Moscow enacted a law ordering certain foreign companies engaged in online sales of electronic content in Russia to pay the value-added tax (VAT). (Foreign providers of electronically supplied services.)
The law, informally known as the “Google Tax,” stipulates the introduction of an 18% VAT for foreign companies providing services to Russians in electronic form. Foreign companies will need to register on the Russian tax service’s special electronic index and pay taxes on an equal footing with Russian companies operating in the same market segment. Before the law was passed by the Russian Parliament, no VAT was imposed on electronic services supplied by foreign companies. This tax break wasn’t available to Russian companies.
If a foreign company has a Russian division or a contractor in the country, it will be responsible for paying the tax irrespective of whether it has an appropriate agreement with foreign corporations or not.
If the buyer carries out activities on the territory of the Russian Federation and acquires the “services in electronic form,” the place of supply of these services is the territory of the Russian Federation. Delivery of physical goods ordered over the internet is not subject to the VAT. (more…)
By Samantha Ramirez, Tax Senior
ASL Nonprofit Group
For nonprofit organizations, no income tax may be due, but an annual return must be provided by certain exempt organizations in order to maintain tax-exempt status. Tax-exempt organizations typically file a Form 990, but depending on the amount of gross receipts or the total value of assets, the organization may have options for filing a more simplified form. Below we have outlined the requirements for each form: (more…)
India’s Ministry of Finance recently amended service tax rules related to online information and database access or retrieval (OIDAR) services.
The government said it is imposing a 15% tax on downloads and purchases of digital goods from offshore retailers.
Here are some key changes, effective from December 1, 2016: (more…)
By Julie Malekhedayat, Principal
ASL Family Wealth and Individual Tax Planning Group
Qualified personal residence trusts (QPRTs) are an estate planning technique that can provide both tax and non-tax benefits to certain taxpayers looking to gift a principal residence, second home, or vacation home slowly over a number of years using a discounted gift value. However, before entering into a QPRT, you should consider the advantages and disadvantages in order to determine if it is right for you. (more…)
Ireland’s Department of Finance outlined its key arguments to appeal the European Commission’s (EC’s) ruling that it had breached European Union (EU) state aid rules in its tax deal with Apple.
Arguments for the appeal
In a statement, Irish Finance Minister Michael Noonan outlined several arguments for the appeal.
First, he said, Ireland didn’t provide favorable treatment to Apple. The Chairman of Ireland’s Revenue Commissioners has stated that:
- There was no departure from the applicable Irish tax law,
- There was no preference shown in applying the law, and
- The full tax due was paid in accordance with the law.
Facebook may have understated the value of intangible property transferred to its Irish holding company by “billions of dollars.” That’s according to a petition the U.S. Justice Department and the IRS filed in the U.S. District Court for the Northern District of California.
The petition was filed to enforce certain summonses served on the social media company in connection with outstanding information requested as part of an IRS audit. It makes the following claims: (more…)
San Jose, CA August 16, 2016 — we are pleased to announce that Jyothi Chillara and Naila Sharifova of Abbott, Stringham & Lynch have successfully earned the IBFD-AG Advanced Professional Certificate in International Corporate Taxation. Jointly created by Allinial Global and IBFD, one of the world’s foremost authorities on international taxation, this rigorous program allows participants to differentiate themselves by becoming certified experts in international taxation.
On their way to certification, program participants earn 100 CPE credits and engage in a combination of self-study courses and live webcasts, followed by a final three-day training event. Course materials focus on three central components: fundamentals of international taxation, corporate international tax structuring, and treaty and transfer pricing aspects of international tax planning. In order to complete the certification process, participants must pass an assessment during each stage of the program, as well as a two-hour final exam. (more…)
By Abe Livchitz, Tax Manager
Contractors are unique clients operating in a specialized industry. They are resourceful, creative, thrive working under pressure of tight deadlines and constantly racing to stay ahead of economic downturns. To honor their uniqueness the tax code allows contractors to use two accounting methods that are distinctive to their business. (more…)
U.K. Chancellor of the Exchequer George Osborne delivered his latest budget, which proposes to eventually cut the country’s corporate tax to 17%, the lowest in the Group of 20 major economies.
The U.K. plans to cut the corporate tax to 19% in 2017 and to 17% in 2020, supporting investment in the U.K., and “ensuring the U.K. has by far the lowest rate in the G-20,” Osborne said in his annual budget speech to parliament. (more…)