The income and capital gains tax treaty between Germany and Turkey, which was signed on 16 April 1985, was terminated on 21 July 2009.

Transcription

1 Germany, Turkey 1 December 2010 T10045 Tax treaty terminated between Germany and Turkey The income and capital gains tax treaty between Germany and Turkey, which was signed on 16 April 1985, was terminated on 21 July As a consequence, the domestic rates will apply from 1 January 2011 onwards,. The Clearstream Banking Market Taxation Guides (Germany and Turkey) will be updated accordingly when the termination of the Germany-Turkey treaty becomes effective. 1 December 2010 T10045 (1)

2 Norway 2 December 2010 T10046 Proposed new statutory deadline for reclaims The Norwegian Ministry of Finance has submitted a proposal to shorten the statutory deadline within which non-residents can apply for a refund of withholding tax on dividends from Norwegian equities. The current statutory deadline for reclaiming withholding tax is, unless a relevant Double Taxation Treaty (DTT) provides a different deadline, three years after the end of the calendar year in which the dividend was paid. If the proposal is ratified, the statutory deadline will be reduced to one year after the end of the calendar year in which the dividend was paid (unless the relevant DTT provides a different deadline). The proposal has been submitted to the Norwegian Parliament and is expected to be approved by mid-december 2010, with effective date 1 January We are monitoring developments closely and will provide you with further updates as soon as available. 2 December 2010 T10046 (1)

3 Singapore 3 December 2010 T10047 New tax treaty between Singapore and Slovenia The Agreement for the Avoidance of Double Taxation (DTA) between Singapore and Slovenia came into force on 25 November The full text of the protocol can be found at the Inland Revenue Authority of Singapore (IRAS) web site: The DTT lists in the Clearstream Banking Customer Tax Guide (Singapore) will be updated in due course to reflect the new Singapore-Slovenia DTA. 3 December 2010 T10047 (1)

4 South Korea 7 December 2010 T10048 Proposed reinstatement of tax on KTBs and MSBs for non-residents - Update Further to our Taxflash T10036 dated 17 November 2010, we would like to provide you with a further update concerning the proposal to abolish the current tax exemption on interest and capital gains paid to foreign investors in Korean Treasury Bonds (KTBs) and Monetary Stabilisation Bonds (MSBs). If the draft bill is approved, withholding tax will be reinstated, with effective date 1 January 2011, for any KTBs or MSBs purchased by non-residents after 12 November There will however be a transition period for acquisitions settled between 12 November 2010 and 31 December 2010, that will continue to benefit from exemption until the effective date 1 January The proposal covers as well any omnibus accounts opened on behalf of ICSDs investing in KTBs and MSBs. The draft bill has been sent to the Financial Committee of the National Assembly and the plenary session and is awaiting final approval from the lawmakers. We are monitoring developments closely and will provide further information as soon as it becomes available. 7 December 2010 T10048 (1)

5 Denmark 8 December 2010 T10049 New tax treaty between Denmark and Switzerland The Double Taxation Treaty between Denmark and Switzerland has been amended by the Protocol, signed on 21 August 2009 and came into force on 22 November For withholding tax on dividends, the new DTT will be effective from 1 January The revised DTT tax rate may vary in particular circumstances but will not exceed the following: Equities: 15% (previously 0%) The DTT lists in the Clearstream Banking Customer Tax Guides (Denmark and Switzerland) will be updated in due course to reflect the new Denmark-Switzerland DTT. 8 December 2010 T10049 (1)

6 Greece 10 December 2010 t10050 Possible postponement of January implementation of Capital Gains Tax on equities Further to our Taxflash T10025, dated 22 October 2010, cconcerning the implementation of the capital gains tax, market sources now indicate that the new Tax bill is expected to be submitted to the Parliament for approval in early It is forseen that the implementation of the capital gains tax will be postponed again for a minimum of 6 months. The tax, originally part of a 2009 revenue package, was previously delayed due to adverse market conditions. We are monitoring developments closely and will provide you with further updates as soon as available. 10 December 2010 t10050 (1)

7 Iceland 10 December 2010 T10051 Proposed tax rates increase The Icelandic Ministry of Finance has drafted a new bill proposing an increase of the tax rates applicable to interest, dividend and capital gains. The tax rate would be increased from 15% to 18% for foreign legal entities and from 18% to 20% for individuals. The Bill, if ratified by the Parliament, is expected to take effect as of 1 January We are monitoring developments closely and will provide further information as soon as it becomes available. 10 December 2010 T10051 (1)

8 South Korea 10 December 2010 T10052 Tax on KTBs and MSBs reinstated for non-residents Further to our Taxflash T10048 dated 7 December 2010, we would like to inform you that the proposal to abolish the current tax exemption on interest and capital gains paid to foreign investors in Korean Treasury Bonds (KTBs) and Monetary Stabilisation Bonds (MSBs) was passed by law on 7 December 2010, with effective date 1 January The withholding tax will be reinstated, with effective date 1 January 2011, for any KTBs or MSBs purchased by non-residents after 12 November There will however be a transition period for acquisitions settled between 12 November 2010 and 31 December 2010, that will continue to benefit from exemption until the effective date 1 January We are monitoring developments closely and will provide further information as soon as it becomes available. 10 December 2010 T10052 (1)

9 Japan 15 December 2010 T10053 Proposed extension of Special Tax Treatment for dividends In our Taxflash T10026, dated 27 October 2010, we reported a proposal of the Japanese Tax Expert Committee to cancel the currently applied Special Tax Treatment whereby tax is withheld on dividends from Japanese listed equities at the reduced rate of 7% (instead of at the statutory tax rate of 15%). The Japanese Minister of Finance and Financial Services has now drafted a new Bill proposing, conversely, to extend this Special Tax Treatment until 31 December 2013 (instead of to the current expiry date of 31 December 2011). The Bill is expected to be submitted to the National Diet during the next Diet session, which starts from January We are monitoring developments closely and will provide you with further updates as soon as available. 15 December 2010 T10053 (1)

10 Norway 15 December 2010 T10054 Current statutory deadline for reclaims to remain in force In our Taxflash T10046, dated 2 December 2010, we reported a proposal to shorten the statutory deadline within which non-residents can apply for a refund of withholding tax on dividends from Norwegian equities. The Norwegian Central Office for Foreign Tax Affairs (COFTA) has now confirmed that the current statutory deadline will continue to apply until further notice. The current statutory deadline for reclaiming withholding tax is, unless a relevant Double Taxation Treaty (DTT) provides a different deadline, three years after the end of the calendar year in which the dividend was paid. 15 December 2010 T10054 (1)

11 Japan 20 December 2010 T10055 Proposed extension of tax exemption on Japanese fixed income instruments The Japanese Minister of Finance and Financial Services has drafted a Bill proposing to extend tax exemption on income from Japanese fixed income instruments - which includes Japanese government bonds (JGBs) and corporate bonds - to include foreign public pension funds, trust-type retirement annuities and limited partnerships. The withholding tax exemption, if approved by the Diet, is expected to be effective for the first interest payment date after 1 April The Bill is expected to be submitted to the National Diet during the next Diet session, which starts from January We are monitoring developments closely and will provide you with further updates as soon as available. 20 December 2010 T10055 (1)

12 Austria T10056 New tax treaty between Austria and Bahrain A first time Double Taxation Treaty (DTT) between Austria and Bahrain was signed on 2 July 2009 and will come into force on 1 February The new DTT will be effective from 1 January The DTT tax rates will not exceed the following: Debt securities: 0% Equities: 0% The Clearstream Banking Market Taxation Guide (Austria) will be updated in due course when the new Austria-Bahrain DTT becomes effective. T10056 (1)

13 Hong Kong, UK T10057 New tax treaty between Hong Kong and the United Kingdom A new Double Taxation Treaty (DTT) and protocol between Hong Kong and the United Kingdom was signed on 21 June 2010 and came into force on 20 December The new tax treaty generally applies as follows: For Hong Kong, from 1 April 2011; and For the UK for income and capital gains taxes, from 6 April The DTT tax rates may vary in particular circumstances but will not exceed the following: Debt securities: 0% Equities: 0% (but 15% on dividends from UK Real Estate Investment Trusts) The Clearstream Banking Market Taxation Guide (United Kingdom) will be updated in due course when the new Hong Kong-UK DTT becomes effective. T10057 (1)

14 Luxembourg T10058 New tax treaty between Luxembourg and Bahrain A new Double Taxation Treaty (DTT) between Luxembourg and Bahrain was signed on 6 May 2009 and came into force on 10 November The new DTT generally applies from 1 January The DTT tax rates will not exceed the following: Debt securities: 0% Equities: 10% The Clearstream Banking Customer Tax Guide (Luxembourg) will be updated in due course when the new Luxembourg-Bahrain DTT becomes effective. T10058 (1)

15 U.S.A. T10059 Mandatory electronic payment of Federal Tax Deposits by QIs As of 1 January 2011, Qualified Intermediaries (QIs) will no longer be authorised to make required Federal Tax Deposits by paper coupons using Forms 8109/8109-B. From that date, QIs will be required to make such payments electronically. The use of the Electronic Federal Tax Payment System (EFTPS), a free service provided by the U.S. Department of the Treasury, will be mandatory and will enable QIs to make their tax deposits in a timely manner and thereby avoid a 10% penalty. QIs that are not yet registered in the EFTPS should do so in order to be able process their tax deposits. T10059 (1)

16 Canada, Greece T10060 New tax treaty between Canada and Greece A first time Double Taxation Treaty (DTT) between Canada and Greece was signed on 29 June 2009 and came into force on 16 December The new tax treaty will be effective from 1 January The DTT tax rates may vary in particular circumstances but will not exceed the following: Debt securities: 10% Equities: 15% The Clearstream Banking Market Taxation Guide (Greece) will be updated in due course when the new Canada-Greece DTT becomes effective. T10060 (1)

17 Austria T10061 New tax treaty between Austria and Serbia A first time Double Taxation Treaty (DTT) between Austria and Serbia was signed on 7 May 2010 and came into force on 17 December The new DTT will be effective from 1 January The DTT tax rates will not exceed the following: Debt securities: 10% Equities: 15% The Clearstream Banking Market Taxation Guide (Austria) will be updated in due course when the new Austria-Serbia DTT becomes effective. T10061 (1)

18 The Netherlands, UK 31 December 2010 T10062 New tax treaty between the Netherlands and the United Kingdom A new Double Taxation Treaty (DTT) between the Netherlands and the United Kingdom, signed on 26 September 2008, came into force on 25 December The new tax treaty, which replaces the Netherlands-UK income tax treaty of 7 November 1980, generally applies as follows: In the Netherlands, from 1 January 2011; In the United kingdom, from 1 April The DTT tax rates may vary in particular circumstances but will not exceed the following: Debt securities: 0% Equities: 10% The Clearstream Banking Customer Tax Guide (The Netherlands) and Market Taxation Guide (United Kingdom) will be updated in due course when the new Netherlands-UK treaty becomes effective. 31 December 2010 T10062 (1)