Tax advisory & compliance services

Challenges

The tax framework in which the investment management industry operates is subject to rapid changes with a number of different challenges for the industry. National governments or supranational organisations impose increasing obligations in respect of operational taxes and tax reporting. Tax legislation will be a key element in the context of the opportunities offered by UCITS IV and AIFM. Challenges from national governments and international institutions to structures located in low tax jurisdictions and aggressive tax planning or pricing structures have increased.

In order to face these industry challenges, tax reporting, tax risk management, transfer pricing, VAT and tax planning strategy are becoming more important areas for funds and investment managers to focus on.

Deloitte services offering

Deloitte provides companies with a broad range of services to respond to a fast and ever-changing environment:

Operational tax

EU Savings Directive

• Advice on implementation of the updated Directive
• Hotline assistance on application of current and future EU Savings Directive
• Trainings on EU Savings Directive matters
• Health checks
• Tax alerts
• Newsletters

QI/FATCA services

• Stakeholder management
• Implementation and training assistance
• Advisory services
• Dialogue with the IRS
• Post-implementation assistance, including health check/agreed upon procedure
• Continuous communications - Tax alerts/newsletters

Tax advisory services in relation to Pan European tax reporting for funds

• Ad-hoc advise related to investment taxation issues under various jurisdictions (e.g. Germany, UK, Austria, etc);
• Dealing with investor requests
• Communication with tax authorities

Tax reporting for funds under the German Foreign Tax Regime (German CFC-rules)

Tax reporting for private banking clients

• Preparation of the ‘income statements’ for various jurisdictions (e.g. Germany, France, Belgium, etc)
• Ad-hoc advice related to German taxation of income on capital investments under the German flat tax regime (fiscal qualification of securities, determination of capital gains, grandfathering rules)
• Training on German taxation of income on capital investments under the German flat tax regime

Withholding tax and others

• Taking benefit of favourable ECJ / EFTA decisions
  • Review of withholding tax exposure
  • Coordination of cost-benefit analysis
  • Assistance with formal and procedural filing in several jurisdictions
  • Coordination of EU tax reclaims
• Tax matrix
  • Withholding taxes, capital gain taxes, stamp duties and other in investment countries
  • Taxation of investment funds
  • Taxation of financial products
  • Taxation of investors
  • Tax reporting obligations
• Tax news alerts
  • Tax news alerts sent to our clients with the aim of informing them of tax modifications in relation to several international jurisdictions

Investment funds

Cross border distribution

• Structuring distribution network
• Comparative studies on local products vs. foreign UCITS
• Tax constraints and requirements (reporting)
• Tax Matrices on taxation of investment funds/investors
  VAT optimisation

Management companies

• Tax efficient structuring of management companies
• Prior tax clearance with the tax authorities
• Review of agreements from a tax and VAT perspective
• VAT optimisation
• Tax compliance (Direct taxes and VAT)
• VAT matrix for daily compliance

Transfer pricing

• TP analysis in relation to services provided in the fund sector
• Assistance in developing a tax efficient business model in respect of TP rules
• Prior tax clearance with the tax authorities

UCITS IV

• Tax assistance in the decision process on future business model under UCITS IV – analysis of/recommendation on preferred domicile for management companies, tax consequences of delocalisation/transfer of business; analysis of/recommendation on preferred domicile for funds (comparison of local taxation, taxation in investment countries, application of DTT, taxation of investors); report on tax consequences of restructuring of funds range (fund mergers, set up of Master-Feeder Structure) – taxation of investors, consequences at fund and investment level; Tax Matrices
• Tax assistance in the implementation of the business model – Tax and VAT optimisation, review of agreements from a tax and VAT perspective, prior tax clearance from the tax authorities, communication to investors
• VAT compliance
• VAT matrix for daily compliance

Sharia’s funds

• Tax structuring of Sharia’a compliant investment funds and products
• Liaison with Deloitte Islamic Scholar for Sharia’a advice
• Trainings on Sharia’a structuring principles
• Tax alerts,
• Newsletter

Real estate funds

• Tax and VAT structuring of real estate funds, tax and VAT opinions
• Tax sections of offering / sales documents
• Transfer pricing
• Prior tax clearance with the authorities
• Tax compliance (tax and VAT)
• VAT matrix for daily compliance

Pension pooling

• In the area of pension pooling, tax assistance can be provided in selecting the appropriated vehicle
• Negotiation and getting necessary clearance or tax opinion confirming the recognition of tax transparency of the vehicle by investors country(ies) investment country(ies)
• Tax assistance in drafting legal documentation to preserve tax transparency characteristics
• Assistance and advice for tax reporting