Fiscal Implications And Boers War

Fiscal implications and Boers War

Introduction

Fiscal regulation in the EU has mainly affected the manifestations of direct and indirect imposition related to the single market to eliminate obstacles of cross -border economic activity, such as double imposition or discrimination between states. Therefore, the regulation in Taxation of IRPF natural persons, equity tax, or tax and donations taxes is essentially nationally. And in

The exit of the United Kingdom automatically implies the inapplication of the directives in force regarding direct imposition, the most relevant being the following: Fusion Directive. Filial matrix directive. Interest and canons directive. Information automatic exchange directive. Directive by which rules against elusion practices are established. Prosecutor that directly affect the internal market.

Developing

On the other hand, in terms of eliminating the double imposition, despite OECD literature and double -imposition agreements, the EU arbitration agreement to eliminate double taxation represents a useful instrument from which groups with operational will be deprived inUnited Kingdom. All of the above implies that, in order to determine the taxation of the income that can be derived from the possible transactions between companies/residents in the United Kingdom and Spain, the provisions of the current.

 "Agreement between the Kingdom of Spain and the United Kingdom and Norther. On the other hand, we must not forget that even when the European regulations are not applicable, there is an international multilateral framework agreed by the G20, the OECD and other countries, which is determining the way of relating in fiscal matters, and whose objective isAvoid fiscal fraud and promote effective transparency and communication between states.

Being the United Kingdom active part of this environment, it has already been implementing in its internal regulations part of what is agreed within the Beps framework. The effects regarding the Spanish tax regulations, in regards to the Income Tax of natural persons, the British residing in Spain must take into account the following aspects:

• Residence transfers. When a resident in Spain transferred his residence to the United Kingdom, all the income pending imputation should be integrated into the taxable base corresponding to the last tax period that should be declared, losing the possibility that he had to choose to present a complementary self-assessment without sanction,neither delay or surcharge interests, as each of the income pending imputation, corresponding to the last period to be declared to be declared.
• Integration of patrimonial losses. The derivatives of patrimonial transmissions of British homogeneous quoted values would not be integrated, followed by a reinvestment in them within the year following the transmission, disappearing the forecast of a period of two months for them.
• Contributions and contributions to British pension funds. As a consequence of the inapplication, in the United Kingdom, of the directives in force in direct imposition, including Directive 2003/41/EC, of the European Parliament and the Council, of June 3, 2003, relative to the activities and supervision ofEmployment Pension Funds, it would not proceed to take into account the standard of valuation of the remuneration in kind for contributions satisfied by the promoters to British pension funds nor would any reduction in the taxable basis be applicable by contributions to them.
• International fiscal transparency. The exception to the application of international fiscal transparency for entities residing in another Member State of the European Union would cease to be applicable, so that as long as the requirements for this, this special regime provided to make taxpayers of the taxpayers of the taxpayers of theIRPF for certain income obtained by non -resident entities in which they participate significantly.
• ‘Exit Tax’. In the case in which the ‘Exit Tax’ is applied, which taxes certain patrimonial gains for change of residence, when the change is to the United Kingdom, the special treatment for residence transfers will cease to be applied to another state of the European Union orof European economic space, if there is effective exchange of tax information.
• Dejection coefficients. The transitional regime of reduction of patrimonial profits obtained, due to the transmission of the values admitted to negotiation in any of the British regulated markets and shares or shares in British collective investment institutions, acquired before December 31, 1994.
• Betting Awards and Lotteries. To the awards of certain lotteries and bets organized by entities of the United Kingdom, which have equivalence with the Spanish, the special tax of 20%will not apply to them, but the general type, as they are not awards organized by public bodies or entitiesestablished in other Member States of the European Union or European Economic Space.
• In the Income Tax of Non -Residents, that is to say for the Spaniards residing in the United Kingdom, due to the income obtained in Spain, there are other aspects to take into account:
• Exemption of interests and yields of furniture. It would not be applicable to exempted the interests and returns obtained by the transfer to third parties of own capital, as well as the patrimonial earnings derived from movable property, and this apart from what the agreement on double imposition between Spain and the United Kingdom can establish.
• Exemption for benefits between matrices and subsidiaries, pension funds, or collective investment institutions, within the European Union and the European Economic Space. Nor would it be applicable
• Regular housing reinvestment. The exemption for reinvestment in the usual housing would not be applicable, scheduled to favor the free movement of citizens within the European Union and the European Economic Space.
• Expenses directly related to the yields obtained in Spain. They would cease to be deductible, for the determination of the tax base, the expenses that are directly related to the yields obtained in Spain and that have a direct and inseparable economic link with the activity carried out in Spain.
• Type of tax. The general applicable would cease to be 19%, established for taxpayers residing in another Member State of the European Union or the European Economic Space with which there is an effective exchange of tax information and will become the general of 24%.
• Optional taxation regime as a taxpayer of the IRPF. The possibility of applying the optional taxation regime as a taxpayer of the IRPF disappears, provided for taxpayers residing in other states of the European Union with dominant income in Spain, improving its fiscal treatment under the PARMERS of the IRPF by comparison with the Income Tax of Income TaxNo residents.

In any case, and apart from the possible fiscal agreements that are reached, the forecasts of the agreement mustand the United Kingdom, dated March 14, 2013, which establishes the exemption of taxation in the source of interests and canons, and of dividends and heritage gains in certain cases.

conclusion

In the Patrimony Tax, the provision that non -resident taxpayers who are residents in a Member State of the European Union or the European Economic Space can apply their own regulations approved by the Autonomous Communities where the greatest value of goods and goods andRights that are holders and for which the tax is required, ceases to make sense for residents in the United Kingdom.

In the same vein, in the Tax on Inheritance and Donations, the rule that allows to apply regulations of the autonomous communities for non -residents will not be useful for residents in the United Kingdom, if the condition of being resident in a state is no longer fulfilled in a stateMember of the European Union or European Economic Space. From the fiscal point of view, the impact of Brexit will be both direct and indirect imposition. On the one hand, in terms of direct imposition, in societies, the EU directives that will have an effect especially in: cross -border mergers will not apply;arbitration and application of anti abuse standards of the CDI. 

 In natural persons, there may be a possible impact on IRPF tax regimes contributions to UK pension funds;and uncertainty in the regime social security contributions in UK. It is important to note that tax impacts will not be immediate since the EU standards will continue to apply in UK relations to their departure.