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Services rendered by incorporated company directors or liquidators are subject t...

On 20 November 2014, the Belgian tax authorities published a new Decision regarding the VAT treatment of services rendered by incorporated company directors or liquidators. According to the Decision, mandates of incorporated company directors or liquidators will without choice be subject to VAT as per 1 January 2015. This will have an impact for entities that have a limited VAT deduction right and to which the VAT on the services rendered by these incorporated company directors and liquidators will become a (partial) cost / cash-out. It is recommended to review your...

Chile enacts new tax reform that will significantly impact the taxation of your ...

On 29 September 2014, the Chilean congress published a new tax reform in the Chilean Official Gazette. This tax reform introduces substantial changes to the Chilean tax system including amongst others: The introduction of 2 methods for computing shareholder-level income taxation, on a cash-basis or an attribution-basis. Corporate tax rate increase during the coming years from 20% to 27% by 2018. All capital gains on the sale or other transfer of shares will become taxable at a rate of 35%. Thin capitalisation rules will be applied to total indebtedness, both foreign and...

New Belgian tax measures announced

New tax measures have been announced in the framework of the Belgian government formation and the budget for 2015. We summarise below some of the main new tax measures relevant in general to Belgian companies and M&A transactions. The details of the new measures are not yet clear and are still subject to change. Obviously, we will keep you updated once more information becomes available. Corporate income tax – secret commission taxation The so-called secret commission tax of 309% (due on account of lack of proper filing of salary slips and fee forms) would be...

Moving forward to Brazil

Let’s have a closer look at the transactional environment surrounding the arena where our Red Devils have just won their second game. Brazil is the 7th largest economy in the world… Brazil has been steadily climbing the ranks of the world’s largest economies. This economic growth has benefited a larger group of the population than in the past. Combined with an easy access to credit, Brazil has become one of the most attractive countries to consumer goods companies for its internal market. With the rise of a large middle class population, the demands for infrastructure and...

Damages awarded in case of breach of reps & warranties: price reduction or ...

Most share purchase agreements and asset purchase agreements contain a ‘representations and warranties’ section (or even a ‘specific indemnities’ section) in order to protect the buyer against pre-closing risks.  A prudent buyer pays careful attention to the wording of such representations and warranties (and specific indemnities), in order to make sure that he can claim the necessary damages in case such risk arises post-closing.  But sometimes less attention is paid to the qualification and calculation of the damages.  Nevertheless, the tax impact in the hands of the...

Challenges of cross-border acquisitions: local and international tax risks

Cross-border transactions involve complexities that are particularly challenging due to differences in policies and regulatory requirements. Especially when focusing on tax, such cross-border acquisitions necessitate tax expert knowledge on both a local and international level in order to understand the target’s tax environment. Understanding the foreign tax position of the Target group is key Understanding a Target’s tax environment is critical in identifying and quantifying possible tax issues. This is even more complicated when a target is located outside the buyer’s...

Reward Practices in the Private Equity Industry

To meet their performance objectives, the private equity industry relies on highly-talented and motivated fund managers and executives within their portfolio companies. Aligning the financial interests of portfolio company executives and fund managers with those of investors and incentivise them through tailored instruments (like “carried interest” and “sweet equity”) has so far proved to be the most motivational tool in driving them forward. The challenge in (re)designing co-investment and incentive arrangements lies in keeping them compliant with newly-applicable...
CEO’s Confidence rises for 2014 for the M&A market and the global economy

CEO’s Confidence rises for 2014 for the M&A market and the global economy

Growth is back in town ? : Almost 40% of the CEO’s strongly predict company growth, which is the double of 2013.Those planning mergers and acquisitions or strategic alliances in the next year have risen to 20%. To grow, 35% of CEOs believe in their strengths in new product or service development. CEOs also say they are exploring growth in countries beyond the BRICs (Brazil, Russia, India and China), and see good growth prospects over the next three to five years in Indonesia, Mexico, Turkey, Thailand and Vietnam. The US, Germany and the UK are also ranked highly. Moreover...