Overview

Baker & McKenzie’s August European tax newsletter covers developments from Belgium, France, Germany, Hungary, Russia, Spain and the UK.

Contents:

Belgium
 Belgian supplementary municipal tax on income from moveable property condemned by the ECJ
 Commission asks Belgium to amend discriminatory withholding tax provisions

France
 Permanent establishment: Lack of substance of a Luxembourg company
 Sale of shares of foreign companies whose assets are mainly composed of French real estate assets

Germany
 European impact on German tax law
 Partnership Interest Income Allocation in Treaty Law - Divergence between Case Law and the Tax Administration

Hungary
 Hungary: Parliament passes midyear tax changes

Russia
 Russia to adopt new transfer pricing rules by Q3 2010

Spain
 Amounts paid for hosting services qualify as royalties and are therefore subject to withholding tax in Spain
 Supreme Court rules on former Spanish transfer pricing regime

United Kingdom
 UK emergency budget: limited corporate tax reforms for now, more to come in the future
 UK Government reveals radical proposals for foreign branch taxation and interim reforms to CFC rules for spring 2011
 UK withholding tax on interest: new passport scheme for overseas lenders will speed up treaty relief process
 New United Kingdom – Hong Kong Double Taxation Agreement brings planning possibilities
 UK tax treatment of Delaware LLCs: HMRC response to Swift Case

To read the newsletter click ‘View Briefing