International Tax Bulletin - April 2014

03 April 2014

We are pleased to provide you with the Spring 2014 issue of our International Tax Bulletin. This issue focusses on foreign investment in major European jurisdictions (UK, France and Germany). Further, we highlight recent developments in Singapore. We hope this is helpful.

Please note that the next issue of our International Tax Bulletin (Summer 2014) will focus on R&D tax incentive schemes .

Should you have any further questions please do not hesitate to contact your Bird&Bird contact.


US investments in Germany – 2014 Tax aspects

According to 2011 White House figures, US direct investment in Germany has quadrupled since 1989. US exports to Germany support approximately 400,000 US jobs. American headquartered firms employ approximately 700,000 people in Germany. These numbers are likely to increase due to the Trans-Atlantic Free Trade Agreement which is currently being negotiated between the European Union and the US.

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Starting up in the UK – 2014

Many US companies seeking to expand into Europe will start with a presence in the UK due to the language and cultural connections, as well as the UK's legal framework and access to capital markets.

For some companies, this will involve establishing a subsidiary company or a formal branch in the UK. For many companies, however, they may want to dip their toes into the market by hiring a local consultant or employee without establishing a local office or other physical presence...

This note looks at the potential tax implications arising from such informal arrangements; in particular, whether they can incur local tax liabilities or registration obligations.

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2014 Tax aspects of US investments in France

According to 2012 figures published by the American Chamber of Commerce, The United States are the first investors in France since 2011. In turn,France is the second country in Europe where Americans invest, just after the United Kingdom. 1,240 American companies are carrying out business in France, and they employ over 440,000 employees. The number of jobs created in France by these investors nearly doubled every year (+46% for 2012). On the other side, over 2,500 French companies carry out business in the US, having created more than 500,000 jobs. The US is the first country where the French invest, totalling 17% of their worldwide investments. These numbers are likely to increase due to the Trans-Atlantic Free Trade Agreement which is currently negotiated between the European Union and the US.

There are various ways for a US company to invest in France...

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Highlights of relevant tax changes in Singapore Budget for 2014

On 21 February 2014, the Deputy Prime Minister and Minister for Finance delivered the Budget Statement in Parliament for the fiscal year 2014/2015, commencing 1 April 2014.

The general thrust of the Budget for 2014 is to promote innovation and productivity with a particular focus on assistance to help small and medium local businesses as well as foreign multinational enterprises, through a variety of tax and non-tax measures.

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