Category Taxation in EU

EU Digital Tax Sees Opposition

April 30, 2018 Taxation in EU

Digital tax in the EUBRUSSELS – Despite initial support, EU ministers are backing out of support for an international tax on digital companies.

Over the weekend at a meeting of the Finance Ministers of the EU discussed the recent proposal to levy a tax on the revenues major international online businesses.

The taxation of major online businesses, such as Amazon, Google, and Facebook, is a controversial subject in the EU.

Online businesses have been accused of skipping out on their tax obligations by shifting their profits to low-tax jurisdictions.

As a move to balance out the profit-shifting, a proposal has been made to tax the revenues of big online businesses at a rate of 3 percent.

The proposal appeared to have significant support earlier this year, however, at the Finance Ministers backed away from suppo...

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EC Chases Tax Dodging Luxury Yachts

March 9, 2018 Taxation in EU

tax on luxury boatsBRUSSELS – Greece, Malta, and Cyprus may lose their status as prime destinations for registering luxury yachts.

On March 8th the European Commission issued a statement confirming that it has opened infringement procedures against Cyprus, Greece, and Malta for their tax treatment of luxury yachts.

The alleged infringement concerns the member states establishing and enforcing guidelines which may greatly reduce the VAT applied to the lease of luxury yachts and boats.

Under current EU rules, member states are able to forego applying VAT to the supply of services which are utilized and enjoyed outside of the EU.

The three member states issued guidelines in which the larger the boat, the more of the lease is estimated to take place outside of the EU.

The rules made it easier for large yacht...

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Germany Eases Taxes on Cryptocurrency

March 2, 2018 Taxation in EU

bitcoin tax in GermanyBERLIN – Germany is setting up new rules for taxation of cryptocurrency, and they are likely to be a hit with crypto-users.

On February 27th the tax authorities of Germany issued a new document detailing the taxation of cryptocurrency use in the country.

Unlike many other countries in the world, including the USA, Germany will consider Bitcoin, and other cryptocurrency, to be a digital currency and not an asset.

The impact of the decision is that purchases made with any cryptocurrency in Germany will not face capital gains tax, and will be taxed as though the transaction was carried out using standard payment methods.

In other countries, cryptocurrency can be considered to be an asset, and as such, can trigger capital gains tax obligations when sold or traded.

Further, any service provi...

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European Commission Approaches Digital Tax

February 27, 2018 Taxation in EU

digital taxBRUSSELS – Lawmakers in Europe may soon be deciding on a generic new tax on large digital businesses.

The European Commission is understood to be working on a temporary new tax intended to stop large digital companies from diverting their profits to low-tax jurisdictions without facing any tax obligations.

It is hoped that the new tax will target the online businesses based on where they draw their customers, instead of where they register their offices or settle the arising profits.

The tax is aimed squarely at large firms and will apply only to businesses with global revenues exceeding EUR 750 million per year, with at least EUR 10 million being from an EU country.

The exact rate of the tax has not yet been determined but is currently suggested to be set at between 1 percent and 5 per...

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Ireland Chasing Down Deficit Gap

October 4, 2017 Taxation in EU

Tax revenue in IrelandDUBLIN – Ireland’s tax collection level is below the mark set by the government, but it seems that the chances of closing the gap are realistic.

On October 3rd the Minister of Finance of Ireland stated that the tax shortfall seen so far through this year has narrowed, and that the deficit could even be eliminated by the end of the year.

The tax revenues collected by the Ministry of Finance have been above target for several years, however, this year has proven to be an exception, with a drop in collections.

In April this year, the deficit was at approximate 2.4 percent below the government’s own target.

The gap had dropped to 0.8 percent by July, and an even lower 0.7 percent by August.

The deficit has now dropped to a level of 0.6 percent.

It is now believed that the gap could be c...

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