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Fidinam & Partners - Newsletter March 2021

Publications Fidinam & Partners

Fidinam & Partners Newsletter is online today! Learn more about Swiss and international tax matters from our experts in Lugano.
In this issue:

Switzerland: Company relocation from abroad to Switzerland – Tax treatment

With the Federal Act on Tax Reform and AHV Financing (RFFA) which entered into force on 1 January 2020, the legislator wanted to close the
disparity in treatment between foreign companies that immigrated to Switzerland, which could incur the exit tax from the transferring country and at the same time be denied the possibility by the Swiss tax authorities to adjust the tax-determining values during the immigration
phase. The resulting possible double taxation (taxation by the outgoing country as an exit tax and in Switzerland at the time of the realization
of the hidden reserves) penalized precisely these extraordinary transactions. The introduction of the legislation is not only aimed at the transfer of headquarters of foreign companies but can also be applied to the transfer of a business from abroad to Switzerland. In  this publication we will discuss for the purposes of Swiss direct taxes, a dismantling (horizontal demerger) from abroad to Switzerland.

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Italy: The register of beneficial owners

With the publication of the draft of the decree by the Ministry of Economy and Finance, together with the Ministry of Economic Development, the rules relating to the implementation of the “Register of beneficial ownership of companies with legal personality, of private legal entities, trusts and institutions and similar subjects” (so-called “Register of beneficial owners”) thus implementing, albeit belatedly, the provisions of European Directive 2018/843 (so-called 5th anti-money laundering Directive) on the prevention of the use of the financial system for the purpose of money laundering or terrorist financing. Although at the time of writing this article, the final version of the decree has not yet been issued or the relative deadlines for the first sending of the required information have been postponed (the original deadline being 15/03), it is in any case interesting to provide an initial illustration of the relevant rules.

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Uruguay: Changes in the conditions of tax residence of individuals

On 12 June 2020 Decree number 163/2020 was signed, valid from 1 July 2020 which modifies article 5 bis of Decree number 148/007 on personal income tax (IRPF) which refers to tax residence of individuals by adding two new assumptions to the criterion of economic interests
for obtaining tax residency in Uruguay. The legislation provides that to obtain tax residency in Uruguay it is necessary to meet at least one of the following conditions:

  •  A stay of at least 183 days in Uruguay, counting sporadic exits from the territory not exceeding 30 days;
  • Establishing the main base of activities in Uruguayan territory, the total revenue generated in Uruguay must be greater than those generated in other countries;
  • Possess economic and/or vital interests in Uruguay. The legislation provides, unless proven otherwise, that a vital interest arises when the spouse and minor dependent children are usually resident in Uruguay.

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United Kingdom: Effects of Brexit on direct taxation

 

The United Kingdom, after having exercised its right of withdrawal from the European Union (the so-called “Brexit”) on 01.02.2020, was able to take advantage of a transitional period until 31.12.2020 during which all the European provisions concerning it remained in force. On 24.12.2020 a free trade agreement (“EU-UK Trade and Cooperation Agreement”) was signed between the United Kingdom and the European Union which, published in the Official Journal of the European Union on 31.12.2020, established the basis for extensive relations between the parties, including rules concerning trade in goods, investments, provision of services, digital commerce, transport, and the mobility of people.

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