The EU has asked Finland to change legislation which discriminates against non-resident artists: Finland requires non-resident artists (and sportsmen) to pay a final tax of 15% on income earned in Finland. Only limited deductions for lodging, transport and daily allowances can be deducted from that income to calculate tax due. In contrast, Finnish resident artists and sportsmen can deduct their actual expenses, and are taxed under a progressive rate.
Monthly Archives: February 2009
18
Feb 09
UK: CFC rules up for review again
The Treasury’s multinational business forum has the UK’s controlled foreign companies (CFC) rules back onto its agenda. The CFC rules are intended to stop UK companies routing passive income to subsidiaries in low tax jurisdictions overseas – passive income can include royalties from licences of intellectual property (amongst other forms of income). The CFC rules were originally intended to be updated as part of the legislation bringing in an exemption from corporation tax for foreign dividends, but the proposed changes were so broad as to be unworkable and would have meant that UK companies would be penalised for owning any subisidiaries with IP; the Treasury then postponed the CFC rules update to have more time to consult with business.
04
Feb 09
UK: CBI survey on R&D tax credits
The CBI has published a survey on R&D tax credits, concluding that business confidence in the credits has grown over the past three years with 37% of companies reporting that the credit has enabled them to increase their R&D spend.
03
Feb 09
UK: Guardian’s “tax gap” with IP in the firing line
The Guardian is currently running a series on the UK “tax gap” and purported tax avoidance by large companies. Today’s instalment continues the theme with something of a potentially ill-advised rant against the use of offshore entities, particularly with regard to IP.