Tax Treaty Between Namibia and Romania

 
 
 

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File Type: Pdf
 
Status: In Force
 
  Number of Namibia Treaties:   5 - See All
 
  Number of Romania Treaties:   56 - See All
 
 

Introductory note on Tax Treaty Planning

 
Tax Treaties (double taxation agreements or DTAs) are international agreements or conventions concluded with the object of eliminating double taxation by the contracting states. To succeed in international tax planning, it is essential to engage in deep and far-reaching calculations. Tax treaties themselves and the OECD Commentary on the Model Convention give you practical hands-on guidance on international tax planning issues.
 
 

Treaty Shopping under the NamibiaRomania Tax Treaty

 
Treaty shopping is the use of a tax treaty by a person resident in a country that is not a party to the treaty, i.e. in the present instance by someone who is a resident of neither Namibia nor Romania. However, it is becoming more and more difficult to use provisions, which were intended to prevent double taxation, in such a way that they result, for the purposes of an international tax plan.
 
 

Tax Treaty news from the OECD

 
The OECD has released two reports submitted to its Committee on Fiscal Affairs by an Informal Consultative Group of business and government representatives. The Reports address, respectively:

(a) Technical issues relating to granting treaty benefits with respect to income of collective investment vehicles; and
(b) Procedural barriers to claims for treaty benefits that affect portfolio investors more generally.

These are issues which may impact on international tax planning transactions.
 
 
 
 
 
 
 

Know your Offshore Terms:

 
 
 

Transfer Pricing

Transfer pricing provisions give the tax authorities the power to reallocate profits and losses where the parties are related and/or the transactions in question are not at arm’s length or for a legitimate business purpose. Transfer pricing measures may prevent the coming into operation of an international tax planning that fails to take them into account.
 

Research and Development (R& D) and Patents Incentives

The entire amount of capital expenditure incurred on scientific research may, subject to certain conditions, be written off under research and development (R& D) incentives, which may have significant tax planning effects, particularly when coupled with patents and similar incentives. Research and development activities may form part of an international tax plan and may contribute toward closing the gap between high tax jurisdictions and tax havens or international offshore financial centers (IOFCs).
 

Risk Shifting and Risk Distribution

Before an insurance payment can be classified as a premium, two essential factors must be present: risk shifting and risk distribution. To shift the risk, the insured must transfer it to another who has the financial capacity to make good the losses.
 

Umbrella Offshore Funds

Umbrella offshore funds offer investors the possibility of investing in different portfolios in an offshore vehicle set up in a tax haven or international offshore financial center (IOFC). These may offer a variety of investment strategies incorporated in a single investment vehicle.
 
 
 
 
 
 
 
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