Skatteudvalget 2006-07
SAU Alm.del Bilag 199
Offentligt
389165_0001.png
 SAU, Alm.del - 2006-07 - Bilag 199: Referat af Skatteudvalgets studietur til Berlin den 18. - 20. juni 2007
389165_0002.png
Tax Reform 2008
Konstantin Tiemann, LL.M.
Berlin, 20. Juni 2007
 SAU, Alm.del - 2006-07 - Bilag 199: Referat af Skatteudvalgets studietur til Berlin den 18. - 20. juni 2007
389165_0003.png
Tax Reform 2008
20th June 2007
3
Contents
•
Nominal Corporate Taxation in International Comparison 2006
•
Summary
•
Interest Deduction Ceiling
•
Business restructuring
 SAU, Alm.del - 2006-07 - Bilag 199: Referat af Skatteudvalgets studietur til Berlin den 18. - 20. juni 2007
389165_0004.png
Nominal Corporate Taxation in International Comparison 2006
Netherlands
27,6 %
Denmark
25,3 %
Norway
28 %
Sweden
24,8 %
Finland
24,6 %
Estonia
-%
Latvia
15 %
Lithuania
19 %
Poland
19 %
Germany before:
around 39 %
and after Tax Reform:
29,8 %
Czechia
21,1 %
Slovakia
19 %
Hungary
17,6 %
Austria
23,1 %
Spain
40,3 %
Switzerland
25 %
Greece
25,4 %
Slovenia
25 %
Cyprus
10 %
Quelle:
BMF, Ernst & Young, Uni Mannheim, BDI
UK
30 %
Ireland
12,5 %
Belgium
34 %
Luxembourg
26,1 %
France
34,4 %
Portugal
24,7 %
Italy
37,3 %
 SAU, Alm.del - 2006-07 - Bilag 199: Referat af Skatteudvalgets studietur til Berlin den 18. - 20. juni 2007
389165_0005.png
Tax Reform 2008
5
Tax Reform – Tax relief measures:
1)
Relief for corporations:
Reduction of corporate tax rate
2)
Relief for partnerships:
Implementation of a corporate level lower individual income tax
3)
Withholding tax:
25 % (1st January 2009)
 SAU, Alm.del - 2006-07 - Bilag 199: Referat af Skatteudvalgets studietur til Berlin den 18. - 20. juni 2007
389165_0006.png
6
Tax Reform – Financing measures:
1) Trade Tax:
•
•
•
No deduction of trade tax anymore
No stepped tariff anymore for partnerships
Addition of financing expenses amounting to 25%
2) Individual and corporate income tax:
•
•
•
Tightening of the shell company purchase rules
Interest Deduction Ceiling („Interest Barrier rule“)
Shifting of functions: Taxation of hidden assets (e. g. know-how)
 SAU, Alm.del - 2006-07 - Bilag 199: Referat af Skatteudvalgets studietur til Berlin den 18. - 20. juni 2007
389165_0007.png
Tax Reform 2008
7
Interest Deduction Ceiling („Interest Barrier rule“)
Interest expenses
-Interest income
Interest balance (IB)
yes
IB < 1 Mio. €
no
IB ≤ 30 % EBITDA
yes
Full deduction
Full deduction
option
• Equity ratio clause
• Group clause
no
Deduction of interests limited to 30 % of EBITDA
Carry forward possible
yes
Full deduction
 SAU, Alm.del - 2006-07 - Bilag 199: Referat af Skatteudvalgets studietur til Berlin den 18. - 20. juni 2007
389165_0008.png
8
Interest Deduction Ceiling („Interest Barrier rule“)
Example (economic approach):
Deficit (taxable result):
Interest costs = Interest balance:
depreciation and amortization :
EBITDA:
Decutible interest costs:
non-deductible:
Fictitious profit:
./. 20 Mio.
60 Mio.
10 Mio.
50 Mio.
15 Mio.
45 Mio.
25 Mio.
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Tax burden: 7 – 11 Mio. (depends on legal form)
 SAU, Alm.del - 2006-07 - Bilag 199: Referat af Skatteudvalgets studietur til Berlin den 18. - 20. juni 2007
389165_0009.png
9
Shifting of Functions
Package-deal
•
Taxation of profit opportunities
Group Company A
Taxation of advantages or profit opportunities that cannot be
regarded as an intangible.
•
Target:
Companies that deduct research and development expenses
in Germany but transfer the subsequent production and
distribution of the new product to avoid taxation of profits in
Germany.
•
Compliance with EU Law and the OECD?
Germany
Foreign country
Arm`s length
Disrimination of cross-boarder transactions
Group Company B