Chapter five: Taxation Article 5.1: Good governance The Parties recognise and commit to implementing the principles of good governance in the area of taxation, in particular the global standards on tax transparency and exchange of information and fair tax competition. The Parties reiterate their support for the OECD Base Erosion and Profit Shifting (BEPS) Action […]
Category: Direct Tax
EU Competence and Direct Taxation
EU and Direct Tax Direct taxes on income and gains are not an EU competence. They are a matter for the member states exclusively. The basic principles in relation to the scope of direct taxes both for companies and individuals in double taxation agreements and cooperation between tax authorities are derived from OECD standards. Direct […]
EU Tax Reform Agenda
Common Consolidated Tax Base Proposal The EU Commission has pursued the adoption of an EU wide common consolidated corporate tax base. It is proposed that as a fair transparent and efficient tax system. The original proposal was launched in 2011 and was relaunched in 2016 having been resisted in particular by the UK and Ireland […]
Personal Income Tax
EU and Direct Tax Direct taxes on income and gains are not an EU competence. They are a matter for the member states exclusively. The basic principles in relation to the scope of direct taxes both for companies and individuals in double taxation agreements and cooperation between tax authorities are derived from OECD standards. In contrast […]
Social Security
Social Security And Free Movement Since the early days of the EU, there have been EU Social Security measures that seek to facilitate the free movement of workers. In the absence of such coordinating measures, persons may fall between the social insurance and social security systems of a number of states in which they work, […]
Direct Taxation
In view of the uncertainties surrounding the ratification of the Withdrawal Agreement, all interested parties, and especially economic operators, are reminded of legal repercussions, which need to be considered when the United Kingdom becomes a third country. Subject to the transition period provided for in the Withdrawal Agreement, as of the withdrawal date the EU rules on […]
Frontier Workers
Frontier workers The Citizens Directive and Free Movement of Workers Regulation makes provision for frontier workers. Frontier workers are workers who live in one state and commutes to work to another state having taken up employment in that other. It also includes a person who continues in a job having moved to another state. A […]
Taxation [Mitigation Legislation]
Taxation The purpose of this Part of the bill is to introduce legislative amendments for Taxation. Amendments are being proposed for Income Tax, Capital Tax, Corporation Tax and Stamp Duty legislation in order to ensure continuity for business and citizens in relation to their current access to certain taxation measures including, reliefs and allowances, and the retention of […]
Social Insurance
Amendments to the Social Welfare (Consolidation) Act 2005 Department of Employment Affairs and Social Protection Introduction This Part sets out proposed amendments to the Social Welfare (Consolidation) Act 2005 with regard to the continuation of a range of social welfare payments. The amendments set out are intended to give the Minister for Employment Affairs and Social Protection […]
Social Insurance EU Workers in UK
Guidance Social security contributions for workers coming to the UK from the European Economic Area (EEA) or Switzerland Check where you need to pay social security contributions if you’re from the EU, Iceland, Liechtenstein, Norway or Switzerland and are working in the UK. From: HM Revenue & Customs Published 26 December 2020 Last updated 1 […]
National Insurance UK Worker in EU
Guidance National Insurance for workers from the UK working in the European Economic Area (EEA) or Switzerland Check which country’s social security contributions you must pay if you’re a worker from the UK working in the EU, Iceland, Liechtenstein, Norway or Switzerland. From: HM Revenue & Customs Published 26 December 2020 Last updated 1 November […]
Dividends & Interest from EU UK Post-Deal Guidance
Guidance Receiving interest, royalties or dividends payments from the EU Find out about changes to tax deductions from interest, royalties and dividends following the end of the Brexit transition period. Published 5 January 2021 From: HM Revenue & Customs Print this page From 1 January 2021, some EU countries may start to deduct tax from […]
Transborder Personal Tax Relief [Ireland]
Introduction This instruction gives details of the relief contained in Section 825A TCA 1997 for individuals who are resident in the State but who commute to their place of work outside the State. Reduction in income tax for certain income earned outside the State Section 825A TCA 1997 is designed to give income tax relief to individuals who are resident […]
Double Tax Relief Employees
Overview The purpose of this article is to set out in broad terms, the risks of taxation and double taxation applying to personnel who spend considerable time in the UK. It is designed to give a flavour of the compliance obligations that arise from employees where they are working in two countries. It is meant […]
EU UK Social Insurance
Guidance Guidance relating to the UK’s operational implementation of the social security coordination provisions of Part 2 of the EU Withdrawal Agreement: Citizens’ Rights Updated 29 November 2021 Contents Introduction About this Guidance Chapter 1: Overview of Implementation of the Social Security Provisions of the EU Withdrawal Agreement Chapter 2: EU Withdrawal Agreement Explainer: Citizens’ […]
UK Tax UK Parliament
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Dept Finance Tax Issues
Important Notice- See the Disclaimer Below Brexit Legal, McMahon Legal and Paul McMahon have no liability arising from reliance on anything contained in this article nor on this website
Social Security Coordination
Social security system — Cooperation between EU countries Regulation (EC) No 987/2009 on coordinating social security systems It is an implementing regulation which modernises and simplifies the rules for applying Regulation (EC) No 883/2004 on the coordination of social security systems in the EU. In implementing Regulation (EC) No 883/2004, this regulation makes it easier […]
Tax Energy Electricity
Taxation of energy products and electricity Directive 2003/96/EC — restructuring the EU’s system for the taxation of energy products and electricity lays down European Union (EU) rules on taxes in regard to electricity, all motor fuels and most heating fuels. The purpose is to ensure that the EU’s single market for energy operates smoothly and […]
Corporate Tax Interest Royalties Reorg
Interest and royalty payments made between associated companies Directive 2003/49/EC — common system of taxation on interest and royalty payments made between associated companies of different EU countries aims at ensuring fair taxation of payments made between associated companies* in different EU countries, while avoiding double-taxation between EU countries. It applies to interest payments and royalty payments. […]
Anti-Avoidance
Tackling corporate tax avoidance Directive (EU) 2016/1164 — preventing tax avoidance by companies introduces rules to prevent tax avoidance by companies and thus to address the issue of aggressive tax planning in the EU’s single market. The directive builds on the Action Plan for Fair and Efficient Corporate Taxation and is in response to the finalisation […]
Tax Disputes between States
Tax dispute resolution mechanisms Directive (EU) 2017/1852 — EU tax dispute resolution system aims to improve the system for resolving disputes over tax agreements between EU countries, thus giving both citizens and businesses greater certainty and more timely decisions. It concerns in particular disputes over double or multiple taxation — where 2 or more countries […]
Cooperation on Taxes Between EU States
Administrative cooperation in the field of taxation Directive 2011/16/EU on cooperation between EU countries’ tax administrations lays down the rules and procedures that EU countries’ national authorities must apply when exchanging information on tax matters. KEY POINTS The legislation applies to all taxes apart from the following: value added tax and customs duties; excise […]
Tax and Groups
Common System Group Tax Common system of taxation applicable in the case of parent companies and subsidiaries of different European Union countries This directive provides competition-neutral taxation rules concerning dividends and profits distributed by subsidiaries to their parent company. It is a common system designed to facilitate the grouping together of companies across the European […]
EU / UK Social Security Withdrawal
Guidance Guidance relating to the UK’s operational implementation of the social security coordination provisions of Part 2 of the EU Withdrawal Agreement: Citizens’ Rights Published 11 November 2020 New rules for January 2021 The UK has left the EU, and the transition period after Brexit comes to an end this year. This page tells you […]
Tax Deductions by Companies 2021 UK Guidance
Contents Deduction of tax from interest and royalties Deduction of tax from dividends From 1 January 2021, the way that interest, royalties and dividends are paid between UK and EU companies may change and tax may be deducted from some payments. If this happens you may be able to claim full or partial exemption from […]