MacteInvest

UK Consultation on Corporate Re-Domiciliation

As announced as part of the UK Autumn Budget and Spending Review 2021, the UK Government intends to introduce new rules for corporate re-domiciliation in the UK in order to make it easier for companies to relocate to the UK. For this purpose, a public consultation has been launched by the Department for Business, Energy & Industrial Strategy, HM Treasury, and HM Revenue & Customs, which runs until 7 January 2022.

This consultation seeks views on the introduction of a UK re-domiciliation regime, which would make it possible for companies to re-domicile and therefore easier to relocate to the UK.
The UK is a competitive, global hub for business and is home to one of the world's leading financial centers. This mechanism will allow companies to take advantage of its world-class infrastructure and skills, while promoting jobs, innovation and investment in the UK.

German Ministry of Finance Published Draft Ordinance Listing Non-Cooperative Jurisdictions for Defensive Measures

The German Ministry of Finance has published the draft ordinance featuring list of non-cooperative jurisdictions for the purpose of applying the defensive measures introduced as part of the Law to Prevent Tax Avoidance and Unfair Tax Competition, which was approved on 25 June 2021. As previously reported, the defensive measures are designed to restrict individuals and companies from continuing or starting new business relationships with non-cooperative jurisdictions (tax havens), including restrictions on the deduction of expenses, stricter additional taxation rules for CFCs, exclusion from reduced withholding and exemptions, and others. The jurisdictions listed in the draft ordinance are based on the latest EU list of non-cooperative jurisdictions and include American Samoa, Fiji, Guam, Palau, Panama, Samoa, Trinidad and Tobago, U.S. Virgin Islands, and Vanuatu.

The defensive measures generally apply in relation to the listed jurisdictions from the beginning of the calendar year after the year in which they were added to the ordinance, i.e., from 1 January 2022, assuming that the final ordinance is published before the end of the year. However, not all defensive measures apply immediately from the first year. In particular, it is provided that the measures limiting participation exemptions for dividends (distributions) and capital gains from the sale of shares apply from the third year after a jurisdiction is added and the measures limiting the deduction of business expenses apply from the fourth year.

Czech Republic Planning to Increase VAT Registration Threshold

The Czech Republic's Ministry of Finance has announced plans to increase the VAT registration threshold from CZK 1 million in annual turnover to CZK 2 million. For this purpose, the Ministry has submitted a proposal to the government to authorize the Minister of Finance to apply to the European Union for the increased turnover threshold, which requires approval as a derogation from the EU VAT Directive. The Czech Republic intends for the derogation approval to apply until 31 December 2024 considering that a higher threshold of up to EUR 85,000 (~CZK 2.256 million) will be allowed from 1 January 2025 as provided by Council Directive (EU) 2020/285.

Cyprus Publishes Decree Providing Implementing Regulations for DAC6

The Cyprus Tax Department has announced the issuance of Decree KDP 438/2021 for the implementation and regulation of issues relating to the DAC6 Directive (EU Council Directive 2018/822). The Decree, currently only available Greek, provides guidance/clarification regarding participants in a reportable arrangement, intermediaries, application of the main benefits test and hallmarks, the liability to report information in Cyprus for relevant taxpayers and intermediaries, the information to be submitted and the manner of submission, etc.

DAC6 reporting requirements have been effective in Cyprus from 1 January 2021 including for historical arrangements, but due to delays in implementing the required amendments and issuing the regulations, relief from administrative fines for DAC6 reporting have been provided. The most recent relief is provided for the overdue submission of DAC6 information by 30 November 2021.

Cayman Islands Prepares To Launch The Register Of Beneficiaries

The Cayman Islands are preparing to fulfill their obligations by 2023 and launch a public register of beneficial owners. A draft proposal has been prepared that will combine all beneficial ownership legislation into a single act.

As a reminder, since 2017, companies were required to keep internal records of beneficial owners and submit the relevant statements to the Registrar of Companies. In 2020, the public gained access to the Registrar of Companies and details such as the directors of the company, registered office, nature of the business and the end date of the fiscal year became public. At the same time, the data on the beneficiaries did not appear anywhere.

Further, by January 2022, the Cayman Islands must legislate sanctions for those companies that do not submit or submit incorrect information about the beneficiaries. And by 2023, the country must ensure the functioning of a full-fledged public Register of Beneficiaries.

The extent to which the Registry is public has not yet been determined, but the Cayman Islands government believes that the public should be granted access upon request only to such data:
- the name of the adult beneficial owner;
- month and year of birth;
- country of residence and citizenship;
- the nature of the control that the person has over the organization.

At the same time, it is planned to provide an opportunity to hide all information about the beneficiary from public disclosure. In cases where the nature of the company's activities is confidential or the beneficial owner, or a person living with him, may be at serious risk of harm or intimidation, it will be possible to file Restriction of Public Disclosure of Information. This document will be accepted only with supporting documents and considered on an individual basis.

As for the access of authorities and financial institutions to the Register, their list will be expanded, and organizations with access will have to notify the authorities of any inconsistencies that they find.