DOCSLIB.ORG

Middle East Worldwide Tax Summaries Corporate Taxes 2017/18

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Middle East Worldwide Tax Summaries Corporate Taxes 2017/18 www.pwc.com/taxsummaries Worldwide Tax Summaries Corporate Taxes 2017/18 Quick access to information about corporate tax systems in 157 countries worldwide. Middle East Worldwide Tax Summaries Corporate Taxes 2017/18 All information in this book, unless otherwise stated, is up to date as of 1 June 2017. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. © 2017 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. Foreword Welcome to the 2017/18 edition of Worldwide Tax Summaries – Corporate Taxes, one of the most comprehensive tax guides available. This year’s edition provides detailed information on corporate tax rates and rules in 157 countries worldwide. As governments across the globe are Some of the enhanced features available looking for greater transparency and online include Quick Charts to compare with the increase of cross-border rates across jurisdictions. You may also activities, tax professionals often need access WWTS content through Tax access to the current tax rates and other Analysts at www.taxnotes.com. major tax law features in a wide range of countries. The country summaries, If you have any questions, or need more written by our local PwC tax specialists, detailed advice on any aspect of tax, include recent changes in tax legislation please get in touch with us. The PwC tax as well as key information about income network has member firms throughout taxes, residency, income determination, the world, and our specialist networks deductions, group taxation, credits and can provide both domestic and cross- incentives, withholding taxes, indirect border perspectives on today’s critical taxes, and tax administration. All tax challenges. information in this book, unless otherwise stated, is up to date as of 1 June 2017. Our online version of the summaries is available at www.pwc.com/taxsummaries. The Worldwide Tax Summaries (WWTS) website also covers the taxation of individuals and is fully mobile compatible, Colm Kelly giving you quick and easy access to Global Tax & regularly updated information anytime on Legal Services Leader your mobile device. PwC Ireland www.pwc.com/taxsummaries Foreword 1 Contents Foreword ...............................................1 Country chapters Bahrain .................................................4 Egypt .....................................................8 Iraq .....................................................23 Israel ..................................................29 Jordan .................................................54 Kuwait .................................................63 Lebanon ..............................................78 Libya ...................................................93 Oman ................................................100 Qatar ................................................. 111 Saudi Arabia ......................................123 United Arab Emirates ........................ 141 Worldwide Tax Summaries Editorial Team ...................................148 2 Contents PwC Worldwide Tax Summaries Country chapters Middle East Bahrain PwC contact Ken Healy PricewaterhouseCoopers ME Limited 13th Floor, Jeera I Tower PO Box 21144 Seef District, Kingdom of Bahrain Tel: +973 1711 8886 Email: [email protected] Significant developments On 1 February 2017, Bahrain signed the Cooperation Council for the Arab states of the Gulf (GCC) unified Value-added Tax (VAT) and Excise Treaties. The Minister of Finance stated that Bahrain is planning to introduce VAT by mid-2018 and is targeting to introduce excise tax by mid-2017. Taxes on corporate income There are no taxes in Bahrain on income, sales, capital gains, or estates, with the exception, in limited circumstances, to businesses (local and foreign) that operate in the oil and gas sector or derive profits from the extraction or refinement of fossil fuels (defined as hydrocarbons) in Bahrain. For such companies, a tax rate of 46% is levied on net profits for each tax accounting period, irrespective of the residence of the taxpayer. Corporate residence Income Tax Law No. 22 of 1979 (which only applies to oil and gas businesses) does not define residence. Other taxes Value-added tax (VAT) and excise duty There is currently no VAT or excise duty in Bahrain. However, Bahrain signed the GCC unified VAT and Excise Treaties on 1 February 2017. VAT is expected to be introduced in Bahrain by mid-2018. The standard rate of VAT will be 5%. Customs duty The general rate of customs duty is 5% of the value in cost, insurance, and freight (CIF), except for alcoholic beverages, which is 225%, and cigarettes, which is 200%. Certain categories of goods, such as paper and aluminium products, are subject to 20% duty rate. Stamp duty Stamp duty applies to the transfer and/or registration of real estate only and is levied at a rate of 2%. In case of payment of the stamp duty within the two months following the transaction date, the rate of the stamp duty is reduced to 1.7%. www.pwc.com/taxsummaries Bahrain 4 Bahrain Registration and licence fees Companies are subject to registration fees of 60 Bahraini dinar (BHD) and licence fees that vary according to the nature of their activity. Payroll taxes Social security contribution Employer’s social security contribution is 12% for Bahraini workers and 3% for non- Bahraini workers, calculated on their monthly salaries and capped at an income ceiling of BHD 4,000. Municipality taxes There is a 10% municipality tax levied on the rental of commercial and residential property to expatriates. Branch income Profit from branch income is taxable in Bahrain at 46% if it is derived from activities in the oil and gas sector. Income determination There are no specific rules in Bahrain with respect to the calculation of specific items of income, such as inventory valuation, capital gains, dividend income, interest income, or foreign income. However, the income tax law requires that taxable profits be calculated using generally accepted accounting principles (GAAP). Deductions The law generally allows deductions for all costs associated with taxable activities in Bahrain, such as the cost of production, refinement, remuneration of employees associated with these taxable activities (including social insurance and pensions paid for the benefit of these employees), and other operational losses. All reasonable and justifiable costs of production and exploration of products sold during the current taxable year are deductible for tax purposes, provided that these expenses have not been deducted elsewhere in calculating net taxable income. Depreciation and depletion Tax deductions may be claimed with respect to reasonable amounts for depreciation, obsolescence, exhaustion, and depletion incurred during the taxable year for properties used by the taxpayer in a trade or business from which income, taxable under the income tax law, is derived. Generally, such amounts may be claimed on a straight- line basis over the estimated remaining useful life of the properties, unless otherwise approved by the Minister of Finance. Taxes All taxes and duties not imposed by the Bahrain income tax law, including customs duties, may be deducted from taxable income as stipulated in Bahrain’s income tax law. 5 Bahrain PwC Worldwide Tax Summaries Bahrain Net operating losses Unutilised losses may be carried forward and deducted up to an amount equivalent to the net income in future years as defined by the Bahrain income tax law. Carryback of losses is not permitted. Payments to foreign affiliates There are no specific restrictions in the income tax law pertaining to payments made to foreign affiliates. Group taxation There is no legislation or mechanism for group relief or the taxation of group activities in Bahrain. Additionally, there is currently no specific legislation regarding transfer pricing or thin capitalisation in Bahrain. Tax credits and incentives There are no tax incentives in Bahrain. There is also currently no legislation regarding foreign tax relief in Bahrain. Withholding taxes There are no withholding taxes (WHTs) on the payment of dividends, interest, or royalties in Bahrain. Tax treaties Bahrain has double tax treaties (DTTs) in force with various countries, including Algeria, Austria, Barbados, Belarus, Belgium, Bermuda, Brunei, Bulgaria, China, Cyprus, Czech Republic, Egypt, Estonia, France, Georgia, Hungary, Iran, Ireland, Isle of Man, Jordan, Republic of Korea, Lebanon, Luxembourg, Malaysia, Malta, Mexico, Morocco, the Netherlands, Pakistan, Philippines, Portugal, Seychelles, Singapore, Sri Lanka, Sudan, Syria, Thailand, Tajikistan, Turkey, Turkmenistan, the United Kingdom, Uzbekistan, and Yemen. Tax administration Taxable period A company’s accounting period should normally follow the (Gregorian) calendar year (i.e. 1 January to 31 December). Tax returns The law is silent on the due date for the filing of the final income tax statement. However, an estimated income tax statement must be submitted on or before the 15th day of the third month of the taxable year. Where applicable, a taxpayer may also be required to file an amended estimated income tax statement quarterly thereafter, unless a final income tax statement has been provided. Approved accountants must prepare a certified tax return for the return to be acceptable to the authorities. www.pwc.com/taxsummaries
Load more

Recommended publications
  • IN TAX LEADERS WOMEN in TAX LEADERS | 4 AMERICAS Latin America
    WOMEN IN TAX LEADERS THECOMPREHENSIVEGUIDE TO THE WORLD’S LEADING FEMALE TAX ADVISERS SIXTH EDITION IN ASSOCIATION WITH PUBLISHED BY WWW.INTERNATIONALTAXREVIEW.COM Contents 2 Introduction and methodology 8 Bouverie Street, London EC4Y 8AX, UK AMERICAS Tel: +44 20 7779 8308 4 Latin America: 30 Costa Rica Fax: +44 20 7779 8500 regional interview 30 Curaçao 8 United States: 30 Guatemala Editor, World Tax and World TP regional interview 30 Honduras Jonathan Moore 19 Argentina 31 Mexico Researchers 20 Brazil 31 Panama Lovy Mazodila 24 Canada 31 Peru Annabelle Thorpe 29 Chile 32 United States Jason Howard 30 Colombia 41 Venezuela Production editor ASIA-PACIFIC João Fernandes 43 Asia-Pacific: regional 58 Malaysia interview 59 New Zealand Business development team 52 Australia 60 Philippines Margaret Varela-Christie 53 Cambodia 61 Singapore Raquel Ipo 54 China 61 South Korea Managing director, LMG Research 55 Hong Kong SAR 62 Taiwan Tom St. Denis 56 India 62 Thailand 58 Indonesia 62 Vietnam © Euromoney Trading Limited, 2020. The copyright of all 58 Japan editorial matter appearing in this Review is reserved by the publisher. EUROPE, MIDDLE EAST & AFRICA 64 Africa: regional 101 Lithuania No matter contained herein may be reproduced, duplicated interview 101 Luxembourg or copied by any means without the prior consent of the 68 Central Europe: 102 Malta: Q&A holder of the copyright, requests for which should be regional interview 105 Malta addressed to the publisher. Although Euromoney Trading 72 Northern & 107 Netherlands Limited has made every effort to ensure the accuracy of this Southern Europe: 110 Norway publication, neither it nor any contributor can accept any regional interview 111 Poland legal responsibility whatsoever for consequences that may 86 Austria 112 Portugal arise from errors or omissions, or any opinions or advice 87 Belgium 115 Qatar given.
    [Show full text]
  • A Deictic Analysis of the Political Discourse of Some of Donald Trump's Presidential Speeches Based on the Discourse Space Theor
    A Deictic Analysis of the Political Discourse of some of Donald Trump's Presidential Speeches Based on the Discourse Space Theory دراسة تحليلية لﻹشارات النصية في الخطاب السياسي للرئيس اﻷمريكي "دونالد ترامب" وفقا لنظرية فضاء الخطاب Dr. Reham Mohamed El-Sayed Khalifa Department of English Language and Literature Faculty of Arts- Damietta University د. ريهام محمد السعيد خليفة مدرس بقسم اللغة اﻹنجليزية كلية اﻵداب – جامعة دمياط Dr. Reham Khalifa 66 Sahifatul-Alsun 34 Jan 2018 A Deictic Analysis of the Political Discourse A Deictic Analysis of the Political Discourse of some of Donald Trump's Presidential Speeches Based on the Discourse Space Theory Abstract Based on the Discourse Space Theory, this research sought to analyze the deictics used in the political discourse. Drawing on three speeches of the American President Donald Trump, this research explored the types of deictics and the frequency of using each type in each of the three speeches. To achieve this purpose, qualitative and quantitative analyses were conducted. The AntConc 3.5.0w was used to calculate the frequency of using each deictic type. Then, the percentage and the number of each deixis per 1000 words were calculated to facilitate comparison between the frequency of using each type of deixis in Trump's three speeches. The results indicated that Trump employed different types of deixis including the personal, temporal, spatial, discourse and social deixis. However, the frequency of using each type varied from one speech to another. It was observed that the audiences influenced Trump's use of deixis. Finally, the elements of the space in each speech could be defined.
    [Show full text]
  • Journal of Experimental Biology and Agricultural Sciences VALUING and CONTROLLING
    Journal of Experimental Biology and Agricultural Sciences, August - 2020; Volume – 8(4) page 418 – 425 Journal of Experimental Biology and Agricultural Sciences http://www.jebas.org ISSN No. 2320 – 8694 VALUING AND CONTROLLING THE ECONOMIC LOSSES FROM RED PALM WEEVILS (Rhynchophorus ferrugineus) IN RIYADH, SAUDI ARABIA Adel M. Ghanem1, Khalid N. Alrwis1, Othman S. Alnashwan1, Sahar A. Kamara2, SharafAldin B. Ahamed1*, Nageeb M. Aldawdahi1 1Agricultural Economics Department, College of Food and Agricultural Sciences, King Saud University, P.O. Box 2460, Riyadh 11451. 2Agricultural Economics Research Institute, Egypt Received – June 14, 2020; Revision – August 04, 2020; Accepted – August 19, 2020 Available Online – August 25, 2020 DOI: http://dx.doi.org/10.18006/2020.8(4).418.425 KEYWORDS ABSTRACT date palm The current study was carried out to estimate the economic losses caused by red palm weevils in Riyadh, KSA. A well-planned questionnaire and personal interviews from 200 date palm farmers carried out for Red palm weevil primary data collection. Bernoulli or binomial distribution methodology and standard errors at 95% Economic losses confidence level used for estimating the value of removed palm trees. Results of the study revealed that the average incidence of red palm weevils in the sampled farms was 42.5 percent. Due to heavy infestation, 20 Palm value to 167 palm trees were removed from the various studied farms, this ranged, 3.94 percent of the total and 9.28 percent of the total infested palm trees. Due to the rapid spread of red palm weevils and removal of Saudi Arabia severely infested palms, date palm production reduced between 20.0 to 35.1 percent at a confidence level of 95% in the sampled farms.
    [Show full text]
  • We Are 25! Deloitte | a Middle East Point of View - Spring 2018 |
    Middle East PPublished by oDeloitte & Toucihe (M.nE.) and distributet d to thoughto leaders across f the region | SVpring 2018 iew The disruption... …And how to deal Yours if you can Home delivery Regulating cryptocurrency with it afford it Potential for e-commerce Business Continuity Dubai’s housing market in the region Management We are 25! Deloitte | A Middle East Point of View - Spring 2018 | Spring 2018 Middle East Point of View Published by Deloitte & Touche (M.E.) www.deloitte.com/middleeast 2 Deloitte | A Middle East Point of View - Spring 2018 | Editorial A word from the editorial team It is, undeniably, the age of woman. appropriate talent solutions, not only to From their side, Nipun Srivastava maintain a motivated workforce internally and Saad Qureshi counsel that It has been over 45 years since Helen but also to address their citizens’ needs,” cryptocurrencies are still “highly volatile.” Reddy famously sang “I am woman, hear he continues. In their article Regulating cryptocurrencies , me roar.” Now women from all industries, they outline some of the challenges from the movie studios in Hollywood to Ziad Haddad takes the other viewpoint regarding the adoption of the boardrooms of the Arab world, have when it comes to Business Continuity cryptocurrencies and some of the done just that. And the world has had no Management i.e. the ability of an ways forward in regulating them. choice but to stand up and listen. organization to maintain essential functions during, and after a disaster has In my own article charting the last eight But as any woman will tell you, she could occurred, seeing it not only as a necessity years and celebrating our 25 th issue, I not fulfil her true potential without the but as a system that, “when properly mention that some of our perennial right partner.
    [Show full text]
  • DETAILED ASSESSMENT REPORT on ISRAEL ANTI-MONEY
    Strasbourg, 22 August 2008 MONEYVAL (2008) 01 EUROPEAN COMMITTEE ON CRIME PROBLEMS (CDPC) COMMITTEE OF EXPERTS ON THE EVALUATION OF ANTI-MONEY LAUNDERING MEASURES AND THE FINANCING OF TERRORISM (MONEYVAL) DETAILED ASSESSMENT REPORT on ISRAEL 1 ANTI-MONEY LAUNDERING AND COMBATING THE FINANCING OF TERRORISM Memorandum prepared by the Secretariat Directorate General of Human Rights and Legal Affairs (DG-HL) 1 Adopted by the MONEYVAL Committee at its 27 th Plenary Session (Strasbourg, 7-11 July 2008). All rights reserved. Reproduction is authorised, provided the source is acknowledged, save where otherwise stated. For any use for commercial purposes, no part of this publication may be translated, reproduced or transmitted, in any form or by any means, electronic (CD-Rom, Internet, etc) or mechanical, including photocopying, recording or any information storage or retrieval system without prior permission in writing from the MONEYVAL Secretariat, Directorate General of Human Rights and Legal Affairs, Council of Europe (F-67075 Strasbourg or [email protected]). 2 TABLE OF CONTENTS I. PREFACE.................................................................................................................................................... 7 II. EXECUTIVE SUMMARY........................................................................................................................ 8 III. MUTUAL EVALUATION REPORT .................................................................................................... 15 1. GENERAL ...................................................................................................................................
    [Show full text]
  • COP List of Participants English V3
    Conference of the Parties INTERGOVERNMENTAL NEGOTIATING BODY ON A PROTOCOL ON ILLICIT TRADE IN TOBACCO PRODUCTS Fourth session FCTC/COP/INB-IT/4/DIV./1 Rev.2 Geneva, 14 - 21 March 2010 12 April 2010 LIST OF PARTICIPANTS REPRESENTATIVES OF PARTIES ARMENIA ALBANIA Delegate(s) Delegate(s) Dr A. Bazarchyan Coordinator, National Tobacco Control Programme, Ministry of Mr R. Shuperka Health National Coordinator, Tobacco Control, Institute of Public Health AUSTRALIA ALGERIA Chief delegate Chief delegate Mr S.B. Cotterell M. I. Jazaïry Assistant Secretary, Drug Strategy Branch, Department of Ambassadeur, Représentant permanent, Genève Health and Ageing Delegate(s) Alternate(s) M. M. Boukadoum Ms P.J. Marshall Conseiller, Mission permanente, Genève Director, Tobacco Control Section, Drug Strategy Branch, Department of Health and Ageing M. M.F. Bouchedoub Secrétaire, Mission permanente, Genève Mr S.S. Commar Minister-Counsellor (Health), Permanent Mission, Geneva M. F. Belkacemi Attaché, Mission permanente, Genève Ms E.M. Bowes Counsellor, Permanent Mission, Geneva Mr P. Higgins ANGOLA First Secretary, Permanent Mission, Geneva Chief delegate Ms K.M. Westmoreland Senior Legal Officer, Australian Government, Attorney-General's Mrs N.M. Saraiva Department Assistant, Health Issues, Permanent Mission , Geneva Delegate(s) Mlle L.S. Oliveira Zermatten Stagiaire, Mission Permanente, Genève AUSTRIA Delegate(s) Dr C. Babb-Schaefer Chief delegate Counsellor, Permanent Mission, Geneva Dr H. Heller Director, Federal Ministry of Finance BELARUS Deputy chief delegate Mr W. Pekel Chief delegate Public Prosecutor, Federal Ministry of Justice Mr M. Khvostov Alternate(s) Ambassador, Permanent Representative, Geneva Dr B. Blaha Delegate(s) Minister, Federal Ministry for European and International Affairs Mr A.
    [Show full text]
  • Review Draft
    - !"#$%&#"'$() *$!'"$#!*+$#, - !"#$%&'()&$*')&+!+',$)%)+,-!$*'../0!+', PROGRESS REPORT 2011 ENFORCEMENT OF THE OECD ANTI-BRIBERY CONVENTION www.transparency.org Transparency International (TI) is the global civil society organisation leading the fight against corruption. Through more than 90 chapters worldwide and an international secretariat in Berlin, TI raises awareness of the damaging effects of corruption and works with partners in government, business and civil society to develop and implement effective measures to tackle it. www.transparency.org ISBN: 978-3-935711-76-0 ©2011 Transparency International. All rights reserved. Printed on 100% recycled paper. Authors: Fritz Heimann, Gillian Dell and Kelly McCarthy © Cover photo: istockphoto/TommL Every effort has been made to verify the accuracy of the information contained in this report. All information was believed to be correct as of May 2011. Nevertheless, Transparency International cannot accept responsibility for the consequences of its use for other purposes or in other contexts. ! TABLE OF CONTENTS I. Introduction 3 II. Organisation and Methodology 4 III. Major Findings, Conclusions & Recommendations 5 Table A: Foreign bribery enforcement in OECD Convention countries 8 Table B: Status of foreign bribery cases 9 IV. Findings on Specific Issues 10 Table C: Country performance on specific issues relating 13 to the enforcement of the Convention V. Reports on Enforcement in OECD Convention Countries 14 VI. Impact on Developing Countries – The Example of Nigeria 79 VII. Appendices A and B 86 A. List of National Expert Respondents 86 B. Questionnaire for Expert Respondents 88 ! Progress Report 2011: Enforcement of the OECD Anti-Bribery Convention ! I. INTRODUCTION This is the seventh annual Progress Report on Enforcement of the OECD Convention prepared by Transparency International (TI), the global coalition against corruption.
    [Show full text]
  • Impact Evaluation of Soft Drink Taxes As Part of Nutrition Policies in Gulf Cooperation Council Countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab
    F1000Research 2021, 9:1287 Last updated: 09 SEP 2021 RESEARCH ARTICLE Impact evaluation of soft drink taxes as part of nutrition policies in Gulf Cooperation Council countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates [version 2; peer review: 1 approved, 1 not approved] Previously titled: "Impact evaluation of national nutrition policies to address obesity through implementation of sin taxes in Gulf Cooperation Council countries: Bahrain, Saudi Arabia, Oman, United Arab Emirates, Kuwait and Qatar" Ayoub Al-Jawaldeh 1, Rania Megally2 1Regional Office for the Eastern Mediterranean (EMRO), World Health Organization (WHO), Cairo, 11371, Egypt 2German International University for Applied Sciences (GIU), Administrative Capital, Regional Ring Road, Cairo, Egypt v2 First published: 30 Oct 2020, 9:1287 Open Peer Review https://doi.org/10.12688/f1000research.27097.1 Latest published: 29 Jun 2021, 9:1287 https://doi.org/10.12688/f1000research.27097.2 Reviewer Status Invited Reviewers Abstract Background: Prevalence of overweight and obesity is high in the 1 2 Eastern Mediterranean Region, and there are higher rates in Gulf Cooperation Council (GCC) countries. This had led GCC countries to version 2 impose policies that aim to decrease obesity, overweight, and (revision) diabetes rates. The objective of this research is to measure the impact 29 Jun 2021 of such implemented policy to reduce obesity, namely taxes applied to sugar-sweetened beverages (SSB) in GCC. version 1 Methods: The impact of SSB taxes has been measured using a panel 30 Oct 2020 report report data set that covers sales volumes of soft drinks in GCC countries from 2010 to 2020.
    [Show full text]
  • Handbuch Investment in Germany
    Investment in Germany A practical Investor Guide to the Tax and Regulatory Landscape in Germany 2016 International Business Preface © 2016 KPMG AG Wirtschaftsprüfungsgesellschaft, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Investment in Germany 3 Germany is one of the most attractive places for foreign direct investment. The reasons are abundant: A large market in the middle of Europe, well-connected to its neighbors and markets around the world, top-notch research institutions, a high level of industrial production, world leading manufacturing companies, full employment, economic and political stability. However, doing business in Germany is no simple task. The World Bank’s “ease of doing business” ranking puts Germany in 15th place overall, but as low as 107th place when it comes to starting a business and 72nd place in terms of paying taxes. Marko Gründig The confusing mixture of competences of regional, federal, and Managing Partner European authorities adds to the German gift for bureaucracy. Tax KPMG, Germany Numerous legislative changes have taken effect since we last issued this guide in 2011. Particularly noteworthy are the Act on the Modification and Simplification of Business Taxation and of the Tax Law on Travel Expenses (Gesetz zur Änderung und Ver einfachung der Unternehmensbesteuerung und des steuerlichen Reisekostenrechts), the 2015 Tax Amendment Act (Steueränderungsgesetz 2015), and the Accounting Directive Implementation Act (Bilanzrichtlinie-Umsetzungsgesetz). The remake of Investment in Germany provides you with the most up-to-date guide on the German business and legal envi- ronment.* You will be equipped with a comprehensive overview of issues concerning your investment decision and business Andreas Glunz activities including economic facts, legal forms, subsidies, tariffs, Managing Partner accounting principles, and taxation.
    [Show full text]
  • Worldwide Estate and Inheritance Tax Guide
    Worldwide Estate and Inheritance Tax Guide 2021 Preface he Worldwide Estate and Inheritance trusts and foundations, settlements, Tax Guide 2021 (WEITG) is succession, statutory and forced heirship, published by the EY Private Client matrimonial regimes, testamentary Services network, which comprises documents and intestacy rules, and estate Tprofessionals from EY member tax treaty partners. The “Inheritance and firms. gift taxes at a glance” table on page 490 The 2021 edition summarizes the gift, highlights inheritance and gift taxes in all estate and inheritance tax systems 44 jurisdictions and territories. and describes wealth transfer planning For the reader’s reference, the names and considerations in 44 jurisdictions and symbols of the foreign currencies that are territories. It is relevant to the owners of mentioned in the guide are listed at the end family businesses and private companies, of the publication. managers of private capital enterprises, This publication should not be regarded executives of multinational companies and as offering a complete explanation of the other entrepreneurial and internationally tax matters referred to and is subject to mobile high-net-worth individuals. changes in the law and other applicable The content is based on information current rules. Local publications of a more detailed as of February 2021, unless otherwise nature are frequently available. Readers indicated in the text of the chapter. are advised to consult their local EY professionals for further information. Tax information The WEITG is published alongside three The chapters in the WEITG provide companion guides on broad-based taxes: information on the taxation of the the Worldwide Corporate Tax Guide, the accumulation and transfer of wealth (e.g., Worldwide Personal Tax and Immigration by gift, trust, bequest or inheritance) in Guide and the Worldwide VAT, GST and each jurisdiction, including sections on Sales Tax Guide.
    [Show full text]
  • Passive and Real Estate Activities
    Passive and Real Estate Activities Passive Passive and Real Estate Activities If you are an owner of a business in which you do not materially participate, the passive activity rules can limit your ability to deduct losses. And, if you hold rental real estate investments, the losses are passive even if you materially participate, unless you qualify as a real estate professional. Income from passive activities including rental real estate may also be subject to the 3.8% Medicare Contribution Tax on net investment income. RETURN TO TOC 65 | What are Passive Losses? forward to the following year, subject to the same passive loss rules and limitations. A passive loss is a loss from a business activity in which you do not materially participate. The most common Taxpayers should keep detailed records as to the time ways you are deemed to materially participate in a they spend on a particular activity, especially when they participate in several activities. Moreover, there 2020 Personal Tax Guide Tax 2020 Personal business activity, and thereby avoid the passive activity limitation rules, are if: are specific rules as to what kind of work qualifies as participation. • You participate more than 500 hours in the activity EisnerAmper during the year, • Your participation constitutes substantially all of the | Convert Passive Losses participation in the activity, If you fail the material participation tests and you have • You work more than 100 hours per year in the activity passive losses that are subject to a disallowance, there and not less than any other person, including non- are things that you can do to convert the disallowed owners, or losses into tax-saving deductible losses: • You work more than 100 hours per year in each of Dispose of the activity several activities, totalling more than 500 hours per Sell any passive activity with current or suspended year in all such activities.
    [Show full text]
  • Virtual Currencies: International Actions and Regulations Last
    Virtual Currencies: International Actions and Regulations Last Updated: January 8, 2021 No Legal Advice or Attorney-Client Relationship: This chart is provided by Perkins Coie LLP’s Decentralized Virtual Currency industry practice group for informational purposes only and is not legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Recipient should not act upon this information without seeking advice from a lawyer licensed in his/her own state or country. For questions or comments regarding this chart, please contact [email protected]. Developments Over Time Country Current Summary Date Occurrence Sources 2/20/2020 The Financial Services Regulatory Authority has updated and Guidance expanded its guidance through amendments to its cryptoasset regulatory framework. The amendments change the terminology used in the framework from “crypto asset” to “virtual asset,” a change that aligns with those descriptions used by the Financial Action Task Force (FATF) (see Issuers and intermediaries of virtual Financial Action Task Force (below)). The FATF currencies and “security” tokens may be recommendations are an international standard for regulation Abu Dhabi subject to regulation—depending upon of crypto assets including KYC requirements, anti-money the nature of the product and service. laundering and fraud prevention rules, and sanctions and screening controls. The amendments also overhaul regulations to move the applicable rules from a singular category to those respective to the underlying activities. This means that such assets can be regulated according to their idiosyncratic natures and not as a monolithic class. 29032535.40 10/09/2017 The Financial Services Regulatory Authority (FSRA) of Abu Supplementary Dhabi issued guidance on the regulation of initial coin/token Guidance – Regulation offerings (ICO) and digital currency as supplemental of Initial Coin/Token guidance to the existing 2015 Financial Services and Markets Offerings and Virtual Regulations (FSMR).
    [Show full text]