Operational tax news
News on tax topics impacting the financial industry
Operational tax news is the tax issues guide for financial sector companies.
In the current environment, the financial sector faces a multitude of different challenges: ongoing volatility in the markets, cost cutting programmes, increasingly complex regulations, and constantly changing tax and operational rules. The complexity of managing these challenges is further increased by the tendency for globalisation and increasing cross-border competition. One of the areas which needs to be managed carefully is the operational tax environment.
In its decision n°115/2019, the Provincial Tax Court of Pescara (the “Tax Court”) concluded that the imposition of Italian withholding tax (“WHT”) on dividends paid to tax-exempt foreign foundations is discriminatory, given that Italian foundations benefit from lower taxation on the same dividends.
The Danish Parliament enacted in January 2019 new tax rules regarding equity-based investment funds. The changes have effect as from income year 2020. In September 2019, the Danish tax authorities published draft guidelines on notification and reporting requirements under the new tax regime.
On 17 May 2019, a new Grand Ducal Decree amending the list of participating jurisdictions and the list of reportable jurisdictions for the purpose of the Common Reporting Standard (CRS) was published on the Memorial.
The French government regulation of 6 February on measures to prepare for Brexit in relation to financial products mitigated the consequences of a no-deal withdrawal on the eligibility of British securities for the PEA.
In its decision dated 29 November 2018, the Court of Appeals of Brussels (“Court of Appeals”) concluded that the application of the Belgian Annual Tax on Collective Investment Vehicles (“ATCIV”) to a Luxembourg SICAV was contrary to the Double Tax Treaty (“DTT”) signed between Belgium and Luxembourg.
On the back of the Fidelity Funds judgment, the Dutch Supreme Court has partly withdrawn the requests for a preliminary ruling on the compatibility of the Dutch dividend withholding tax with EU law.
The first year of the new German Investment Tax Act is almost over. We therefore would like to use this occasion to remind you that the new pre-lump sum taxation will take place for the first time as of 1 January 2019.
The ”Law to prevent VAT losses on trade in goods on the internet and to amend other tax rules and regulations” (formerly called "Annual Tax Law 2018") will pass the final steps of the legislative process in Germany by the end of November.
On October 17 2018, the Internal Revenue Services (“IRS”) released a reminder regarding the Qualified Intermediary (“QI”), Qualified Derivatives Dealer (“QDD”), Withholding Foreign Partnership (“WP”) and Withholding Foreign Trust (“WT”) applications deadline for 2018.
Update to our newsletter dated 25 October 2018: On 17 October 2018, the OECD has published an update regarding high-risk RBI/CBI schemes.
The Organization for Economic Cooperation and Development (“OECD”) issued an analysis of over 100 Residence and Citizenship by Investment (“RBI/CBI”) schemes offered by jurisdictions that participate or intend to participate to the Common Reporting Standard (“CRS”).
According to the alert issued by the IRS on 19 July 2018, the FATCA Registration System will be updated to include new features and modify some of existing ones.
As previously announced in the newsletter issued on 19 June 2018 by the Luxembourg Tax Authorities, the list of reportable jurisdictions has been updated through the Grand Ducal Regulation amending the list of Reportable Jurisdictions for the purpose of the Common Reporting Standard (CRS), dated 10 July 2018.
On 21 June 2018, the Court of Justice of the European Union (ECJ) issued a decision in the case Fidelity Funds v. Denmark, C-480/16 (intervener : NN (L) SICAV).
According to article 19bis CIR 92, the interest component embedded in the proceeds received upon sale, transfer or redemption of shares or units of “in scope” investment funds must be considered as movable income for Belgian income tax purposes and be subject to the Belgian withholding tax on movable income (“précompte mobilier”) at a rate of 30%.
According to an announcement from the IRS dated May 4, 2018, all Qualified Intermediary entities (hereafter “QIs”) have to select the periodic review year of their certification period before September 1, 2018.
On 4 April 2018, the Internal Revenue Service (IRS) announced that the QI Portal allowing applicants to submit their QI periodic certifications and applications for renewal of their status as a Qualified Intermediary (QI), Withholding Foreign Partnership (WP), or Withholding Foreign Trust (WT) is now open.
- Grand Ducal Decree on Reportable Jurisdictions published
- New QI/WP/WT FAQs
On 22 February 2018, the IRS issued a publication announcing that the Qualified Intermediary (QI), the Withholding Foreign Partnership (WP), and the Withholding Foreign Trust (WT) application and account management system will be open to accept QI/WP/WT certifications at the beginning of April.
The Indian Budget for FY 2018-19 was presented in parliament on 1 February 2018. The key highlights of the tax proposals that are relevant to non-residents are outlined on our webpage.
On 22 December 2017, the U.S. President Donald Trump has signed the public law no. 115-97, commonly referred to as the 2017 Tax Reform Act.
The Belgian draft law implementing the tax on securities accounts (TSA) has been adopted on 1 February 2018.
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