The Tax Hub

Daily Tax Newsletter

Worldwide Tax News

Approved Changes (3)

Belarus

Responsive image

Belarus Allows Taxpayers to Suspend Depreciation and Amortization in 2016

On 4 April 2016, the Belarusian Ministry of Economy and Ministry of Architecture and Construction jointly issued a guidance letter on suspending depreciation and amortization of assets in 2016. According to the letter, taxpayers may elect to suspend the depreciation of tangible assets and the amortization of intangible assets for the period 1 January 2016 to 31 December 2016, with the useful life of the assets extended by an equal period. If elected, the suspension must apply for the whole period, and may not be postponed or resumed.

Canada

Responsive image

Canada Publishes Memorandum on the Application of GST/HST to Other Taxes, Duties, and Fees

On 12 April 2016, the Canada Revenue Agency (CRA) published GST/HST Memorandum 3.5: Application of GST/HST to Other Taxes, Duties, and Fees, which cancels and replaces GST/HST Policy Statement P-190. The memorandum covers the taxes, duties, and fees payable by a supplier or recipient in the supply chain that are to be included in the value of the consideration for a supply for GST/HST purposes, as well as the taxes, duties, and fees that are to be excluded.

Click the following link for GST/HST Memorandum 3.5 on the CRA website.

Sri Lanka

Responsive image

Sri Lanka Issues Notice that New Corporate Income Tax Rates are Effective from April 2016

Sri Lanka's Inland Revenue Department has issued a notice that the country's revised corporate income tax rates are effective from 1 April 2016. From that date, the corporate rates are as follows:

  • 28% for banking and financial services,  insurance services, and trading activities (unchanged from previous year);
  • 40% for liquor, tobacco, lottery, betting and gaming (unchanged from previous year); and
  • 17.5% for all other sectors (new rate).

Click the following link for the notice, which also covers the economic service charge and individual income tax rates, which are generally unchanged.

Proposed Changes (2)

Bermuda

Responsive image

Bermuda Signs Agreement for Exchange of CbC Reports and Intends to Require Reports from the 2016 Fiscal Year

Bermuda's Minister of Finance Bob Richards announced on 19 April 2016 that Bermuda has signed the Multilateral Competent Authority Agreement (MCAA) for the exchange of Country-by-Country (CbC) reports. This makes Bermuda the 33rd jurisdiction to sign the CbC MCAA. In connection with the signing, the Minister of Finance stated that CbC reporting requirements would apply in Bermuda from the 2016 fiscal year, with the first reports due by 31 December 2017.

Additional details of Bermuda's CbC reporting requirements will be published once available.

Ukraine

Responsive image

Proposed Ukrainian Offshore Tax

Legislation has been submitted to the Ukrainian parliament to introduce a new tax on transactions involving offshore jurisdictions. The proposed offshore tax would apply at a rate of 15% on payments for goods, works or services to non-residents with offshore status, and for settlement payments executed through such non-residents or their bank accounts. The tax would be due at the time the funds are transferred to the non-resident. For the purpose of the tax, non-residents with offshore status will be those registered in an offshore jurisdiction included in a yet to be finalized list.

If approved by parliament and signed into law by the president, the new offshore tax is to apply from 1 January 2017.

Treaty Changes (4)

Barbados-Slovak Republic

Responsive image

Update - Tax Treaty between Barbados and Slovakia

The income tax treaty between Barbados and Slovakia was signed on 28 October 2015. The treaty is the first of its kind between the two countries.

Taxes Covered

The treaty covers Barbados income tax, corporation tax and petroleum winning operations tax. It covers Slovak tax on income of individuals and tax on income of legal persons.

Withholding Tax Rates

  • Dividends - 0% if the beneficial owner is a company directly holding at least 10% of the paying company's capital; otherwise 5%
  • Interest - 10%
  • Royalties -
    • 0% for royalties paid for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films and films, or tapes used for radio or television broadcasting and other means of image or sound reproduction;
    • 5% for royalties paid for the use of, or the right to use, any patent, trademark, design or model, plan, secret formula or process, software, or for the use of, or the right to use, industrial, commercial, or scientific equipment or for information concerning industrial, commercial or scientific experience.

Capital Gains

The following capital gains derived by a resident of one Contracting State may be taxed by the other State:

  • Gains from the alienation of immovable property situated in the other State; and
  • Gains from the alienation of movable property forming part of the business property of a permanent establishment in the other State

Gains from the alienation of other property by a resident of a Contracting State may only be taxed by that State.

Double Taxation Relief

Both countries apply the credit method for the elimination of double taxation.

Entry into Force and Effect

The treaty will enter into force on the first day of the third month following the exchange of the ratification instruments, and will apply from 1 January of the year following its entry into force.

Czech Rep-Monaco

Responsive image

TIEA between the Czech Republic and Monaco has Entered into Force

The tax information exchange agreement between the Czech Republic and Monaco entered into force on 2 March 2016. The agreement, signed 31 July 2014, is the first of its kind between the two countries, and generally applies from the date of its entry into force.

Iran-Turkey

Responsive image

SSA between Iran and Turkey Signed

On 16 April 2016, officials from Iran and Turkey signed a social security agreement. The agreement is the first of its kind between the two countries, and will enter into force after the ratification instruments are exchanged.

Ivory Coast-Turkey

Responsive image

Update - Tax Treaty between Ivory Coast and Turkey

The income tax treaty between Ivory Coast and Turkey was signed on 29 February 2016. The treaty is the first of its kind between the two countries.

Taxes Covered

The treaty covers Turkish income tax and corporate tax, and covers the following Ivory Coast taxes:

  • Tax on business and agricultural profits;
  • Tax on non-commercial profits;
  • Tax on wages, salaries, pensions and annuities;
  • Tax on income from movable capital;
  • Tax on income from debt;
  • Tax on income from land; and
  • General income tax

Service PE

The treaty includes the provision that a permanent establishment will be deemed constituted when an enterprise furnishes services in a Contracting State through employees or other engaged personnel for the same or connected project for a period or periods aggregating more than 183 days in a calendar year.

Withholding Tax Rates

  • Dividends - 5% if the beneficial owner is a company directly holding at least 10% of the paying company's capital; otherwise 10%
  • Interest - 10%
  • Royalties - 10%

Capital Gains

The following capital gains derived by a resident of one Contracting State may be taxed by the other State:

  • Gains from the alienation of immovable property situated in the other State;
  • Gains from the alienation of movable property forming part of the business property of a permanent establishment in the other State; and
  • Gains from the alienation of shares deriving more than 50% of their value directly or indirectly from immovable property situated in the other State

Gains from the alienation of other property by a resident of a Contracting State may only be taxed by that State.

Double Taxation Relief

Both countries apply the credit method for the elimination of double taxation.

Entry into Force and Effect

The treaty will enter into force once the ratification instruments are exchanged, and will apply from 1 January of the year following its entry into force.

Sitemap

Powerful Tax Tools

NEW

FX Rates

Global FX Rates including Tax Year Average FX Rates and Spot Rates for all Reporting Currencies.

NEW

Corporate Tax Rates

Corporate tax rates, surtaxes, and effective tax rates for the current year, as well as historical rates and approved future rates.

NEW

Country Analysis

Detailed tax guidance for companies doing business in over 100 countries, including summaries and snapshots of key tax facts and issues.

NEW

Cross Border Tax Calculator

Calculate total tax costs and benefits of a cross border transaction including withholding tax, participation exemption and foreign tax credit rules.

NEW

Cross Border Tax Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment streams.

NEW

OECD BEPS Project

Complete overview of the OECD BEPS Project, including daily BEPS news, country adoption of BEPS measures, and an overview of the 15 BEPS Actions.

NEW

Tax Calendar

Customizable calendar tool that tracks corporate income tax, value added tax and transfer pricing obligations by country or entity.

NEW

Tax Forms

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.

NEW

Worldwide Tax Treaties

Repository including thousands of tax treaties (in English), OECD, UN and US Models, relevant EU Directives, Technical Explanations, and more.

NEW

Worldwide Tax Planner

Calculates the worldwide tax cost of what-if scenarios based on legal entity structure, taxable income, and cross border transactions.

NEW

Certified Rates Report

Customizable Certified Rates Report providing updated corporate and withholding tax rates at the end of each month for over 100 countries.

NEW

Withholding Tax Minimizer

Enables quick calculation of tax costs and benefits of cross border transactions considering all possible transaction combinations and optimal routes.

NEW

VAT Rates

Provides value added tax (VAT) rates, goods and services tax (GST) rates and other indirect tax rates for over 100 countries.

NEW

NOL Calculator

Country specific calculator to determine how net operating losses can be utilized in carryback and carryforward years.

NEW

Transfer Pricing Calculator

Calculates TP ratios under various TP methods and calculates the difference between target ratios and actual ratios.

NEW

Individual Income Tax Rates

Individual tax rates for over 100 countries.

Play of the Day

Worldwide Tax Treaties

Repository including thousands of tax treaties (in English), OECD, UN and US Models, relevant EU Directives, Technical Explanations, and more.

Get an immediate FREE trial of Orbitax ITRCE

Get Started with Orbitax Today

With Orbitax, you get reliable and comprehensive solutions for international tax research, compliance and planning. Contact us today to get started with Orbitax.

We’re here to help

We’re here to answer any questions you have about the Orbitax products and services.

Send us a message

Who’s behind Orbitax?

We’re committed to providing high value, low cost tax research and management solutions.

Learn More