With 0% tax on patent and artistic royalties and 0-5% tax on on all other IP, Malta, an EU jurisdiction is now the best country to structure your IP assets.
A legitimate, fiscal & tax competitive EU jurisdiction.
5% effective corporate tax rate, no withholding, capital gains or entry or exit taxes. No inheritance or wealth taxes.
In February 2010, a double tax treaty was signed
between Cyprus and the UAE. In January 2012 the
tax treaty became effective. The double tax treaty
follows the OECD model convention for tax treaties.
A double tax treaty aims at avoiding double taxation
of residents of both countries and make international
tax planning predictable.
Getting the Deal Through Private Client 2019, IrelandMatheson Law Firm
Private Client partner, John Gill and Private Client senior associate, Lydia McCormack co-author the 2019 Ireland chapter of Getting the Deal Through Private Client.
With 0% tax on patent and artistic royalties and 0-5% tax on on all other IP, Malta, an EU jurisdiction is now the best country to structure your IP assets.
A legitimate, fiscal & tax competitive EU jurisdiction.
5% effective corporate tax rate, no withholding, capital gains or entry or exit taxes. No inheritance or wealth taxes.
In February 2010, a double tax treaty was signed
between Cyprus and the UAE. In January 2012 the
tax treaty became effective. The double tax treaty
follows the OECD model convention for tax treaties.
A double tax treaty aims at avoiding double taxation
of residents of both countries and make international
tax planning predictable.
Getting the Deal Through Private Client 2019, IrelandMatheson Law Firm
Private Client partner, John Gill and Private Client senior associate, Lydia McCormack co-author the 2019 Ireland chapter of Getting the Deal Through Private Client.
DMIEXPO - Arosal - Where To Hold Your IP: The A To Z Guide For Digital MarketersMorning Dough
Arosal will walk you through the challenges and pitfalls which characterize the global tax scene post-BEPS, specifically as regards IP Boxes and the so-called ‘Nexus’ approach. We shall walk you through the process of registering and protecting your IP, whilst designing a robust international structure which will stand up to any BEPS-related challenge.
Furthermore, Arosal will outline the services which you will require, and the process through which these will be obtained regarding the implementation of your structure, whilst focusing on the tax optimization of the group’s entire structure as concerns all types of taxes. Finally, we shall discuss the administration of your international structure, and comment on the way forward in the global market place.
The attractive corporate tax of Cyprus and how local and international companies can benefit. Low corporate tax 12.5%
Tax Exemptions, Tax deductions, Losses carried forward.
Short presentation, concerning legal barriers around equity crowdfunding in Europe. The presentation was used during a meeting that was organized by Eurada, in the presence of representatives of the European Commission, and hosted in the buildings of the European Economic and Social Committee.
Following approval of the State Budget for 2014 by the Portuguese Assembly of the Republic and the reform of the corporate income tax, various changes have been made to the Portuguese tax regime, some of them of relevance to the International Business Centre of Madeira (IBCM). This presentation highlights the most relevant changes and its impact on the Madeira tax regime. Updated: January 30, 2014.
Ireland is an advantageous location for holding companies, due to:
- Favourable tax treatment of dividend income;
- No Withholding Tax on dividends from Irish Holding Company to EU / tax treaty countries;
- No Capital Gains Tax on disposal of shareholdings in subsidiaries;
- Favourable tax regime for R&D / intangibles;
- Tax deductions for interest on borrowings;
- Favourable Withholding Tax regime for interest and royalty payments
- & more...
Ireland is an advantageous location for holding companies, due to:
- Favourable tax treatment of dividend income;
- No Withholding Tax on dividends from Irish Holding Company to EU / tax treaty countries;
- No Capital Gains Tax on disposal of shareholdings in subsidiaries;
- Favourable tax regime for R&D / intangibles;
- Tax deductions for interest on borrowings;
- Favourable Withholding Tax regime for interest and royalty payments
- & more...
Slides from IBSA Webinar - Double Tax Treaties: Asia & Europe which took place on 18 September 2014, presented by John Timpany of KPMG China and Roy Saunders of IFS Consultants. To view the webinar on demand, please visit our Bright Talk Channel at https://www.brighttalk.com/channel/11641
Dutch tax saving possibilities for Ukrainian MNC’s. Juan TeltingICF Legal Service
Голландские компании в налоговом планировании. Как это работает. Организация substance (реального присутствия) в Нидерландах. Использование нидерландских компаний в международной торговле.
Juan Telting (STP Tax Lawyers. Netherlands)
Real estate, as an immovable factor, tends to be overtaxed in most countries and Portugal is no exception. Tax structuring and optimizing is crucial to minimize total acquisition costs and maximize investment returns.
RPBA’s updated presentation deals with this challenging topic incorporating the latest developments, including tax incentives on rehabilitation, the OECD Multilateral Instrument rules on “real estate rich” companies and also the brand new SIGI company (the Portuguese equivalent of the REIT – Real Estate Investment Trust).
Generational Turnover and Inheritance Tax: Making Sense of Tax IncentivesUniversity of Ferrara
Presentation delivered at the 2020 ATTA Conference in Hobart, Tasmania.
I address the challenges posed to inheritiace taxation in a corss-border scenario.
DMIEXPO - Arosal - Where To Hold Your IP: The A To Z Guide For Digital MarketersMorning Dough
Arosal will walk you through the challenges and pitfalls which characterize the global tax scene post-BEPS, specifically as regards IP Boxes and the so-called ‘Nexus’ approach. We shall walk you through the process of registering and protecting your IP, whilst designing a robust international structure which will stand up to any BEPS-related challenge.
Furthermore, Arosal will outline the services which you will require, and the process through which these will be obtained regarding the implementation of your structure, whilst focusing on the tax optimization of the group’s entire structure as concerns all types of taxes. Finally, we shall discuss the administration of your international structure, and comment on the way forward in the global market place.
The attractive corporate tax of Cyprus and how local and international companies can benefit. Low corporate tax 12.5%
Tax Exemptions, Tax deductions, Losses carried forward.
Short presentation, concerning legal barriers around equity crowdfunding in Europe. The presentation was used during a meeting that was organized by Eurada, in the presence of representatives of the European Commission, and hosted in the buildings of the European Economic and Social Committee.
Following approval of the State Budget for 2014 by the Portuguese Assembly of the Republic and the reform of the corporate income tax, various changes have been made to the Portuguese tax regime, some of them of relevance to the International Business Centre of Madeira (IBCM). This presentation highlights the most relevant changes and its impact on the Madeira tax regime. Updated: January 30, 2014.
Ireland is an advantageous location for holding companies, due to:
- Favourable tax treatment of dividend income;
- No Withholding Tax on dividends from Irish Holding Company to EU / tax treaty countries;
- No Capital Gains Tax on disposal of shareholdings in subsidiaries;
- Favourable tax regime for R&D / intangibles;
- Tax deductions for interest on borrowings;
- Favourable Withholding Tax regime for interest and royalty payments
- & more...
Ireland is an advantageous location for holding companies, due to:
- Favourable tax treatment of dividend income;
- No Withholding Tax on dividends from Irish Holding Company to EU / tax treaty countries;
- No Capital Gains Tax on disposal of shareholdings in subsidiaries;
- Favourable tax regime for R&D / intangibles;
- Tax deductions for interest on borrowings;
- Favourable Withholding Tax regime for interest and royalty payments
- & more...
Slides from IBSA Webinar - Double Tax Treaties: Asia & Europe which took place on 18 September 2014, presented by John Timpany of KPMG China and Roy Saunders of IFS Consultants. To view the webinar on demand, please visit our Bright Talk Channel at https://www.brighttalk.com/channel/11641
Dutch tax saving possibilities for Ukrainian MNC’s. Juan TeltingICF Legal Service
Голландские компании в налоговом планировании. Как это работает. Организация substance (реального присутствия) в Нидерландах. Использование нидерландских компаний в международной торговле.
Juan Telting (STP Tax Lawyers. Netherlands)
Real estate, as an immovable factor, tends to be overtaxed in most countries and Portugal is no exception. Tax structuring and optimizing is crucial to minimize total acquisition costs and maximize investment returns.
RPBA’s updated presentation deals with this challenging topic incorporating the latest developments, including tax incentives on rehabilitation, the OECD Multilateral Instrument rules on “real estate rich” companies and also the brand new SIGI company (the Portuguese equivalent of the REIT – Real Estate Investment Trust).
Generational Turnover and Inheritance Tax: Making Sense of Tax IncentivesUniversity of Ferrara
Presentation delivered at the 2020 ATTA Conference in Hobart, Tasmania.
I address the challenges posed to inheritiace taxation in a corss-border scenario.
UAE can be used favorably as the location for the ultimate holding company for a group that is relocating to a new jurisdiction or on formation of a new publicly traded entity with worldwide activities
The interaction between the extensive Portuguese Corporate Income Tax Reform of 2014 with the regime of the International Business Center of Madeira or Madeira Free Zone provides many interesting tax planning opportunities, namely an effective general Corporate Income Tax rate of 5% or a specific effective rate of 0,75% for certain Intellectual Property income. RPBA has fully updated its extensive presentation on this subject.
As an EU outermost region, the Canary Islands have an Economic and Tax System (REF) of their own, fully approved by the EU, which applies double taxation conventions and fiscal transparency (Canary Islands Hub)
An overview of the laws and fiscal benefits of using Malta as an EU tax efficient jurisdiction for asset structuring, trusts and investment vehicles.
A legitimate low tax EU jurisdiction.
5% effective corporate tax rate, no withholding, capital gains or entry or exit taxes. No inheritance or wealth taxes.
In this webinar, our Managing Partner Frederico Gouveia e Silva presents the advantages of Malta as a competitive location for the management of international operations such as trading, holding, trusts and foundations, intellectual property and shipping.
The Brexit transition period ends on 31 December 2020. If you want to keep servicing your customers, you need to prepare for the period post-Brexit. In this presentation, I highlight the possibilities from a Dutch perspective. Please contact me by sending me a message through my LinkedIn page should you need any advice or assistance.
1. European Regional Meeting 2009 – Cairo
European holding company regimes
Jeroen van der Linden
HLB Schippers – Amsterdam, the Netherlands
January 31, 2009
3. Country/Firm report:
• HLB Schippers, largest firm within Dutch federation;
• HLB Schippers has 5 office locations, including Amsterdam;
• 250 people, including 15 partners;
• Audit, tax and legal services;
• Seperate International Business Desk, focus Asia and trust offices.
• Turnover 2008 approx. € 23 million
4. Reasons for holding companies:
• desire to consolidate foreign subsidiaries;
• creation of platform for future acquisitions;
• vehicle for cash redeployment;
• enabling access to EC Directives and Tax Treaties
• in order to save tax.
5. Key requirements for holding company jurisdiction:
• no or low tax on capital contributions;
• exemption for dividend income and capital gains;
• no withholding tax on dividends, interest and royalty outflows;
• access to EC Directives and strong network of Tax Treaties;
• no CFC legislation or anti tax haven legislation;
• political and economic stability.
6. Example of benefits of proper holding structure 1/2
Dividend is taxed with 15% Italian
withholding tax (WHT)
India
Italy
7. Example of benefits of proper holding structure 2/2
India
0% WHT
EU
holdco 0% Italian WHT
Italy
8. How about tax havens?
• no treaty available to reduce withholding taxes paid to tax haven;
• EU Member states agreed to phase out tax havens;
• can be obstacle in obtaining rulings from tax authorities;
• “smell factor” / lack of transparency;
• nevertheless combination tax haven with EU jurisdiction can have
best result.
9. EU holding locations to be discussed:
• Cyprus
• Ireland
• Luxemburg
• The Netherlands
• Spain
• Belgium
• Denmark
10. EU holding locations to be discussed:
• Cyprus
• Ireland
• Luxemburg
• The Netherlands
• Spain
• Belgium
• Denmark
11. EU holding locations to be discussed:
• Cyprus
• Ireland
• Luxemburg
• The Netherlands
• Spain
• Belgium
• Denmark
12. EU holding locations to be discussed:
• Cyprus
• Ireland
• Luxemburg
• The Netherlands
• Spain
• Belgium
• Denmark
13. EU holding locations to be discussed:
• Cyprus
• Ireland
• Luxemburg
• The Netherlands
• Spain
• Belgium
• Denmark
14. EU holding locations to be discussed:
• Cyprus
• Ireland
• Luxemburg
• The Netherlands
• Spain
• Belgium
• Denmark
15. EU holding locations to be discussed:
• Cyprus
• Ireland
• Luxemburg
• The Netherlands
• Spain
• Belgium
• Denmark
16. EU holding locations to be discussed:
• Cyprus
• Ireland
• Luxemburg
• The Netherlands
• Spain
• Belgium
• Denmark
17. Tax on capital contributions:
Parent
Cash
EU
holdco
Shares
Subs
18. Tax treatment of capital contributions
• Cyprus 0.6%, but exemptions may apply
• Ireland exempt
• Luxemburg exempt
• The Netherlands exempt
• Spain 1%, but exemptions may apply
• Belgium exempt
• Denmark exempt
19. Corporate Income Tax (“CIT) rates
• Cyprus 10%, (or 15% defense tax)
• Ireland 25% on passive income, 12.5%
only on trading income
• Luxemburg 28.59% (combined)
• The Netherlands 20% - 25.5%
• Spain 30%
• Belgium 24.98% - 33.99%
• Denmark 25%
21. Dividend regime
Cyprus
• Full exemption
• Requires: shareholding of 1% or more
no minimum holding period
• Exemption denied if: >50% of activities of sub
(defence tax again) generate passive income and
are taxed less than 5%
22. Dividend regime
Ireland
• No exemption, but credit for Dividend WHT and CIT of sub
• Requires shareholding of 5% or more
• To the extent the underlying tax in the participation is below 25%,
Irish tax will be payable.
23. Dividend regime
Luxemburg
• Full exemption
• Requires: shareholding of 10% or more, or
acquisition of at least Eur 1.2mio
minimum holding of 12 months
• Exemption denied if tax rate of sub is below 11%
(unless EU sub)
24. Dividend regime
the Netherlands
• Full exemption
• Requires: shareholding of 5% or more
• no minimum withholding period
• Exemption denied if: >50% of assets of sub generate
passive income and are taxed
less than 10%
25. Dividend regime
Spain
• Full exemption
• Requires: shareholding of 5% or more, or
acquisition of at least Eur 6mio
• minimum holding of 12 months
• sub should be non-Spanish and
not from tax haven, subject to tax
• sub must have 85% operating
income
26. Dividend regime
Belgium
• 95% exemption
• Requires: shareholding of 10% or more, or
acquisition of at least Eur 1.2mio
• minimum holding of 12 months
• sub is “financial fixed asset”
• Exemption denied if tax rate of sub is below 15%
(unless EU sub)
27. Dividend regime
Denmark
• 100% exemption
• Requires: shareholding of 10% or more
minimum holding of 12 months
• Exemption denied if shareholding company resides
outside EU and no tax treaty
exists with the resident country
(Denmark has app. 60 treaties
with countries outside EU)
28. Gains on shares (if participation exemption applies)
India
EU
To what extent are capital gains on
holdco
shares taxed in EU holdco?
Italy
29. Gains on shares (if participation exemption applies)
India
EU
To what extent are capital gains on
holdco
shares taxed in EU holdco?
Italy
30. Gains on shares (if participation exemption applies)
• Cyprus exempt
• Ireland exempt, but
minimum holding period 1 year,
sub must be operating company,
and EU resident or Treaty
country.
Other rules apply for gains on shares in companies owning
immovable property
31. Gains on shares (if participation exemption applies)
• Cyprus exempt
• Ireland exempt, but
• Luxemburg exempt
• The Netherlands exempt
• Spain exempt, but not to tax haven
• Belgium exempt
• Denmark exempt, when held for 3 years
32. Interest payments relating to the acquisition of the Subs
Interest on the loan deductible?
Parent
• Cyprus yes
Loan • Ireland in principle yes
EU • Luxemburg yes
holdco • The Netherlands in principle yes
• Spain in principle yes
• Belgium yes
Subs • Denmark more or less
33. Interest payments to non-EU shareholder
WHT on interest on shareholder’s loan?
Parent
• Cyprus 0%
Loan
• Ireland 15% - 0%
EU
• Luxemburg 0% (Soparfi)
holdco
• The Netherlands 0%
• Spain 18% - 0%
Subs
• Belgium 15% - 0%
• Denmark 30% - 0%
34. Certainty in advance for the applicability of the participation
exemption?
• Cyprus clearance upon request
• Ireland non-binding opinions
• Luxemburg clearance likely upon request
• The Netherlands advance tax rulings available
• Spain advance tax rulings available
• Belgium advance tax rulings available
• Denmark advance tax rulings available
35. Withholding taxes payable on dividends paid by the holding
company?
• Cyprus 0%
Parent • Ireland 15% - 0%
• Luxemburg 15% - 0%
• The Netherlands 15% - 0% (BV) or 0% (Coop)
EU
holdco • Spain 18% - 0%
• Belgium 25% - 0%
Subs • Denmark 28% - 0%
36. Number of Tax Treaties in force (per 1 jan 2008)
• Cyprus 42
• Ireland 46
• Luxemburg 51
• The Netherlands 86
• Spain 68
• Belgium 88
• Denmark 85
37. Concluding remarks
And the winner is ……………………………….
Although the Netherlands seem the best location for a holding company
it always depends on the case at hand….
38. How to make use of a holding company?
1. For which types of clients or potential clients?
2. What are the advantages for you?
3. Create an international client team;
4. Some examples.
39. 1. For which types of companies?
• Companies that sell products internationally;
• Companies with foreign subsidiaries;
• Companies with foreign branches;
• Companies with intellectual property (royalty);
• Companies with (intragroup) financing activities.
40. 2. What are the advantages for you?
• You can make your client happy (lower effective tax rate);
41. 2. What are the advantages for you?
• You can make your client happy (lower effective tax rate);
• Show the strengths of our international network to your client;
• Opens the door for future international tax projects (e.g. transfer
pricing, supply chain management services, reorgs, etc);
• Use the succes as a showcase for attracting new clients.
42. 3. Create an international client team
• Representatives from key countries where the company is active;
• Share client information within the team (e.g. group structure);
• Set up a conference call to discuss the opportunities;
• Define the communication strategy;
• Share examples with the client / target in order to build trust.
44. Targeting new clients
• Creation of cross border target team
Example 1: End 2007 HLB Schippers and
HLB Ler Lum have jointly targeted a large
Malaysian palm oil company with
various plants in the Netherlands
45. Targeting new clients Potential client wishes to
move:
1) EU HQ functions
Malaysia
and
2) Non Dutch subsidiaries to
a country outside Malaysia
NL BV
Problem:
Is there a treaty between
•NL 2 BVs third country (for instance
ROW Egypt
Singapore) and
Netherlands/ROW
46. Targeting new clients
Proposal 1:
Malaysia
In case Singapore will be
the new HQ:
Egypt should be held by
??? NL BV, to avoid 15% WHT
between Egypt and
Singapore.
NL BV
ROW •NL 2 BVs Egypt
47. Targeting new clients
Proposal 2:
Malaysia
To avoid dividend tax from
Netherlands to ???
(perhaps no 0% treaty
rate), the use of a Dutch
???
cooperative was
proposed.
HQ will be moved while
Coop
holding function remains
in Europe.
ROW •NL 2 BVs Egypt
50. To existing clients
• Example 1: Analysis of international legal structure
HLB Schippers will perform an initial quick scan of your client’s
existing structure and provide advice how to optimise the
structure (i.e. create cash savings for your client). We are
currently doing the follow-up on a quick scan for a client of HLB
Australia.
51. To existing clients
Proposal:
Private
International holding
individual (Fiji)
structure that lowered the
effective tax burden.
NA NV
Dividend tax from Fiji
+ eventually from NA
Coop
Fiji comp
52. To existing clients
• Example 2: Entry into Europe
Your client is considering an entry into Europe for doing
business. This could be a natural moment to consider a
European holding structure. We have done this recently for a
large Russian investor which was referred to us by Vantis UK.
53. To existing clients
Proposal:
BVI
Acquisition vehicle that
could set of its finance
costs with profits of the
Dutch target.
Coop Jersey
BV had enough substance
for Austrian tax purposes.
BV
•NL 2 BVs Austria
54. Questions?
• Jeroen van der Linden (tax);
j.linden@hlb-schippers.com;
• Pascal Belfroid (audit)
p.belfroid@hlb-schippers.com.