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Holding Regimes New EU Countries 2013

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Holding Regimes New EU Countries 2013 Holding Regimes New EU Countries 2013 Comparison of Selected Countries Share the Expertise © Loyens & Loeff N.V. 2013 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or in an automated database or disclosed in any form or by any means (electronic, mechanical, photocopy, recording or otherwise) without the prior written permission of Loyens & Loeff N.V. Insofar as it is permitted, pursuant to Section 16b of the Dutch Copyright Act 1912 (Auteurswet 1912) in conjunction with the Decree of 20 June 1974, Dutch Bulletin of Acts and Decrees 351, as most recently amended by the Decree of 22 December 1997, Dutch Bulletin of Acts and Decrees 764 and Section 17 of the Dutch Copyright Act 1912, to make copies of parts of this publication, the compensation stipulated by law must be remitted to Stichting Reprorecht (the Dutch Reprographic Reproduction Rights Foundation, PO Box 3060, 2130 KB Hoofddorp, the Netherlands). For reproductions of one or more parts of this publication in anthologies, readers or other compilations (Section 16 of the Dutch Copyright Act 1912), please contact the publisher. This publication does not constitute tax or legal advice and the contents thereof may not be relied upon. Each person should seek advice based on his or her particular circumstances. Although this publication was composed with the greatest possible diligence, Loyens & Loeff N.V., the contributing firms and any individuals involved cannot accept liability or responsibility for the results of any actions taken on the basis of this publication without their cooperation, including any errors or omissions. The contributions to this book contain personal views of the authors and therefore do not reflect the opinion of Loyens & Loeff N.V. Introduction Loyens & Loeff A comparison of new countries in the European Union Loyens & Loeff is an independent full service law firm with integrated corporate law and tax The CEE team has developed and maintained a concise and practical tool for our tax practices. The firm has a strong international and EU focus with around 900 lawyers working practitioners to compare the main features of the tax regimes in the new countries in the across its 6 home offices in the Netherlands, Belgium and Luxembourg and 1 offices in the European Union. We hope that this publication will find its permanent place on the desk of world’s major financial centers. Loyens & Loeff is a firm where tax lawyers on the one hand practitioners involved in international tax planning in relation to new EU countries. and lawyers and civil law notaries on the other hand are equally divided. The collaboration between the various specialists within one office works to the client’s advantage. This publication is intended as a tool for an initial comparison of the most relevant tax aspects of the tax regimes in the new EU countries where it relates to holding companies which may Loyens & Loeff’s expertise stretches across borders. In order to satisfy the international also engage in financing and/or licensing activities, and should never be used as a substitute demand for advisory services, Loyens & Loeff maintains intensive relationships with prominent for obtaining local tax advice. With respect to the various jurisdictions, we obtained the law and tax firms in Europe, the United States, Russia and many other countries. In this way, information from the firms listed below. We gratefully acknowledge the contributions of each of the firm offers its clients top-level advice worldwide and is capable of effectively structuring and those firms. Additional information regarding the regimes in the selected jurisdictions may be supervising both domestic and foreign matters. As such, the firm is the logical choice for large obtained by contacting the undersigned or the contributing firms via their website shown below. and medium-size enterprises, banks and other financial institutions, operating internationally. Loyens & Loeff scored the highest for tax advice in the 2012 editions of Legal 500, Chambers Bulgaria Djingov, Gouginski, Kyutchukov & Velichkov www.dgkv.com Europe and World Tax. Cyprus Andreas Neocleous & Co LLC www.neocleous.com Czech Republic White & Case LLP www.whitecase.com Loyens & Loeff’s primary expertise covers both the tax and legal aspects, amongst others, Estonia Sorainen www.sorainen.ee of mergers & acquisitions, restructurings, IPOs, structured and project financing, real estate Hungary Wolf Theiss www.wolftheiss.com investments, leasing transactions and intellectual property rights. Latvia Sorainen www.sorainen.lv Lithuania Sorainen www.sorainen.lt Our CEE team Malta Francis J. Vassallo & Associates Limited www.fjvassallo.com Since the accession of many new countries to the European Union, we have seen an Poland Salans www.salans.com increased flow of inbound and outbound investments in these countries. In order to have Romania Nestor Nestor Diculescu Kingston Petersen www.nndkp.com a better focus on the developments in the CEE region, Loyens & Loeff established a Slovakia PRK Partners s.r.o. www.prkpartners.sk dedicated CEE team in 2002. It is a team of enthusiastic attorneys and tax advisers with Slovenia LeitnerLeitner www.leitnerleitner.com extensive experience in advising clients on transactions relating to the CEE market. As both the Netherlands and Luxembourg often provide for an ideal location for, among others, The information contained in this publication is based on the applicable laws in effect as per intermediary holdings or financing companies, the team is involved in many investment January 1, 2013. structures in the new EU countries. We do not avail of offices in these countries, but we work together with the leading law firms in each of them and frequently travel to the region to Yours sincerely, maintain close contact with these law firms and with our clients. Bartjan Zoetmulder Wouter Vosse Tim Dopmeijer Partner & Head of the Senior associate & Member Junior associate & Member CEE team of the CEE team of the CEE team [email protected] [email protected] [email protected] LOYENS & LOEFF Holding Regimes New EU Countries 2013 Table of contents Part I Bulgaria, Czech Republic, Hungary, Poland, Part II Cyprus, Estonia, Latvia, Lithuania, Malta, Slovenia Romania, Slovakia 1. Capital tax / stamp duty / real estate transfer tax / 1. Capital tax / stamp duty / real estate transfer tax / real real estate tax 6 estate tax 47 2. Corporate income tax (“CIT”) 10 2. Corporate income tax (“CIT”) 51 2.1. CIT and wealth taxes 10 2.1. CIT and wealth taxes 51 2.2. Dividend regime (participation exemption) 12 2.2. Dividend regime (participation exemption) 53 2.3. Gains on shares (participation exemption) 15 2.3. Gains on shares (participation exemption) 57 2.4. Losses on shares 17 2.4. Losses on shares 59 2.5. Costs relating to the participation 18 2.5. Costs relating to the participation 60 2.6. Currency exchange results 19 2.6. Currency exchange results 61 2.7. Tax rulings 20 2.7. Tax rulings 62 2.8. Loss carry over rules 23 2.8. Loss carry over rules 64 2.9. Group taxation for CIT purposes 25 2.9. Group taxation for CIT purposes 65 3. Withholding taxes payable by the holding company 28 3. Withholding taxes payable by the holding company 68 3.1. Withholding tax on dividends paid by the holding company 28 3.1. Withholding tax on dividends paid by the holding company 68 3.2. Withholding tax on interest paid by the holding company 30 3.2. Withholding tax on interest paid by the holding company 71 3.3. Withholding tax on royalties paid by the holding company 33 3.3. Withholding tax on royalties paid by the holding company 73 4. Non-resident capital gains taxation - domestic 4. Non-resident capital gains taxation - domestic legislation and tax treaties 37 legislation and tax treaties 74 5. Anti-abuse provisions / CFC rules 39 5. Anti-abuse provisions / CFC rules 76 6. Tax and investment incentives 43 6. Tax and investment incentives 79 LOYENS & LOEFF Holding Regimes New EU Countries 2013 Holding Regimes New EU Countries Part I Bulgaria, Czech Republic, Hungary, Poland, Romania, Slovakia 1. Capital tax / stamp duty / real estate transfer tax / real estate tax Bulgaria Czech Republic Hungary Poland Romania Slovakia Capital tax Capital tax Capital tax Capital tax Capital tax Capital tax There is no capital There is no capital There is no capital In general, a capital There is no capital There is no capital contribution tax in Bulgaria. contribution tax in the Czech (contribution) tax Hungary. contribution to a Polish contribution tax in Romania. contribution tax in Slovakia. Republic. company is subject to Stamp duty Stamp duty tax at the effective rate Stamp duty Stamp duty An insignificant amount of Stamp duty Stamp duty is levied on the of 0.5%. The tax base is The incorporation of a new The incorporation of a new state fees is due upon the The registration of a new registration of a company in the value of share capital company is subject to a company is subject to a registration in the commercial company in the commercial the Company Register and increase resulting from registration fee amounting to registration fee depending register of (i) a newly register and subsequent on any changes made to the the contribution; the share RON 600. The registration on the form of the company incorporated company, (ii) a changes, including the data so registered. premium is not subject to tax. of new elements during the (€ 829.50 for a joint stock new shareholder in a limited change of a shareholder existence of a company company and € 331.50 liability company, or (iii) the or increase/decrease of Stamp duty is, for instance, Increase of a company’s triggers minor registration for any other form) and increase of the capital of any registered capital, trigger a levied in an amount of: share capital is not subject fees (approximately RON a duty payable upon the commercial company.
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