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Tax on corporate lending and bond issues Country Q&A tool

Resource type: Article

Status: Law stated as at 01-Mar-2012

Jurisdictions: Argentina, Australia, Brazil, Canada, China, England, France, Germany, India, Ireland, Italy, Japan, Romania, Romania, Russian Federation, South Africa, Switzerland, USA

This tool enables subscribers to search the Tax on corporate lending and bond issues Country Q&A in the PLC Tax on Transactions multi-jurisdictional guide by question and jurisdiction. Simply select the questions and the jurisdictions that you are interested in and click the "submit" button

Please note that the law stated dates for each jurisdiction covered may not be the same as this project is in the process of being updated. To check the law stated dates for each jurisdiction, please visit the individual article.

Choose your questions - Select all/De-select all

1. What are the main authorities responsible for enforcing taxes on finance transactions?

2. Is it possible or necessary to apply for tax clearances from the tax authorities before completing a finance transaction?

3. Is it necessary to disclose the existence of any finance transactions to the tax authorities?

4. What are the main corporate taxes potentially chargeable on interest and other amounts receivable under a loan?

5. What corporate tax reliefs are available for borrowing costs (including interest and other amounts payable under a loan)?

6. What corporate, transfer, stamp or other taxes are payable on the transfer of a debt under a loan?

7. Is there withholding tax on interest or any other payments under a loan?

8. Do any particular tax issues arise on the provision of a guarantee?

9. For corporate taxation purposes, are bonds treated any differently from standard corporate loans?

10. What stamp, transfer or similar taxes are payable on the issue and/or transfer of a bond?

11. Are any exemptions available?

12. What are the basic rules for enabling the lessor or lessee of plant and machinery to claim capital allowances/tax depreciation?

13. What is the rate of capital allowances/tax depreciation on plant and machinery; does it depend on the type of assets?

14. Are there special rules for leasing to lessees that do not carry on business in your jurisdiction?

15. How are rentals taxed?

16. Is a ruling or clearance necessary or common?

17. What is the tax treatment of the borrower and the lender if interest or capital is unpaid or deferred?

18. What is the tax treatment of the borrower and lender if a loan is written off, released or replaced by shares in the borrower?

19. Briefly explain the key features of the tax regime applicable to securitisations, including details of any specific tax rules that apply or issues that arise.

20. Please summarise any proposals for reform that will impact on the taxation of finance transactions described above.

Choose your jurisdictions - Select all/De-select all

Tax authorities

1. What are the main authorities responsible for enforcing taxes on finance transactions in your jurisdiction?

Pre-completion tax clearances

2. Is it possible or necessary to apply for tax clearances from the tax authorities before completing a finance transaction?

Disclosure of finance transactions

3. Is it necessary to disclose the existence of any finance transactions to the tax authorities?

Taxes on corporate lending/borrowing

Taxes potentially chargeable on amounts receivable

4. What are the main corporate taxes potentially chargeable on interest and other amounts receivable under a loan?

Tax reliefs available for borrowing costs

5. What corporate tax reliefs are available for borrowing costs (including interest and other amounts payable under a loan)?

Tax payable on the transfer of debt

6. What corporate, transfer, stamp or other taxes are payable on the transfer of a debt under a loan?

Withholding tax

7. Is there withholding tax on interest or any other payments under a loan?

Guarantees

8. Do any particular tax issues arise on the provision of a guarantee?

Bond issues

9. For corporate taxation purposes, are bonds treated any differently from standard corporate loans?

Taxes payable on the issue and/or transfer of a bond

10. What stamp, transfer or similar taxes are payable on the issue and/or transfer of a bond?

Exemptions

11. Are any exemptions available?

Plant and machinery leasing

Claiming capital allowances/tax depreciation

12. What are the basic rules for enabling the lessor or lessee of plant and machinery to claim capital allowances/tax depreciation?

Rate of capital allowances/tax depreciation

13. What is the rate of capital allowances/tax depreciation; does it depend on the type of assets?

Lessees not carrying on business in the jurisdiction

14. Are there special rules for leasing to lessees that do not carry on business in your jurisdiction?

Taxation of rentals

15. How are rentals taxed?

Rulings and clearances

16. Is a ruling or clearance necessary or common?

Restructuring debt

Unpaid or deferred interest or capital

17. What is the tax treatment of the borrower and the lender if interest or capital is unpaid or deferred?

Debt write-off/release and debt for equity swap

18. What is the tax treatment of the borrower and lender if a loan is:

Written off or released (wholly or partly)?
Replaced by shares in the borrower (debt for equity swap)?

Securitisation

19. Briefly explain the key features of the tax regime applicable to securitisations, including details of any specific tax rules that apply or issues that arise in relation to securitisations.

Reform

20. Please summarise any proposals for reform that will impact on the taxation of finance transactions described above.

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Resource information

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Resource ID: 8-502-0414
Law stated date: 01-Mar-2012
Products: PLC Cross-border, PLC EU, PLC UK Finance, PLC UK Law Department, PLC UK Tax, PLC US Finance, PLC US Law Department, PLC US Tax, Tax on Transactions multi-jurisdictional guide

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