7/23/2020 9:00 AM
7/23/2020 6:00 PM
The Committee of Entrepreneurs on Tax Issues at the Ukrainian Chamber of Commerce and Industry, together with Crowe Mikhailenko, are organizing the III International Practical Online Conference "Ukraine Anti-offshore", which will be held on July 23, 2020, from 9.00 to 18.00 on the Zoom platform.
At the conference, we will discuss in detail the key novelties: how to deal with controlled foreign companies, CFC liquidation, what to do with 30% adjustments when exporting to low tax jurisdictions, risks and troubles of principal purpose test and many other questions that will soon become a reality for every Ukrainian businessman.
We have invited tax experts from all over the world: Kazakhstan, Hungary, Estonia, Russian Federation, Switzerland and UAE.
The speakers will talk about how new situations for our realities work in their countries. Recognized tax consultants of Ukraine will also share their thoughts.
We invite you to join the fruitful discussion.
ІІІ International Conference
July 23, 2020
Сonference venue: Zoom
09:00 – 09:05
Anti-offshore package: MLI, protocols to bilateral conventions, Law №466-IX, coming amendments. Automatic exchange of information and special declaration. Experience of foreign countries
09:05 - 10:10
1. Origins. Monetary liberalization and BEPS plan 2. Instruments that have entered into force:
- protocols to bilateral conventions
- Law 466, its coming amendments
3. Next steps: expectations:
- automatic exchange of information
- special declaration and tax amnesty
- indirect methods
10:10 - 10:55
4. Anti-offshore initiatives that have so far been abandoned:
- TP for payers of special agricultural tax
- exchange differences
- 20% VAT on exports below cost
- interest and royalties on investment funds
5. Corporate income tax
5a) Tax incentives
- 40 million threshold for Income to apply tax adjustments
- Increase in the value threshold of fixed assets
- Accelerated depreciation of 4th and 5th groups of fixed assets
5b) Tax limitations
- Carrying forward of losses during the reorganization
- restrictions on deduction for interest paid on loans received from nonresident related party (“thin capitalization”): 30% of tax EBITDA. New rules for interest within construction in progress.
- An increase in the tax burden on sales in favor of “low-tax” non-residents
- Expanded scope of the business purpose. Criteria. Examples fromcase law. Scope (legislative perspective). Burden of proof
10:55 - 11:55
6. Withholding tax
Principal purpose test. Cases where the intentions of the payer coincide with the intentions of the member-states to the convention. Cases where the provisions of the conventions do not contain the rules of the Principal purpose. MLI and bilateral conventions to it. Examples from OECD recommendations. Under what conditions does the creation of a holding / operating company in Cyprus meet principal purpose test.
Changes in the definition of the beneficial owner of income. Substance. Questionnaires of tax authorities. Facts that matter. Case law in Ukraine, requirements of foreign banks and jurisdictions. How much substance is enough? Beneficial ownership of transit revenue. Beneficiary test only in cases stipulated by the convention. Capitalization of loans as a solution
Sale of securities and corporate rights with the Ukrainian component. Non-resident buyer as a tax agent: how it works for multilevel structures with and without real estate. Legislator's plans and future risks
7. Recent amendments to the double taxation convention
Cyprus. Interest - when the Ukrainian withholding tax is more than Cypriot and what to do with it. Dividends: Does the rate of 5% work for mutual investment fund. Capital gains: from the best convention to the worst. Possible scenarios for the development of the situation. Business relocation, work with the base, taking into account principal purpose test.
Protocols to conventions with the UK, Switzerland, the Netherlands.
Countries with zero dividend, interest and royalty rates
11:55 - 13:00
Deemed (imputed) dividends: how it will work. Application of conventions. Case law in other countries
Regular prices for the sale of investment assets to low-tax or related non-residents
9. Controlled foreign companies:
Since when do they take effect?
СFCs and controlling persons
When the founder of the trust is not a controlling person and how to confirm this. Discretionary irrevocable trusts / funds.
When non-founder of the trust - the controlling person
The controlling person is the Ukrainian holding: benefits and consequences for its shareholder.
When there is no CFC taxation - 2 million threshold
When there is no CFC taxation. What is active and passive income. Mixing of revenues.
When substance is necessary?
Cyprus. UAE. Singapore. Estonia. Malta. USA.
When there is no taxation of CFC - public company and how to create it quickly
Deductions for holdings at Ukrainian and foreign operating companies. Subordinated Company Model
When there is no CFC taxation - the distribution of dividends - how realistic. Personal income tax rates. Deduction of taxes paid in another jurisdiction
CFC reporting - when to submit. Content. CFC staff as an element of substance. Documents attached to the reporting.
When the controller additionally reports the purchase or sale of foreign shares. When government agencies or banks report about this
When do they not report on CFCs?
The liquidation of the CFC. When do you need to make decision on liquidation? When could the payer enjoy the benefit?
Coming amendments to the draft. Expected amnesty and special declaration: how is it combined?
Change of residence: how to convince the Ukrainian tax authorities. Case law: two categories of court cases, a review of cases and criteria when elements of residence are connected with Ukraine. 183 days.
leaving for permanent residency abroad and filing the last declaration.
13:00 - 14:00
14:00 - 14:35
Permanent establishments and recognition of a Ukrainian company as a resident
Changes to the definition of a permanent establishment. Power of attorney, corporate mail and visit cards. Directors and signatories from Ukraine -case law. Cases Yuzhgok and Phoenix Capital. Contractors in Ukraine - relevant clarifications. Change of calculation rules (elimination of coefficient 0.7). Registration of Permanent establishments.
Recognition of a Ukrainian company as a resident. Decision-making criteria, management of bank accounts, etc. Registration of a non-resident in Ukraine is a right or an obligation. Risks. Application of conventions (examples: Cyprus, Estonia and Singapore).
Object - only profit from Ukraine - opportunities?
14:35 - 15:45
10. TP rules
Expansion of scope
Related parties: 25% and joint ventures
Reduction of functions and departments as a controlled operation
Discount value on intangible assets
Stock prices, commodity and exchange listings, contract notifications
Strategies and risks. Actual behavior and substance in support of contractual terms
International Group Notice
Global documentation (master file). 50 million euros. Deadlines and content
Country by country report. 750 million euros. Terms of submission and content
Documentation on the technical and financial statement. Content expansion. Business objective in substantiation of non-commodity operations
Penalties for non-submission (distortion) of reports (documentation) on TP
11. Tax audits and liability. The principle of guilt. Clarification of the procedure for unscheduled tax audit: for the presence of permanent establishments, if necessary, to obtain information from foreign tax services. The process of mutual harmonization in the application of international conventions and its advantages.
15:45 - 16:00
12. Foreign experience in introducing BEPS:
Implementation of CFC - Russian experience
16:00 - 16:15
Principal purpose test – Estonian Experience
16:15 - 16:30
MLI in Kazakhstan
16:30 - 17:00
Markus Susilo / Deepika Chandak
Liquidation of UAE companies
17:00 - 17:30