2017年-普华永道全球_Key_tax_issues_at_year_end_for_real_estate_investors_20172018_157页_966kb

Summary of Key Tax Issues at Year End for Real Estate Investors 2017/2018

Core Content Overview

This document provides an overview of year-end tax obligations and considerations for real estate investors across 33 different tax systems globally. It includes detailed information on tax group formation, capital gains taxation, transfer pricing, thin capitalisation rules, withholding tax, and other relevant tax provisions, particularly in Austria and Belgium. The summary focuses on key areas that require attention to avoid penalties and ensure compliance with tax laws.

Key Tax Issues in Austria

Tax Group Formation

• A written application must be signed by all group members before the end of the fiscal year.
• Taxable income of group members is integrated into the parent company's income.
• Profits and losses can be offset within the group.

Capital Gains Taxation

• Capital gains from the sale of real estate properties acquired after March 31, 2002, are taxed at 30%.
• Real estate acquired before March 31, 2002, is taxed at:
  • 18% of the sales price if rededicated from green area to building area after December 31, 1987.
  • 4.2% of the sales price if not rededicated.
• Losses from real estate sales can be offset against other real estate gains and rental income.
• Capital gains realized from holding real estate for at least 7 years (or 15 years in some cases) can be used to reduce the book value of assets, but not taxed unless the assets are not used in a domestic permanent establishment.

Real Estate Transfer Tax (RETT)

• RETT of 3.5% applies to the transfer of Austrian real estate.
• Transfer of shares in a company owning Austrian real estate may trigger RETT if 95% or more of the shares are transferred or finally held.
• RETT of 0.5% applies to the 'property value', which is comparable to the market value.
• Transfer of 95% of shares in a real estate partnership to new shareholders within five years also triggers RETT.

Land Registration Fee

• A 1.1% registration fee is due on the purchase price of real estate.
• Transactions within the family or due to reorganizations enjoy tax privileges with a 30% tax base limit on the special tax assessed value.

Thin Capitalisation

• A 3:1 debt/equity ratio is generally accepted by Austrian tax auditors.

Substance Requirements

• Foreign companies receiving Austrian income (e.g., dividends, interest) must meet substance requirements to ensure deductions and avoid withholding tax.

Key Tax Issues in Belgium

Tax Prepayments and Surcharge

• Companies must make four prepayments (April 10th, July 10th, October 10th, December 20th) to avoid surcharges on final tax:
  • 1.125% for 2017
  • 2.25% for 2018
• A bonification (credit) is granted for timely prepayments, depending on the period of payment.

Capital Gains Tax

• Capital gains on shares are taxed at 0.412% (including a 3% crisis surcharge if the one-year holding period is reached).
• Capital gains cannot be offset against carried forward tax losses or other tax assets.
• As of 2018, the 0.412% tax will be abolished, and the capital gains exemption will align with the dividends received deduction, requiring a 10% participation threshold or an €2.5 million acquisition value.

Notional Interest Deduction (NID)

• NID rates for 2017: 1.131% (SMEs: 1.631%)
• For 2018: 0.237% (SMEs: 0.737%)
• Excess NID cannot be carried forward beyond 2012.
• The ATAD directive limits net interest expenses to 30% of EBITDA.

Transfer Pricing

• All intercompany transactions must comply with the arm's length principle.
• Three layers of transfer pricing documentation are introduced:
  • Country-by-country reporting (CbCR)
  • Masterfile (global group information)
  • Local file (specific to Belgium)
• CbCR is required for multinational groups with consolidated revenue of at least €750 million.
• The Masterfile and Local File must be submitted within 12 months of the reporting period end.

Withholding Tax (WHT)

• A uniform WHT rate of 30% applies to interest, dividends, and royalties.
• Exemptions and reductions apply to:
  • Dividends from Belgian real estate investment funds (FIIS) to non-resident investors (WHT of 0%)
  • Interest paid to EEA or double taxation treaty countries (WHT of 0%)
• A Fokus Bank claim can be filed to reclaim WHT on interest paid to foreign investment funds.
• As of 2018, reimbursements of paid-up capital may be subject to WHT if deemed to be distributed taxable reserves.

Fairness Tax

• Applies to large companies distributing dividends where notional interest deduction or carried forward tax losses are used.
• The tax rate is 5.15% (5% + 3% crisis surtax).
• The fairness tax is currently under legal challenge and may be abolished in the future.

Anti-Abuse Regulation

• A general anti-abuse rule exists, allowing tax authorities to challenge transactions deemed abusive.
• The burden of proof is reversed: the taxpayer must demonstrate the transaction was not for tax avoidance purposes.

Payments to Tax Havens

• Belgian tax-residents must report payments to tax havens (excluding Cyprus and Luxembourg since 2016) if they exceed €100,000.
• Reporting is done via Form F275.

Corporate Tax Reform

• The general corporate tax rate is expected to be reduced from 33.99% to 29.44% in 2018 and 25% from 2020.
• The reform includes:
  • Abolishment of the 0.412% capital gains tax.
  • Modification of notional interest deduction to be based on incremental equity.

Conclusion

Real estate investors must pay close attention to year-end tax obligations in various jurisdictions. Key considerations include tax group formation, capital gains taxation, transfer pricing compliance, substance requirements, and the impact of international tax directives such as ATAD. Additionally, the evolving tax landscape in Belgium, including the corporate tax reform and the fairness tax, requires careful monitoring to avoid adverse tax consequences. Investors should consult professional advice to ensure compliance and optimize their tax strategies.