U.K./Netherlands Tax Alert

Size: px
Start display at page:

Download "U.K./Netherlands Tax Alert"

Transcription

1 International Tax U.K./Netherlands Tax Alert 3 October 2008 New Tax Treaty Signed The U.K. and the Netherlands signed a new tax treaty and protocol on 26 September 2008 that will replace the current treaty, dating from 1980 (and amended twice in 1983 and 1989). The treaty must be ratified by both countries before it can enter into force. Contacts Hans Pijl HPijl@deloitte.nl + 31 (20) Bill Dodwell bdodwll@deloitte.co.uk + 44 (20) Many of the provisions in the new treaty reflect the 2008 OECD Model Tax Convention: Article 3(2) provides for the domestic law meaning of undefined treaty terms; Article 14 is deleted and independent personal services are now addressed under the permanent establishment (PE) and business profits articles; The capital gains article has been extended by a provision for capital gains from the alienation of certain shares in companies, the value of which is predominantly (in this treaty, 75%) derived from immovable property in the other state; The exchange of information is modeled after the most recent OECD provision, allowing maximum international transparency. Assistance in the collection of taxes is also brought within the scope of the treaty; and Mandatory arbitration may be invoked by a taxpayer to resolve issues where the mutual agreement procedure has failed. The articles on director s fees and artistes and sportsmen have been changed substantially. Residence: Tax-Exempt Bodies Organizations that are partially or wholly exempt from tax traditionally have been a problem in tax treaties. The residence article of the new U.K.-Netherlands treaty resolves certain doubts about treaty access by

2 including charitable organizations and pension schemes as residents. These organizations, therefore, can obtain benefits of the treaty, such as reduced withholding taxes, etc. Tie-breaker Rule for Companies The new treaty includes a tie-breaker rule, which is similar to the alternative tie-breaker in the 2008 OECD Commentary. The tie-breaker test provides that, where a company is a resident of both contracting states, the residence of the company will be determined by mutual agreement by the competent authorities (the current tie-breaker uses the place of effective management to resolve issues of dual residence). Where mutual agreement cannot be reached, the company will be deemed not to be a resident of either state, and, as a result, will not be entitled to most benefits under the treaty. Arbitration, however, will not be available to resolve issues of corporate dual residence. These changes could create issues for dual-resident companies. The treaty also specifically addresses the residence of a company that participates in a dual listed company arrangement. Where such a company is resident in both states, it will be deemed to be resident only in the state in which it was incorporated (provided the company s primary listing is in that state). A dual listed company arrangement is defined for these purposes as an arrangement whereby two publicly listed companies, while maintaining their separate legal entity status, shareholdings and listings, align their strategic directions and the economic interests of their shareholders by: The appointment of identical or almost identical boards of directors; Managing the operations of the two companies on a unified basis; Equalizing distributions to shareholders in accordance with an equalization ratio, including in the event one or both companies are wound up; Shareholders of both companies generally voting as a single decision-making body on substantial issues affecting their combined interests; and Arrangements for cross-guarantees as to, or similar financial support for, each other s material obligations or operations. Collective Investment Vehicles (CIVs) The 2008 OECD Commentary contains new paragraphs on Real Estate Investment Trusts and the Commentary for 2010 is expected to have new commentaries on CIVs in general. The application of tax treaties to CIVs is a common problem: like pension schemes, CIVs often are not subject to tax on part (or all) of their income, profits or gains. The protocol to the new U.K.-Netherlands treaty includes a paragraph that

3 allows the competent authorities to put in place arrangements to grant treaty access at the request of the investment fund. Dividends Subject to the normal beneficial ownership criterion: Non-real estate investment vehicles No dividend withholding tax is due where the recipient is a company owning at least 10% of the voting power in the paying company or where the recipient is a pension scheme, or charitable organization; and 10% tax is due on dividends paid to individuals or companies (the latter owning less than 10% of the voting power in the paying company). Under the existing treaty, the lowest rate of withholding tax is 5%. However, subject to meeting the necessary conditions, this can be reduced to zero by application of the EC Parent-Subsidiary directive. Real estate investment vehicles A 15% withholding tax will be applied to dividends paid by real estate investment vehicles, except for dividends paid to pension schemes and charitable organizations which will be exempt. To safeguard the Dutch position, the protocol clarifies that income received in connection with the liquidation of a company or a repurchase of shares will be treated as income from shares rather than capital gains. This paragraph probably tries to eliminate the effect of a 2003 Dutch Supreme Court decision in which the Court held that, under the Netherlands-Belgium tax treaty, the Netherlands could not levy dividend withholding tax on the repurchase of shares. In addition to the beneficial ownership clause, the dividends article contains a general anti-abuse provision triggered where the main reason for the insertion of the recipient is the reduction of the withholding tax. A similar provision is included in the interest, royalty and other income articles. Interest and Royalties: Triangular Cases The protocol contains a clause that will deny the reduced rates of withholding tax on interest and royalties where the income is paid to a low-taxed (i.e. less than 60% of the Dutch tax) PE of a Dutch resident and where the Netherlands would exempt such income. In such cases, the U.K. would not be obliged to reduce its domestic withholding taxes.

4 Capital Gains Article 13(6) is a typical clause in Dutch tax treaties. Under Dutch law, individuals owning 5% or more of the shares in a company are subject to a 25% income tax on capital gains. The treaty allows the Netherlands to retain this taxing right even after an individual emigrates, although the minimum shareholding is increased to 20%. Elimination of Double Taxation The Netherlands will, in certain narrowly defined finance PE situations, only grant a tax credit, rather than an exemption. Fiscally Transparent Entities The new treaty contains specific provisions to deal with fiscally transparent entities. In particular: The treaty does not preclude the taxation of partners in their state of residence on their shares of income, profits or gains of a partnership established in the other state; If a resident derives income, profits or gains through a fiscally transparent entity, and this is treated as their income, profits or gains for tax purposes, it will be considered to be derived by that person for the purposes of applying the treaty. A similar provision is found in the U.K.-U.S. tax treaty, and was introduced to deal with, in particular, U.S. limited liability companies, that may otherwise not have qualified for treaty benefits. In cases where the same income, profits or gains is considered to be derived by a person(s) in both states, the treaty does not prevent taxation in both states. This could be applicable, for example, in the case of entities that are viewed for tax purposes as opaque in one state and transparent in the other; and Where income, profits or gains are not treated as such for tax purposes, but would have been exempt from tax if they had been, the competent authorities may still grant treaty benefits.

5 Security Legal Privacy This material has been prepared by professionals in the member firms of Deloitte Touche Tohmatsu. It is intended as a general guide only, and its application to specific situations will depend on the particular circumstances involved. Accordingly, we recommend that readers seek appropriate professional advice regarding any particular problems that they encounter. This information should not be relied upon as a substitute for such advice. While all reasonable attempts have been made to ensure that the information contained herein is accurate, Deloitte Touche Tohmatsu accepts no responsibility for any errors or omissions it may contain whether caused by negligence or otherwise, or for any losses, however caused, sustained by any person that relies upon it. Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its Member Firms. Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in 140 countries, Deloitte brings world class capabilities and deep local expertise to help clients succeed wherever they operate. Deloitte's 150,000 professionals are committed to becoming the standard of excellence. Deloitte's professionals are unified by a collaborative culture that fosters integrity, outstanding value to markets and clients, commitment to each other, and strength from diversity. They enjoy an environment of continuous learning, challenging experiences, and enriching career opportunities. Deloitte's professionals are dedicated to strengthening corporate responsibility, building public trust, and making a positive impact in their communities Deloitte Touche Tohmatsu. All rights reserved.

New Tax Code of Ukraine, and Risks for Corporate Structures. November 2011

New Tax Code of Ukraine, and Risks for Corporate Structures. November 2011 Beneficial Ownership, New Tax Code of Ukraine, and Risks for Corporate Structures November 2011 Contents 1. Beneficial Ownership Concept History 2. Ukraine: Beneficial Ownership Concept before the Tax

More information

United States Tax Alert

United States Tax Alert International Tax United States Tax Alert Contacts Harrison Cohen harrisoncohen@deloitte.com Christine Piar cpiar@deloitte.com Dan Skoczylas dskoczylas@deloitte.com June 5, 2015 OECD Releases a Discussion

More information

Luxembourg Tax Alert New tax treaty signed with France

Luxembourg Tax Alert New tax treaty signed with France Luxembourg Tax Alert New tax treaty signed with France 23 March 2018 On 20 March 2018, the governments of Luxembourg and France signed a new double tax treaty and its additional protocol (hereinafter together

More information

ICAZ HIGHLIGHTS OF THE INCOME TAX BILL. Deloitte School of Tax-ICAZ 1

ICAZ HIGHLIGHTS OF THE INCOME TAX BILL. Deloitte School of Tax-ICAZ 1 ICAZ HIGHLIGHTS OF THE INCOME TAX BILL Deloitte School of Tax-ICAZ 1 What are the key issues? Income Tax Act and Capital Gains Tax Act to be repealed Moving from a source based to a residence based Deductions

More information

Q Russian Legislation Update Accounting, financial reporting and audit

Q Russian Legislation Update Accounting, financial reporting and audit Q3 2015 Russian Legislation Update Accounting, financial reporting and audit Contents ACCOUNTING 1 IFRS Documents Adopted in Russia 1 Archiving Requirements on Accounting Documentation Summarized 3 FINANCIAL

More information

Luxembourg Tax Alert OECD BEPS Multilateral Convention: Luxembourg s choices published

Luxembourg Tax Alert OECD BEPS Multilateral Convention: Luxembourg s choices published Luxembourg Tax Alert OECD BEPS Multilateral Convention: Luxembourg s choices published 9 June 2017 The OECD BEPS package contains tax-treaty related measures addressing gaps and mismatches in the application

More information

UMTA & UTF: NATIONAL WORKSHOP GENERIC V/S CITY SPECIFIC UTF

UMTA & UTF: NATIONAL WORKSHOP GENERIC V/S CITY SPECIFIC UTF UMTA & UTF: NATIONAL WORKSHOP GENERIC V/S CITY SPECIFIC UTF Agenda POTENTIAL SOURCES OF FUNDS PRIORITIZED UTILIZATION OF FUNDS FUND MANAGEMENT DIVISION 2 Common consensus that UMTA would have its own dedicated

More information

OECD Model Tax Convention on Income and Capital An overview. CA Vishal Palwe, 3 July 2015

OECD Model Tax Convention on Income and Capital An overview. CA Vishal Palwe, 3 July 2015 OECD Model Tax Convention on Income and Capital An overview CA Vishal Palwe, 3 July 2015 1 Contents Overview of double taxation 3 Basics of tax treaty 6 Domestic law and tax treaty 11 Key provisions of

More information

What s new in financial reporting for March 2009? Quarterly Update

What s new in financial reporting for March 2009? Quarterly Update What s new in financial reporting for? Quarterly Update The analysis below provides a high level overview of new and revised financial reporting requirements that need to be considered for financial reporting

More information

Foreigners coming to Belarus 2013

Foreigners coming to Belarus 2013 Foreigners coming to Belarus 2013 Welcome to Belarus! Deloitte would like to present this brief overview of the Belarusian personal tax and compliance procedures. For your convenience this guide is presented

More information

India Tax Alert. Revised Direct Taxes Code bill tabled in Parliament. Corporate tax rate. 5 September 2010

India Tax Alert. Revised Direct Taxes Code bill tabled in Parliament. Corporate tax rate. 5 September 2010 International Tax India Tax Alert 5 September 2010 Revised Direct Taxes Code bill tabled in Parliament Contacts K.R. Sekar krsekar@deloitte.com Vipul Jhaveri vjhaveri@deloitte.com The Indian Finance Minister

More information

OECD releases final report under BEPS Action 6 on preventing treaty abuse

OECD releases final report under BEPS Action 6 on preventing treaty abuse 20 October 2015 Global Tax Alert EY OECD BEPS project Stay up-to-date on OECD s project on Base Erosion and Profit Shifting with EY s online site containing a comprehensive collection of resources, including

More information

BEPS ACTION 15. Development of a Multilateral Instrument to Implement the Tax Treaty related BEPS Measures

BEPS ACTION 15. Development of a Multilateral Instrument to Implement the Tax Treaty related BEPS Measures BEPS ACTION 15 Development of a Multilateral Instrument to Implement the Tax Treaty related BEPS Measures REQUEST FOR INPUT ON THE DEVELOPMENT OF A MULTILATERAL INSTRUMENT TO IMPLEMENT THE TAX TREATY-RELATED

More information

Protocol to New Zealand-U.S. treaty: A New Zealand perspective

Protocol to New Zealand-U.S. treaty: A New Zealand perspective Protocol to New Zealand-U.S. treaty: A New Zealand perspective The 2008 protocol updating the New Zealand-U.S. tax treaty came into force on 12 November 2010. The protocol provides for significantly more

More information

27 июня 2013 года. Webcast Secondment draft amendments to the legislation

27 июня 2013 года. Webcast Secondment draft amendments to the legislation 27 июня 2013 года Webcast Secondment draft amendments to the legislation Draft Federal Law No. 451173-5 On Introducing Amendments to Certain Legislative Acts of the Russian Federation (hereinafter Draft

More information

2017 UPDATE TO THE OECD MODEL TAX CONVENTION. 2 November 7

2017 UPDATE TO THE OECD MODEL TAX CONVENTION. 2 November 7 2017 UPDATE TO THE OECD MODEL TAX CONVENTION 2 November 7 21 November 2017 THE 2017 UPDATE TO THE OECD MODEL TAX CONVENTION This note includes the contents of the 2017 update to the OECD Model Tax Convention

More information

NATIONAL CAPACITY BUILDING WORKSHOP UTF OPERATIONS DOCUMENT

NATIONAL CAPACITY BUILDING WORKSHOP UTF OPERATIONS DOCUMENT NATIONAL CAPACITY BUILDING WORKSHOP UTF OPERATIONS DOCUMENT Agenda UTF OPERATIONS DOCUMENT INTRODUCTION ROLES & RESPONSIBILITIES COLLECTION & DISBURSEMENT OF FUNDS TREASURY FUNCTIONS ACCOUNTING & BUDGETING

More information

German Tax & Legal News

German Tax & Legal News 1 2009 German Tax & Legal News Monthly Newsletter for Inbound Investors into Germany Legislative Update Overview of enacted legislative changes for 2009 Annual Tax Act 2009 The legislative process on the

More information

The OECD Model. Reconsidering the structure and operation of its distributive rules. Kees van Raad

The OECD Model. Reconsidering the structure and operation of its distributive rules. Kees van Raad The OECD Model Reconsidering the structure and operation of its distributive rules Kees van Raad 16 06 05 OECD is understandably conservative where changes to text of the OECD Model are concerned, but

More information

New Luxembourg Legislative Proposals Luxembourg Tax Alert

New Luxembourg Legislative Proposals Luxembourg Tax Alert New Luxembourg Legislative Proposals Luxembourg Tax Alert On 5 August 2015, the draft law (no. 6847) transposing the amendments to the Parent- Subsidiaries Directive was presented to the Luxembourg Parliament.

More information

Development tax incentive - practical issues and recommendations. Tax Alert

Development tax incentive - practical issues and recommendations. Tax Alert Development tax incentive - practical issues and recommendations Tax Alert The aim of our Newsletter is to draw attention to practical issues that arise in the context of the Hungarian development tax

More information

New Australia- Germany Tax Treaty enters into force

New Australia- Germany Tax Treaty enters into force 12 December 2016 Global Tax Alert New Australia- Germany Tax Treaty enters into force EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser:

More information

SOME RELEVANT TREATY ISSUES

SOME RELEVANT TREATY ISSUES SOME RELEVANT TREATY ISSUES Rahul Charkha August 29, 2018 CONTENT Sr. No. Topic 1 Glossary 2 Most Favoured Nation Principle 3 Tax Credit 4 Mutual Agreement Procedures 5 Annexure - 1 6 Our Team GLOSSARY

More information

BEPS ACTION 2: NEUTRALISE THE EFFECTS OF HYBRID MISMATCH ARRANGEMENTS

BEPS ACTION 2: NEUTRALISE THE EFFECTS OF HYBRID MISMATCH ARRANGEMENTS Public Discussion Draft BEPS ACTION 2: NEUTRALISE THE EFFECTS OF HYBRID MISMATCH ARRANGEMENTS (Treaty Issues) 19 March 2014 2 May 2014 Comments on this note should be sent electronically (in Word format)

More information

OECD releases draft changes to be incorporated in 2017 update to OECD Model Tax Convention

OECD releases draft changes to be incorporated in 2017 update to OECD Model Tax Convention 28 July 2017 Global Tax Alert OECD releases draft changes to be incorporated in 2017 update to OECD Model Tax Convention EY Global Tax Alert Library Access both online and pdf versions of all EY Global

More information

Netherlands ratifies tax treaty with Sint Maarten

Netherlands ratifies tax treaty with Sint Maarten 21 January 2016 Global Tax Alert Netherlands ratifies tax treaty with Sint Maarten EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser:

More information

Legal and tax compliance services Bound by excellence

Legal and tax compliance services Bound by excellence Legal and tax compliance services Bound by excellence Tax & Legal Why will you need our legal corporate and tax compliance services? Kazakhstani economy is open to investors, but establishes some restrictions

More information

Dutch Treaty Developments With Gulf Cooperation Council Countries

Dutch Treaty Developments With Gulf Cooperation Council Countries Volume 56, Number 4 October 26, 2009 Dutch Treaty Developments With Gulf Cooperation Council Countries by Emile Bongers Reprinted from Tax Notes Int l, October 26, 2009, p. 285 Dutch Treaty Developments

More information

PROPOSED GENERAL ANTI-AVOIDANCE RULE COMMENTARY FOR A NEW ARTICLE

PROPOSED GENERAL ANTI-AVOIDANCE RULE COMMENTARY FOR A NEW ARTICLE Distr.: General 30 November 2016 Original: English Committee of Experts on International Cooperation in Tax Matters Thirteenth Session New York, 5-8 December 2016 Item 3 (a) (iii) of the provisional agenda*

More information

The Dutch Deloitte CFO Survey Flexibility drives optimism in uncertain times

The Dutch Deloitte CFO Survey Flexibility drives optimism in uncertain times The Dutch Deloitte CFO Survey Flexibility drives optimism in uncertain times 2009 Q3 results November 2009 Contents Optimistic, but uncertainty rules 4 Financial outlook 6 Shift in financing preferences

More information

New Luxembourg tax measures Luxembourg tax alert

New Luxembourg tax measures Luxembourg tax alert New Luxembourg tax measures Luxembourg tax alert The Luxembourg parliament approved recently a number of tax modifications for the fiscal years 2015 and 2016. The main direct tax measures affecting companies

More information

KPMG Japan tax newsletter

KPMG Japan tax newsletter Japan tax newsletter KPMG Tax Corporation 24 December 2015 KPMG Japan tax newsletter Amended Japan-Germany Tax Treaty 1. Preamble... 2 2. Hybrid Entities (Article 1)... 2 3. Business Profits (Article 7)...

More information

Base Erosion and Profit Sharing Action Plan 11, 12, 14 & 15. Mr. S.P. Singh, Ex-IRS 7th November, 2015

Base Erosion and Profit Sharing Action Plan 11, 12, 14 & 15. Mr. S.P. Singh, Ex-IRS 7th November, 2015 Base Erosion and Profit Sharing Action Plan 11, 12, 14 & 15 Mr. S.P. Singh, Ex-IRS 7th November, 2015 Contents Action 11 - Establishing Methodologies to Collect and Analyze Data on BEPS Action 12 Requiring

More information

Proposed Amendments to the Interests and Royalties Directive 2003/49/EC : Toward an harmonization with the Parent / Subsidiary Directive

Proposed Amendments to the Interests and Royalties Directive 2003/49/EC : Toward an harmonization with the Parent / Subsidiary Directive Proposed Amendments to the Interests and Royalties Directive 2003/49/EC : Toward an harmonization with the Parent / Subsidiary Directive Vincent Agulhon April 13, 2012 1 I - Directive 2003/49/EC : The

More information

United Kingdom Tax Alert

United Kingdom Tax Alert International Tax United Kingdom Tax Alert 30 November 2010 Discussion document addresses CFC and other corporate tax reforms The U.K. government published a discussion document entitled, Corporate Tax

More information

Kosovo Tax & Legal Alert

Kosovo Tax & Legal Alert Kosovo Tax & Legal Alert In this issue: I. Double Taxation Treaty Between Kosovo and Turkey II. Double Taxation Treaty Between Kosovo and the United Kingdom I. Double Taxation Treaty Between Kosovo and

More information

Harnessing the 'Bang': from Digital Disruption to Digital Transformation

Harnessing the 'Bang': from Digital Disruption to Digital Transformation Harnessing the 'Bang': from Digital Disruption to Digital Transformation Stephen Huppert Deloitte Touche Tohmatsu This presentation has been prepared for the Actuaries Institute 2015 Actuaries Summit.

More information

China s SAT publishes new rules on beneficial owners

China s SAT publishes new rules on beneficial owners World Tax Advisor Connecting you globally. 23 February 2018 China s SAT publishes new rules on beneficial owners On 3 February 2018, China s State Administration of Taxation (SAT) published new rules (Bulletin

More information

European Commission publishes Anti Tax Avoidance Package

European Commission publishes Anti Tax Avoidance Package 28 January 2016 - Number 65 Brazil Desk e-mail bulletin European Commission publishes Anti Tax Avoidance Package On 28 January 2016 the European Commission published an Anti Tax Avoidance Package containing

More information

COMMENTARY ON THE ARTICLES OF THE ATAF MODEL TAX AGREEMENT FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO

COMMENTARY ON THE ARTICLES OF THE ATAF MODEL TAX AGREEMENT FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO COMMENTARY ON THE ARTICLES OF THE ATAF MODEL TAX AGREEMENT FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME 2 OVERVIEW The ATAF Model Tax Agreement

More information

Changes proposed for income tax accounting. Revised calculation methodology. Montreal Robert Lefrancois

Changes proposed for income tax accounting. Revised calculation methodology. Montreal Robert Lefrancois April 2009 IAS Plus Update. Changes proposed for income tax accounting On 31 March 2009, the International Accounting Standards Board (IASB) issued an exposure draft (ED) ED/2009/2 Income Tax containing

More information

BEPS Impact on Private Equity

BEPS Impact on Private Equity BEPS Impact on Private Equity BEPS impact on private equityspace An Indian perspective In this age of increasing focus on bottomlines, it is indeed tempting for a global tax director of a multinational

More information

Report of the Finance and Expenditure Committee

Report of the Finance and Expenditure Committee International treaty examination of taxation agreements with the Republic of South Africa, the United Arab Emirates, the Republic of Chile, the United Kingdom of Great Britain and Northern Ireland, the

More information

IASB finalises IFRS 9 which changes the classification and measurement of financial assets and introduces an expected loss impairment model

IASB finalises IFRS 9 which changes the classification and measurement of financial assets and introduces an expected loss impairment model Published on: July, 2014 IASB finalises IFRS 9 which changes the classification and measurement of financial assets and introduces an expected loss impairment model Background and effective date The lasb's

More information

Part I. Entity Classification under Domestic Tax Law

Part I. Entity Classification under Domestic Tax Law 2014 IFA Congress Mumbai (Subject 2) Qualification of Taxable Entities and Treaty Protection National Report: Belgium Pascal Faes, NautaDutilh (Presentation IFA Belgian Branch, 17 September 2013) Part

More information

Tax Incentives in Belarus Doing business easier

Tax Incentives in Belarus Doing business easier Tax Incentives in Belarus Doing business easier Introduction The changing business environment in Belarus is bringing forth new opportunities for investors. Tax incentives are a useful tool for increasing

More information

Screening Exercise Serbia Corporate Tax Directives

Screening Exercise Serbia Corporate Tax Directives Screening Exercise Serbia Corporate Tax Directives Brussels, 14 October 2014 Unit D1 Company Taxation Initiatives DG Taxation and Customs Union (TAXUD) Neither the European Commission nor any person acting

More information

EU AG issues opinion on Danish withholding tax on dividends and interest

EU AG issues opinion on Danish withholding tax on dividends and interest 2 March 2018 Global Tax Alert EU AG issues opinion on Danish withholding tax on dividends and interest EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy

More information

Triangular Cases in application of Tax Treaties. Arpit Jain Chartered Accountant

Triangular Cases in application of Tax Treaties. Arpit Jain Chartered Accountant Triangular Cases in application of Tax Treaties Arpit Jain Chartered Accountant Cases Case Study 1 In which country is interest taxable? State R GE Income: 300 PE Income: 200 State P State S Interest:

More information

IBFD Course Programme Principles of International Taxation

IBFD Course Programme Principles of International Taxation IBFD Course Programme Principles of International Taxation Need a good base to start your career in international tax? This course will provide the essential knowledge you need and give you the confidence

More information

Section 894. Income Affected by Treaty

Section 894. Income Affected by Treaty 46876, 46877) under section 894 of the Code relating to eligibility for benefits under income tax treaties for payments to entities. A notice of proposed rulemaking (REG 104893 97, 1997 2 C.B. 646) cross-referencing

More information

Article 23 A and 23 B of the UN Model Conflicts of qualification and interpretation

Article 23 A and 23 B of the UN Model Conflicts of qualification and interpretation Distr.: General 30 September 2014 Original: English Committee of Experts on International Cooperation in Tax Matters Tenth Session Geneva, 27-31 October 2014 Agenda Item 3 (a) (viii)* Article 23 Article

More information

3.2. EU Interest-Royalty Directive Background and force

3.2. EU Interest-Royalty Directive Background and force 3.2. EU Interest-Royalty Directive 3.2.1. Background and force Force The Council Directive (2003/49/EC) on a Common System of Taxation Applicable to Interest and Royalty Payments Made between Associated

More information

IAS 39 the sequel. Time for new measures. August Background

IAS 39 the sequel. Time for new measures. August Background August 2009 IAS 39 the sequel. Time for new measures Background On 14 July 2009, the International Accounting Standards Board (IASB) issued an exposure draft (ED), ED/2009/7, Financial Instruments: Classification

More information

Luxembourg-Cyprus double tax treaty enters into force

Luxembourg-Cyprus double tax treaty enters into force 7 June 2018 Global Tax Alert Luxembourg-Cyprus double tax treaty enters into force NEW! EY Tax News Update: Global Edition EY s new Tax News Update: Global Edition is a free, personalized email subscription

More information

Taxation of financial instruments in a changing world

Taxation of financial instruments in a changing world Taxation of financial instruments in a changing world Edoardo Traversa, Professor, Université Catholique de Louvain/Of Counsel, Liedekerke, Brussels Alain Goebel, Partner, Arendt & Medernach Jan Neugebauer,

More information

Malta - UK IFSP. Conrad Cassar Torregiani Leader International Tax Deloitte. John Ellul Sullivan Manager KPMG

Malta - UK IFSP. Conrad Cassar Torregiani Leader International Tax Deloitte. John Ellul Sullivan Manager KPMG Malta - UK Conrad Cassar Torregiani Leader International Tax Deloitte John Ellul Sullivan Manager KPMG Malta United Kingdom Double Tax Treaty 15 March 2012 1 Fact and Figures Malta United Kingdom Double

More information

Japan and Chile sign income tax treaty

Japan and Chile sign income tax treaty 28 January 2016 Global Tax Alert Japan and Chile sign income tax treaty EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: www.ey.com/taxalerts

More information

Committee of Experts on International Cooperation in Tax Matters Fourteenth session

Committee of Experts on International Cooperation in Tax Matters Fourteenth session Distr.: General * March 2017 Original: English Committee of Experts on International Cooperation in Tax Matters Fourteenth session New York, 3-6 April 2017 Agenda item 3(a)(ii) BEPS: Proposed General Anti-avoidance

More information

4th Edition - May Audit - Technical (External) TechnicallySpeaking. Avoid check mate

4th Edition - May Audit - Technical (External) TechnicallySpeaking. Avoid check mate 4th Edition - May 2008 Audit - Technical (External) TechnicallySpeaking Avoid check mate Contents page Next page Contents Word of welcome...3 The latest Exposure Drafts issued by the International Accounting

More information

Hybrid Entities; avoidance of double (non-) taxation under the Parent-Subsidiary Directive and the OECD Model Tax Convention

Hybrid Entities; avoidance of double (non-) taxation under the Parent-Subsidiary Directive and the OECD Model Tax Convention 29 September 2015 Seminar: Hybrid Entities; avoidance of double (non-) taxation under the Parent-Subsidiary Directive and the OECD Model Tax Convention Conference chairman: Prof. A.J.A. (Ton) Stevens www.europesefiscalestudies.nl

More information

An Analysis of Article 21 of the OECD Model Convention. Alexander Bosman

An Analysis of Article 21 of the OECD Model Convention. Alexander Bosman Other Income under Tax Treaties An Analysis of Article 21 of the OECD Model Convention Alexander Bosman Wolters Kluwer Preface and Acknowledgments List of Abbreviations List of Figures xxi xxiii xxv PART

More information

Luxembourg publishes draft law ratifying Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS

Luxembourg publishes draft law ratifying Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS 4 September 2018 Global Tax Alert Luxembourg publishes draft law ratifying Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS NEW! EY Tax News Update: Global Edition EY s

More information

Consequences of termination of the tax treaty between France and Denmark. Double taxation relief

Consequences of termination of the tax treaty between France and Denmark. Double taxation relief Consequences of termination of the tax treaty between France and Denmark. Double taxation relief Jakob Bundgaard, Partner, associate professor, Ph.D. E-mail: jbundgaard@deloitte.dk, tel. +45 20990834 Consequences

More information

Tax Alert Ratification of New Double Tax Treaty Between Ukraine and Cyprus

Tax Alert Ratification of New Double Tax Treaty Between Ukraine and Cyprus Tax Alert Ratification of New Double Tax Treaty Between Ukraine and Cyprus On 4 July 2013, the Verkhovna Rada of Ukraine accepted the Law of Ukraine On Ratification of a Convention between the Government

More information

The Chamber of Tax Consultants

The Chamber of Tax Consultants The Chamber of Tax Consultants Workshop on Taxation of Foreign Remittances : Payment to firm / trust / PE and triangular situation January 21, 2017 Presented by: Vishal J. Shah Contents Tax treaty eligibility

More information

KPMG Japan Tax Newsletter

KPMG Japan Tax Newsletter KPMG Japan Tax Newsletter 18 October 2017 NEW JAPAN-DENMARK TAX TREATY 1. Permanent Establishment (Article 5)...2 2. Business Profits (Article 7)...2 3. Dividends (Article 10)...2 4. Interest (Article

More information

General Comments. Action 6 on Treaty Abuse reads as follows:

General Comments. Action 6 on Treaty Abuse reads as follows: OECD Centre on Tax Policy and Administration Tax Treaties Transfer Pricing and Financial Transactions Division 2, rue André Pascal 75775 Paris France The Confederation of Swedish Enterprise: Comments on

More information

EU Developments: C(C)CTB and corporate tax reform

EU Developments: C(C)CTB and corporate tax reform EU Developments: C(C)CTB and corporate tax reform 27 October 2016 Introduction On 25 October, the European Commission published a corporate tax reform package that provides three new proposals: To provide

More information

Transparent Entities and Elimination of double taxation Article 3 and 5 of MLI

Transparent Entities and Elimination of double taxation Article 3 and 5 of MLI Transparent Entities and Elimination of double taxation Article 3 and 5 of MLI October 5, 2018 Vispi T. Patel & Associates Index Background of BEPS BEPS Action Plan 15 (MLI) Constitutional Framework MLI

More information

Dutch Tax Bill 2018: what will change?

Dutch Tax Bill 2018: what will change? 1 Dutch Tax Bill 2018: what will change? The Dutch government has presented its Tax Bill 2018. Three amendments are particularly relevant for multinationals, international investors and investment funds

More information

Principles of International Taxation

Principles of International Taxation Overview and Learning Objectives This tax course is designed to provide participants with the essentials of international taxation. The first three days are dedicated to the fundamental concepts relevant

More information

Overview. Preserving domestic law restrictions on the deduction of rent or royalties. Introduction

Overview. Preserving domestic law restrictions on the deduction of rent or royalties. Introduction Overview Negotiation of tax treaties to prevent base erosion with respect to rent and royalties (I) Wednesday, 8 November 2017 (Session 3) Capacity Building Unit Financing for Development Office Department

More information

HOW DOES BEPS IMPACT THE DEFINITION OF A PERMANENT ESTABLISHMENT?

HOW DOES BEPS IMPACT THE DEFINITION OF A PERMANENT ESTABLISHMENT? HOW DOES BEPS IMPACT THE DEFINITION OF A PERMANENT ESTABLISHMENT? June 21, 2017 Today s presenters Senior Manager, RSM US Lisa provides international tax consulting services to U.S. and foreign companies

More information

MULTILATERAL INSTRUMENT

MULTILATERAL INSTRUMENT MULTILATERAL INSTRUMENT View from (Dutch) tax practice ACTL seminar / 13 February 2017 Bartjan Zoetmulder / tax partner chair Dutch investment climate team NOB 1 Introduction 2 BEPS implementation phase

More information

International Tax Netherlands Highlights 2018

International Tax Netherlands Highlights 2018 International Tax Netherlands Highlights 2018 Investment basics: Currency Euro (EUR) Foreign exchange control No Accounting principles/financial statements IAS/IFRS/Dutch GAAP. Financial statements must

More information

E/C.18/2018/CRP.10. Distr.: General 2 October Original: English. Summary

E/C.18/2018/CRP.10. Distr.: General 2 October Original: English. Summary Distr.: General 2 October 2018 Original: English Committee of Experts on International Cooperation in Tax Matters Seventeenth session Geneva, 16-19 October 2018 Item 3 (c) (iv) of the provisional agenda

More information

Taxation of Foreign Passive Income for Group Companies

Taxation of Foreign Passive Income for Group Companies 1 Taxation of Foreign Passive Income for Group Companies By Kotaro Okamoto (Amazon Japan KK) In Japan, CFC rule was adopted in 1978. In principle, Japanese corporations are subject to corporate tax in

More information

India s MLI Positions

India s MLI Positions MUMBAI SILICON VALLEY BANGALORE SINGAPORE MUMBAI BKC NEW DELHI MUNICH NEW YORK India s MLI Positions July 2017 Copyright 2017 Nishith Desai Associates www.nishithdesai.com India s MLI Positions Contents

More information

New US income tax treaty and protocol with Italy enters into force

New US income tax treaty and protocol with Italy enters into force 22 December 2009 International Tax Alert News and views from Foreign Tax Desks New US income tax treaty and protocol with Italy enters into force Executive summary On 16 December 2009, the United States

More information

CONCEPT OF BENEFICIAL OWNERSHIP: DISCUSSION OF KEY ISSUES AND PROPOSALS FOR CHANGES TO THE UN MODEL COMMENTARY*

CONCEPT OF BENEFICIAL OWNERSHIP: DISCUSSION OF KEY ISSUES AND PROPOSALS FOR CHANGES TO THE UN MODEL COMMENTARY* United Nations E/C.18/2010/CRP.9 Distr.: General 12 October 2010 Original: English Committee of Experts on International Cooperation in Tax Matters Sixth Session Geneva, 18-22 October 2010 Item 3 (k) of

More information

EU JOINT TRANSFER PRICING FORUM

EU JOINT TRANSFER PRICING FORUM EUROPEAN COMMISSION DIRECTORATE-GENERAL TAXATION AND CUSTOMS UNION Direct taxation, Tax Coordination, Economic Analysis and Evaluation Company Taxation Initiatives Brussels, Taxud/D1/ January 2011 DOC:

More information

China s SAT issues new rules to improve administration of special tax investigations and Mutual Agreement Procedures

China s SAT issues new rules to improve administration of special tax investigations and Mutual Agreement Procedures 1 See Deloitte Tax Analysis on Bulletin 42: https://www2.deloitte.com/content/dam/deloitte/cn/documents/tax/ta-2016/deloitte-cn-tax-tap2412016-en-160713.pdf 2 See Deloitte Tax Analysis on Bulletin 64:

More information

Analysing BEPS Impact Private Equity sector

Analysing BEPS Impact Private Equity sector Analysing BEPS Impact Private Equity sector January 2016 Second line optional lorem ipsum B Subhead lorem ipsum, date quatueriure In this age of increasing focus on bottomlines, it is indeed tempting for

More information

Most Favored Nation. Certificate Course on International Taxation, Chennai. Arpit Jain. Director International Tax

Most Favored Nation. Certificate Course on International Taxation, Chennai. Arpit Jain. Director International Tax Most Favored Nation Certificate Course on International Taxation, Chennai Arpit Jain Director International Tax MFN Principle State A binds itself to State B with respect to favorable treatment afforded

More information

LIST OF ABBREVIATIONS... IV LIST OF LEGAL REFERENCES... V PART I. IMPLEMENTATION OF THE DIRECTIVE... VI 1. INTRODUCTION... VI

LIST OF ABBREVIATIONS... IV LIST OF LEGAL REFERENCES... V PART I. IMPLEMENTATION OF THE DIRECTIVE... VI 1. INTRODUCTION... VI ESTONIA 173 Page ii OUTLINE LIST OF ABBREVIATIONS... IV LIST OF LEGAL REFERENCES... V PART I. IMPLEMENTATION OF THE DIRECTIVE... VI 1. INTRODUCTION... VI 1.1. GENERAL INFORMATION ON THE IMPLEMENTATION

More information

World Tax Advisor May 1, 2009

World Tax Advisor May 1, 2009 International Tax World Tax Advisor In this issue: China s SAT issues guidance on tax residence status of Chinese-controlled offshore companies... 1 Azerbaijan: New preferential treatment of certain oil

More information

Belgium signs Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS and submits its MLI positions

Belgium signs Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS and submits its MLI positions 21 June 2017 Global Tax Alert Belgium signs Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS and submits its MLI positions EY Global Tax Alert Library Access both online

More information

KPMG Japan Tax Newsletter

KPMG Japan Tax Newsletter KPMG Japan Tax Newsletter 26 September 2017 NEW TAX TREATY WITH RUSSIA 1. Dividends (Article 10).. 2 2. Interest (Article 11).. 3 3. Royalties (Article 12)... 3 4. Capital Gains (Article 13). 4 5. Other

More information

Switzerland. Investment basics

Switzerland. Investment basics Switzerland Diego Weder Director Tel: +1 212 492 4432 diweder@deloitte.com Investment basics Currency Swiss Franc (CHF) Foreign exchange control restrictions are imposed on the import or export of capital.

More information

UK/NETHERLANDS DOUBLE TAXATION CONVENTION AND PROTOCOL SIGNED IN LONDON ON 26 SEPTEMBER 2008

UK/NETHERLANDS DOUBLE TAXATION CONVENTION AND PROTOCOL SIGNED IN LONDON ON 26 SEPTEMBER 2008 UK/NETHERLANDS DOUBLE TAXATION CONVENTION AND PROTOCOL SIGNED IN LONDON ON 26 SEPTEMBER 2008 This Convention and Protocol have not yet entered into force. This will happen when both countries have completed

More information

GES NewsFlash Belgium - New tax measures for personal income

GES NewsFlash Belgium - New tax measures for personal income Deloitte Tax LLP Global Employer Services GES NewsFlash Belgium - New tax measures for personal income August 4, 2011 In this issue: Exemption from tax return filing obligation in Belgium Part year residence

More information

International Tax Slovenia Highlights 2018

International Tax Slovenia Highlights 2018 International Tax Slovenia Highlights 2018 Investment basics: Currency Euro (EUR) Foreign exchange control Bank accounts may be held and repatriation payments made in any currency. Accounting principles/financial

More information

Serbia. Tax&Legal Highlights May International taxation

Serbia. Tax&Legal Highlights May International taxation Tax&Legal Highlights May 2018 Tax&Legal Highlights Serbia International taxation Serbia is one of the first countries to ratify the Multinational Convention, as the National Assembly of the Republic of

More information

Institute of Chartered Accountants of India Bangalore branch

Institute of Chartered Accountants of India Bangalore branch Institute of Chartered Accountants of India Bangalore branch How to read a Tax treaty and What to look out for in a DTA 30 th August, 2008 Naresh Ajwani Rashmin Sanghvi & Associates Chartered Accountants

More information

The structure and system of DTCs

The structure and system of DTCs 6. The structure and system of DTCs The structure and system of DTCs 6.1. Applying the convention 156 The structures and systems of all DTCs show similarities. Tax treaties usually contain rules relating

More information

Introduction to the Law of Double Taxation Conventions 2nd edition

Introduction to the Law of Double Taxation Conventions 2nd edition Introduction to the Law of Double Taxation Conventions 2nd edition Why this book? Cross-border activities or transactions may trigger tax liability in two or more jurisdictions. In order to mitigate the

More information

United Kingdom Tax Alert

United Kingdom Tax Alert International Tax United Kingdom Tax Alert Contacts Bill Dodwell bdodwell@deloitte.co.uk Christie Buck cbuck@deloitte.co.uk Alison Lobb alobb@deloitte.co.uk 4 December 2014 2014 Autumn Statement contains

More information

Headquarter Jurisdictions Around the World: A Comparison

Headquarter Jurisdictions Around the World: A Comparison Headquarter Jurisdictions Around the World: A Comparison 2017 Austria Belgium Cyprus Dubai Hong Kong Ireland Luxembourg The Netherlands Portugal Singapore Spain Switzerland United Kingdom Headquarter jurisdictions

More information

GENERAL EFFECTIVE DATE UNDER ARTICLE 28: 1 DECEMBER 1983 TABLE OF ARTICLES

GENERAL EFFECTIVE DATE UNDER ARTICLE 28: 1 DECEMBER 1983 TABLE OF ARTICLES UNITED STATES TREASURY DEPARTMENT TECHNICAL EXPLANATION OF THE CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF AUSTRALIA FOR THE AVOIDANCE OF DOUBLE TAXATION AND

More information