Trésorier magazine - n°78 - 2ème trimestre 2012 - (Page 6)

FINANCIAL HIGHLIGHTS LuxNews TAX NEWS Luxembourg double taxation treaty update The following new double taxation treaties (DTTs) have recently entered into force: Panama: the income and capital tax treaty between Luxembourg and Panama, signed on 7 October 2010 entered into force and applies from 1 January 2012 Barbados: the income and capital tax treaty between Barbados and Luxembourg, signed on 1 December 2009 entered into force and applies from 1 January 2012 G G G The following DTTs have recently been amended Germany: In April 2012, Luxembourg and Germany signed a new DTT which will replace the initial 1958 treaty, as amended.The 2012 treaty incorporates the Organization for Economic Cooperation and Development (OECD) Model Convention standards as well as the German and Luxembourg specific rules in order to eliminate situations of double taxation and non-taxation. After the new DTT enters into force, it will reduce the withholding tax on qualifying dividends from 10% to 5% if the beneficial owner is a company holding at least 10% of the capital in the distributing company. In other cases, a 15% rate applies, including on dividends arising from real estate G companies which benefit from a full or partial tax exemption or which treat distributions as tax deductible. Furthermore, it provides that capital gains from the transfer of shares or comparable interests deriving more than 50% of their value directly or indirectly from immovable property in one of the contacting States by a resident of the other contracting State may be taxed in the State where the property is situated. Investment companies with variable capital (SICAVs), investment compa nies with fixed capital (SICAFs), investment companies in risk capital (SICARs), and qualifying common funds (FCPs) will be in the scope of the new DTT and may benefit from the withholding tax regime. The new treaty will be applicable from 1 January of the year following the ratification by both countries Russia: in November 2011, Luxembourg and Russia signed the amending protocol to the existing DTT.The main revisions are: The current withholding tax rate is to be reduced from 10% to 5% for qualifying dividends if the receiving company holds at least 10% of the capital, and invested at least 80,000 (or equivalent in Roubles) in the distributing company. In order to avoid double taxation, Luxembourg will apply the credit method for dividend income and other income already taxed in Russia. The OECD Model Convention standard on the exchange of information (often known as “Article 26”) will be incorporated into the DTT New protocols amending existing treaties to incorporate OECD Model Convention standard on the exchange of information Japan: applicable from 30 December 2011 Mexico: applicable from 1 January 2012 San Marino: applicable from 1 January 2012 Sweden: applicable retroactively from 1 January 2010 Hong Kong: applicable from 1 January 2012 in Luxembourg 1 April 2012 in Hong Kong Turkey: applicable from 1 January 2012 Update on initialed and current negotiations on amending protocols on existing or new DTTs : Tajikistan: in January 2012, Tajikistan was the first adopting the law ratifying the DTT France: according to unofficial sources, in February 2012, the French Tax Authority requested to re-negotiate the current French Luxembourg DTT in order to abolish tax evasion on capital gains realized upon the sale of shares in a French real estate oriented company by a Luxembourg entity, for example where the Luxembourg resident parent company has no permanent establishment in France and the participation exemption regime applies in Luxembourg G G G G G G G G G G 6

Table des matières de la publication Trésorier magazine - n°78 - 2ème trimestre 2012

SOMMAIRE
EDITORIAL - 2012, l’année des réglementations?
6 FINANCIAL HIGHLIGHTS
INTERVIEW - Mr. Ulf Bacher & Mr.Thomas Gerke
FOCUS
FORUM OF ADVERTISERS
CORPORATE FINANCE
TREASURERS’ ASSOCIATIONS
NEWS

Trésorier magazine - n°78 - 2ème trimestre 2012