Мальта предлагает внесение изменений в систему налогообложения на основе ремитирования

Одно из изменений, предложенных в последнем проекте Бюджета, относится к налогообложению на основе ремитирования, при котором физические лица могут рассчитывать на минимальный ежегодный налог – 5 000 евро. Мальта предлагает чрезвычайно привлекательную систему налогообложения на основе ремитирования, в соответствии с которой, лица не имеющие домициля на Мальте, облагаются налогом только на доходы  возникшие или полученные на Мальте.

Для лиц, не имеющих домициля, минимальный налог оплачивается, когда лицо:

а) не является налогоплательщиком на Мальте в соответствии с одной из схем, устанавливающих минимальную сумму налога на Мальте, включая Программу по получению вида на жительство, Глобальную программу резидентства, Программу для лиц-пенсионеров и Положения о получении резидентства; а также

б) получает доход в размере как минимум 35 000 евро или эквивалент в другой валюте, возникающий за пределами Мальты. В случае супружеской пары будет учитываться совокупный доход.

  • При расчете минимального налога учитывается любой мальтийский подоходный налог, уплаченный путем удержания или иным образом, за исключением налога, уплаченного с прироста капитала.
  • Если доход лица, не имеющего домициля, в течение одного налогового года, образует налоговое обязательство менее 5 000 евро, то  минимальный налог в размере 5 000 евро все равно должен быть оплачен. Например, если физическое лицо обязано уплатить 2 500 евро по возникшим или полученным на Мальте доходам, , эта сумма налога должна будет еще быть «дополнена» на 2 500 евро.
  • В отношении налога на доход от прироста капитала, возникающего за пределами Мальты, никаких изменений не предлагается. Независимо от того, приведен ли этот доход на Мальту или нет, налог не уплачивается.
  • Ожидается, что эти изменения вступят в силу с 1 января 2018 года и будут введены в середине 2018 года.

За дополнительной информацией или содействием пожалуйста обращайтесь к нам.

Мальта вводит систему вычета условного процента ВУП (Notional Interest Deduction (NID)

На презентации бюджета Мальты за 2017 год, Министр финансов рассказал о введении режима вычета условного процента (Notional Interest Deduction (NID)). ВУП является новой налоговой льготой, направленной на приравнивание долевого и заемного финансирования.

ВУП – это инновационный инструмент сокращения налоговой нагрузки для компаний. Он позволяет компаниям вычитать  сумму условного процента на основании «рискового»капитала компании. Такие компании смогут прибегнуть к вычету условного процента в отношении их налогооблагаемого дохода, который считается начисленным на их собственный капитал.

Основные особенности ВУП

  • ВУП не будет обязательным для компаний.
  • Расчет: условная процентная ставка Х остаток рискового капитала компании на конец года.
  • Условная процентная ставка определяется как «безрисковая ставка»; текущая доходность к погашению по государственным облигациям Мальты с оставшимся периодом около 20 лет плюс премия в размере 5%.
  • Рисковый капитал определяется как: акционерный капитал, эмиссионный доход, нераспределенная прибыль, беспроцентный долг и любой другой капитал.
  • Заявленный к вычету ВУП в течение одного года не может превышать 90% от налогооблагаемого дохода компании. Любое превышение может быть перенесено на неопределенный срок для вычета из налогооблагаемого дохода в последующие годы. Оставшаяся сумма дохода облагается налогом по стандартной ставке 35%.
  • В рамках ВУП не производится возврат налога акционерам , что освобождает от необходимости двухуровневой структуры компании.
  • В целях налогообложения на Мальте при использовании ВУП, будет считаться, что акционер получает ту же сумму условного процентного дохода. Если акционер не является резидентом Мальты, то предполагаемый процентный доход не будет облагаться налогом на Мальте, при условии соблюдения определенных критериев.
  • В целях предотвращения злоупотребления режимом существуют специальные правила, направленные на противодействие уходу от налогообложения.
  • Налогоплательщики смогут претендовать на ВУП в отношении доходов за 2017 год, так как эти доходы облагаются подоходным налогом в 2018 году.

За дополнительной информацией или содействием пожалуйста обращайтесь к нам.

Circular No. 26/2017 of the Department of Merchant Shipping on The Protection of Cyprus Ships against Acts of Piracy and Other Unlawful Acts Law of 2012

The Department of Merchant Shipping (‘DMS’), based on the provisions of the Protection of Cyprus Ships against Acts of Piracy and Other Unlawful Acts Law of 2012 (“the Law”), issued  the following instructions under Circular No. 26/2017:

  1. The maximum total number of firearms a Private Ship Security Company (‘PSSC’) is entitled to register on its Cyprus certificate has been increased from four hundred (400) (as indicated previously by Circular No. 1/2016) to six hundred (600); and
  1. The number of firearms shall be proportional to the number of guards at a ratio of two (2) to one (1). That is, for each approved private ship security guard, the PSSC can register on its Cyprus certificate up to two (2) firearms and not vice versa as indicated by Circular No. 1/2016.

For further information or assistance, please do not hesitate to contact us.

Malta proposes changes to the Remittance Basis of Taxation

Malta offers an extremely attractive remittance basis, whereby an individual ordinarily resident but not domiciled in Malta (“non-domiciled person”) is only taxed on income arising or received in Malta. One of the changes suggested in the Budget Bill 2018, relates to the remittance basis of taxation, where “non-domiciled person” may be subject to a minimum annual tax of €5,000.

The minimum tax of €5,000 will apply if the individual:

  1. Is Ordinarily resident in Malta but Non-domiciled therefore taxable on a source and remittance basis; and
  2. Is not taxable in Malta in accordance with a scheme establishing a minimum amount of tax in Malta, including The Residence Programme, Global Residence Programme, Malta Retirement Programme and the Residents Scheme Regulations; and
  3. Derives income arising outside Malta of at least €35,000 (not received in Malta), or its equivalent in another currency. In the case of a married couple, the €35,000 will be considered as a total.
  • In computing the minimum tax, one should take to consideration any tax paid in Malta, whether by withholding or otherwise, excluding tax paid on capital gains.
  • If the income of a non-domiciled individual in any single tax year results in a tax liability of less than €5,000, the minimum tax of €5,000 will be payable. For example, if an individual is liable to pay €2,500 on income arising or received in Malta, they will be required to ‘top up’ that tax by an additional €2,500.
  • No changes are proposed regarding tax payable on capital gains arising outside of Malta. Irrespective of whether this income is brought into Malta or not, no tax is payable.
  • It is anticipated that these changes will be implemented in the Maltese Income Tax Act with effect from 1st January 2018 upon approval by Parliament and will be introduced mid-2018.

For further information or assistance, please do not hesitate to contact us.

Malta introduces Notional Interest Deduction (NID)

By virtue of a Legal Notice No 262 of 2017 (published on 5 October 2017) Malta introduced a Notional Interest Deduction (“NID”) mechanism. The NID is a new tax incentive, which aims to approximate neutrality between debt and equity financing.

NID is an innovative way for companies to reduce their tax liabilities. It allows companies to deduct a notional interest amount based on the ‘risk capital’ of a company. Such companies will be able to claim a deduction against their chargeable income for NID deemed to be incurred on their equity capital.

Main features of NID

  • The NID will be optional for companies.
  • Calculation: notional interest rate X balance of risk capital that the undertaking has at year end.
  • Notional interest rate is defined as the ‘risk free rate’; the current yield to maturity of Malta Government stocks, with a remaining term of approximately 20 years, plus a 5% premium.
  • Risk capital is defined as: share or partnership capital of a company or partnership, any share premium, positive retained earnings, interest free loans or other debt, any other reserves resulting from a contribution to the company or partnership and any other item which is shown as equity in the financial statements of the undertaking.
  • An equivalent deduction is permitted to Maltese permanent establishment of a foreign company or partnership (resulting from a contribution to the Maltese permanent establishment).
  • NID claimed in any one year cannot exceed 90% of the company’s taxable income (before grossing up for FRFTC). Any excess can be carried forward indefinitely, to be deducted against taxable income in future years. Remaining income is taxed at the standard rate of 35%.
  • Where NID is claimed, the shareholder will be considered to receive the same amount of notional interest income, for Maltese tax purposes. If a shareholder is not resident in Malta, the deemed interest income will, however, be exempt from tax in Malta, providing that certain criteria are met.
  • Specific anti-avoidance rules are included to prevent abusive application of the regime.
  • Taxpayers will be able to claim NID on profits relating to the tax year 2017, as these profits are assessable for income tax in 2018.

For further information or assistance, please do not hesitate to contact us.

The Agreement between the Government of the Republic of Cyprus and the Government of the Republic of India on Merchant Shipping

The Agreement on Merchant Shipping between the Government of the Republic of Cyprus and the Government of the Republic of India, signed in New Delhi on 28th April 2017 (hereinafter referred to as “the Agreement”) came into force on 29th November 2017, repealing the previous Agreement on Merchant Shipping between Cyprus and India which had been signed on 11 February 1997.

The said Circular highlights some of the most important provision of the Agreement as follows:

ARTICLE 5: Either Contracting Party shall afford to vessels of the other Contracting Party the same treatment as it affords to its own vessels engaged in international voyages with regards to free access to ports, use of ports for loading and unloading of cargoes and for the embarking and disembarking of passengers, payment of dues and taxes based on tonnage or otherwise, in accordance with the national laws and regulations, exercising normal commercial operations and the use of services related to navigation.

ARTICLE 7: Each of the Contracting Parties shall recognize the identity documents issued by the competent authorities of the other Contracting Party to members of the crew who are nationals of that Contracting Party.

ARTICLE 8: During the time a vessel of the one Contracting Party is in a port of the other Contracting Party, each crew member of that vessel shall be permitted temporary shore leave in the territory of the municipality to which the port belongs, as well as in the territories of adjacent municipalities, without the requirement of a visa, provided he can show a relevant identity document as mentioned in Article 7 of the Agreement. However, such leave shall only be permitted if the master has submitted to the appropriate authorities at the port a crew list on which the names of the crew members appear, in accordance with the regulations in force in that port.

ARTICLE 10: If a vessel of the one Contracting Party is shipwrecked, runs aground, is cast ashore or suffers any other accident off the coast of the territory of the other Contracting Party, the vessel and the cargo shall enjoy in the territory of the latter Party the same benefits and privileges and accept the same liabilities as are accorded to a vessel of that Party and its cargo. The crew and passengers as well as the vessel itself and its cargo shall be granted, at any time, help and assistance to the same extent as in the case of a national vessel.

ARTICLE 11 (1): The taxation of income of any kind derived from the use of vessels in international traffic shall be regulated by the provisions of the Agreement between the Republic of Cyprus and the Republic of India for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital.

ARTICLE 11 (2): Residents of the one Contracting Party who are employed on board vessels of the other Contracting Party as masters, officers or other members of the crew should be taxed on income derived from wages or other benefits in respect of paid services rendered, only by the Contracting Party where the vessel is registered and is flying its flag.

ARTICLE 11 (3): The freight income obtained from the operation, in international traffic, of vessels of the one Contracting Party, by organisations or enterprises established in accordance with its national legislation, will be exempted from fees and taxes of any kind in the territory of the other Contracting Party

ARTICLE 11(4): Shipping organisations or enterprises of either Contracting Party shall have the right to use income and other revenue obtained in freely convertible currency within the territory of the other Contracting Party and deriving from maritime transport operations, for the purpose of making payments in the territory of that other Contracting Party. Any surpluses, after settlement of all amounts due locally, if any, are remittable abroad.

Cyprus Tonnage Tax System: Flags appearing on the Grey List and Black List of the Paris MOU for the Fiscal Year 2017

As per Circular No. 20/2017 published by the Department of Merchant Shipping on the 31st of October 2017 with regard to the Cyprus Tonnage Tax System (Law 44(I)/2010), the Director of the Department relied on sections 17(2), 27(2) and 40(2) of the Law and the relevant tables contained in the Annual report of the Paris MOU for the year 2015 and has decided that certain flags will be included in the Grey List or the Black List of the Paris MOU for the fiscal year 2017.

Specifically, ships flagged under flags of: Albania, Algeria, Azerbaijan, Bulgaria, Curacao, Egypt, Georgia, India, Jamaica, the Republic of Korea, Kuwait, Lebanon, Libya, Lithuania, Malaysia, Mongolia, Morocco, Poland, Slovakia, Switzerland, St. Vincent and the Grenadines, Syrian Arab Republic, Thailand, Tunisia, Tuvalu, Ukraine and Viet Nam are included in the GREY list of the Paris MOU. Moreover, the Qualifying non-Community ships that fall within this List shall have their annual tonnage tax increased by thirty per cent (30%),

Similarly, ships flagged under flags of: Belize, Bolivia, Cambodia, Comoros, the Republic of Congo, Dominica, Honduras, the Republic of Moldova, Montenegro, Sierra Leone, St. Kitts and Nevis, United Republic of Tanzania, Togo and Vanuatu are included in the BLACK list of the Paris MOU, accordingly. Qualifying non-Community ships that fall within this List shall have their annual tonnage tax increased by sixty per cent (60%).

In addition, Community and non-Community ships under management flying a flag of a State mentioned in the BLACK list must be deemed to comply with international and Community standards only if the technical and crew management of every such ship is entirely performed from the territory of any EU/EEA Member State. In case of failure of compliance with these requirements, s 54 of the Law will apply, thus the Director may impose a fee to ensure compliance

Overview of the Supreme Court’ s Judgment in the case Intersputnik Int. Org. of Space Communications v. Alrena Invest. Limited, handled by our Law Firm has been published in Albert Jan van den Berg (ed), Yearbook Commercial Arbitration 2017 – Volume XLII, Kluwer Law International

The overview of the Supreme Court’ s judgment in the case Cyprus No. 2017-2, Intersputnik International Organization of Space Communications v. Alrena Investments Limited, Supreme Court of Cyprus, Appeal no. 298/2013, 4 April 2017 handled by us and led by our Senior Associate Lawyer Nota Pelekanou has been published in the Albert Jan van den Berg (ed), Yearbook Commercial Arbitration 2017 – Volume XLII, Kluwer Law International, pp. 1 – 10.

The Yearbook is published annually by the International Council for Commercial Arbitration and the T.M.C. Asser Institute in The Hague and is the single most important yearly overview of international arbitration! It is available also on KluwerArbitration.com which is the world’s leading online resource for international arbitration research since it contains a wealth of commentary from expert authors and an extensive collection of primary and exclusive source materials, including ICC cases and awards.

Read the Summary Here

Original Decision in Greek

 

MONACO YACHT SHOW 2017

This year, the Monaco Yacht Show will be held from the 27th to the 30th of September.

Like each year, the MYS welcomes the world’s most extraordinary superyachts and the most respected shipyards in an exhibition which cannot be missed.

Our team shall be attending the Show from 27-29 September.

Should you have any enquiries, or wish to catch up with us during the show, please contact us at mariah@vasslaw.com

We look forward to seeing you there!

 

THE CYPRUS NON-DOMICILE SCHEME – Amendment to the Law the ’60 DAYS RULE’.

In an effort to enhance the competitiveness, fairness and simplicity of the Cyprus tax system and to make it more attractive to foreign investors, the Cyprus Government passed on 9th July 2015, among others, the “Domicile” concept. The introduction of the non-domicile rules aims to attract high-earners to relocate to Cyprus, by using Cyprus as a business centre and transferring the headquarters of their business thus creating real substance.

For more information please read our English or Russian Memo.

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