Tax Scorecard

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Match 1 GERMANY
ARGENTINA
Close
Currency and Rate / $

Euro (EUR) / USD = 0.73

Argentine Peso (ARS) / USD = 8.14

Tax Year

Calender Year

Accounting Year for Corporates, Calender year for Individuals 

RoI Filing Due Date

May-14 

15 April to 20 April (Individuals) 

Residential Status
- Individuals

1. Domicile in Germany for personal use 2. Customary place of abode i.e. they are present in Germany for an uninterrupted period of six months that may fall in 2 calender years - Citizenship not a consideration 

Individuals deemed to be residents in Argentina - Native and naturalized Argentine citizens ; foreign individuals who are granted permanent residence in Argentina; foreign individual who remain in Argentina under temporary authorization for a period of 12 months or longer. Individuals in the last cetegory who are not granted permanent residence are deemed as NRs if they prove they do not intend to stay permanently in Argentina. Foriegn individuals who can prove that they are in Argentina because of their employment and remain in Argentina for a period not exceeding 5 years are not considered residents 

- Corporates

Stock corporations and limited liability companies having corporate seat or place of management in Germany are subject to corporate income-tax on world wide income 

Companies incorporated in Argentina and brnaches of foreign companies considered as resident companies 

Tax Rates
- Individuals

Progressive rates of taxation ranging from 14% to 45% (5.5% solidarity surcharge imposed) 

Progressive rates ranging from 9% to 35% 

- Corporates

15% (5.5% solidarity surcharge imposed) 

35% 

Withholding Tax Rates
- Royalty

15% + 5.5% surcharge 

35% on notional taxable income; (effective rates of 31.5%, 28% and 12.25% depending on type of intangible property) 

- Fees for Technical Services

No 

35%; (effective rates of 21%, 28% and 31.5% depending on type of service) 

- Dividends

25% + 5.5% surcharge 

10% (plus equalization tax of 35% under conditions) 

- Interest

0% 

35%; 15.05% (under conditions) 

OECD Status

Member

Non Member

No. of Treaties

100 

15 

Treaty with India

Yes (Comprehensive) 

No 

Advance Ruling

Yes 

Yes 

GAAR

Yes. Per German General Tax Code, any legal arrangement implying treaty benefit can be disregarded for tax purposes if taxpayer achieves benefit through “inappropriate” legal structures. Tax benefits that (i) would not have been achieved when using an “appropriate” structure, and (ii) the structure cannot be justified with significant non-tax (i.e., commercial) reasons; implemented in 1977 ; New regulations introduced w.e.f. 1 January 2008; GAAR invoked in case an inadequate arrangement leading to a tax benefit that law does not provide for ; GAAR may override treaties 

Yes 

CFC Legislation

Yes; The German CFC rules only apply if non-German entity has its statutory seat and place of effective management and control outside Germany and is structured such that it can be assimilated to a corporation under German entity-characterization rules, i.e. has more corporate than partnership features

Yes, In Argentina, CFC rules apply to resident shareholders of foreign corporations in low tax jurisdictions when passive income is higher than active income. Passive income includes dividends, interest, royalties, leases and other passive income. 

Anti-Tax Haven

For witholding tax exemptions; some tests to be performed for applying treaty benefits - Shareholder Test, Business Income Test, Business Purpose Test, Substance Test 

Transactions with entities and individuals located in low-tax jurisdictions (list of countries and other jurisdictions qualifying as low-tax jurisdictions specified) are deemed to be not carried out at arm’s length and TP is applicable 

Transfer Pricing

Yes 

Yes, applies to transactions with related parties 

Safe Harbour

Yes 

No 

APA

Yes 

No 

Indirect transfer taxation

Under German Real Estate Transfer Tax Act, a direct or indirect transfer (or a claim for a transfer) of 95 per cent or more of the shares or partnership interests in a company owning German real estate by one acquirer (including affiliated entities and dominated entities) triggers German real estate transfer tax . This applies not only in cases in which the participation is held directly, but also if it is held indirectly via intermediary companies or if there is a combination of direct and indirect participation 

No 

Indirect Tax Regime

Value Added Tax 

Value Added Tax 

- Applicable Rate

19% , 7% 

27%, 21% , 10.5% 

Match 2 BRAZIL
NETHERLANDS
Close
Currency and Rate / $

Brazilian Real (BRL) / USD = 2.22

Euro (EUR) / USD = 0.73 

Tax Year

Calender Year 

Calender Year 

RoI Filing Due Date

April 30 (individuals), June 30 (corporates) 

1 April of the following year / 5 months from end of FY (companies) 

Residential Status
- Individuals

Tax Residents - 1. Citizens 2. Naturalized Foreigners 3. Foreigners who hold a Permanent or Temporary Visa with a local employment contract from the date of arrival 4. Foreigners who hold a Temporary Visa but no local employment contract , after completing 183 days in any 12 month period 

Residence based on specific circumstances. Essential to determine whether individual has permanent personal ties with Netherlands. 

- Corporates

Companies incorporated in Brazil, companies subject to tax in Brazil if it carries out sales activities through agent or representative domiciled in Brazil and has power to legally bind the foreign seller 

Incorporated under Dutch civil law including subsidiaries of foreign companies , European companies , European Co-operative societies established in the Netherlands, even if their management and statutory seat are located abroad. Additionally companies are resident if incorporated under foreign civil law, but effectively managed and controlled in the Netherlands 

Tax Rates
- Individuals

Progressive Rates from 7.5% to 27.5% 

Progressive rates from 5% to 52% (Box 1 income - employment, business profits, income from primary residence), Flat Rate of 25% (Box 2 - Profits from substantial shareholding - 5% of class of shares of a company resident in or out of India) and Flat Rate of 30% (income from savings and investments) 

- Corporates

15% (to be increased by surtax of 10%) 

25% (over EUR 200,000);

20% (up to EUR 200,000) 

Withholding Tax Rates
- Royalty

15% 

0% 

- Fees for Technical Services

15% 

0% 

- Dividends

0%, 15% 

15% 

- Interest

15% 

0%; 15% on profit-sharing bonds 

OECD Status

Non Member 

Member

No. of Treaties

36

90 

Treaty with India

Yes (Comprehensive)

Yes 

Advance Ruling

Yes 

Yes, possible 

GAAR

Tax authorities may disregard legal acts or transactions effected with the purpose of dissimulating the occurrence of a taxable event or the nature of the elements that trigger tax obligation, under procedures to be established by ordinary law; GAAR may be invoked by the inspector during the audit and presented to the taxpayer in the notice; Qualified penalties may reach 150% to 225% over the principal; Interestingly, in one decision, judges construed that the transaction’s underlying intention was solely to reduce the tax burden 

Yes, introduced way back in 1924; in 1926 Dutch Supreme Court introduced separate GAAR; judge defined” is a legal principle that prevents a person from relying on a right in law where such reliance would constitute an abuse of that right. Both the legislation and the judge-defined GAAR can be invoked by the Dutch tax authorities in cases where the taxpayer entered into a transaction that was (i) contrary to the purpose of Dutch tax legislation and (ii) with the predominant aim of avoiding taxation. These are cumulative requirements. Judge-defined fraus legisalso can be invoked separately, without reference to law. Today, all cases are decided based on the basis of judge defined GAAR - Interestingly also applied in VAT case

CFC Legislation

New rules expected to be mandatory from 2015, Concept: Profits earned by CFCs and certain foreign affiliates (non-controlled subsidiaries) of Brazilian entities are subject to corporate income tax and social contribution tax on profits of a Brazilian controlling or parent company. Profits earned by CFCs and non-controlled subsidiaries of Brazilian companies are considered available to the controlling/parent company in Brazil and subject to taxation at the end of each fiscal year. Brazilian taxpayers to have the option to make an irrevocable election (on a calendar year basis) to consolidate the profits and losses of CFCs until 2017 (the tax authorities will issue guidance on how such an election is to be made). This election will not be available, however, if the CFC is resident in a tax haven jurisdiction (a jurisdiction on Brazil’s black list), a privileged tax regime jurisdiction (a jurisdiction on the grey list) or a jurisdiction that has not concluded an exchange of information agreement with Brazil; or if the income of the CFC is subject to a nominal income tax rate lower than 20%. 

Netherlands does not have CFC legislation, although restrictions apply for the ownership of foreign investments or passive investment companies. Corporate taxpayer are required to mark to market for tax purposes its shareholding in certain low taxed subsidiaries annually. This revaluation rule therefore serves similar purpose to a CFC regime, but taxes movements in the value of the subsidiary rather than the subsidiary’s profits. The revaluation provision applies where the subsidiary’s assets consist of 90% or more of “free portfolio investments” (being portfolio investments that are not reasonably required for its business operations) and the subsidiary is subject to an effective tax rate of less than 10% (computed on Dutch tax principles) 

Anti-Tax Haven

Blacklisted Tax Favoured Jurisdictions (TFJ) w.e.f 1996; New concept of Blacklisting effective 1 Jan 2009 - Grants tax advantages to NRs:

a) without requiring development of a substantial economic activity or

b) conditioned upon the non-exercise of a substantial economic activity ;

c) Do not tax earnings generated outside its territory or imposes a rate less than 20%

d) Do not permit access to information related to corporate structure , ownership of goods or rights or economic transactions performed.

Impact :

1. Brazil can impose transfer pricing rules even if TFJ is unrelated and the transaction appears at ALP on a prima facie basis

2. Higher rate of witholding on income (interest / royalties / capital gains etc) - 25% (others - 15%) 

Anti-base erosion rules: interest used to finance certain transactions not be deductible; Provisions that aim to counteract abuse of the Dutch fiscal unity regime; Provisions under which distributions of profit by a Dutch co-op can become subject to Dutch dividend withholding tax or corporate income tax in abusive situations; Anti dividend stripping rules : Dutch tax authorities may deny application of a beneficial dividend withholding tax under domestic law, tax treaties or the EU parent-subsidiary directive if, in a series of transactions, a company entitled to such beneficial rate has been interposed between a Dutch entity and an entity that would not be entitled to such beneficial rate, while the latter entity has maintained an (indirect) interest in the Dutch entity that is comparable to its interest in that Dutch entities prior to the series of transactions. This provision disallows a recipient “beneficial ownership” status required to gain access to the favorable dividend withholding tax rates generally available under a tax treaty 

Transfer Pricing

Yes 

Yes 

Safe Harbour

Yes

Yes 

APA

Yes 

Yes 

Indirect transfer taxation

Brazil does not have legislation to trigger capital gains taxation on the indirect transfer of assets. There is, however, one case in which the tax authorities challenged the indirect transfer, recharacterizing it as a direct transfer of Brazilian assets. Although the Brazilian tax authorities lost the case in the last level of administrative appeal, this demonstrates that they may challenge indirect transfer of Brazilian assets.

Netherlands does not have specific (anti-abuse) regulations in place related to the indirect transfer of assets. Basically, when a company sells an asset, the book profit (fair value selling price minus book value for tax purposes) is subject to taxation. An indirect sale might trigger taxation at the level of the Dutch holding company (i) if the participating interest of the holding is deemed to be an investment interest or (ii) if the asset has been transferred within a fiscal unity prior to the sale of the shares. Further, provisions under which a capital gain realized by a nonresident taxpayer with the disposal of a (share) interest in a Dutch company can become subject to Dutch corporate income tax in abusive situation 

Indirect Tax Regime

Multiple Tax Rate system - State Value Added Tax , Federal Value Added tax , Municipal Service Tax , Federal Gross Receipt 

Value Added Tax 

- Applicable Rate

IPI (tax on manufactured products) (federal) 0% to 365%;

ICMS (tax on distribution, communication and transport) 17% or 18%

ICMS reduced rates - 4%, 7%, 12% on interstate transactions

21% (standard) 0% , 6% (reduced) 

Match 3 NETHERLANDS
ARGENTINA
Close
Currency and Rate / $

Euro / USD = 0.73

Argentine Peso (ARS) / USD = 8.14

Tax Year

Calender Year 

Accounting Year for Corporates, Calender year for Individuals 

RoI Filing Due Date

1 April of the following year / 5 months from end of FY (companies) 

15 April to 20 April (Individuals) 

Residential Status
- Individuals

Residence based on specific circumstances. Essential to determine whether individual has permanent personal ties with Netherlands. 

Individuals deemed to be residents in Argentina - Native and naturalized Argentine citizens; foreign individuals who are granted permanent residence in Argentina; foreign individual who remain in Argentina under temporary authorization for a period of 12 months or longer. Individuals in the last cetegory who are not granted permanent residence are deemed as NRs if they prove they do not intend to stay permanently in Argentina. Foriegn individuals who can prove that they are in Argentina because of their employment and remain in Argentina for a period not exceeding 5 years are not considered residents.

- Corporates

Incorporated under Dutch civil law including subsidiaries of foreign companies, European companies, European Co-operative societies established in the Netherlands, even if their management and statutory seat are located abroad. Additionally companies are resident if incorporated under foreign civil law, but effectively managed and controlled in the Netherlands

Companies incorporated in Argentina and brnaches of foreign companies considered as resident companies 

Tax Rates
- Individuals

Progressive rates from 5% to 52% (Box 1 income - employment, business profits, income from primary residence), Flat Rate of 25% (Box 2 - Profits from substantial shareholding - 5% of class of shares of a company resident in or out of India) and Flat Rate of 30% (income from savings and investments) 

Progressive rates ranging from 9% to 35% 

- Corporates

25% (over EUR 200,000)
20% (up to EUR 200,000)

35% 

Withholding Tax Rates
- Royalty

0% 

35% on notional taxable income; (effective rates of 31.5%, 28% and 12.25% depending on type of intangible property) 

- Fees for Technical Services

0% 

35%; (effective rates of 21%, 28% and 31.5% depending on type of service) 

- Dividends

15% 

10% (plus equalization tax of 35% under conditions)

- Interest

0%; 15% on profit-sharing bonds 

35%; 15.05% (under conditions) 

OECD Status

Member

Non member

No. of Treaties

90 

15 

Treaty with India

Yes 

No 

Advance Ruling

Yes, possible 

Yes 

GAAR

Yes, introduced way back in 1924; in 1926 Dutch Supreme Court introduced separate GAAR; judge defined” is a legal principle that prevents a person from relying on a right in law where such reliance would constitute an abuse of that right. Both the legislation and the judge-defined GAAR can be invoked by the Dutch tax authorities in cases where the taxpayer entered into a transaction that was (i) contrary to the purpose of Dutch tax legislation and (ii) with the predominant aim of avoiding taxation. These are cumulative requirements. Judge-defined fraus legisalso can be invoked separately, without reference to law. Today, all cases are decided based on the basis of judge defined GAAR - Interestingly also applied in VAT case.

Yes 

CFC Legislation

Netherlands does not have CFC legislation, although restrictions apply for the ownership of foreign investments or passive investment companies. Corporate taxpayer are required to mark to market for tax purposes its shareholding in certain low taxed subsidiaries annually. This revaluation rule therefore serves similar purpose to a CFC regime, but taxes movements in the value of the subsidiary rather than the subsidiary’s profits. The revaluation provision applies where the subsidiary’s assets consist of 90% or more of “free portfolio investments” (being portfolio investments that are not reasonably required for its business operations) and the subsidiary is subject to an effective tax rate of less than 10% (computed on Dutch tax principles).

Yes, In Argentina, CFC rules apply to resident shareholders of foreign corporations in low tax jurisdictions when passive income is higher than active income. Passive income includes dividends, interest, royalties, leases and other passive income.

Anti-Tax Haven

Anti-base erosion rules: interest used to finance certain transactions not be deductible; Provisions that aim to counteract abuse of the Dutch fiscal unity regime; Provisions under which distributions of profit by a Dutch co-op can become subject to Dutch dividend withholding tax or corporate income tax in abusive situations; Anti dividend stripping rules: Dutch tax authorities may deny application  of a beneficial dividend withholding tax under domestic law, tax treaties or the EU parent-subsidiary directive if, in a series of transactions, a company entitled to such beneficial rate has been interposed between a Dutch entity and an entity that would not be entitled to such beneficial rate, while the latter entity has maintained an (indirect) interest in the Dutch entity that is comparable to its interest in that Dutch entities prior to the series of transactions. This provision disallows a recipient “beneficial ownership” status required to gain access to the favorable dividend withholding tax rates generally available under a tax treaty.

Transactions with entities and individuals located in low-tax jurisdictions (list of countries and other jurisdictions qualifying as low-tax jurisdictions specified) are deemed to be not carried out at arm’s length and TP is applicable 

Transfer Pricing

Yes 

Yes, applies to transactions with related parties 

Safe Harbour

Yes

No

APA

Yes

No

Indirect transfer taxation

Netherlands does not have specific (anti-abuse) regulations in place related to the indirect transfer of assets. Basically, when a company sells an asset, the book profit (fair value selling price minus book value for tax purposes) is subject to taxation. An indirect sale might trigger taxation at the level of the Dutch holding company (i) if the participating interest of the holding is deemed to be an investment interest or (ii) if the asset has been transferred within a fiscal unity prior to the sale of the shares. Further, provisions under which a capital gain realized by a nonresident taxpayer with the disposal of a (share) interest in a Dutch company can become subject to Dutch corporate income tax in abusive situation.

No

Indirect Tax Regime

Value Added Tax 

Value Added Tax 

- Applicable Rate

21% (standard) 0% , 6% (reduced) 

27%, 21% , 10.5% 

Match 4 BRAZIL
GERMANY
Close
Currency and Rate / $

Brazilian Real (BRL) / USD = 2.22

Euro (EUR) / USD = 0.74

Tax Year

Calender Year 

Calender Year 

RoI Filing Due Date

April 30 (individuals), June 30 (corporates) 

May 14 

Residential Status
- Individuals

Tax Residents - 1. Citizens 2. Naturalized Foreigners 3. Foreigners who hold a Permanent or Temporary Visa with a local employment contract from the date of arrival 4. Foreigners who hold a Temporary Visa but no local employment contract , after completing 183 days in any 12 month period 

1. Domicile in Germany for personal use 2. Customary place of abode i.e. they are present in Germany for an uninterrupted period of six months that may fall in 2 calender years - Citizenship not a consideration 

- Corporates

Companies incorporated in Brazil, companies subject to tax in Brazil if it carries out sales activities through agent or representative domiciled in Brazil and has power to legally bind the foreign seller 

Stock corporations and limited liability companies having corporate seat or place of management in Germany are subject to corporate income-tax on world wide income 

Tax Rates
- Individuals

Progressive Rates from 7.5% to 27.5% 

Progressive rates of taxation ranging from 14% to 45% (5.5% solidarity surcharge imposed) 

- Corporates

15% (to be increased by surtax of 10%) 

15% (5.5% solidarity surcharge imposed) 

Withholding Tax Rates
- Royalty

15% 

15% + 5.5% surcharge 

- Fees for Technical Services

15% 

No 

- Dividends

0%, 15% 

25% + 5.5% surcharge 

- Interest

15% 

0% 

OECD Status

Non Member 

Member

No. of Treaties

36

100 

Treaty with India

Yes (Comprehensive) 

Yes (Comprehensive) 

Advance Ruling

Yes 

Yes 

GAAR

Tax authorities may disregard legal acts or transactions effected with the purpose of dissimulating the occurrence of a taxable event or the nature of the elements that trigger tax obligation, under procedures to be established by ordinary law; GAAR may be invoked by the inspector during the audit and presented to the taxpayer in the notice; Qualified penalties may reach 150% to 225% over the principal; Interestingly, in one decision, judges construed that the transaction’s underlying intention was solely to reduce the tax burden 

Yes. Per German General Tax Code , any legal arrangement implying treaty benefit can be disregarded for tax purposes if taxpayer achieves benefit through “inappropriate” legal structures. Tax benefits that (i) would not have been achieved when using an “appropriate” structure, and (ii) the structure cannot be justified with significant non-tax (i.e., commercial) reasons; implemented in 1977 ; New regulations introduced w.e.f. 1 January 2008; GAAR invoked in case an inadequate arrangement leading to a tax benefit that law does not provide for ; GAAR may override treaties 

CFC Legislation

New rules expected to be mandatory from 2015, Concept: Profits earned by CFCs and certain foreign affiliates (non-controlled subsidiaries) of Brazilian entities are subject to corporate income tax and social contribution tax on profits of a Brazilian controlling or parent company. Profits earned by CFCs and non-controlled subsidiaries of Brazilian companies are considered available to the controlling/parent company in Brazil and subject to taxation at the end of each fiscal year. Brazilian taxpayers to have the option to make an irrevocable election (on a calendar year basis) to consolidate the profits and losses of CFCs until 2017 (the tax authorities will issue guidance on how such an election is to be made). This election will not be available, however, if the CFC is resident in a tax haven jurisdiction (a jurisdiction on Brazil’s black list), a privileged tax regime jurisdiction (a jurisdiction on the grey list) or a jurisdiction that has not concluded an exchange of information agreement with Brazil; or if the income of the CFC is subject to a nominal income tax rate lower than 20%. 

Yes; The German CFC rules only apply if non-German entity has its statutory seat and place of effective management and control outside Germany and is structured such that it can be assimilated to a corporation under German entity-characterization rules, i.e. has more corporate than partnership features.

Anti-Tax Haven

Blacklisted Tax Favoured Jurisdictions (TFJ) w.e.f 1996 ; New concept of Blacklisting effective 1 Jan 2009 - Grants tax advantages to NRs: a) without requiring development of a substantial economic activity or b) conditioned upon the non-exercise of a substantial economic activity ; c) Do not tax earnings generated outside its territory or imposes a rate less than 20% d) Do not permit access to information related to corporate structure , ownership of goods or rights or economic transactions performed.

Impact : 1. Brazil can impose transfer pricing rules even if TFJ is unrelated and the transaction appears at ALP on a prima facie basis 2. Higher rate of witholding on income (interest / royalties / capital gains etc) - 25% (others - 15%) 

For witholding tax exemptions; some tests to be performed for applying treaty benefits - Shareholder Test, Business Income Test, Business Purpose Test, Substance Test 

Transfer Pricing

Yes 

Yes 

Safe Harbour

Yes; available 

Yes 

APA

Yes 

Yes 

Indirect transfer taxation

Brazil does not have legislation to trigger capital gains taxation on the indirect transfer of assets. There is, however, one case in which the tax authorities challenged the indirect transfer, recharacterizing it as a direct transfer of Brazilian assets. Although the Brazilian tax authorities lost the case in the last level of administrative appeal, this demonstrates that they may challenge indirect transfer of Brazilian assets.

Under German Real Estate Transfer Tax Act, a direct or indirect transfer (or a claim for a transfer) of 95 per cent or more of the shares or partnership interests in a company owning German real estate by one acquirer (including affiliated entities and dominated entities) triggers German real estate transfer tax . This applies not only in cases in which the participation is held directly, but also if it is held indirectly via intermediary companies or if there is a combination of direct and indirect participation 

Indirect Tax Regime

Multiple Tax Rate system - State Value Added Tax , Federal Value Added tax , Municipal Service Tax , Federal Gross Receipt 

Value Added Tax 

- Applicable Rate

IPI (tax on manufactured products) (federal) 0% to 365%; ICMS (tax on distribution, communication and transport) 17% or 18%

ICMS reduced rates - 4%, 7%, 12% on interstate transactions

19%, 7% 

Match 5 NETHERLANDS
COSTA RICA
Close
Currency and Rate / $

Euro (EUR) / USD = 0.74

Costa Rican Colón (CRC) / USD = 540.38

Tax Year

Calender Year 

1 October to 30 September 

RoI Filing Due Date

1 April of the following year / 5 months from end of FY (companies) 

To be filed within 2 months and 15 days after the end of tax year (15 December) 

Residential Status
- Individuals

Residence based on specific circumstances. Essential to determine whether individual has permanent personal ties with Netherlands 

Individuals considered residents if they have lived in Costa Rica for more than six consecutive months during a taxable year 

- Corporates

Incorporated under Dutch civil law including subsidiaries of foreign companies , European companies , European Co-operative societies established in the Netherlands, even if their management and statutory seat are located abroad. Additionally companies are resident if incorporated under foreign civil law, but effectively managed and controlled in the Netherlands 

Any company incorporated in Costa Rica is deemed to be a resident for tax purposes. Likewise, deemed residents for tax purposes are: any legal entities established in Costa Rica and de facto companies active in the country, branches, agencies and other permanent establishments in the country of non-resident persons, and all individuals or legal entities engaged in profit-making activities in the country 

Tax Rates
- Individuals

Progressive rates from 5% to 52% (Box 1 income - employment, business profits, income from primary residence), Flat Rate of 25% (Box 2 - Profits from substantial shareholding - 5% of class of shares of a company resident in or out of India) and Flat Rate of 30% (income from savings and investments) 

Progressive rates ranging from 10% to 25% 

- Corporates

25% (over EUR 200,000);20% (up to EUR 200,000) 

30%; small enterprises at 10% or 20% 

Withholding Tax Rates
- Royalty

0% 

25% 

- Fees for Technical Services

0% 

25% 

- Dividends

15% 

15% 

- Interest

0%; 15% on profit-sharing bonds 

15% 

OECD Status

Member

Non Member

No. of Treaties

90

1

Treaty with India

Yes 

No 

Advance Ruling

Yes, possible 

Yes 

GAAR

Yes, introduced way back in 1924; in 1926 Dutch Supreme Court introduced separate GAAR; judge defined” is a legal principle that prevents a person from relying on a right in law where such reliance would constitute an abuse of that right. Both the legislation and the judge-defined GAAR can be invoked by the Dutch tax authorities in cases where the taxpayer entered into a transaction that was (i) contrary to the purpose of Dutch tax legislation and (ii) with the predominant aim of avoiding taxation. These are cumulative requirements. Judge-defined fraus legisalso can be invoked separately, without reference to law. Today, all cases are decided based on the basis of judge defined GAAR - Interestingly also applied in VAT case 

No 

CFC Legislation

Netherlands does not have CFC legislation, although restrictions apply for the ownership of foreign investments or passive investment companies. Corporate taxpayer are required to mark to market for tax purposes its shareholding in certain low taxed subsidiaries annually. This revaluation rule therefore serves similar purpose to a CFC regime, but taxes movements in the value of the subsidiary rather than the subsidiary’s profits. The revaluation provision applies where the subsidiary’s assets consist of 90% or more of “free portfolio investments” (being portfolio investments that are not reasonably required for its business operations) and the subsidiary is subject to an effective tax rate of less than 10% (computed on Dutch tax principles) 

No 

Anti-Tax Haven

Anti-base erosion rules: interest used to finance certain transactions not be deductible; Provisions that aim to counteract abuse of the Dutch fiscal unity regime; Provisions under which distributions of profit by a Dutch co-op can become subject to Dutch dividend withholding tax or corporate income tax in abusive situations; Anti dividend stripping rules : Dutch tax authorities may deny application of a beneficial dividend withholding tax under domestic law, tax treaties or the EU parent-subsidiary directive if, in a series of transactions, a company entitled to such beneficial rate has been interposed between a Dutch entity and an entity that would not be entitled to such beneficial rate, while the latter entity has maintained an (indirect) interest in the Dutch entity that is comparable to its interest in that Dutch entities prior to the series of transactions. This provision disallows a recipient “beneficial ownership” status required to gain access to the favorable dividend withholding tax rates generally available under a tax treaty 

N/A 

Transfer Pricing

Yes 

Yes, introduced w.e.f 13 September 2013 

Safe Harbour

Yes 

N/A 

APA

Yes 

Yes 

Indirect transfer taxation

Netherlands does not have specific (anti-abuse) regulations in place related to the indirect transfer of assets. Basically, when a company sells an asset, the book profit (fair value selling price minus book value for tax purposes) is subject to taxation. An indirect sale might trigger taxation at the level of the Dutch holding company (i) if the participating interest of the holding is deemed to be an investment interest or (ii) if the asset has been transferred within a fiscal unity prior to the sale of the shares. Further, provisions under which a capital gain realized by a nonresident taxpayer with the disposal of a (share) interest in a Dutch company can become subject to Dutch corporate income tax in abusive situation 

N/A 

Indirect Tax Regime

VAT

VAT

- Applicable Rate

27%, 21% , 10.5% 

21% (standard), 6% , 12% (reduced) 

Match 6 ARGENTINA
BELGIUM
Close
Currency and Rate / $

Argentine Peso (ARS) / USD = 8.14

Euro (EUR) / USD = 0.74

Tax Year

Accounting Year for Corporates, Calender year for Individuals 

Calender Year 

RoI Filing Due Date

15 April to 20 April (Individuals) 

June 14

Residential Status
- Individuals

Individuals deemed to be residents in Argentina - Native and naturalized Argentine citizens ; foreign individuals who are granted permanent residence in Argentina; foreign individual who remain in Argentina under temporary authorization for a period of 12 months or longer. Individuals in the last cetegory who are not granted permanent residence are deemed as NRs if they prove they do not intend to stay permanently in Argentina. Foriegn individuals who can prove that they are in Argentina because of their employment and remain in Argentina for a period not exceeding 5 years are not considered residents 

Domiciled in Belgium or manage their wealth in Belgium; rebuttable presumption that individuals enrolled in National Register of Population are residents of Belgium for Tax purpose 

- Corporates

Companies incorporated in Argentina and brnaches of foreign companies considered as resident companies 

Central Management or Registered Address in Belgium 

Tax Rates
- Individuals

Progressive rates ranging from 9% to 35% 

Progressive tax rates ranging from 25 % to 50%; municipal surcharge may apply 

- Corporates

35% 

33% (In addition 3% surtax - crisis contribution imposed) 

Withholding Tax Rates
- Royalty

35% on notional taxable income; (effective rates of 31.5%, 28% and 12.25% depending on type of intangible property) 

25% 

- Fees for Technical Services

35%; (effective rates of 21%, 28% and 31.5% depending on type of service) 

0% 

- Dividends

10% (plus equalization tax of 35% under conditions) 

25% (normal), 20% or 15% subject to satisfaction of ownership and holding period requirement test 

- Interest

35%; 15.05% (under conditions) 

25% 

OECD Status

Non Member

Member

No. of Treaties

15 

90 

Treaty with India

No 

Yes (comprehensive) 

Advance Ruling

Yes 

Yes, certain situations prescribed where Rulings cannot be filed 

GAAR

Yes 

Yes; Introduced in 2012; Applicability from 2013; GAAR attracted where main income tax advantage is the essential objective; Examples - Taxation of abnormal / benevolent advantages from affiliated enterprises; Tax neutral character or corporate restructuring subject to condition that tax avoidance is not the main aim 

CFC Legislation

Yes, In Argentina, CFC rules apply to resident shareholders of foreign corporations in low tax jurisdictions when passive income is higher than active income. Passive income includes dividends, interest, royalties, leases and other passive income 

No explicit provision for CFC - CFC like provision; transfer of certain assets to low-tax jurisdiction is not opposable to the tax authorities unless proof of legitimate economic or financial needs or proof of exchange for a sufficient asset or amount that constitutes income subject to a normal tax regime compared to the asset that was transferred 

Anti-Tax Haven

Transactions with entities and individuals located in low-tax jurisdictions (list of countries and other jurisdictions qualifying as low-tax jurisdictions specified) are deemed to be not carried out at arm’s length and TP is applicable 

1. Non-deductibility of insufficiently reported payments to tax havens and low-tax jurisdictions; 2. Non-deductibility of sufficiently reported payments to tax havens and low-tax jurisdictions but lacking legitimate economic or financial need 

Transfer Pricing

Yes, applies to transactions with related parties 

Yes; ALP to be adopted; tax authorities allowed to make upward / downward adjustments 

Safe Harbour

No 

Yes 

APA

No 

Yes 

Indirect transfer taxation

No 

No 

Indirect Tax Regime

VAT

VAT

- Applicable Rate

27%, 21% , 10.5% 

21% (standard), 6% , 12% (reduced) 

Match 7 BRAZIL
COLOMBIA
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Currency and Rate / $

Brazilian Real (BRL) / USD = 2.24

Colombian Peso (COP) / USD = 1860.98

Tax Year

Calender Year 

Calendar Year 

RoI Filing Due Date

April 30 (individuals), June 30 (corporates) 

Colombian Government sets dates annually 

Residential Status
- Individuals

Tax Residents - 1. Citizens 2. Naturalized Foreigners 3. Foreigners who hold a Permanent or Temporary Visa with a local employment contract from the date of arrival 4. Foreigners who hold a Temporary Visa but no local employment contract , after completing 183 days in any 12 month period 

Foreigners considered residents for tax if they remain in Colombia for more than 183 continous or discontinous days during a consecutive 365 day period 

- Corporates

Companies incorporated in Brazil, companies subject to tax in Brazil if it carries out sales activities through agent or representative domiciled in Brazil and has power to legally bind the foreign seller.

National corporations with principal domicile in Colombia or organized under Colombian law or that during the respective tax year or period have their effective place of management in Colombia (holding Board Meetings not enough) 

Tax Rates
- Individuals

 Progressive Rates from 7.5% to 27.5% 

Progressive rates ranging from 19% to 33% 

- Corporates

15% (to be increased by surtax of 10%) 

25% 

Withholding Tax Rates
- Royalty

15% 

33% 

- Fees for Technical Services

15% 

10% 

- Dividends

0%, 15% 

0% [provided that profits have been subject to corporate tax, otherwise 33% (or 25% if PE)] 

- Interest

15% 

1%, 14%, 33% 

OECD Status

Non Member 

Non Member 

No. of Treaties

36

5 

Treaty with India

Yes, Comprehensive 

No

Advance Ruling

Yes 

Yes

GAAR

Tax authorities may disregard legal acts or transactions effected with the purpose of dissimulating the occurrence of a taxable event or the nature of the elements that trigger tax obligation, under procedures to be established by ordinary law; GAAR may be invoked by the inspector during the audit and presented to the taxpayer in the notice; Qualified penalties may reach 150% to 225% over the principal; Interestingly, in one decision, judges construed that the transaction’s underlying intention was solely to reduce the tax burden 

The 2012 tax reform introduced a GAAR clause according to which, if the tax administration manages to prove three of the following elements, the taxpayer will have the burden of proof in demonstrating that the transaction had a business purpose or that the prices or considerations related with the transaction meet the Colombian transfer pricing rules: i) the transaction involves related parties, ii) the transaction involves a tax haven, iii) the transaction involves an entity covered by a favorable tax regime, iv) the price or consideration agreed differs in more than 25% from a fair market value, v) the transaction does not include a feature, an entity or an agreement common to similar transactions, with the purpose of obtaining a tax advantage in an abusive manner, If the taxpayer fails to furnish sufficient evidence of a business purpose or compliance with the transfer pricing regime, the tax administration can re characterize the transaction and tax it.

CFC Legislation

New rules expected to be mandatory from 2015, Concept: Profits earned by CFCs and certain foreign affiliates (non-controlled subsidiaries) of Brazilian entities are subject to corporate income tax and social contribution tax on profits of a Brazilian controlling or parent company. Profits earned by CFCs and non-controlled subsidiaries of Brazilian companies are considered available to the controlling/parent company in Brazil and subject to taxation at the end of each fiscal year. Brazilian taxpayers to have the option to make an irrevocable election (on a calendar year basis) to consolidate the profits and losses of CFCs until 2017 (the tax authorities will issue guidance on how such an election is to be made). This election will not be available, however, if the CFC is resident in a tax haven jurisdiction (a jurisdiction on Brazil’s black list), a privileged tax regime jurisdiction (a jurisdiction on the grey list) or a jurisdiction that has not concluded an exchange of information agreement with Brazil; or if the income of the CFC is subject to a nominal income tax rate lower than 20%. 

N/A 

Anti-Tax Haven

Blacklisted Tax Favoured Jurisdictions (TFJ) w.e.f 1996 ; New concept of Blacklisting effective 1 Jan 2009 - Grants tax advantages to NRs:

a) without requiring development of a substantial economic activity or

b) conditioned upon the non-exercise of a substantial economic activity ;

c) Do not tax earnings generated outside its territory or imposes a rate less than 20%

d) Do not permit access to information related to corporate structure , ownership of goods or rights or economic transactions performed.

Impact : 1. Brazil can impose transfer pricing rules even if TFJ is unrelated and the transaction appears at ALP on a prima facie basis 2. Higher rate of witholding on income (interest / royalties / capital gains etc) - 25% (others - 15%) 

Under anti-abuse rules, tax abuse is defined as the use or implementation of a transaction or several transactions for purposes of the following:
• Changing or modifying artificially tax effects that would otherwise have arisen for taxpayer, or related parties, shareholders, or effective beneficiaries
• Obtaining a tax benefit 

Transactions subject to antiabuse rules are those that do not have valid and reasonable business purpose that serves as the main cause for the transactions. If at least three of the specified criteria apply (for example, the use of a tax haven or a related-party transaction), the taxpayer must disprove the abuse. For such purpose, the taxpayer must demonstrate business purpose or the market value of the transaction under transfer-pricing methodologies, when applicable. Tax authority may recharacterize the transaction, pierce the corporate veil, and assess the tax due together with fines and penalties. 

The decision that a tax abuse has occurred is made by a body composed of representatives of several governmental institutions.

Transfer Pricing

Yes 

Yes 

Safe Harbour

Yes

No 

APA

Yes 

Yes 

Indirect transfer taxation

Brazil does not have legislation to trigger capital gains taxation on the indirect transfer of assets. There is, however, one case in which the tax authorities challenged the indirect transfer, recharacterizing it as a direct transfer of Brazilian assets. Although the Brazilian tax authorities lost the case in the last level of administrative appeal, this demonstrates that they may challenge indirect transfer of Brazilian assets.

Special tax issues also derive from the application of the tax treaties executed by Colombia in relation to capital gains on the transfer of immovable property, as in some cases the tax treaty provides that capital gains derived from the transfer of shares deriving more than 50 per cent of their value directly or indirectly from immovable property situated in the other state, or an interest in a partnership, trust or other entity, deriving more than 50 per cent of its value directly or indirectly from immovable property situated in the other state may be taxed in the state where the immovable property is located. 

Indirect Tax Regime

Multiple Tax Rate system - State Value Added Tax, Federal Value Added Tax, Municipal Service Tax, Federal Gross Receipt 

Value Added Tax 

- Applicable Rate

IPI (tax on manufactured products) (federal) 0% to 365%; ICMS (tax on distribution, communication and transport) 17% or 18%

ICMS reduced rates - 4%, 7%, 12% on interstate transactions

16% (Standard); 0%, 5% (reduced) 

Match 8 FRANCE
GERMANY
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Currency and Rate / $

Euro (EUR) / USD = 0.73

Euro (EUR) / USD = 0.73

Tax Year

Calender Year 

Calender Year 

RoI Filing Due Date

3 months from end of FY (Corps), May (individuals) 

May 14 

Residential Status
- Individuals

Persons of French or foreign nationality are considered tax residents if their home, principal place of abode , professional activity or center of economic interest is located in France; Interesting favorable expatriate tax law based on which on satisfaction of certain criteria, expatriates may not be taxed on certain compensation items (CLA, housing cost reimbursement etc), main condition - not a tax resident in any of the 5 years 

1. Domicile in Germany for personal use 2. Customary place of abode i.e. they are present in Germany for an uninterrupted period of six months that may fall in 2 calender years - Citizenship not a consideration.

- Corporates

French resident companies are companies registered in France, regardless of the nationality of the shareholders and companies that have their place of effective management in France.

Stock corporations and limited liability companies having corporate seat or place of management in Germany are subject to corporate income-tax on world wide income 

Tax Rates
- Individuals

Progressive rates with rates from 5.5% to 45% for 2012 tax year. Family co-efficient rules are used to combine progressive tax rate with tax paying capacity if the household 

Progressive rates of taxation ranging from 14% to 45% (5.5% solidarity surcharge imposed) 

- Corporates

33.33% (A social security surtax of 3.3% is assessed on the corporate tax) 

15% (5.5% solidarity surcharge imposed) 

Withholding Tax Rates
- Royalty

33.33%, 75% 

15% + 5.5% surcharge 

- Fees for Technical Services

33.33%, 75% 

No 

- Dividends

30%, 75% 

25% + 5.5% surcharge 

- Interest

0%, 75% 

0% 

OECD Status

Member

Member

No. of Treaties

40 

100 

Treaty with India

Yes 

Yes (Comprehensive) 

Advance Ruling

No specific mechanism; however instances where taxpayers can obtain informal / formal rulings from tax administration 

Yes 

GAAR

French Tax Authorities may disregard as constituting an abuse of law (i) any fictitious transaction or (ii) any transaction that “by looking for the benefit of a literal application of provisions or decisions, against the initial objective pursued by their authors, were inspired by no other reason than to avoid or reduce the tax burden which would have normally been borne by the taxpayers, due to their situation or to their real activities, if those transactions had not been entered into 

Yes. Per German General Tax Code , any legal arrangement implying treaty benefit can be disregarded for tax purposes if taxpayer achieves benefit through “inappropriate” legal structures. Tax benefits that (i) would not have been achieved when using an “appropriate” structure, and (ii) the structure cannot be justified with significant non-tax (i.e., commercial) reasons; implemented in 1977 ; New regulations introduced w.e.f. 1 January 2008; GAAR invoked in case an inadequate arrangement leading to a tax benefit that law does not provide for ; GAAR may override treaties 

CFC Legislation

Under the French CFC rules, if French companies subject to corporate income tax in France have a foreign branch or if they hold, directly or indirectly, an interest (shareholding, voting rights or share in the profits) of at least 50% in any type of structure benefiting from a privileged tax regime in its home country (the shareholding threshold is reduced to 5% if more than 50% of the foreign entity is held by French companies acting in concert or by entities controlled by the French company), the profits of this foreign entity or enterprise are subject to corporate income tax in France. 

Yes; The German CFC rules only apply if non-German entity has its statutory seat and place of effective management and control outside Germany and is structured such that it can be assimilated to a corporation under German entity-characterization rules, i.e. has more corporate than partnership features.

Anti-Tax Haven

Interest, royalties and other remuneration paid to a recipient established in a tax haven or on a bank account located in a tax haven are deemed to be fictitious and not at arm’s length. As a result, to deduct the amount paid, the French entity must prove that the operation is effective (that it effectively compensates executed services) and is at arm’s length. For purposes of the above rules, a privileged tax regime is a regime under which the effective tax paid is 50% lower than the tax that would be paid in France in similar situations.
If these payments are made to a recipient established in an uncooperative country or on a bank account located in an uncooperative country, the French entity must also prove that the operation’s principal aim is not to locate the payment in that country.

For witholding tax exemptions; some tests to be performed for applying treaty benefits - Shareholder Test, Business Income Test, Business Purpose Test, Substance Test 

Transfer Pricing

Yes 

Yes 

Safe Harbour

No 

Yes 

APA

Yes 

Yes 

Indirect transfer taxation

N/A 

Under German Real Estate Transfer Tax Act, a direct or indirect transfer (or a claim for a transfer) of 95 per cent or more of the shares or partnership interests in a company owning German real estate by one acquirer (including affiliated entities and dominated entities) triggers German real estate transfer tax . This applies not only in cases in which the participation is held directly, but also if it is held indirectly via intermediary companies or if there is a combination of direct and indirect participation. 

Indirect Tax Regime

Value Added Tax 

Value Added Tax 

- Applicable Rate

20% , 2.1%, 5.5%, 10% 

19% , 7% 

Match 9 BELGIUM
UNITED STATES
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Currency and Rate / $

Euro/USA = 0.73

Dollar 

Tax Year

Calender Year 

Calender Year 

RoI Filing Due Date

June 14

Mar 15

Residential Status
- Individuals

Domiciled in Belgium or manage their wealth in Belgium; rebuttable presumption that individuals enrolled in National Register of Population are residents of Belgium for Tax purpose 

US Citizens and resident aliens subject to tax on worldwide income , regardless of status; Foreign national regarded as resident aliens if they are lawful permanent residents (Section G) or on the basis of physical presence - substantial presence test: Individual present in US for at least 31 days or considered to be present for at least 183 days during a consecutive 3 year test period, including the current year using the formula of weighted average with prescribed percentages (CY 100% , 1st PY 33.33%, 2nd PY 16.67%) ; certain exceptions provided for the substantial presence test - days present as a qualified student, teacher, trainee or if a medical condition prevented departure not counted , closer connection to a foriegn country 

- Corporates

Central Management or Registered Address in Belgium 

US corporations taxable on worldwide Income, including income of foriegn branches (whether or not profits repatriated); Foreign corporations generally taxable in the United States on income that is effectively connected with a U.S. trade or business and on certain U.S.-source income 

Tax Rates
- Individuals

Progressive tax rates ranging from 25 % to 50%; municipal surcharge may apply 

Progressive rates of taxation ranging from 10% to 39.6%; additional 1% imposed by city or municpality as income tax; state income tax ranges from 0 to 13.3% 

- Corporates

33% (In addition 3% surtax - crisis contribution imposed) 

Federal top rate 35%; state top rate 12%, depending on state; Alternate Minimum Tax concept present - 20% on AMTI 

Withholding Tax Rates
- Royalty

25% 

30% 

- Fees for Technical Services

0% 

30% 

- Dividends

25% (normal), 20% or 15% subject to satisfaction of ownership and holding period requirement test 

30% 

- Interest

25% 

30% 

OECD Status

Member

Member

No. of Treaties

90 

65

Treaty with India

Yes (comprehensive) 

Yes (comprehensive) 

Advance Ruling

Yes, certain situations prescribed where Rulings cannot be filed 

Yes 

GAAR

Yes; Introduced in 2012; Applicability from 2013; GAAR attracted where main income tax advantage is the essential objective; Examples - Taxation of abnormal / benevolent advantages from affiliated enterprises; Tax neutral character or corporate restructuring subject to condition that tax avoidance is not the main aim 

US does not have GAAR, but it has several common-law doctrines that are similar to many GAAR regimes. These doctrines include the substanceover-form doctrine, the step transaction doctrine, the sham transaction doctrine, the business purpose doctrine and the economic substance doctrine; In 2010, codification of economic substance doctrine ; economic substance doctrine defined as 'certain tax benefits not allowable if the transaction does not have economic substance or lacks a business purpose, i.e., a conjunctive test'. Under this test, a transaction will be treated as having economic substance only if the taxpayer can demonstrate that (1) the transaction changes in a meaningful way (apart from federal income tax effects) the taxpayer’s economic position and (2) the taxpayer has a substantial purpose (apart from federal income tax effects) for entering into the transaction; doctrine applicable to all tax payers; In case of conflict with treaty, 'later in time' rule applies 

CFC Legislation

No explicit provision for CFC - CFC like provision; transfer of certain assets to low-tax jurisdiction is not opposable to the tax authorities unless proof of legitimate economic or financial needs or proof of exchange for a sufficient asset or amount that constitutes income subject to a normal tax regime compared to the asset that was transferred 

US CFC Rules provide that certain types of income of CFCs, though undistributed, must be included in the gross income of the U.S. shareholder in the year the income is earned by the CFC. CFC is any corporation organized outside the U.S. (a foreign corporation) that is more than 50% owned by U.S. Shareholders 

Anti-Tax Haven

1.Non-deductibility of insufficiently reported payments to tax havens and low-tax jurisdictions;

2. Non-deductibility of sufficiently reported payments to tax havens and low-tax jurisdictions but lacking legitimate economic or financial need 

Yes, very comprehensive rules , tax blacklists 

Transfer Pricing

Yes; ALP to be adopted; tax authorities allowed to make upward / downward adjustments 

Yes 

Safe Harbour

Yes 

Yes 

APA

Yes 

Yes 

Indirect transfer taxation

No 

N/A 

Indirect Tax Regime

VAT

No National level Sales or Value Added Tax . Instead sales tax and complementary use taxes are imposed or administered at the state and local levels 

- Applicable Rate

21% (standard), 6% , 12% (reduced) 

Ranging from 2.9% to 9% 

Match 10 ARGENTINA
SWITZERLAND
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Currency and Rate / $

Argentine Peso (ARS) / USD = 8.13

Swiss Franc (CHF) / USD = 0.89

Tax Year

Accounting Year for Corporates, Calender year for Individuals 

Fiscal Year; need not be calender year 

RoI Filing Due Date

15 April to 20 April (Individuals) 

Varies from canton to canton 

Residential Status
- Individuals

Individuals deemed to be residents in Argentina - Native and naturalized Argentine citizens ; foreign individuals who are granted permanent residence in Argentina; foreign individual who remain in Argentina under temporary authorization for a period of 12 months or longer. Individuals in the last cetegory who are not granted permanent residence are deemed as NRs if they prove they do not intend to stay permanently in Argentina. Foriegn individuals who can prove that they are in Argentina because of their employment and remain in Argentina for a period not exceeding 5 years are not considered residents 

Individuals considered residents if they take up legal residence or if they intend to stay there for a certain period as well as if they work in Switzerland for a period exceeding 30 days 

- Corporates

Companies incorporated in Argentina and brnaches of foreign companies considered as resident companies 

Corporation Incorporated in Switzerland or Foreign Company if it is effectively managed and controlled in Switzerland 

Tax Rates
- Individuals

Progressive rates ranging from 9% to 35% 

Progressive; top rate 13.2% (up to CHF 755,200); 11.5% on whole income if income exceeds CHF 755,200 

- Corporates

35% 

8.5% (effective rate 7.83% if the deductibility of the federal tax due is taken into consideration) 

Withholding Tax Rates
- Royalty

35% on notional taxable income; (effective rates of 31.5%, 28% and 12.25% depending on type of intangible property) 

No 

- Fees for Technical Services

35%; (effective rates of 21%, 28% and 31.5% depending on type of service) 

No 

- Dividends

10% (plus equalization tax of 35% under conditions) 

35% 

- Interest

35%; 15.05% (under conditions) 

0 % / 35% 

OECD Status

Non Member

Member 

No. of Treaties

15 

90 

Treaty with India

No 

Yes 

Advance Ruling

Yes 

Yes 

GAAR

Yes 

General principle of abuse of law or tax evasion applies. Tax avoidance occurs if the following three cumulative conditions are met: 1. The legal structuring used by the parties is unusual and seems unusual from an economic perspective. 2. The structure has solely been chosen to avoid taxes that would have been due under normal circumstances. 3. The legal structure chosen would have resulted in substantial tax savings if tolerated by the tax authorities. 

CFC Legislation

Yes, In Argentina, CFC rules apply to resident shareholders of foreign corporations in low tax jurisdictions when passive income is higher than active income. Passive income includes dividends, interest, royalties, leases and other passive income. 

No CFC Rules; implies a Swiss business using an appropriate local corporate form is able to avoid taxation on the profits of foreign subsidiaries. Therefore a preferred location for establishment of an international holding company. 

Anti-Tax Haven

Transactions with entities and individuals located in low-tax jurisdictions (list of countries and other jurisdictions qualifying as low-tax jurisdictions specified) are deemed to be not carried out at arm’s length and TP is applicable 

Specific anti-abuse measures include unilateral anti-treaty shopping rules, limitations on benefits provisions in treaties and the taxation of partial liquidation

Transfer Pricing

Yes, applies to transactions with related parties 

Switzerland does not have explicit TP legislation, however the tax authorities may adjust unjustified expenses 

Safe Harbour

No 

No 

APA

No 

Yes 

Indirect transfer taxation

No 

Yes, especially with respect to real estate companies and anti-abuse rules in cases of tax-neutral reorganizations. 

Indirect Tax Regime

Value Added Tax 

Value Added Tax 

- Applicable Rate

27%, 21% , 10.5% 

8% (standard); 2.5%, 3.8% (reduced) 

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