The Australian Government is consulting on a proposed new tax framework for Corporate Collective Investment Vehicles (CCIVs).
The Australian funds market currently uses unit trusts, whereas corporate and limited partnership investment vehicles are more common elsewhere in the world. The Government is implementing a new CCIV, with the aim of offering an internationally recognizable investment vehicle that can be readily marketed to foreign investors. CCIVs will operate with a corporate structure, as opposed to a trust-based structure.
Revenue Minister Kelly O'Dwyer said: "CCIVs will increase the competitiveness of Australia's managed funds industry by aligning Australia's legal funds structures with those found in the rest of the world."
The proposed tax system for the new CCIV has been designed to broadly align with the attribution tax regime for managed investment trusts (MITs). One of the key features of the CCIV regime will be a capital gains tax (CGT) relief for attribution MITs that convert into CCIVs and meet the eligibility requirements for attribution tax.
O'Dwyer said: "This capital gains tax relief will ensure investors' balances are not reduced by tax at the time the attribution MIT moves into the CCIV regime."
There will be further consultations on the regulatory aspects of the CCIV framework in the early part of 2018. The Government will also consult on technical amendments to the tax system for MITs, to ensure that it continues to operate as intended.
The United Arab Emirates Cabinet on January 7, 2018, approved two double tax agreements concluded with Moldova and Croatia.
Taiwanese Premier Lai Ching-Te has directed the Ministry of Finance to work towards a Taiwan-US tax treaty.
Cyprus and Saudi Arabia signed a DTA on January 3, 2018.
According to preliminary media reports, Colombia and Japan are negotiating a DTA.
Georgia and Moldova signed a DTA on November 29, 2017.
Luxembourg and Kosovo signed a DTA on December 8, 2017.
Switzerland and the United Kingdom signed a DTA Protocol on November 30, 2017.
According to an update from the Liechtenstein Government, the new DTA with the United Arab Emirates will become effective from January 1, 2018.
According to preliminary media reports, the Netherlands and Liechtenstein held a first round of DTA negotiations over three days ending November 17, 2017.
Saudi Arabia's Cabinet on November 28, 2017, authorized the signing of a DTA with Bulgaria.
Bahrain's Cabinet has approved the signing of a new DTA with Hong Kong, the state news agency said November 13, 2017.
Hong Kong announced on November 24, 2017, that its DTAs with Pakistan and Latvia had entered into force.
Finland on November 2, 2017, confirmed that a new DTA signed with Germany will be effective from January 1, 2018.
The DTA between Cyprus and Iran will become effective from January 1, 2018.
India ratified a third Protocol to its DTA with New Zealand on November 2, 2017, publishing a Notice in its Official Gazette.
Gibraltar and the United Kingdom are considering launching negotiations towards a DTA, according to recent comments from the UK's Economic Secretary to the Treasury.
Barbados and Italy have exchanged instruments of ratification in respect of a DTA, which will now become effective from January 1, 2018.
Switzerland's Government on October 25, 2017, adopted a dispatch on the DTA concluded with Pakistan, enabling its ratification.
Spain and Portugal signed a DTA on October 18, 2017.
Pakistan and Latvia initialed a DTA on October 25, 2017.
Spain and Romania signed a DTA on October 18, 2017.
Denmark and Japan signed a DTA Protocol on October 11, 2017.
The Bahamas and Finland signed a Protocol to amend their TIEA on October 19, 2017.
The Dutch lower house of parliament on October 24, 2017, approved the ratification of a DTA signed with Zambia.
Cyprus and Mauritius signed a DTA Protocol on October 23, 2017.