DOCSLIB.ORG

Armenian Tax & Law Brief July 2019

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Armenian Tax & Law Brief July 2019 Armenian Tax & Law Brief July 2019 July 2019 In this Issue: Amendments and supplements to the RA Tax Code dated 4 October 2016 . 2 Corporate income tax ................................................................... 2 Personal income tax ..................................................................... 2 Value added tax ........................................................................... 2 Excise tax .................................................................................... 3 Patent tax .................................................................................... 3 Road tax ...................................................................................... 3 Microentrepreneurship system...................................................... 3 State duties ................................................................................. 3 Taxation of totalizators ................................................................ 4 Recording of transactions denominated in foreign currency............ 4 Documentation of e-commerce activities ....................................... 4 Armenian Tax & Law Brief 2 July 2019 In particular, starting 1 July 2020, the maximum Amendments and supplements to the threshold for the calculation of the social security RA Tax Code dated 4 October 2016 payment will change and instead of AMD 500,000 On 25 June 20191, the RA Parliament adopted RA it will become AMD 825,000 (i.e. 15 times the Law No. HO-68-N, which makes a number of minimum monthly salary of AMD 55,000). amendments and supplements to the RA Tax Code However, based on reports in the media, the dated 4 October 2016. The law will enter into force minimum monthly salary might increase and reach starting 1 January 2020. However, there are some AMD 68,000. In this case, the maximum threshold provisions that come into force starting 29 June will become AMD 1,020,000. 2019. Additionally, from 1 January 2021 to 31 December Below we highlight all the major amendments and 2021, the social security payment will be supplements to the Code that the newly adopted calculated as follows: law provides: 3.5% of the monthly gross salary if it is less than AMD 500,000; Corporate income tax 10% of the maximum threshold minus AMD 32,500 ► Starting 1 January 2020, corporate income tax if the monthly gross salary is more than AMD is to be decreased by two percentage points to 500,000. 18%. This rate is to be applied to the calculation of corporate income tax attributable to 2020 In the same token, from 1 January 2022 to 31 and reporting periods succeeding it. December 2022, the social security payment will be calculated as follows: ► Starting 1 January 2020, dividends received by non-resident organizations are to be taxed at 5% 4.5% of the monthly gross salary if it is less than instead of 10%. This rate applies to dividends AMD 500,000; received from net profits attributable to 2020 10% of the maximum threshold minus AMD 27,500 and reporting periods succeeding it. if the monthly gross salary is more than AMD 500,000. Personal income tax ► Starting 1 January 2020, personal income tax ► Starting 1 January 2020, personal income tax is to be calculated at a flat rate of 23% and to be as part of dividends received by foreign citizens gradually lowered to 20% as the table below from Armenian sources, just like that of RA presents: citizens, is to be calculated at 5% (instead of Time-period Personal income tax rate 10%). This rate applies to dividends received from net profits attributable to 2020 and Starting 1 January 2020 23% reporting periods succeeding it. Starting 1 January 2021 22% Starting 1 January 2022 21% Value added tax Starting 1 January 2023 20% ► For the year 2019, those resident taxpayers whose sales turnover exceeds AMD 115 mln (instead of AMD 58.35 mln) are to be considered ► In parallel to the decrease in personal income VAT payers. Meanwhile, taxpayers who tax rates, according to the RA Law “On funded exceeded the threshold of AMD 58.35 mln sales pensions” the principle of equal participation by turnover in terms of all types of activities before citizens and the state in respect of funded 29 June (inclusive) of the ongoing tax year pension allocations will be restored. continue to be treated as VAT payers throughout 2019. 1 On 25 June 2019 the RA Parliament additionally adopted amendments and supplements to several other laws related to the RA Tax Code which we refer to in this brief when applicable. © 2019 Ernst &Young CJSC http://www.ey.com/am Armenian Tax & Law Brief 3 July 2019 ► Starting 1 January 2020, only VAT payers will Microentrepreneurship system be allowed to get exempted from VAT payment Starting 1 January 2020, the Tax Code will when importing goods included in the VAT substitute the chapter on the family exemption list according to the RA Law “On entrepreneurship system and the system of approving the list of goods not subject to taxation of self-employed entities with a newly taxation under the excise tax whose import by drafted chapter on the microentrepreneurship organizations and sole entrepreneurs is system. Within the scope of this preferential tax exempted from taxation under value added tax”. system the entities will be exempted from all the ► Starting 1 July 2019, based on an application of main taxes and be able to involve a limitless the taxpayer, input VAT amounts that are number of physical persons (regardless of whether subject to refund can be debited to the unified they are family members or not) in their activities tax account of the taxpayer on a quarterly as employees, whose monthly personal income tax (instead of semi-annual) basis. This provision will constitute AMD 5,000. Further, legal entities, applies to VAT amounts that need to be sole entrepreneurs, as well as physical entities not refunded based on the VAT and excise tax considered sole entrepreneurs can make use of this unified reports covering reporting periods after system unless their annual sales turnover exceeds 1 July 2019. AMD 24 million. Physical persons not registered as sole entrepreneurs can make use of this taxation Excise tax system if they carry out basic activities prescribed ► Starting 1 January 2020, the taxation of by the Code. activities under the excise tax with rates Accordingly, the Chapter defines the conditions for expressed in percentages will be eliminated. qualifying to participate in the Accordingly, new fixed rates based on the microentrepreneurship system, termination quantitative tax bases have been approved. thereof, exemption from several taxes, transition to Further, a new system of annual adjustment of the general or turnover taxation systems as well as excise tax rates for certain types of goods has types of entities that cannot be considered been introduced. participants of the microentrepreneurship system. ► Starting 1 January 2020, excise tax rates of ethyl alcohol, vodka (except vodkas made from State duties fruits and berries), beer, and tobacco products Starting 1 January 2020, state duties for licenses of IQOS technology will be raised. necessary for carrying out a number of activities in ► Starting 1 January 2020, business entities the financial and gaming sectors will significantly producing or importing goods taxed under the increase. In particular, below we present a non- excise tax will be allowed to operate in the exhaustive list of activities subject to licensing microentrepreneurship and turnover tax from the financial and gaming sectors for the systems. performance of which state duties will be levied at the following rates (the term “base duty” used in Patent tax the table below is defined by the RA Law “On State duty” and is AMD 1,000): Starting 1 January 2020, all provisions of the Code related to the patent tax will lose force. The patent tax will be removed from the taxation system. Activities in the financial sector Description State duty Road tax Sale and purchase of foreign 500 times the base duty Road tax for trucks registered in the RA will be currency (for each address starting 1 January 2020 individually), annually eliminated and the Government shall prescribe the 1,000 times the base requirements for the documentation of expenses duty starting 1 January incurred abroad by international transportation 2021 service providers. For the provision of 500 times the base duty investment services, annually © 2019 Ernst &Young CJSC http://www.ey.com/am Armenian Tax & Law Brief 4 July 2019 For the performance of fund 500 times the base duty In the city of Tsaghkadzor, 180,000 times the base management activity, annually duty annually In the city of Sevan, 150,000 times the base For the operation of banks 8,000 times the base annually duty (also for branches of foreign duty banks which attract deposits), In the city of Jermuk, 100,000 times the base annually annually duty For the operation of each 1,000 times the base In the city of Meghri, 35,000 times the base duty branch of a bank, annually duty annually For the operation of each 500 times the base duty In the city of Yerevan and 5,500,000 times the base representative office of a elsewhere duty bank, annually Taxation of totalizators For the operation of each 500 times the base duty representative office of a The taxation of totalizators (including internet foreign bank, annually totalizators) and games of chance (including For the operation of branches 1,000 times the base internet games of chance) will be reconsidered of foreign banks (which do not duty starting 1 January 2020 and 1 January 2021 attract
Load more

Recommended publications
  • Analysis of Tax Developments Worldwide
    www.pwc.com/its International Tax News Edition 78 August 2019 Welcome Keeping up with the constant flow of Featured articles international tax developments worldwide can be a real challenge for multinational companies. International Tax News is a monthly publication that offers updates and analysis on developments taking place around the world, authored by specialists in PwC’s global international tax network. We hope that you will find this publication helpful, and look forward to your comments. Bernard Moens Global Leader International Tax Services Network T: +1 703 362 7644 E: [email protected] In this issue Legislation Administrative Judicial EU/OECD Treaties Legislation Argentina Argentina approves tax regime for Among others, the following tax benefits knowledge-based activities apply to the extent that taxpayers comply with certain requirements: Law No. 27,506, published on June • 15% reduced corporate income tax rate 10, enacted a new regime promoting applicable to fiscal years beginning on or knowledge-based activities. The regime’s after January 1, 2020 main tax benefits include a reduced • executing tax stability agreements with federal corporate income tax rate of 15% and a tax authorities providing that the federal tax tax stability agreement. The new regime burden on income from Promoted Activities cannot increase until December 31, 2029 replaces the existing regime, which was • ability to claim withholding taxes, VAT limited to the software industry, and withholding exemptions, and reduction in will be effective from January 1, 2020 social security contributions through December 31, 2029. Multinational entities engaged in Promoted Activities should revisit their Argentinian operations in order to The new regime aims to encourage the creation, benefit from the new regime.
    [Show full text]
  • Engagement Guidance on Corporate Tax Responsibility Why and How to Engage with Your Investee Companies
    ENGAGEMENT GUIDANCE ON CORPORATE TAX RESPONSIBILITY WHY AND HOW TO ENGAGE WITH YOUR INVESTEE COMPANIES An investor initiative in partnership with UNEP Finance Initiative and UN Global Compact THE SIX PRINCIPLES We will incorporate ESG issues into investment analysis and 1 decision-making processes. We will be active owners and incorporate ESG issues into our 2 ownership policies and practices. We will seek appropriate disclosure on ESG issues by 3 the entities in which we invest. We will promote acceptance and implementation of the Principles 4 within the investment industry. We will work together to enhance our effectiveness in 5 implementing the Principles. We will each report on our activities and progress towards 6 implementing the Principles. CREDITS & ACKNOWLEDGEMENTS Authors: Athanasia Karananou and Anastasia Guha, PRI Editor: Mark Kolmar, PRI Design: Alessandro Boaretto, PRI The PRI is grateful to the investor taskforce on corporate tax responsibility for their contributions to the guidance: ■ Harriet Parker, Investment Analyst, Alliance Trust Investments ■ Steven Bryce, Investment Analyst, Arisaig Partners (Asia) Pte Ltd ■ Francois Meloche, Extra Financial Risks Manager, Bâtirente ■ Adam Kanzer, Managing Director, Domini Social Investments LLC ■ Pauline Lejay, SRI Officer, ERAFP ■ Meryam Omi, Head of Sustainability, Legal & General Investment Management ■ Robert Wilson, Research Analyst, MFS Investment Management ■ Michelle de Cordova, Director, Corporate Engagement & Public Policy, NEI Investments ■ Rosa van den Beemt, ESG Analyst, NEI Investments ■ Kate Elliot, Ethical Researcher, Rathbone Brothers Plc ■ Matthias Müller, Senior SI Analyst, RobecoSAM ■ Rosl Veltmeijer, Head of Research, Triodos Investment Management We would like to warmly thank Sol Picciotto, Emeritus Professor, Lancaster University and Coordinator, BEPS Monitoring Group, and Katherine Ng, PRI, for their contribution to the guidance.
    [Show full text]
  • With Indirect Tax News
    InTouch with indirect tax news Caribbean Region – Alert pwc InTouch with indirect tax news Caribbean Region Alert In this issue: PricewaterhouseCoopers Caribbean Region is pleased I Antigua & Barbuda – Budgetary proposals legislated ............................3 to present the August 2010 I Aruba – BBO rate reduced......................................................................5 issue of InTouch, a bulletin I Barbados – Reforms to Barbados VAT ...................................................7 I Curaçao, Bonaire, St. Maarten, Saba, St. Eustatius...............................9 designed to keep our clients I Dominica ...............................................................................................10 up-to-date with regional I Grenada – VAT in Grenada effective February 1, 2010 .........................11 indirect taxation. I Jamaica – Increase in rate of GCT.......................................................12 I St. Kitts and Nevis – VAT proposed implementation ...........................14 I St. Lucia – Proposed introduction of VAT delayed...............................15 I Trinidad & Tobago ................................................................................16 I Contacts................................................................................................17 2 pwc Antigua & Barbuda Updates and developments An overview Rates 2009 saw the rate of Antigua and Barbuda Sales Antigua and Barbuda Sales Tax (“ABST”) is the The following rates of tax are applicable under the Tax (“ABST”) applicable
    [Show full text]
  • More Than 50 Years of Trade Rule Discrimination on Taxation: How Trade with China Is Affected
    MORE THAN 50 YEARS OF TRADE RULE DISCRIMINATION ON TAXATION: HOW TRADE WITH CHINA IS AFFECTED Trade Lawyers Advisory Group Terence P. Stewart, Esq. Eric P. Salonen, Esq. Patrick J. McDonough, Esq. Stewart and Stewart August 2007 Copyright © 2007 by The Trade Lawyers Advisory Group LLC This project is funded by a grant from the U.S. Small Business Administration (SBA). SBA’s funding should not be construed as an endorsement of any products, opinions or services. All SBA-funded projects are extended to the public on a nondiscriminatory basis. MORE THAN 50 YEARS OF TRADE RULE DISCRIMINATION ON TAXATION: HOW TRADE WITH CHINA IS AFFECTED TABLE OF CONTENTS PAGE EXECUTIVE SUMMARY.............................................................................................. iv INTRODUCTION ................................................................................................................ 1 I. U.S. EXPORTERS AND PRODUCERS ARE COMPETITIVELY DISADVANTAGED BY THE DIFFERENTIAL TREATMENT OF DIRECT AND INDIRECT TAXES IN INTERNATIONAL TRADE .............................................. 2 II. HISTORICAL BACKGROUND TO THE DIFFERENTIAL TREATMENT OF INDIRECT AND DIRECT TAXES IN INTERNATIONAL TRADE WITH RESPECT TO BORDER ADJUSTABILITY................................................................. 21 A. Border Adjustability of Taxes ................................................................. 21 B. 18th and 19th Century Examples of the Application of Border Tax Adjustments .........................................................................
    [Show full text]
  • Potential Retaliation Against the EU Digital Services Tax (DST)
    A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Lee-Makiyama, Hosuk Research Report The cost of fiscal unilateralism: Potential retaliation against the EU Digital Services Tax (DST) ECIPE Occasional Paper, No. 05/2018 Provided in Cooperation with: European Centre for International Political Economy (ECIPE), Brussels Suggested Citation: Lee-Makiyama, Hosuk (2018) : The cost of fiscal unilateralism: Potential retaliation against the EU Digital Services Tax (DST), ECIPE Occasional Paper, No. 05/2018, European Centre for International Political Economy (ECIPE), Brussels This Version is available at: http://hdl.handle.net/10419/202461 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu ECIPE OCCASIONAL PAPER • 05/2018 The Cost of Fiscal Unilateralism: Potential Retaliation Against the EU Digital Services Tax (DST) By Hosuk Lee-Makiyama Director of ECIPE The author gratefully acknowledges the able research assistance of Cristina Rujan ecipe occasional paper — no.
    [Show full text]
  • Table of Tax Laws Cited
    Table of Tax Laws Cited Country and Regional Abbreviations Abbreviation Abbreviation Albania ALB Latvia LVA Argentina ARG Lesotho LSO Australia AUS Macedonia, fo rmer Austria AUT Yugoslav Rep. of MKD Belgium BEL Mali MLI Bolivia BOL Mauritania MRT Brazil BRA Mexico MEX Bulgaria BGR Netherlands NLD Canada CAN New Zealand NZL Chile CHL Norway NOR China CHN Pakistan PAK Colombia COL Papua New Guinea PNG Cote d'Ivoire CIV Peru PER Czech Republic CZE Philippines PHL Denmark DNK Portugal PRT Dominican Republic DOM Romania ROM Ecuador ECU Russia RUS Estonia EST Sierra Leone SLE Finland FIN Singapore SGP France FRA Slovak Republic SYK Germany DEU Slovenia SYN Guinea GIN South Africa ZAF Hong Kong HKG Spain ESP India !NO Sweden SWE Ireland IRL Switzerland CHE Israel ISR To go TGO Italy ITA United Kingdom GBR Japan JPN United States USA Kazakstan KAZ Venezuela YEN Korea KOR 477 4 7 8 + Table ofTax Laws Cited Ta x Laws Albania SBT Ligj nr. 7679 Per tatimin mbi biznesin e vogel (Law on ALB Small Business Ta x), of Mar. 3, 1993; reprinted in The Albania Law Report (Alba! SH. P. K. Ti rana), Compilation of Legal Acts of Albania as amended, at 49, Oct. 1995 [in Albanian] [English trans.]. Argentina APFI Procedimiento para Ia Aplicaci6n, Percepci6n y ARG Fiscalizaci6n de lmpuestos (Procedures for the Application, Collection and Inspection of Ta xes), Ley N2 11.683, B.O. Dec. 11, 1978 (as amended to 1991 by Law N2 23.905, B.O. Feb. 18, 1991 ); reprinted in 1 Legislaci6n lmpositiva 1991, at 1, La Ley [in Spanish].
    [Show full text]
  • GENERAL A< TARIFFS and TRADE
    See bound volume for *S(sP*$ of this series for addenda/corrigenda/revisions // _ 2? RESTRICTED GENERAL A< to this document. Spec(68)88/Add.3 TARIFFS AND TRADE 19 December 1968 Working Party on Border Tax Adjustments Original: English/ French BOEDER TAX ADJUSTMENTS Information Supplied by Contracting Parties Addendum In response to the requests S6t out in L/3039 page 5, paragraphs 1 and 2, further replies which are attached hereto have been r6C6iv6d from th6 following Governments: • - A. Replies from member States of th6 Organisation for Economic Co-operation and Development, supplementing OECD documentation: Page Norway 2 - B. Replies from non-members of the OECD: Cameroon 5 United Arab Republic -^ Spec(68)88/Add.3 Page 2 Annex I NORWAY A. The following corrections should be made to the OEGD Pact-Finding Report (OBCD document C (68) 47): Part I £ggg_Ji: Norway should be mentioned under paragraph 20(c). Producers' goods are taxable in Norway. Page 13; Norway should be deleted from.paragraph 28. Only certain services are taxable. Reference is made to Part III, page 41. Page 39: Norway should be added to the list of countries under paragraph 93(a), but deleted from 93(b). As indicated above producers' goods ar6 taxable, but no adjustments are made at the border for this tax. Part III Page 42: As from 1 January 1968 the excise duty on articles of silver was reduced to 7.5 per cent. A proposal has been made, to the Storting to abolish as from 1 January 1969 the excise duty on articles of platinum, gold and silver as well as on imitation jewellery.
    [Show full text]
  • A Taxing Issue Hinder Efficient Business” Calculating and Deducting the Tax, Rather Than, As with Most Standard Taxes, the Seller
    wealth management wealth management Tax Tax “In much of Latin America, services. At the state level, ICMS applies to goods and some transportation and communications differences in rules around services, but no other services.” withholding taxes vary so The location of the transaction and its partici- pants can also affect the status. And, as in the case greatly that it can dramatically of Argentina, it’s the buyer that is responsible for A taxing issue hinder efficient business” calculating and deducting the tax, rather than, as with most standard taxes, the seller. Managing withholding taxes can be a cumbersome task for A straightforward approach corporations. This is particularly true in Latin America, where on the sale of goods and certain construction ser- Fortunately, Mexico has simplified things a little: navigating the complexities requires local expertise, according to vices, up to 100 percent for ‘blacklisted’ taxpayers it’s primarily income tax and VAT transactions Ana Paula Maciel, Principal Tax Research Analyst at Vertex, and identified as high risk by the authority. that are subject to a withholding regime, making While this sounds confusing, things get its regulations at least a little easier to navigate Ernesto Levy, Senior Leader of Global Indirect Tax at Intuit even trickier at the provincial level. According than the country’s South American counterparts. to Maciel: “At this level, Argentina’s approach Here, income tax withholding generally applies to Understanding tax regulation can be challeng- whereby the seller is mandated by the government to withholding and collection taxes applied to payments made from entities to individuals for ing at the best of times.
    [Show full text]
  • Assessment of the 2017 Tax Reform for Acceleration and Inclusion
    A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Manasan, Rosario Working Paper Assessment of the 2017 tax reform for acceleration and inclusion PIDS Discussion Paper Series, No. 2017-27 Provided in Cooperation with: Philippine Institute for Development Studies (PIDS), Philippines Suggested Citation: Manasan, Rosario (2017) : Assessment of the 2017 tax reform for acceleration and inclusion, PIDS Discussion Paper Series, No. 2017-27, Philippine Institute for Development Studies (PIDS), Quezon City This Version is available at: http://hdl.handle.net/10419/173604 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu Philippine Institute for Development Studies Surian sa mga Pag-aaral Pangkaunlaran ng Pilipinas Assessment of the 2017 Tax Reform for Acceleration and Inclusion Rosario G.
    [Show full text]
  • Research Publications RP-16
    New York, N . Y . 10020 Printed in U.S.A, Table of Contents PACE L INTRODUCTION 5 IL . THE EUROPEAN ECONOMIC COMMUNITY - 7 Purpose, Or;anization and Tax Harmonization Objectives 7 Fiscal Harmonizatinn and Common Market Objectives 7 Why the Need to Harmonize Indirect Taxes 8 The Value-Added Tax : I „ 11 Border Tax Adjustments .12 III, `THE AMERICAN BALANCE-OF-PAYMENTS` SITUATION AN D BORDER TAXES 14 .,The Common European Value-Added Tax and Border Taxes 16 The Border,Adjustment:Problem 18 IV. THE U.S. COURSES OF`ACTION TO COMPENSATE FOR _ _EUROPEAN :BORDER TAXES .2 1 V. CONCLUSION , ,,,,,,,,,, 25 APPENDIX I - The E.E.C. Directives Introducing the Common Value-Added Tax l System ;. 6 .. APPENDIX II The Cerman Law on .Value-Added Taxes APPENDIX II I . The Value-Added. Tax 31 ; ;. :..List-of Tables .. '.. .. -~ ;-TABLE ;PAGE 1. Turnover and Value-Added Taxes in the Common Market, 1967 9 II. Border Tax Adjustment Rates in the Common Market, 1967 12 III. Taxation as a Percentage of Cross National Product in 1966 17 IV, Common Market Trade Balance with the United States 21 ,Introduction, , . T. V. A. no longer is used exclusively acteristics of each, while being distinc t with reference to the "Tennessee Valley - from both in that it includes in its tax Authority." In more recent times T.V.A. base services rendered in the production has often been used ,to designate the process. French tax system of "la taxe ..sur la „ In 1950 value-added taxation was pro - valeur; ajoutee: ;posed to Japan by the Shoup Mission under Professor Carl S .
    [Show full text]
  • Banks Defy Gravity in Tax Havens 
    Working Paper No 2017-16 – September Banks Defy Gravity in Tax Havens Vincent Bouvatier, Gunther Capelle-Blancard & Anne-Laure Delatte Highlights Tax havens generate a threefold extra presence of foreign banks. The favorite destinations of tax evasion intermediated by European banks are Luxembourg and Monaco. British and German banks display the most aggressive strategies in tax havens. New transparency requirements imposed in 2015 have not changed European banks commercial presence in tax havens. Banks intermediate Euros 550 billion of offshore deposits, that is 5% of their origin countries' GDP. CEPII Working Paper Banks Defy Gravity in Tax Havens Abstract This paper provides the first quantitative assessment of the contribution of global banks in intermediating tax evasion. Applying gravity equations on a unique regulatory dataset based on comprehensive individual country-by-country reporting from all the Systemically Important Banks the European Union, we find that: 1) Tax havens generate a threefold extra presence of foreign banks; 2) The favorite destinations of tax evasion intermediated by European banks are Luxembourg and Monaco 3) British and German banks display the most aggressive strategies in tax havens; 4) New transparency requirements imposed in 2015 have not changed European banks commercial presence in tax havens; 5) Banks intermediate EUROS 550 billion of offshore deposits, that is 5% of their origin countries' GDP. Keywords Tax Evasion, International Banking, Tax Havens, Country-by-Country Reporting. JEL F23, G21, H22,
    [Show full text]
  • 33967075.Pdf
    25*$1,6$7,21Ã)25Ã(&2120,&Ã&223(5$7,21Ã$1'Ã'(9(/230(17Ã Ã - Ã &(175(Ã)25Ã7$;Ã32/,&<Ã$1'Ã$'0,1,675$7,21Ã ABATEMENT ABUSE OF LAW ACCELERATED DEPRECIATION ACCOUNTING BASIS , ACCOUNTING PERIOD ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE ACCOUNTING RECORDS - , ACCRUAL BASIS (ACCRUAL METHOD) , , AD VALOREM TAX ADMINISTRATIVE COMPANY - ADMINISTRATIVE EXPENSES . ADMINISTRATIVE OFFICE ADVANCE PRICING ARRANGEMENT (APA) ADVANCE RULING AFFILIATED COMPANIES - AFFILIATION PRIVILEGE , ( ). AGENCY AGGREGATION ALIEN, TAX TREATMENT OF - ALIENATION OF INCOME ALLOCATION ALLOWANCE AMORTIZATION AMORTIZATION METHOD APPORTIONMENT METHOD ARBITRAGE ARBITRAGE, TAX ARBITRATION « » ARM’S LENGTH PRINCIPLE © ª © ª ARM’S LENGTH RANGE © ª ARM’S LENGTH TRANSACTION ASSESSMENT
    [Show full text]