#exittax

[rankmagic02]

The New Jersey Exit Tax

The New Jersey exit tax is a myth. The exit tax is an estimated tax of which you will receive a refund in most cases https://www.eldercarelawyer.com/blog/the-new-jersey-exit-tax/

[alektoridis]

Exit Taxation a new Corporate Income Tax

   A new corporate income tax has been introduced in Greece to implement the Council Directive of European Union 2016/1164 article five. The new provision introduces the taxation on cross-border assets transfer, intra-company assets transfer, and the transfer of business activities. According to the provision, all the member states should insert, in their legislation, rules against the tax avoidance practices that could cause Base Erosion and Profit Shifting, known also as BEPS.

    The scope of the exit taxation rule is to ensure that when a legal entity, transfers its tax residence or move assets outside of the country, Greece will tax all the economic value that could produce, even though that gain has not yet been realized when the exit takes place.

    The new taxation has been inserted in Greek legislation by article 58 of the law N.4714/2020 and is entered into force on 1 January 2020. All the transfers that took place between the first of January until the date of publication of this Law can be submitted until 31 October 2020 without the imposition of sanctions. The tax rate is the corporate income tax rate applicable to the tax year that the exit takes place.

    It is quite obvious that the new rules may trigger additional corporate income tax in Greece. The new taxation is implemented only in companies and other legal entities (not in individual entrepreneurs or natural persons). There are four kinds of transfers that can trigger the implementation of the new taxation. The first case is the transfer of assets or business activities from the headquarters in Greece to a permanent establishment in another country. The second case is the transfer of assets or activities from a permanent establishment in Greece to the headquarters of the entity in another country. The third case is when an entity transfers its residence from Greece to another jurisdiction. In this third case, the fixed assets that are effectively connected with a permanent establishment in Greece are exempt from the new rules. Finally, the last case is the transfer of activities that are carried out in Greece through a permanent establishment and migrated to another country or jurisdiction.

    A temporary transfer of assets or activities (under twelve months) do not trigger the new taxation. There are also some other exemptions from the exit tax, especially with some financial assets. Another important issue is the taxable base of these assets. The corporate income tax is levied on the positive difference between the fair market value of the transferred asset and the value that the asset has when the transfer takes place. To clarify this last part, the fair value is estimated by certified professionals or chartered accountants and the tax value is the value of the asset in the accounting books of the entity. The tax value can be derived if the accumulated tax depreciation of an asset is deducted from the historical acquisition cost. In case that the mentioned difference is a negative value, the taxpayer can deduct this loss from the annual corporate tax.

    The legal entity should fill and submit a special form, three working days before the occurrence of the exit, and the tax due can be deferred and paid in five equal, annual installments. The installments are interest-free.

Msc Alektoridis Evangelos Senior Accountant Tax Expert

[taxangels-blog]

Exit Tax, podatek od wyprowadzki – szczegóły z komentarzem

Nowy podatek tzw. Exit taxation wzbudza ostatnimi czasy sporo pytań, a sam w swojej zapowiedzianej formie nie jedną kontrowersję. Podatek nie jest niczym nowym, gdyż od wielu lat funkcjonuje w innych krajach Unii Europejskiej, która nakłada na kraje członkowskie obowiązek uszczelnienia swoic

Na naszym blogu odpowiadamy czym jest EXIT TAX i co za sobą niesie ten podatek. Zapraszamy do lektury. :)