It is well known the practice of many taxpayers, natural and legal persons, to establish virtual companies (i.e. companies without physical presence and real economic activity) in countries with preferential tax status such as Cyprus, Bulgaria, Ireland, etc., in order to avoid the paying taxes in the country where the income actually arises. The European …
Category: Taxation
analysis in various aspects on taxation
The Special Taxation of Family Offices in the EU
Family Offices companies can have any legal form (Ltd, SA, etc.) other than that of non-profit legal entities. Family Offices can be attended by family members, as well as legal entities or legal entities, in which the natural persons or their family members (spouses, unmarried children, parents) participate. In order for the company to be …
What applies to VAT on bad debts in the EU
Under the law, when a company charges VAT on an invoice or other tax document, it has the obligation to reimburse the tax to the tax authorities, regardless of when and if it collects it from the counterparty. Therefore, in terms of VAT, companies essentially act as “tax collectors” on behalf of the tax authorities, …
Industry and Tax sector
A developing country that wants to continue to provide its citizens and businesses, respectively, with opportunities to expand their digital services and platforms, must continually create easy-to-use tools and platforms and push more citizens and businesses to adopt intact digital way of fulfilling their tax obligations. A typical example of such a service is the …
Necessity of the Restructuring of the Tax Systems after the end of the Pandemic
Many economies around the world have struggled to maintain a certain level of tax revenue without reducing any current levels of social well-being. Wages in most of the population, especially for low-skilled workers, were low. But the same thing happened with the drastic reduction of the middle class since the onset of the global financial …
Taxation of Non-Produced Wealth
The American tax system, like most western countries’ tax systems, only taxes wealth produced, such as wages and share/bond sales. In this case, however, in wages/salaries and sales of securities, taxation is mainly borne by the labour and the lower (wages/salaries) but also by the middle-income classes of society respectively leaving untouched any wealth that …
G20: The US Proposal for the New Architecture of the Global Tax System
Discussions in the OECD on the taxation of the digital economy propose the creation of rights to tax jurisdictions on the profits of multinational companies operating in the global digitised economy. In addition, it is proposed to apply a minimum effective corporate tax rate. In April, the US at both the G20 summit and the …
Tax Avoidance of Large Companies Creates the Need for a Common Tax Corporate Rate Worldwide
US President Joe Biden’s political agenda for funding the Infrastructure Program has led to a tax increase for the rich and corporate (from 21% to 28%) and seeks to establish a minimum corporate tax rate worldwide, but in the wrong way. (for more information read the analysis titled «Establishing A Global Minimum Corporate Tax Rate …
Establishing a Global Minimum Corporate Tax Rate in the Wrong Way
The high budgetary costs caused by the covid-19 pandemic, which most countries on the planet and especially western governments face in conjunction with US President Joe Biden’s new US fiscal policy through the announcement of the Infrastructure program and the intensifying US trade confrontation with China, makes it mature to implement the US proposal to …
How a Company’s Expenses are Recognized in Non-Cooperative Countries or Countries with Preferential Tax Status
It is a general rule in all countries of the world, where all the costs paid by an undertaking are deducted from its taxable income, given that these costs are in the best interests of the undertaking and correspond to actual transactions entered in the accounts of the corresponding management period in which they are …