DEC 2012/JAN 2013 |www.opp-connect.com


said the securities regulator’s Weekly on Stocks.


[Source: English.Eastday.com]


Brazil grants tax exemption to foreign mortgage investors The Brazilian government has approved a tax exemption policy to foreigners who buy mortgage-backed securities (known as CRI’s) or invest in funds that purchase them. The requirements are that proceeds of the debt are used on “investment projects,” (including house expansions or new factories) and that the bonds have a maturity of


“It is hoped that these changes will boost employment, following slow economic growth”


a minimum of four years, according to Pablo Fonseca Pereira dos Santos, deputy secretary of economic policy at the Ministry of Finance in Brazil. The incentives aim to develop local debt markets, and help raise around 1 trillion reais ($493 billion) for infrastructure developments; it is hoped that these will boost employment, following slow economic growth in the country. [Source: Bloomberg]


Cyprus and Ukraine sign double-tax treaty


LEGAL NEWS


both countries complete the relevant procedures by their respective laws; it will apply from January 1st of the calendar year after the year in which it enters force.


[Source: lexology.com]


India fi nalises amendments to General Anti-Avoidance Rule (GAAR)


The Indian government has fi nalised amendments to the General Anti- Avoidance Rule (GAAR), the law against tax avoidance through foreign investments. Amendments to Chapter 10A of the Income Tax Act, which deals with taxation of investments, are subject to the Prime Minister’s approval. The GAAR was proposed in the 2012-13 budget, in an attempt to avoid tax evasion from foreign companies in regards to their investments, and produced strong reactions from investors. Chidambaram said that the government was keen to get the investment engine going and measures were being taken by the government to create a “better climate”. [Source: Oman Tribute]


The Cyprian and Ukrainian governments signed a new convention on November 8th 2012 for the avoidance of double taxation, based on the principles of the OECD Model Tax Convention on Income and Capital. It provides for taxation at the source of dividends - at 5% of the gross amount of the dividends if one is the owner of a company that directly holds at least 20% of the capital of the Ukrainian company paying the dividends, or 15% of the gross amount of the dividends in other cases. At the source of interest – at 2% of the gross amount of the interest if the owner of the interest is a resident of Cyprus and, at the source of Royalties - at 10% of the gross amount of the royalties if the owner of the royalties is a resident of Cyprus, and at 5% of the gross amount of the royalties paid in relation to scientifi c works or patents, for example. The new convention will come into law once


Spain may give residency to buyers of homes over €160,000 Spain could offer foreigners residency permits, if they purchase a home worth over €160,000. The new scheme will target buyers from outside of Europe, especially residents of Russia or China, who are currently required to apply for a new visa on every visit to the country. Those who accept a residency permit under the scheme must prove that they have health insurance (so as not to prove burdening on Spain’s medical system). They are also not permitted to seek work in the country, so must ensure they can rely on savings and pensions. This change comes as the country attempts to kick-start the sale of its stagnant housing stock – 750,000 pieces of property are left unsold or re- possessed by banks. See the full story on OPP Connect: www.opp-connect. com/index.php?option=com_postwebsit es&view=postnews&id=608 [Source: A Place in the Sun]


Finland makes changes to Asset Transfer Tax Amendments to the Asset Transfer Tax Act in Finland, which will affect foreign real estate investors, are said to come into force on January 1st 2013. The changes are mainly fi scal, and are estimated to increase revenues collected by transfer tax by €80 million. They aim to tackle the discrepancy in tax burden between directly and indirectly owned real estates and to minimise tax evasion. They will also attempt to unify the tax treatment of housing-company loans, and payments to construction funds by buyers. The transfer tax rate will be increased from 1.6% to 2.0%, and shall be applied to most of the


transfers of securities relating to real estate.


[Source: Mondaq]


Czech Republic makes amendments to the Building Code


ROUND UP | 21


and delay the introduction of products. The central bank is seeking comment on the draft regulations within 30 days. [Source: Bloomberg]


A Bermuda passport could mean visa-free travel in Europe Those with Bermudian passports could be entitled to travel in Europe without the Schengen visa, after proposals were issued by the Government House in early November. Currently, those with a Bermudian passport are required to apply for visas in order to enter the 26 countries which the Schengen visa covers, unless they have “UK


The Czech Republic has made substantial changes to its Building Code, concerning the concepts of zoning and construction law. It sets out the liberalisation of certain practices and concepts in the zoning procedure but also in the procedure for approving the construction of a structure. Changes include: certifi cates issued by the


“The Finnish government hopes to tackle the discrepancy in the tax burden”


authorised inspector being subject to review by the Building Offi ce; the allowance of only one agreement on the placement of a structure and, at the same time, on its realisation and the placement of notifi ed structures conditional on the zoning decision. The amended code will come into effect from January 1st 2013. [Source: Mondaq]


Saudi Arabia reforms mortgage law Saudi Arabia has reformed its mortgage law, after more than a decade of debates, in an attempt to ease housing shortage. It will take over the country’s home-fi nance market, and the changes could cause residential loans to rise to an annual level of $32 billion, according to Capitas Group International Ltd. The changes will mean: the creation of licensed private mortgage providers; the creation of a state-run company for refi nancing – which would be responsible for issuing Islamic bonds or securities backed by mortgages or real estate; any new fi nancial products being subject to approval by regulators before going onto the market; the approval of lenders before being able to hire senior managers. Such requirements may weigh heavily on fi nancial companies,


“Saudi Arabia has reformed its mortgage laws after more than a decade of debates”


Right of Abode” stamped on their passport. Those who already hold British passports can travel through the Schengen zone willingly. This comes after a number of demands for Bermuda passports to be accepted in the same way as British passports. It is now subject to approval by the European Parliament and the Council of the European Union. [Source: The Royal Gazette]


Australia expands its skills list for residency visas


Australia has expanded its States skilled occupation list, meaning workers from a greater number of professions may stay in the country for longer, announced Immigration offi cials. The skills which have been added to the list include: accountants, IT workers, scientists, medical staff, engineers, metal workers, carpenters, plasters, bricklayers, electricians, tilers and plumbers. If one is a member of any of these occupations, they may be entitled to a permanent residency visa. The addition of these skills means that they are in immediate shortage, explained Edwina Shanahan from www.visafi rst. com. “Anyone considering the move should come forward now with their applications,” she said. [Source: Irish Herald]


More legal news is available in the News area at www.opp-connect.com.


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