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Clark Kent2013-04-17 19:14:03
Freelance
Clark Kent, 2013-04-17 19:14:03

How to withdraw interest from a foreign company? And how to conclude a contract in this case?

Hello!
The company is at the stage of creation and negotiations.
The form of the company will be LTD (in my analogy - LLC).
The contract has not been finalized yet. The percentage of the company has not yet been formalized. All while in words and verbal agreement.
I have an IP. I have worked and continue to work with foreign companies under a regular contract and transaction passport.

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3 answer(s)
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contango, 2013-04-17
@contango

Is there a double tax treaty with the country where the foreign company is located?

C
Clark Kent, 2013-04-17
@FlashManiac

I think yes. Country - Israel.

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contango, 2013-04-18
@contango

Yes, there is indeed a deal. In brief:
Article 7
Profits from business
The profits of an enterprise of a Contracting State may be taxed only in that State, unless such enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business in this manner, its profits may be taxed in that other State, but only so much as is attributable to that permanent establishment.
Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, then in each Contracting State that permanent establishment shall include the profit which it would have earned had it been a separate establishment. and a separate enterprise engaged in the same or similar activities under the same or similar conditions, and operated entirely independently of the enterprise of which it is a permanent establishment.
Interest
Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the recipient of the interest is beneficially entitled to it, the tax so charged shall not exceed 10 per cent of the gross amount of the interest.
Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State and received by the government of the other Contracting State, its local authority, the Central Bank of that other Contracting State, or any resident of the other Contracting State, in respect of debt obligations guaranteed, insured or indirectly financed By the Government of that other Contracting State, its local authority or the Central Bank of that other Contracting State, shall be exempt from tax in the first-mentioned Contracting State.
The term "interest" as used in this Article means income from debt claims of any kind, whether or not secured by a mortgage or whether or not there is a right to participate in the debtor's profits, and in particular income from government securities, bonds or debentures, including premiums and winnings on these securities, bonds or debentures. Penalties for late payments shall not be treated as interest for the purposes of this article.
The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through or has a permanent establishment situated therein to the State, independent personal services from a fixed base situated therein, and a debt claim on the basis of which interest is paid, are actually attributable to such permanent establishment or fixed base. In such a case, the provisions of Article 7 or Article 14 shall apply, as the case may be.
Interest shall be deemed to arise in a Contracting State if the payer is that State itself, a political and administrative subdivision thereof, a local authority or a resident of that State. If, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness in connection with which the interest is paid arose, and the cost of such interest shall be borne by such permanent establishment or fixed base, such interest shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
If, by reason of a special relationship between the payer and the person actually entitled to the interest, or between both of them and some third party, the amount of interest relating to the debt claim on the basis of which it is paid exceeds the amount that would be agreed between the payer and by the person actually entitled to the interest, in the absence of such relationship, then the provisions of this Article shall apply only to the last mentioned amount. In such case, the excess portion of the payment shall remain taxable under the laws of each Contracting State, due regard being had to the other provisions of this Convention.

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