1040 Abroad’s Post

Navigate international taxation complexities with Squire's guide for expats and global entrepreneurs. 🌍 Learn about double taxation risks, EU tax reforms, US proposals, and more. Stay informed for a seamless global business experience. #InternationalTax #Expats #GlobalBusiness

We’re excited to share our latest article on the important updates to Hungary's double tax treaties in 2024. These agreements play a crucial role in optimizing tax treatment for both businesses and individuals engaging internationally. However, there are several changes and exceptions this year that require careful attention. Stay informed and ahead of potential impacts by reading the full article. Dive in to understand how these updates could affect you or your business! MGI Worldwide Laszlo Vilmos Killik Szilvia Sarkadi-Nagy Miszori Ildikó #TaxTreaty #InternationalTax #BusinessInHungary #TaxOptimization #GlobalBusiness #TaxPlanning #Hungary2024 #FinanceProfessionals #AccountingInsights #CrossBorderTax

Understanding Double Taxation: Concept and Relief Mechanisms Navigating the complexities of international taxation is crucial for global businesses and individuals. One key issue in this field is Double Taxation. Let's delve into what it entails and the mechanisms available to alleviate its impact. Concept and Issues: Double Taxation occurs when the same income is taxed by two or more jurisdictions. This can happen in two forms: Jurisdictional Double Taxation: Where two different countries tax the same income. Economic Double Taxation: Where the same income is taxed in the hands of different taxpayers (e.g., company profits taxed as corporate income and again as dividends to shareholders). Problems for Taxpayers: Double taxation can lead to: Increased Tax Burden: Taxpayers end up paying more than their fair share, reducing net income. Compliance Challenges: Managing tax obligations in multiple jurisdictions can be complex and resource-intensive. Inhibited Cross-Border Trade: Higher tax burdens and administrative challenges can deter international business activities and investments. Double Taxation Relief: To mitigate these issues, several mechanisms are in place: Unilateral Relief: Countries may provide tax credits or exemptions for foreign taxes paid. For example, if a business pays taxes on income earned abroad, the home country might allow a credit against its domestic tax liability. Bilateral Treaties: Double Taxation Avoidance Agreements (DTAAs) between countries outline which country has the right to tax specific income and provide methods to avoid double taxation. These treaties often follow model conventions like those from the OECD or UN. Why This Matters: Effective relief mechanisms are essential to: Promote International Trade: Encouraging businesses to expand globally without the fear of being unfairly taxed. Ensure Fair Taxation: Aligning tax obligations with the economic activity and income generation. Enhance Compliance: Simplifying the tax compliance process for businesses operating across borders. 🔗 Let's Connect: Are you involved in international business or tax advisory? I would love to connect and discuss more about double taxation and its impact on global trade. Let's share insights and strategies to navigate this complex yet crucial aspect of international taxation. #InternationalTaxation #DoubleTaxation #TaxRelief #GlobalBusiness #TaxCompliance #TaxTreaties #CrossBorderTrade #Finance #TaxPlanning #EconomicPolicy #TaxStrategy #GlobalEconomy #TaxLaw #BusinessGrowth #FinancialPlanning #InternationalBusiness #TaxConsulting

Good morning everyone! It’s great to see our discussion on international tax continuing. Today’s focus on international double taxation is really important as it has a significant impact on global business operations and individual taxpayers alike. To recap, international double taxation occurs when income is taxed in more than one jurisdiction, which can happen in two main ways: Juridical Double Taxation: This happens when a taxpayer is taxed by two different countries on the same income. For example, if a company earns income in Country A and is taxed there, and then that same income is taxed again when it's repatriated to Country B (the home country of the company), this constitutes juridical double taxation. Economic Double Taxation: This type occurs when the same income is taxed in the hands of different people. For instance, if a corporation is taxed on its profits and then those profits are distributed as dividends and taxed again in the hands of shareholders, it results in economic double taxation. Benefits of Mitigating Double Taxation: Promotion of Economic Growth: By reducing the tax burden on cross-border activities, countries can encourage international business and investment, which stimulates economic growth. Creation of a More Equitable Tax System: Treaties and agreements designed to eliminate double taxation help ensure that taxpayers aren’t unfairly taxed multiple times on the same income. Facilitation of Cross-Border Trade and Investment: Reducing the incidence of double taxation makes it easier for businesses to operate internationally and for investors to engage in cross-border investments. Reducing Administrative Burdens for Taxpayers: Clear rules and treaties help simplify tax compliance for multinational corporations and individuals involved in international activities. Countries address international double taxation primarily through tax treaties, which either eliminate or reduce the amount of tax payable in the source country or provide credits or deductions for taxes paid abroad. I hope this summary helps clarify how international double taxation works and why it's crucial to address it. If you have any more questions or need further details, feel free to ask! #Internationaltax #doubletaxation #jurisdictions

EU list of non-cooperative jurisdictions for tax purposes The main question that any businessman looking to scale their business should ask when choosing a jurisdiction to open a company is the reliability of that jurisdiction. And the first thing to check is whether the country is on the so-called EU blacklist - a list of non-cooperative jurisdictions for tax purposes. So, what does this mean? Let's delve into it further. Of course, it is logical and natural for businesses to choose countries for company registration with the lowest tax rates and a convenient tax system. But often, these are classic offshore jurisdictions. And if the jurisdiction you choose is on the EU blacklist, it comes with a number of consequences and, consequently, rejection of cooperation from business partners from European countries. These consequences may include: - difficulties in opening a bank account; - freezing of funds in bank accounts for additional checks; - more extensive tax inspections; - denial of deductions for expenses transferred to such jurisdictions for corporate tax purposes; - restrictions on tax benefits; - imposition of a dividend tax at the source, for example, in France this tax is 75%. This list is updated every 6 months, with the latest version from October 2023 and will be updated in February 2024, which is this month. This time, the list includes 16 jurisdictions such as Fiji, Belize, the Virgin Islands, Seychelles, the Bahamas, and others. There is also a grey list of countries that have not yet met the requirements for implementing a transparent tax system, such as Albania, Armenia, the Dominican Republic, and others. Even Hong Kong was on the grey list in 2021. Be mindful and choose reliable yet advantageous jurisdictions such as Luxembourg, Cyprus, Switzerland, Estonia, the United Arab Emirates, and Singapore. Video on russian language https://lnkd.in/ezqk2YPk The list was updated after this video was filmed - February 20, 2024 https://lnkd.in/eaNaYMeD #BusinessJurisdiction #EUblacklist #TaxConsequences

Favorable business landscape in Montenegro, corporate tax incentives and unique personal income levies https://lnkd.in/dq5uEySU

Reshoring foreign businesses to Italy: a new big opportunity http://spr.ly/6049cRcYU Paolo Ludovici and Michele Bissoli of Gatti Pavesi Bianchi Ludovici examine the new ‘reshoring regime’, a set of tax incentives and benefits aimed at encouraging companies to relocate their operations back to Italy #internationaltaxreview #tax #taxpolicy #internationaltax #directtax #reshoring #italytax #gpbl

Favorable tax and business environment in Montenegro #Business #BusinessEnvironment #Economy #Elevate #ForeignInvestors #Investments #Montenegro #Spec #Tax https://lnkd.in/dSdjw5aj

Navigate international taxation complexities with Squire's guide for expats and global entrepreneurs. 🌍 Learn about double taxation risks, EU tax reforms, US proposals, and more. Stay informed for a seamless global business experience. #InternationalTax #Expats #GlobalBusiness

Favorable tax and business environment in Montenegro https://lnkd.in/d4Meu4ss