Month: October 2020

In the life of a business, business gifts can be part of business expenses under certain conditions. They correspond to two types:

• Promotional items of an advertising nature: pens, notepads, key rings, etc.
• End-of-year gifts, usually accompanied by a greeting card, that companies give to their customers and suppliers

They must be offered in the interests of the business. The concept of the interest of the company is often widely interpreted by the tax authorities and it suffices in practice for the gift to be made for the benefit of a client and that it corresponds to the practices of the sector or the profession.

Business gifts that companies give to their customers and suppliers are authorized by the tax authorities but are subject to strict regulation. If they are not “exaggerated”, they can be considered as an expense (and therefore deducted from the profits) and their VAT can be recovered.

In the following cases, VAT on business gifts is irrecoverable:

• The unit value of the gift is greater than 60 € incl.
• The cumulative unit values ​​of gifts offered to the same person during a year exceed € 60 including tax
• The unit value of the gift corresponds either to the purchase price or to the cost price when the company manufactures the object itself.

On the other hand, whatever the amounts, business gifts can be considered as expenses, while remaining within reasonable limits: the price of the gift must be in proportion to the importance of the customer and the turnover that it generates. , it must correspond to the uses of the profession. If the price is deemed excessive by the Administration, it may then be reintegrated into operating profit. Make calculations with the 1099 tax calculator  there.

In the event that the manager of a company himself offers a gift to a client out of his personal funds, he can be reimbursed by the company if the gift respects the rules set out above. These refunds are not subject to income tax if they have been deducted from corporate tax by the company. If this is not the case, they must then be considered as additional remuneration and are therefore taxable.

All gifts exceeding € 3,000 must appear on the detailed statement of overheads to be attached to the declaration of results. Amounts not mentioned in this document may give rise to a fine of 5% of their amount or of 1% for deductible expenses.

VAT recovery is possible for visitors over 15 from a non-EU country. They must have spent more than 175 € in the same store during the last 3 months.

Conclusion

For the reimbursement of VAT, an invoice must be provided by the department stores concerned or the “duty free” stores. The amount of the refund can be found under the heading “Refund amount”. Affected visitors should hold their invoices at the airport when they leave the EU and return the pink copy within 3 months of their departure using the stamped envelope given when making their purchase.

The future of decentralized banking is in your hands. No, really. Cryptocurrency – which is digital money – is easily accessible as long as you have a digital device handy.

The cryptocurrency market was valued at more than $250 billion in May 2020. To say the least, cryptocurrencies and blockchain technology are growing more popular and are revolutionizing what it means to transfer money in the digital sphere.

What Makes Cryptocurrency So Promising?

The success of cryptocurrencies comes on the back of an increasingly digital world. With everything being so accessible online, it was only a matter of time before a form of money was created that existed completely in the digital realm.

Cryptocurrencies are growing exponentially because of the following reasons.

1. They Reduce the Need for Third-Parties

Cryptocurrencies are accessible without needing to sign up with a bank or look for a trusted institution. These currencies function in a system called decentralized banking or financing (DeFi), which are platforms that allow people to store, trade, and access financial assets without the use of intermediaries.

This is beneficial because it reduces the risk of failed transactions and having to find trustworthy institutions to go through. Another is that the transactions are instant – you give authorization and the money goes through. No fuss.

Cryptocurrency can be invested and can provide interest, just like actual money. You can also oversee the whole investment process, ensuring that you know where your money is going.

2. They Provide Access to Unbanked Individuals

A survey by the Federal Deposit Insurance Corp found that unbanked and underbanked individuals in America made up to 25% of households in 2017. A lot of this is a result of not having enough finances to justify opening a bank account or simply a lack of trust in financial institutions.

Cryptocurrency, being independent, easily accessible, and boasting low transaction costs, is the answer these people are looking for.

Potential Risks of Cryptocurrency in Decentralized Banking

While cryptocurrency shows promise in defining the future of DeFi, scams and cyberhacks are pressing issues. The fact that everything is online and is not regulated means it is harder to shut down the systems when something gets compromised.

Decentralized exchange platforms such as Uniswap trades cryptocurrencies and are typically secure, but there is always room for error. To an inexperienced investor or individual, the steps to ensure extra personal safety may not be common practice.

Don’t log off just yet, though. This is how you can avoid Uniswap scams and crypto scams in general:

1. Use trusted sources or analyze listed details to make sure they are risk-free.
2. Do your research! Go through social media – if people experienced scams, they are likely to discuss it online.

Cryptocurrency is Promising, but Caution is Key

There’s no doubting it. Cryptocurrency’s role in decentralized banking is likely to keep growing as the world becomes more digitized.

Caution, however, should always be practiced. Even as the security systems continue to grow, we should still take preventative measures to keep our money safe.

Found this article helpful? Make sure to read more from our finance/technology section.

There are serious shortcomings in international rules on the taxation of business income. This is not so much due to the legislators of an individual country. The system companies may not be blamed for complying with these incentives either. The root cause is in the rules that industrialized countries introduced in the 20th century to regulate countries ’taxing rights.

For the Closed Economy

In a closed economy, the tax exemption for normal income according to the ACE model would eliminate many of the shortcomings of the standard corporate tax. In the open economy, however, there are problems. Although the tax exemption on normal income would correct some distortions, the corporate tax rate still faces the same problems. Than in the traditional corporate tax model: higher than competing countries. The rate encourages profit transfer and affects international company’s placement decisions. For these reasons, countries ’incentives to participate in competition at the corporate tax rate remain. The ACE model does not seem to being the meantime.

The Right Options

One much-discussed option is a coordinated transition to group-level internationally uniform tax base provisions. Either commission adopted a proposal for a directive in 2011. This model sees some of the problems inherent in the current state, but leaves some unresolved. Its perhaps the biggest shortcoming is that it only applies to member states of the European Union, or even just some of them, which would be the decisions of globally operating companies still vulnerable to the steering effects of corporate tax. In addition, the directive would leave tax rates for national decision-making, which has even been estimated to strengthen competition at tax rates.

For the International Community

One way forward could be for the international community to work towards a global compensatory tax model appropriate to the balancing environment. As an essential feature of it there should be neutrality with regard to companies and the location of these profits. According to the review provided by the Review (2011), the required properties should bear tax on profits which is similar to VAT and which is levied on the user inherits. However, it is already quite far from traditional corporate tax. Using the s crop taxes calculator is important there.

Last Words

Before finding sustainable solutions for an individual small country optimal policy is likely to adjust the level and structure of its corporate tax to the environ-solutions of the countries concerned. The tax rate reduction can be financed for something by extending the tax base to e.g. removing tax subsidies and restricting deductibility of interest and royalties and, possibly, taxation of net profits which are not in international circulation. All this suggests that the noise around corporate tax has not subsided.in the coming years.

Tax policy in recent years has diverged from the past. For taxation is set tough goals e.g. as an incentive for growth and a redistribution of income. Many believe that there are others, perhaps better ones, to perform these tasks means. Small and large tax changes have been made at a close pace. There are decisions locked up before proper impact assessments and reforms have been canceled soon after their entry into force. When decision makers become public, the underlying data is seen large openings.

Do you have an old or damaged car in your garage now?

Many families today have their own vehicle. They use it for different purposes. But one of the most common is its use for daily transportation. We also use it if we have long-drive travel to different places.

There is really an advantage if you have your own car. Whenever you need to go out at any time of the day, you can do so. Unlike if you just depend on public transportation, your safety and time are your top considerations. But if you have your own vehicle, you will feel more secure, and you can control your time when you will leave your home and anticipate the time of your arrival at your destination. That is why our vehicle is one of the essential parts of our lives. But what if our car has gone old or already has been damaged over the years?

It’s an inevitable thing that our vehicles will encounter such mechanical problems. As we use it in our everyday lives, it is prone to encounter various issues. It has an average lifespan. It means that it has longevity where it is most functional, effective, and safe to drive. It is the main reason why our vehicles need maintenance. But of course, we cannot stop the reality that it will become old after many years. When it’s time has come, we are already thinking of not using it already because it may cause us to harm or into accidents. It is the reason why there are many types of vehicles that we can find in different garages.

If we knew that our vehicle had gone old already and had been damaged, we might think of repairing it. But we knew it was not a good option already. That’s why we are thinking of disposing of it now. But we should be aware that there’s a great process of disposing of your old or damaged car. And it is through scrapping. You can take it to the provider of this service for you to receive a great deal of price. You may use the amount you will receive in buying a new one. The great provider of it that comes with a great deal can be found online, wherein they can give you an instant scrap car quote.

You will just need to visit their site online and connect to the team. They will respond to you immediately and address your concern right away. If you are not yet aware of the process of how to scrap your car, don’t worry because they will surely guide you. They got a great deal now in the market of scrapping an old or damaged vehicle. So, if you are deciding now, you can connect to them already online.