Baker Tilly Romania have sent us the following useful pdfs about Romanian taxes. They are subject to the usual caveats you can read in the disclaimer page above.
Dear Quoracy.com subscribers,
We continue our efforts in upgrading and enhancing our services to you, both in context and quality.
In this respect, please find enclosed the Baker Tilly Klitou Tax Alerts for April 2013, in English and Romanian. The purpose of these Tax Alerts is to inform you about the latest tax legislation changes that could have an impact on your company’s activity: changes that affect our Tax Code, any legislative changes that are announced by the Ministry of Finance and any other Romanian tax related developments.
Our tax experts are always at your disposal in answering any queries that may arise from these Tax Alerts.
52 Splaiul Independentei, 050085 Bucharest, Romania
Tel: +40-213156100 |Fax: +40-213156102
We communicate with you to inform you about the latest developments of the ECB/EU/IMF troika financial assistance to Cyprus. Last Saturday the Eurogroup decided in favour of a financial assistance to be provided to Cyprus with a package of measures which include:
• an one off solidarity levy on bank deposits and credit balances of 6,75% for amounts of up to €100.000 and of 9,99% for amounts exceeding €100.000. This levy will apply to all bank accounts (current, deposit, notice etc.) with banks operating in Cyprus (local and international) and bank branches. Depositors will be compensated with the equivalent amount in shares in Cyprus banks, and a plan is being contemplated for those who will keep their deposits in Cypriot banks for the next two years to be given bonds linked to revenues from natural gas; and
• an increase of corporate tax rate from 10% to 12,5%.
The upside of Saturday’s Eurogroup decision is that the uncertainty over the Cyprus economy and the future of its major banks will disappear with the financial assistance agreement. The EU and the IMF have also confirmed that these measures will ensure that the Cyprus economy will be sustainable without any further support or measures.
As a firm, we believe that:
• the increase of the corporate tax rate by 2,5% will not negatively affect international business in any significant way as corporation tax affects mainly trading income. Most international companies in Cyprus are set up as investment holding companies or group financing companies. Cyprus companies will still benefit from full participation exemption on capital gains, full participation exemption on dividend income, no Cypriot withholding tax on dividends, interest and royalties, no thin cap rules, no CFC rules, no exit charges, effective tax on royalty income of 2,5% (from 2%), interest income being taxed on thin margin only and all the other current positives of the Cyprus tax regime. In addition, even with this corporation tax increase, Cyprus remains one of the lowest corporation tax jurisdictions in the EU.
• the imposition of the one off solidarity levy on bank deposits and credit balances in the Cypriot banking system is unacceptable as such a measure is unprecedented and undermines the European banking system. Shares in banks on major international stock exchanges took a pummelling on Monday (yesterday) as a result of the dangerous precedent that has been set.
The Eurogroup decision needs to be ratified by the Cyprus House of Representatives to be effective. The decision with respect to the levy on deposits has sparked huge public anger in Cyprus and beyond and it is currently questionable if the House of Parliament will ratify it – the Parliament is expected to hold a special session for this today at 6pm Cyprus time.
We shall keep you informed of developments on this important issue. Please feel free to contact us for further information, assistance or clarifications.
- Cyprus Wins Exemption for Small Savers from Bank Levy (marketcurator.com)
- Bailout terms ‘death knell’ for Cypriot finance sector (ekathimerini.com)
- A look at Cyprus’ move to seize bank deposits (seattlepi.com)
- Eurogroup agrees to allow Cyprus to tweak deposit tax as long as agreed target is met (ekathimerini.com)
- Cyprus depositors face up to 10% haircut as part of bailout deal agreed at Eurogroup (ekathimerini.com)
- Cyprus seeks to alleviate pain from deposit raid (cbc.ca)
- Complete Eurogroup Statement On Cyprus (zerohedge.com)
COBCOE have sent out the following invitation to two major London events that could be of interest to users of this service.
Dear friends and colleagues,
You are cordially invited to the following two events supported by COBCOE taking place in April in London.
London – 3rd April 2013
IBDE: Global Economic Forum – Best Practices in Trade and Investment Promotion
Held at the heart of the UK’s Financial an Trade Centre in the City of London this high level, targeted event, will bring together a wide range of senior policy-makers, executives from international Trade and Investment Agencies, diplomats, business leaders, economists as well as experts from participating sectors and institutions.
Further information, programme and registration available on the link below.
IBDE: Global Economic Forum
London – 8th April 2013
British Chamber of Commerce in Germany: London conference “The future of the European Union“
BCCG invite you to its London EU Conference to be held at the Commerzbank London branch in the City of London. Further information, programme and registration available on the link below.
Please also don’t forget to book your place at
COBCOE’s 40th Anniversary Gala Dinner & Awards Ceremony on 10th April 2013 at the Guildhall
Full information in the flyer and on the link below
COBCOE Gala Dinner
We look forward to seeing you soon.
- Boris defends bankers on French radio (bbc.co.uk)
- London must capitalise on its many advantages as global city of choice (telegraph.co.uk)
- Low-life tourism: London sights it would be a crime to miss (independent.co.uk)
- A Guide to London’s Most Beautiful Gothic Interiors (epicatravel.com)
- London, City of the ‘Built’ from Thousand Bones? (bestbulletin.wordpress.com)
- VIDEO: Rail project finds ‘Black Death pit’ (bbc.co.uk)
In the above PDF, Baker Tilly Poland kindly share some of the news surrounding the new VAT and income tax changes in Poland that anyone investing or living in this country needs to be aware of.
The below pdf’s are only intended for your kind attention if you are all three of the following:
1. Someone who pays income tax in Poland
2. Someone who knows and likes my internet output (on blogs, on YT, etc) and
3. Someone who hasn’t already a decision in mind as to where to allocate their 1% of tax.
The idea is that you could help us without it costing you a penny. I would also like for it to be not at the cost of any other worthy causes you may already be supporting, so please don’t take this as a request to divert to my family’s charitable funds away from anyone who is used to receiving your help.
Many thanks to those who are willing to take the trouble to include one of my family in their tax return.
- A Visual Guide to Taxing Bonuses [Infographic] (turbotax.intuit.com)
- Dogs vs. Cats: Which One Cost You More? [Photo Infographic] (turbotax.intuit.com)
- Why is Canada Revenue Agency (CRA) promoting unencrypted web sites for netfiling? (philipramsey.blogspot.com)
The following press-release by Ferenc Kölber, a partner in Baker Tilly Hungária, underscores our observation made recently in these columns that finally the profession is growing again in Central Europe. He writes:
Baker Tilly Hungária is pleased to announce recent successful collaboration with member firms. These included a number of payroll, accounting outsourcing, tax advisory and compliance services assignments.
As a result of these tenders, Baker Tilly Hungária reached a milestone of 1,000 people on outsourced payroll. A new payroll outsourcing service for a manufacturing entity of a large international client helped these figures. This client employs 300 staff in Hungary, generating approximately €28,000 in annual revenue for the firm. However, the firm is hoping to soon exceed this milestone with tenders for payroll of 140 and 1,400 staff also underway, the latter is for a client currently being served by Baker Tilly Czech Republic.
Ferenc Kolber of Baker Tilly Hungária also recently led a successful tender for the tax advisory and compliance service for Olajterv, an international oil and gas company, across 24 countries. The development of a strong offering resulted in this substantial win with Poland already transitioned with full scope accounting and payroll services together with tax advisory and work in Libya and Kazakhstan commencing.
Baker Tilly Hungária believes the success of these tenders resulted from the close working relationships and the quality of service delivered by member firms. This has created opportunities for referrals in other countries as well as the ability to participate in larger tenders for international clients.
- Tax change hits holiday homeowners (telegraph.co.uk)
- Baker Tilly: a brave new world of services (dealarchitect.typepad.com)
- Baker Tilly International Reports Revenue Growth of 3% to US$3.3bn (quoracy.com)
- Baker Tilly Slovakia Tax Alert February 2013 (quoracy.com)
- Fiscal cliff won’t stop businesses from hiring, Baker Tilly survey finds (bizjournals.com)