Samenvatting van het financial management & tax. Het onderdeel Tax en Financial management/management accounting. Het bevat de inhoud van de slides + eigen toegevoegde notities
TAX – SEMESTER 1 2022/2023
Table of Contents
1. introduction double tax..................................................................................................2
1.1 what is international taxation.................................................................................................2
1.2 international taxation types....................................................................................................2
1.3 concept of double taxation.....................................................................................................3
2. personal income tax.......................................................................................................3
2.1 tax..........................................................................................................................................3
2.2 government............................................................................................................................4
2.3 direct.......................................................................................................................................4
2.4 personal income......................................................................................................................4
3. corporate income tax.....................................................................................................6
3.1 corporate income....................................................................................................................6
3.2 lower tax rate..........................................................................................................................7
3.3 rulings.....................................................................................................................................7
3.4 notional intrest deduction.......................................................................................................8
3.5 tax shelter...............................................................................................................................9
3.6 Tax avoidance.........................................................................................................................9
3.7 extra: starbucks case...............................................................................................................9
4. VAT..............................................................................................................................10
4.1 VAT introduction...................................................................................................................10
4.2 VAT.......................................................................................................................................10
4.3 vat taxable person.................................................................................................................11
4.4 VAT taxable transactions + place of supply...........................................................................12
supply of services........................................................................................................................17
vat exemptions...........................................................................................................................18
vat debtor...................................................................................................................................19
vat deduction..............................................................................................................................20
5.double tax convention...................................................................................................21
5.1 basics of double taxation......................................................................................................21
5.2 types of double taxation.......................................................................................................22
1
, 5.3 solutions for double taxation................................................................................................22
5.4 state conventions..................................................................................................................23
5.5 articles..................................................................................................................................24
5.6 Permanent Establishment.....................................................................................................25
5.6 transfer pricing......................................................................................................................25
5.7 transfer pricing: basic principles............................................................................................25
5.8 selection of the transfer pricing............................................................................................26
cup.................................................................................................................................................................27
cost plus method or resale price method.....................................................................................................27
resale price method.......................................................................................................................................28
advance pricing agreements.........................................................................................................................28
EU arbitration convention.............................................................................................................................28
oecd and beps iniative...................................................................................................................................28
exam information.......................................................................................................................29
1. INTRODUCTION DOUBLE TAX
1.1 WHAT IS INTERNATIONAL TAXATION
International taxation = law
International taxation refers to tax levied (geheven) on the cross-
border transaction.
- The transaction may take place between 2 or more persons/entities in 2 or
more countries or tax jurisdictions (rechtsgebiedebn)
- Such a transaction may involve a person in one country with property and
income flows in another country
- Every taxation is foreseen by law, should be justified by legislation
- Evaluating the tax policy choices made by states, particularly in the
context of cross-border structures and the flow of capital, income, and
persons
- Examining the interaction among the various forces that shape
international tax law (domestic law, bilateral treaties, multinational
agreements, inter-governmental organizations and even case law, and
academic writing)
Intracommunity = in the borders of europe
1.2 INTERNATIONAL TAXATION TYPES
Residence based taxation: residents of a country are taxed on their
worldwide (local and foreign) income
Source based taxation: only local income from a source inside the country
is taxed. Usually, non-residents are taxed only on their local income
2
, exam question!
1.3 CONCEPT OF DOUBLE TAXATION
Double taxation= when a transaction taking place in more than one country
such may be subject to more than one tax authority or taxed twice by same ore
different tax authorities. avoidance is required!
Difference between tax avoidance and tax evasion (ontduiking)? exam
question
- Tax avoidance is an exercise in which the assessee legally tries to defeat
the basic intention of the law, by taking advantage of the shortcomings in
the legislature.
- tax evasion is a practice of reducing tax liability through illegal means,
i.e. by suppressing income or inflating expenses or by showing lower
income
In other words, Tax Avoidance is completely lawful because only those
means are employed which are legal, while Tax Evasion is considered as
a crime in the whole world, as it resorts to various kinds of deliberate
manipulations
2. PERSONAL INCOME TAX
2.1 TAX
Tax is mostly a payment. Pieces of art is the only thing that is not part of the tax
(if you inherit a expensive piece of art, but you can’t afford the piece of art, the
tax on the piece doesn’t need to be paid for)
Taxation= contribution you pay to the government, support for facilities of
common interest
Direct taxation= taxes on personal income, etc.
Indirect taxation = VAT (value added taxes) that we pay
Function of tax:
Financial function:
- supply for government spending
- BE: taxes = 94% of overall income for government
Economical function:
- Pricing: ex VAT
- Consumption: ex. excise (accijns
- Investment: ex. capital gains tax
Social function:
3
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