Global FS Tax NewsFlash - Archive
Previous issues
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November 2011
Global FS Tax Newsflash - Where are we now?
On 28 September 2011, the European Commission (EC) issued a draft directive which seeks to introduce a financial transactions tax (FTT) within the European Union (EU). This Newsflash provides an update on the ongoing debate that has taken place since the release of the draft directive - we review the principal developments which have taken place, assess the current position of the various Member States towards the proposals and comment on some of the practical implications of the FTT if introduced. Finally, we will look at how this issue might develop in the future.
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October 2011
Global FS Tax Newsflash - Developments in Free Movement of Capital principle in the EU
For some time there has been a debate on whether non-European Union (EU) residents can benefit from the free movement of capital principle in the EU treaty. This is virtually the only section where non-EU residents have specific rights under the treaty. Based on recent developments, there now appears to be acknowledgement of this right in the Netherlands. This NewsFlash provides an update on this recent development in the EU and its impact on non-EU investors.
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September 2011
The EU Financial Transactions Tax Draft Directive and the Implications for the Global FS industry
This Newsflash provides an overview of the draft directive released by the EU Commission which seeks to introduce the financial transactions tax (FTT) within the EU. If adopted, it would be applied from 1 January 2014. It is also the intention of the EU to explore ways to introduce the FTT at a global level through the G-20. We include within the Newsflash our comments and observations of the potential impact of these new developments on the business community.
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July 2011
IRS Re-issues Round 3 FATCA Guidance— addresses effective date of withholding tax under FATCA on payments to NFFEs
On July 25, 2011, the IRS re-issued Notice 2011-53 to clarify that the delayed effective date to withhold tax under FATCA applies to withholdable payments made to all non-financial foreign entities (NFFEs).
In the original version of Notice 2011-53 (issued on July 14, 2011), the IRS provided transitional relief for withholding on pass-through payments and certain withholdable payments, but was silent as to whether the transitional relief would apply to a withholding agent's obligation to withhold FATCA tax on withholdable payments made to NFFEs. This is now clarified in the revised notice.
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July 2011
Round 3 of FATCA guidance: New Implementation timelines and transitional rules for Foreign Financial Institutions
On July 14, 2011, the Internal Revenue Service (IRS) issued Notice 2011-53 ('the Notice' or 'Round 3 FATCA guidance'), which pushes back slightly the timelines for Foreign Financial Institutions (FFIs) and U.S. withholding agents to implement the various provisions under the Foreign Account Tax Compliance Act (FATCA). While this news will be much welcomed by all in the industry, industry experts maintain that meeting the new deadlines will still be a major challenge. The notice anticipates proposed regulations to be issued end of 2011 followed by final regulations in summer 2012.
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October 2010
French Bank Tax
Following the joint statement issued by Germany, France and the UK regarding the need for international cooperation on fiscal measures aimed at the banking sector, details of the French approach have now been set out in Finance Bill 2011, which was presented on 29 September 2010 to the Council of Ministers. The French government expects the new "bank tax" to generate EUR 504m in 2011, rising to EUR 810m by 2013 – it is hoped that, in addition to helping to tackle the fiscal deficit, the bank tax encourages financial institutions to better manage their risk.
To find out more about the scope and impact of the new tax, please download the Global FS Tax NewsFlash.
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April 2010
IMF Interim Report for the G-20 – "A Fair and Substantial Contribution by the Financial Sector" – new taxes for the financial sector
The IMF has released an Interim Report on the range of options available to countries on how the financial sector could make a contribution towards paying for government interventions to repair the banking system. The Report refers to the significant fiscal cost (and also to other economic and social costs) of recent government interventions and support of the financial system.
To find out more about the Report and our view on the impact of all the regulatory proposals (particularly for the banks), and how this may be relevant to you, please download the Global FS Tax NewsFlash.
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December 2009
Chinese SAT guidance on "Beneficial Ownership" in claiming treaty relief for passive sourced income
There have recently been significant developments affecting foreign financial institutions with operations, or joint ventures in China, as well as asset managers with investments in China. This NewsFlash deals with guidance issued by the Chinese tax authorities on "Beneficial Ownership" in claiming tax treaty benefits for passive income. Under China's tax treaties, the recipient of income must be its beneficial owner, before reduced treaty withholding tax rates can be applied.
To find out more about the new guidance and how this may be relevant to you, please download the Global FS Tax NewsFlash.
