New publication: "Tax treatment of acquisition of shares in a capital company established in another MS or in a third state: freedom of establishment or free movement of capital?"
The European Commission on 16 March 2011 proposed a common system for calculating the tax base of businesses operating in the EU.
In the Conference organized by the Institute for Austrian and International Tax law of the Vienna University of Economics and Business, on 30-31 January 2012, a number of issues of the Commission proposal are discussed, the focus being on the relations with third countries:
- Taxation of EU resident companies
- Taxation of EU-Non-resident companies
- Resident and Non-resident taxpayers
- Withholding taxation
- Transparent entities
- Deductibility of Gifts to Charitable bodies in third countries
- Transfer of assets to third countries
- Interest deductibility
See here for the detailed program of the Conference.
On 4 November 2010 Greece and Switzerland signed a revised double taxation agreement in the area of taxes on income and capital.
The Protocol contains provisions on the exchange of information which are in accordance with the OECD standards. In addition, the protocol specifies, amongst other things, that the dividend payments to occupational benefits schemes and public bodies will be exempt from withholding tax.
Moreover, the rate of the tax that the source state is entitled to levy on interest payments has been lowered from 10% to 7%.
Last but not least an arbitration clause has also been adopted, which is expected to contribute to the definitive avoidance of double taxation.
The Protocol is currently not in force; it will enter into force after the necessary procedures in both countries have been completed.
Source: The Federal Authorities of the Swiss Confederation (www.admin.ch) - you can see the relevant announcement here.
By Circular 1141/23-6-2011 the Ministry of Finance provides guidance for the application of the new regime on the taxation of dividends distributed by Greek companies, in respect to recipients that reside in a state with which Greece has signed a Convention for the Avoidance of Double Taxation on Income and on capital. The withholdong tax rates provided in the DTCs are in general lower than the current withholding tax rate on dividend payments enacted by Law 3943/2011 (21% for distributions that take place in 2011; 25% for distributions that take place from 2012 on).
Third-country nationals residing in Greece are entitled to the tax exemption for the acquisition of a first residential real property
Greece exempts from taxation on the transfer of real property the acquisition of a first residential real property by Greek tax residents and Greek nationals, upon satisfaction of certain requirements.
In a recent decision the Administrative Court of First Instance of Piraeus (Decision No. 48/2010) ruled against the tax authority who denied the tax exemption to a couple of Vietnamese nationals that are permanent residents in Greece. The Court stated that the critical requirement is the tax residence and not the nationality of the person requiring the tax exemption.