Aero Accounting Group’s Post

Exemption from Adjusting Financial Results for Transactions with Non-Residents Information Bulletin No. 5/2024 addresses specific taxpayer inquiries regarding individual tax consultations in the field of international taxation. One key issue discussed is the exemption from the obligation to adjust financial results for transactions with non-residents. When is it not necessary to adjust financial results for transactions with non-residents? If your non-resident counterparty pays corporate income tax in their country of registration, and their organizational and legal form is included in the List of Organizational and Legal Forms of Non-Residents whose transactions are subject to financial result adjustments before taxation, as approved by the Resolution of the Cabinet of Ministers of Ukraine dated 27.12.2017 No. 1045 (hereinafter - List No. 1045), then financial result adjustments are not required. What documents confirm the payment of tax by a non-resident? To confirm the payment of tax by a non-resident, it is sufficient to provide a certificate (or other document) from the tax authority of the respective country. The certificate should contain information about the payment of corporate income tax by the non-resident during the period the transaction was conducted. Sample tax payment certificate: The certificate can be issued in any format but usually contains the following information: - Name and details of the tax authority issuing the certificate - Name and details of the non-resident taxpayer - Tax period for which the tax was paid - Amount of tax paid - Signature and stamp (if available) of the tax authority For detailed information, you can refer to the information bulletin from the State Tax Service available at the following link: https://lnkd.in/eWGKUJuw. #taxation #nonresidents #corporate_income_tax #transfer_pricing #tax_code #tax_consultant #international_taxation

ITR return: How to report foreign income in tax return?

As part of the Base Erosion and Profit Shifting project, the Organisation for Economic Cooperation and Development has presented a two-pillar approach as an ongoing effort to reform international taxation and prevent tax avoidance by multinational enterprises. Read our latest Insight and ensure your business is compliant:  https://lnkd.in/gmdFEKPN

Comparative Analysis: Tax Relief in Other Countries

https://lnkd.in/dEjABucb Pillar Two rules of the Inclusive Framework agreement on a minimum corporate tax (known as ‘Global Anti-Base Erosion Rules’, for short GloBE) have important implications for the design of the corporate income tax. This chapter discusses these implications particularly from the perspective of low-tax jurisdictions. It argues that it is not possible to design a system that always guarantees generating exactly the bare minimum tax intended by the rules and motivates that this should not be the policy objective anyway. Importantly, if no profit tax already exists, countries need to consider whether to adopt one, and if yes, in what form. There is a case for introducing a general profit tax beyond the GloBE rules, together with a qualifying GloBE domestic minimum top-up tax as a backstop. The familiar alternatives of efficient economic rent tax designs, however, are no longer equivalent under the GloBE. In practice, given the specifics of the rules, an efficient rent tax on in-scope multinationals cannot be combined with a statutory tax rate below a certain cutoff, because the minimum tax becomes always binding. Under the GloBE, immediate expensing particularly maintains the time-value of fully deducting the cost of investment without impacting the GloBE effective tax rate.

Some more details about a Qualifying Free Zone Person (QFZP). A Qualifying Free Zone Person for Corporate Tax is not permitted to benefit from: * Small Business Relief * Transfers within a Qualifying Group * Business Restructuring Relief * Transfer of Tax Loss * Tax Grouping Taxation for a Qualifying Free Zone Person for Corporate Tax: - 0% on Qualifying Income - 9% on the following: Taxable Income (The 0% rate does not apply on income up to AED 375,000 as for other Taxable Persons); Income attributable to a domestic or foreign permanent establishment; Income derived from certain transactions in relation to Immovable Property located in a Free Zone. If the QFZP fails to meet any of the conditions, it will cease to be a QFZP from the beginning of that Tax Period and the subsequent four Tax Periods. Rules that a Qualifying Free Zone Person should comply with for Corporate Tax: - A QFZP is required to register with the ETA and file a Tax Return; - A QFZP must comply with the transfer pricing rules and documentation requirements; - A QFZP must prepare and maintain audited financial statements. A QFZP can elect to be subject to the regular Corporate Tax regime, and subject to tax at 9% on its Taxable Income above AED 375,000. The election takes effect from the beginning of the Tax Period in which it was made or otherwise the following Tax Period. We hope you find this information helpful! If you have any additional questions, feel free to ask them in the comments. We will be happy to help you! #dubaitaxes #taxuae #taxreform #dubaiaccounting #corporatetax #dubaiaccountant

🌏Double taxation treaties: What you need to know 🌍In today's global business environment, it’s never been easier for you, or your employees to work from anywhere across the globe. Whether it’s working as a digital nomad yourself or hiring the best talent from other countries, multi-jurisdiction brings additional consideration when it comes to managing and optimising your tax burden. 🌎Haines Watts Tax Advisor Nicola Goldsmith explains what business owners need to know about double tax treaties and how the right advisor can help you navigate the murky waters of international tax. 👉https://lnkd.in/edXEY7B7 #Taxadvice #tax

🌏Double taxation treaties: What you need to know 🌍In today's global business environment, it’s never been easier for you, or your employees to work from anywhere across the globe. Whether it’s working as a digital nomad yourself or hiring the best talent from other countries, multi-jurisdiction brings additional consideration when it comes to managing and optimising your tax burden. 🌎Haines Watts Tax Advisor Nicola Goldsmith explains what business owners need to know about double tax treaties and how the right advisor can help you navigate the murky waters of international tax. 👉https://lnkd.in/eTBYs4Vb #Taxadvice #tax

🌏Double taxation treaties: What you need to know 🌍In today's global business environment, it’s never been easier for you, or your employees to work from anywhere across the globe. Whether it’s working as a digital nomad yourself or hiring the best talent from other countries, multi-jurisdiction brings additional consideration when it comes to managing and optimising your tax burden. 🌎Haines Watts Tax Advisor Nicola Goldsmith explains what business owners need to know about double tax treaties and how the right advisor can help you navigate the murky waters of international tax. 👉https://lnkd.in/eTBYs4Vb #Taxadvice #tax

🌏Double taxation treaties: What you need to know 🌍In today's global business environment, it’s never been easier for you, or your employees to work from anywhere across the globe. Whether it’s working as a digital nomad yourself or hiring the best talent from other countries, multi-jurisdiction brings additional consideration when it comes to managing and optimising your tax burden. 🌎Haines Watts Tax Advisor Nicola Goldsmith explains what business owners need to know about double tax treaties and how the right advisor can help you navigate the murky waters of international tax. 👉https://lnkd.in/eTBYs4Vb #Taxadvice #tax