Strategizing International Tax Best Practices – by Keith Brockman

Posts tagged ‘holding companies’

Brazil: Holding company test

Brazil has placed Dutch holding companies back on its list of privileged tax regimes, as it has determined that such companies that do not have “substantial economic activity” will be subject to adverse Brazilian tax consequences.  EY’s Global Tax Alert provides additional details:

http://www.ey.com/Publication/vwLUAssets/Brazil_places_Dutch_holding_companies_without_substantial_economic_activity_back_on_list_of_privileged_tax_regimes/$FILE/2015G_CM6098_BR%20places%20Dutch%20holding%20cos%20wout%20substantial%20eco%20activity%20back%20on%20PTR%20list.pdf

Best Practices: All multinationals should review not only Dutch holding companies, but all holding companies to test economic substance.  Russia has enacted recent rules on beneficial ownership, also looking at economic substance to determine the availability of treaty benefits.  Other countries are expected to be more active in this subjective determination, thus this will be a topic for disputes gong forward.

Holding Regimes: 2013

Loyens & Loeff provides their annual concise and practical holding company update of holding company regimes for 2013.

http://www.loyensloeff.com/nl-NL/Documents/Nieuws/Publicaties/Brochures/Holding_Regimes_2013.pdf

Several topics are covered for each of the following countries

  1. Belgium
  2. Cyprus
  3. Hong Kong
  4. Hungary
  5. Ireland
  6. Luxembourg
  7. Malta
  8. Netherlands
  9. Singapore
  10. Spain
  11. Switzerland
  12. United Kingdom
  • Tax on capital contributions
  • Corporate income taxes
  • Withholding taxes
  • Capital gains taxes
  • Anti-abuse provisions / CFC rules
  • Income tax treaties as of 1/1/2013

This publication is a timely and valuable update, especially with respect to non-European countries and the topics of anti-abuse provisions and CFC rules.

Best Practices should include an annual review of the global legal entity structure, especially with upcoming OECD guidelines, re: general anti-avoidance rules (GAAR), anti-abuse provisions and CFC rules.

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