Trust arrangements in relation to the CFC rule and anti-tax treaty abuse

Resource Information

The work Trust arrangements in relation to the CFC rule and anti-tax treaty abuse represents a distinct intellectual or artistic creation found in International Bureau of Fiscal Documentation. This resource is a combination of several types including: Work, Language Material, Continuing Resources.

Label

Trust arrangements in relation to the CFC rule and anti-tax treaty abuse

Creator

• Karyadi, F
• Santoso, N

Subject

• CFC
• trust
• immovable property gains tax
• treaty abuse
• PE
• MLI

Language

eng

Summary

A newly issued regulation on the CFC rule expands the scope of definition of "CFC" to include an indirectly owned CFC. As such, investor(s) (in this case, the Indonesian taxpayer, settlor and/or beneficiary) owning a CFC through a trust arrangement will be subject to the CFC rule. Depending on the type of the trust, the investor(s) as well as the trust may be subject to tax under this rule. The Multilateral Convention to Implement Tax Treaty-Related Measures to Prevent Base Erosion and Profit Shifting (MLI) stipulates several provisions related to trust arrangements, including with regard to taxation treatment of capital gains derived from alienation of shares or interests of entities deriving their value principally from immovable property (real property). In particular, Indonesia uses the MLI to focus on modification to taxation regulations on permanent establishments to prevent tax abuse and treaty shopping

Citation source

In: Derivatives and financial instruments. - Amsterdam. - Vol. 20 (2018), no. 4 ; 4 p

Geographic coverage

Asia

Language note

English