Companies that launch property development projects or pursue other lines of business in an area with no infrastructure (no roads, no streets, no lighting, no water main, etc) are often forced to build the necessary items of public infrastructure, because municipalities do not have enough funds. Later, to reduce the cost of managing that public infrastructure, the developer requests that the municipality should take ownership of those items and carry out their further management and maintenance. This article explores the tax implications of such activities.
The latest version of the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, which came into force in autumn 2015, substantially widens the range of requirements for analysing risk as part of the functional analysis in a company’s transfer pricing documentation. This article takes a look at details.
Section D1.2.1 of the OECD guidelines states that the process for analysing risk in a controlled transaction should comprise the following six steps:
- Identify economically significant risks with specificity;
- Determine how specific, economically significant risks are contractually assumed by the associated enterprises under the terms of the transaction;
On 22nd July Sejm accepted a bill amending income tax laws. The amendment introduces new lower CIT rate at 15 % for so-called small taxpayers, as well as a number of important changes relating to catalogue of categories of non-resident income subject to taxation in Poland, exclusion of deferral of taxation of share exchange , where one of primary aims of this transaction is tax avoidance, rules of taxation of in-kind contribution of assets (other than going concern)and application of withholding tax exemption for interest and royalties depending on whether the recipient is beneficial owner thereof.
On 15 June 2016 the Act LXVI of 2016 amending certain tax laws and related legislation and Act CXXII of 2010 on the National Tax and Customs Authority was published in issue no. 87 of Magyar Közlöny (the Official Gazette of Hungary). The most important provisions of the amending act are summarized below. In addition to next year’s tax changes, the amending act contains several provisions that will come into effect later this year. We point out these provisions in this newsletter.
Changes related to tax proceedings
Special taxpayer classifications
The agreement between the Czech Republic and the Principality of Monaco for the exchange of tax Information specifies the type of information that both countries are obliged to provide in the event of a request. The agreement also sets out the procedural requirements under which the exchange will take place.
At the issuing of the request, the information that is deemed relevant for determining, assessing and collecting taxes on corporate and personal income, property taxes, secure payment of these taxes or information for an investigation and prosecution of tax offenses may be provided.
On 1 May 2016 the Union Customs Code (UCC) will become applicable. The UCC (Regulation 952/2013) introduces simplification and alignment of customs procedures, new rules regarding customs valuation, changes to the rules regarding Authorised Economic Operator concept, compulsory application of BTIs in import declarations, amendments to non-preferential origin rules as well as other amendments that may have an impact on your business.
Under the UCC, the customs procedures are simplified and aligned. The following customs procedures will be applicable:
Release for free circulation
Special procedure that will include the following:
On 25 February 2016, the Polish government published draft amendment to income tax laws. This draft amendment would introduce new lower CIT rate @15% for so-called small taxpayers, as well as a number of important changes relating to catalogue of categories of non-resident income subject to taxation in Poland, exclusion of deferral of taxation of share exchange, where one of primary aims of this transaction is tax avoidance, rules of taxation of in- kind contribution of assets (other than going concern) and application of withholding tax exemption for interest and royalties depending on whether the recipient is beneficial owner thereof.
National Statistics Institute President’s Order no. 501/2015 approving next year’s Intrastat thresholds applicable for economic operators conducting Intracommunity trade has been published in the Official Gazette. The provisions will enter into force on 1 January 2016.
The new Order’s main amendments address the following topics:
- The Intrastat thresholds for 2016 have been set at:
- RON 900,000 for Intracommunity dispatches of goods;
- RON 500,000 for Intracommunity arrivals of goods.
- Economic operators will be obligated to submit Intrastat statements as of January 2016 if during 2015 they perform Intracommunity trade with an annual value per stream (arrivals and dispatches) higher than the established Intrastat thresholds;
Law no. 246/2015 was published in the Official Gazette on 2 November 2015 and regulates the available instruments for recovery of insurers, Romanian legal persons and resolution of their financial situation.
Law no. 246/2015 on the recovery and resolution of insurers was published in the Official Gazette of Romania no. 813 issued on 2 November 2015.
The law is only applicable for insurers that are Romanian legal entities and describes the measures that can be imposed by the Financial Supervision Authority (“FSA”) in relation to their recovery and resolution of their financial situation.
On 22 April 2015, the Court of Justice of the European Union (‘CJEU’) rendered its judgment in the case Drukarnia Multipress sp. z o.o (‘Drukarnia’, case C-357/13). CJEU ruled, that the Polish tax on civil-law transactions (‘PCC’ or ‘TCLT’ being similar to stamp duty) levied on certain restructuring operations carried out by a partnership limited by shares (spolka komadytowo-akcyjna, ‘SKA’) is not compatible with the Directive 2008/7/EC. The positive resolution of the CJEU creates an opportunity to recover the PCC paid on restructurings of SKA.