and Development (OECD) group of developed nations to deliver the first part of a plan to stop base erosion and profit shifting, Revenue Minister Todd McClay said Monday.The first seven “deliverables” of a 15-point… – Continue reading

Administration of withholding tax (2)

The organisations making the payments are required to withhold tax from such payments and pay over the withheld amounts to their respective relevant Tax Authorities within 30days of receipt of payment or credit by the person or entity suffering the Tax. The relevant tax authorities to receive the WHT tax… – Continue reading

US Business Urges DTA Ratifications

The National Foreign Trade Council (NFTC) has joined with other leading business organizations in sending a letter to every United States Senator expressing support for and calling for expeditious action on the bilateral double taxation agreements (DTAs) and protocols currently pending before the Senate. The NFTC has emphasized that “adoption… – Continue reading

South Africa, US Conclude FATCA IGA

On June 9, 2014, South African Finance Minister Nhlanhla Musa Nene and the US Ambassador to South Africa, Patrick H. Gaspard, signed an inter-governmental agreement (IGA) to support international efforts to improve tax compliance. The agreement includes provisions allowing the reciprocal exchange of information, which requires that financial institutions in… – Continue reading

Intergovernmental FATCA agreement signed

Revenue Minister Todd McClay and United States Chargé d’Affaires a.i., Marie Damour, today signed an intergovernmental-agreement (IGA) which will minimise compliance costs to financial institutions in New Zealand while assist in the prevention of tax evasion. The IGA is in response to the Foreign Account Tax Compliance Act (FATCA) information-reporting… – Continue reading

SA clamps down on offshore tax evasion

SA and the US have signed an intergovernmental agreement aimed at improving international tax compliance Yesterday a reciprocal agreement was signed by Finance Minister Nhlanhla Nene and Patrick Gaspard, US Ambassador to SA that will force local financial institutions to report information about US account holders to the SA Revenue… – Continue reading

Data ‘dance’ seen as challenge to world corporate tax crackdown

WASHINGTON (Reuters) – Cracking down on corporate tax avoidance sounds like a winner, and officials are working on it, but the practical challenges are formidable and they dominated discussion at an Organisation for Economic Co-operation and Development conference on Tuesday. The OECD, a Paris-based club of large economies, has an… – Continue reading

Cyprus: New Cyprus-UAE Double Tax Agreement Takes Effect

New agreement The new double tax agreement between Cyprus and the United Arab Emirates took effect from January 1 2014. For the most part, the agreement reproduces the corresponding provisions of the latest Organisation for Economic Cooperation and Development (OECD) Model Tax Convention verbatim. The principal departures from the OECD… – Continue reading