Sponsored Firm profile: Vieira de Almeida

Sponsored Firm profile: Vieira de Almeida

About VdA’s tax team

VdA’s tax practice has unique analytical abilities and is best known for structuring efficient innovative structures within a highly scrutinised and regulated environment, in every market where our clients operate. We are pragmatic and agile, working in cross-practice tailor-made teams that focus on the relevant demands of each matter and jurisdiction.

Our team steadily increased its involvement in the most relevant transactions taking place in the Portuguese-speaking markets or involving several jurisdictions, as well as in key cross-border transactions within the scope of VdA Legal Partners, comprising a wide range of sectors, particularly energy, financial sector (including banking, insurance, and asset management), real estate, infrastructure, healthcare, life sciences and information and communications technology.
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Sponsored Q&A: Stibbe

Sponsored Q&A: Stibbe

1. What are the key tax laws and regulations in Luxembourg that individuals and businesses should be familiar with?

The key tax rules to be aware of are, to a large extent, contained in the Income Tax Law, the Value Added Tax Law and the Net Wealth Tax Law. Procedural elements are included in the General Income Tax Law. Additionally, the tax authorities regularly issue circular letters providing guidance on specific tax matters.
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Sponsored Firm Profile: Zarhi Hernández Amar

Sponsored Firm Profile: Zarhi Hernández Amar

About Zarhi Hernández Amar

Zarhi Hernández Amar welcomed 2023 by celebrating its fifth anniversary with profound changes to meet the upcoming challenges posed by the current issues that our clients need to solve with our assistance. Thus, Carolina Hernández has now joined the firm as a partner. She has been a part of the team since the start, leading corporate and real estate matters, and implementing tax solutions tailored for our clients. Her incorporation as a partner prompted the firm to change its name to Zarhi Hernández Amar, in recognition of the relevance of the event and the strength that the partners collectively exert to lead the entire team to achieve our goals, doing what we do best: solving our clients’ legal and tax issues.

Zarhi Hernández Amar is a law firm founded by lawyers with over 15 years of individual experience, specialised in providing legal and tax advice to families, individuals and companies. We provide concrete and swift solutions to issues based on multi-angle analysis, assisting our clients in making high-complexity strategic decisions. Clients enjoy preferential legal management, specially crafted to support their daily operations and business.

Our service perspective builds long-term, intimate trust relationships, with personalised treatment and permanent availability to resolve each request promptly.

Our hallmark is a unique and creative approach to tax law. We think differently and see solutions where others only see problems, thanks to the experience, specialisation and capability of our partners and associates.

For More information contact


Rodrigo Zarhi Hernández
Partner; lawyer – Universidad de Chile; postgraduate diploma in tax modernisation and master in tax law from the same university
His practice focuses on tax planning and advice to Chilean and foreign high-net-worth individuals, inheritance planning and tax structures for various industries with national and international operations. He has over 20 years of experience providing comprehensive tax advice in complex and wide-ranging matters, including advanced litigation strategies in various jurisdictions and consultancy to corporate governments, mergers and acquisitions, and strategic business advice. He is currently attending the senior management programme (PADE) at the ESE Business School of the Universidad de los Andes. Member of the IFA (International Fiscal Association).


Carolina Hernández Contreras
Partner; lawyer – Pontificia Universidad Católica de Chile
She leads the corporate team of Zarhi Hernández Amar. With more than 15 years of experience in the sector, she has specialised in tax implementation, mergers and acquisitions, contracting, real estate law, purchase and sale of significant assets, compliance and corporate restructuring. She is currently pursuing a postgraduate diploma in tax planning at the faculty of economics and business of the Universidad de Chile.


Carlos Amar Grez
Partner; lawyer – Universidad Diego Portales; postgraduate diploma in tax modernisation – Universidad de Chile; postgraduate diploma in tax analysis and planning – Pontificia Universidad Católica de Chile; postgraduate degree in tax planning – Universidad del Desarrollo
His practice focuses on tax planning and advice to Chilean and foreign high-net-worth individuals, as well as in the tax legal structuring of national family offices. He has extensive experience in the reorganisation and restructuring of domestic and foreign companies, advising them in business matters of tax optimisation and compliance, foreign investment, corporate governance structures, mergers, acquisitions, and tax litigation. He has vast experience in inheritance reorganisation, enabling new generations to participate in family wealth in a structured and efficient manner. As part of his professional practice, he has participated in multiple national and international real estate transactions, advising from a differentiated perspective, seeking efficiency and compliance in tax matters. Member of the IFA (International Fiscal Association)

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Sponsored Firm profile: Lee & Ko

Sponsored Firm profile: Lee & Ko

About Lee & Ko’s tax practice

Lee & Ko’s tax practice group is comprised of over 100 of Korea’s most renowned tax professionals, including former Supreme Court tax research judges, seasoned Korean and foreign attorneys with a wide range of transactional and litigation tax experience, as well as tax-focused certified public accountants (CPAs), many with extensive experience at top-tier law firms and ‘Big Four’ global accounting firms.

We are supported by senior advisers, including former government ministers, such as a former official from the Ministry of Economy and Finance in charge of drafting international tax law, a former commissioner of the National Tax Service as well as other high-ranking officers from the National Tax Service, Korea Customs Service and other governmental agencies. Our senior advisers have vast experience with regulatory tax issues, tax rulings and working with the government to draft and revise tax legislation and regulations. We are ranked a Tier 1 tax practice by The Legal 500 as well as many other reputable international ranking organisations.
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Sponsored Q&A: Tanjib Alam & Associates

Sponsored Q&A: Tanjib Alam & Associates

1. What are the key tax laws and regulations in Bangladesh that individuals and businesses should be aware of?

Like any other advanced economy, tax legislation in Bangladesh broadly consist of three legislations, namely (a) the Customs Act 1969, (b) Supplementary Duty and Value Added Tax Act 2012 (SD&VAT Act) and (c) Income Tax Act 2023. A foreign investor which is a legal entity and intends to do business in Bangladesh should be aware of the applicable rate of tax that will be imposed for importing machineries and raw materials. The SD&VAT Act deals with indirect tax that is imposed on the goods and services sold or rendered by an entity in the local market. As far as income tax is concerned, a foreign investor should be aware of the corporate tax rate and various obligations for withholding taxes and the compliance regime that must be followed to take benefit of allowable expenditure. The National Board of Revenue (NBR) is the relevant authority responsible for managing the aforementioned three legislations. They have been vested with various extensive powers to issue statutory regulatory orders (SRO) from time to time. At times, provision of SROs can make a lot of difference between tax exemption and a higher level of tax obligation.

An individual should primarily be aware of the provisions of the Income Tax Act and the obligations involving submission of tax returns for any failure to submit the return will have penal consequences.

2. Can you explain the income tax rates and brackets for individuals and businesses
in Bangladesh?

Tax is not payable by tax residents on income below Taka 350,000 for men and Taka 400,000 for women and senior citizens aged 65 years or above. The following tax rates are applicable to resident individuals, Hindu undivided families, partnership firms and non-resident Bangladeshi:

Total income Tax rate
First Taka 350,000 Nil
Next Taka 100,000 5%
Next Taka 300,000 10%
Next Taka 400,000 15%
Next Taka 500,000 20%
Balance amount 25%

With regards to the businesses in Bangladesh, the applicable tax rates depend on the sector of business and whether the company is public or private. For instance, publicly traded companies are subject to a tax rate of 20% to 22.5% depending on their listing percentage. Similarly, mobile phone operators are subject to 40%-45% tax, non-listed companies (except certain business sectors such as tobacco, jute, textile, etc) are subject to 27.5% tax and publicly listed banks are subject to 37% tax.

3. What are the common deductions and exemptions available to individuals and businesses under Bangladeshi tax laws?

The common deductions and exemption available to businesses while computing income in Bangladesh include rent, insurance premiums, interest payments, maintenance costs, machinery costs, utility bills, advertisement costs, legal fees, and any other expenses that are related to the business or profession. Generally, any expenditure that is incurred for the purpose of earning the income (not being capital expenditure or personal expenditure) shall be allowed to be deducted. The new Income Tax Act 2023 allows deduction of medical expenses and daily allowances to salaried persons while computing individual income.

4. How can I ensure compliance with tax regulations while minimising my tax liabilities?

The primary strategy for an individual or business in Bangladesh to optimise tax outcomes is to be aware of the tax law provisions. One of the ways to optimise tax outcomes for businesses is corporate restructuring which may require consultation from specialised, skilled and experienced legal consultants. As such, it would be prudent for individuals and businesses in the long run to retain skilled and experienced tax practitioners.

5. What are the tax obligations for businesses operating in multiple locations or engaging in international transactions?

In case a business is operating in multiple locations of the globe, of which Bangladesh is one, its tax obligation in Bangladesh will depend on several factors specific to the entity and the corresponding provisions of the double taxation avoidance agreement between Bangladesh and the jurisdiction in which the business primarily resides. There are agreements on avoidance of double taxation between Bangladesh and 40 countries of the world. In general, a foreign tax credit is available to a Bangladesh resident in respect of any taxes paid in a foreign jurisdiction on the same income being taxed in Bangladesh. The allowance credit is the lower of the foreign tax paid or the Bangladesh tax otherwise payable.

6. What are the potential tax benefits and incentives available for foreign investors in Bangladesh?

As part of the continuing endeavour of the governments to encourage foreign investment in Bangladesh, there are certain business sectors that enjoy tax benefits and incentives. The sectors include power plants, pharmaceuticals, biotech and chemical sector, public-private partnership projects, EPZ, EZ and hi-tech park investors and developers, exploration and extraction of mineral operations, subcontractors in petroleum operations, and industrial enterprises and physical infrastructures. It is noteworthy that a significant percentage of foreign investment in Bangladesh is made in these sectors.

7. How can I resolve tax disputes or handle tax audits with the tax authorities in Bangladesh?

The most efficacious avenue to avail a remedy against any order of an income tax authority subordinate to the Appellate Joint commissioner or the Commissioner of Taxes (Appeal) is to prefer appeals to the Appellate Joint commissioner or the Commissioner of Taxes (Appeal); appeal to the Appellate Tribunal against an order of the Appellate Joint Commissioner or the Commissioner (Appeals) and Reference application to the High Court against any order of the Appellate Tribunal.

8. Can you provide guidance on transfer pricing regulations and their implications for multinational corporations operating in Bangladesh?

The Income Tax Act 2023 provides for extensive provisions regarding responsibility and determination of the ‘arm’s length price’ of such transactions. If such a transaction is not found to be at arm’s-length price, the income tax authority may determine the pricing through the transfer pricing officer in one of the ways prescribed in the Act.

9. What are the recent changes or updates in Bangladeshi tax laws that individuals and businesses should be aware of?

The most significant update in Bangladeshi tax law is the introduction of the Income Tax Act 2023 by repealing the
three-decades old Income Tax Ordinance 1984. In addition, the National Board of Revenue formulates and publishes various SROs from time to time, which may be of relevance to businesses of specific sectors.

10. Are there any specific tax planning strategies or recommendations you can offer to optimise tax outcomes for individuals or businesses in Bangladesh?

One of the most effective methods of tax structuring by foreign investors in Bangladesh is to invest through an entity which is incorporated in a tax heaven with whom Bangladesh has a double taxation treaty. This will almost certainly reduce the tax exposure against payment of a dividend by half. Currently, the dividend tax is 20%, if the foreign shareholder is incorporated in a country with which there is a double taxation treaty, then the applicable rate is 10%.

For more information contact:


Mr Kazi Ershadul Alam
Partner
E: ershadul.alam@tanjibalam.com


Mr Asif Hasan
Associate
E: asif.hasan@tanjibalam.com

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Sponsored Q&A: Dentons (Bolivia)

Sponsored Q&A: Dentons (Bolivia)

1. Can you provide an overview of the current tax laws and regulations in Bolivia?

Bolivia operates a territorial tax system based on the principle of source taxing income generated by individuals and/or legal entities arising from goods and assets located or used economically within its territory and from any activity carried out in the country, regardless of the nationality and/or residence of the parties involved or where the contracts were entered into.

A corporate income tax taxes entities incorporated or carrying businesses in its territory, including subsidiaries/branches of foreign entities. No personal income tax exists as such for individuals; thus, they are subject to a complementary tax on the value added tax on any income obtained as employees and/or as direct taxpayers.

The tax legislation has not experienced significant changes and has not evolved since its last major reform in 1986. For that matter, an integral reform is essential not only to amend existing flaws and inconsistencies in the norms, but to adapt them to new realities of industrialisation, technology, digitalisation and entrepreneurship. Continue reading “Sponsored Q&A: Dentons (Bolivia)”