Tax sparing definition

Tax sparing is a means by which the tax system of a capital-exporting country can be made to accommodate the tax incentives of developing countries. More specifically, in this case, Japan "spares" the tax it would normally impose on the untaxed (or low-taxed) income earned by Japanese investors in Pakistan by granting them foreign tax credits equal to the tax they would have paid in Pakistan (in the absence of the incentives). Japan's bilateral tax treaties with Sri Lanka, Zambia, Brazil, Pakistan, the Philippines, China, Thailand, Bangladesh, and Viet Nam have tax sparing provisions.
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Tax sparing is a means of ensuring that the relief associated with tax incentives offered by developing countries to foreign investors is not offset by taxation in those investors' country of residence owing to the latter's use of the credit method for relieving international double taxation.
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Tax sparing is a means by which the tax system of a capital-exporting country can be made to
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Examples of Tax sparing in a sentence

  • Tax sparing credits are available to a Mauritius subsidiary, Compart Asia Pacific Ltd, whereby the subsidiary is entitled to a deemed credit of 80% of the tax on its foreign source income.

  • Tax sparing provisions have emerged as a policy that is included in many bilateral tax treaties to prevent host country tax incentives from being nullified by residence country taxation.

  • Tax sparing provisions preserve the tax incentives granted by a low-income country by requiring the high- income country to give a tax credit for the taxes that would have been paid had the incentive not been granted.

  • Tax sparing refers to the situation where tax foregone by Malaysia (e.g. in the form of tax holidays or tax reductions) on the income of an Australian resident taxpayer is deemed to have been paid (i.e. the Australian resident can claim a foreign tax credit for the Malaysian tax foregone as if it had, in fact, been paid).

  • These tax advantages are liable to attract the attention of tax planners.The following are some common examples of transactions involving potential abuse of tax treaties: • Treaty shopping and the use of conduit companies• Income shifting• The international hiring-out of labour• Circumventing treaty threshold requirements• Changing the character of income• Tax sparing abuses.

  • Tax sparing provisions play their most significant role in cases where the foreign investor is taxed in both their residence and source countries in the year that the profits are earned; however, where an investor can defer the taxation of profits in the country of residence, possibly indefinitely, the importance of a tax sparing provision diminishes, often to the point of irrelevance.

  • Tax sparing may therefore be ultimately harmful to the countries that are most in favor of its introduction.

  • To the knowledge of Graduate or any of its Subsidiaries, each of Graduate and its Subsidiaries is in material compliance with all terms and conditions of any Tax exemption, Tax holiday or other Tax sparing agreement or order of any Governmental Entity and the consummation of the transactions referenced in this Agreement will not have any adverse effect on the continued validity and effectiveness of any such Tax exemption, Tax holiday or other Tax-sparing agreement or order.

  • Estimation of equation (2)Model: OLS - FE Regressors(ii) Tax_sparingo-d,t + Credito,t*Tax_sparingo-d,t -0.043* -0.074*** -0.075*** (0.069) (0.002) (0.002)(iii) Tax_sparingo-d,t + Credito,t * Tax_sparingo-d,t + Credito,t *Tax sparing * Dtt_WHTchangeo-d, -0.041*(0.081)-0.042*(0.080)Country-pair FE The main obtained results remain unchanged in terms of sign and statistical significance in column 7.

  • Tax sparing credits also available provided there is a relevant provision in a DTA (s.35(5)(c) Law 118/2002.


More Definitions of Tax sparing

Tax sparing is a means by which the tax system of a capital-exporting country can be made to accommodate the tax incentives of developing countries. More specifically, in this case, Japan "spares" the tax that it would normally impose on the untaxed (or low-taxed) income earned by its investors in India by granting them foreign tax credits equal to, or possibly greater than, the tax they would otherwise have paid in India (in the absence of the incentives).
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Related to Tax sparing

  • Tax area means a geographic area created by the overlapping boundaries of one or more taxing entities.

  • Tax Expense means, for any period, the tax expense (including federal, state, provincial, local, foreign, franchise, excise and foreign withholding taxes) of the Loan Parties and their Subsidiaries, including any penalties and interest relating to any tax examinations for such period, determined on a consolidated basis in accordance with GAAP.

  • Income Tax Expense means, with respect to the Borrowers, for any period, the aggregate, without duplication, of all Taxes on the income of such Person for such period, whether current or deferred, determined on a Modified Consolidated Basis.

  • Tax Payments has the meaning set forth in the definition of Permitted Payments to Parent.

  • Tax Expenses means all federal, state, county, or local governmental or municipal taxes, fees, charges or other impositions of every kind and nature, whether general, special, ordinary or extraordinary (including, without limitation, real estate taxes, general and special assessments, transit taxes, leasehold taxes or taxes based upon the receipt of rent, including gross receipts or sales taxes applicable to the receipt of rent, unless required to be paid by Tenant, personal property taxes imposed upon the fixtures, machinery, equipment, apparatus, systems and equipment, appurtenances, furniture and other personal property used in connection with the Project, or any portion thereof), which shall be paid or accrued during any Expense Year (without regard to any different fiscal year used by such governmental or municipal authority) because of or in connection with the ownership, leasing and operation of the Project, or any portion thereof.

  • Tax Year means a period beginning with 6th April in one year and ending with 5th April in the next;

  • Base Tax Year means the property tax levy year used

  • Tax Package has the meaning assigned in Section 6.01(b);

  • Tax Items shall have the meaning set forth in Section 6.4.A.

  • Operating Expense means salaries, wages, cost of maintenance and operation, materials, supplies, insurance and all other items normally included under recognized accounting practices, but does not include allowances for depreciation in the value of physical property.

  • Tax Payment means either the increase in a payment made by an Obligor to a Finance Party under Clause 12.2 (Tax gross-up) or a payment under Clause 12.3 (Tax indemnity).

  • Base Taxes means the Taxes payable for the Base Tax Year.

  • Tax Period means, with respect to any Tax, the period for which the Tax is reported as provided under the Code or other applicable Tax Law.

  • Consolidated Income Tax Expense means, with respect to any Person for any period, the provision for federal, state, local and foreign income taxes of such Person and its Restricted Subsidiaries for such period as determined on a consolidated basis in accordance with GAAP.

  • council tax benefit means council tax benefit under Part 7 of the SSCBA; “couple” has the meaning given by paragraph 4;

  • Pre-Tax Income means income, as determined by GAAP, prior to deduction of the Bonus Pool (as hereinafter defined) and income taxes, and if applicable, after the deduction of any bonus pool of a future officer bonus plan adopted by the Company relating to an applicable Award Year and adjustments approved by the Board as described herein.

  • Building Operating Expenses means the portion of “Operating Expenses,” as that term is defined in Section 4.2.7 below, allocated to the tenants of the Building pursuant to the terms of Section 4.3.1 below.

  • Tax roll means a permanent record of the taxes charged on property, as extended

  • Tax Allocations means the allocations set forth in paragraph 4 of Exhibit B.

  • Operating Expenses is defined to include all expenses necessary or appropriate for the operation of the Fund (or Class, as applicable), including the Advisor’s investment advisory or management fee detailed in the Investment Advisory Agreement and any Rule 12b-1 fees and other expenses described in the Investment Advisory Agreement, but does not include taxes, leverage interest, brokerage commissions, dividend and interest expenses on short sales, acquired fund fees and expenses (as determined in accordance with SEC Form N-1A), expenses incurred in connection with any merger or reorganization, or extraordinary expenses such as litigation expenses.

  • Employee Taxes means all taxes, assessments, charges and other amounts whatsoever payable in respect of, and measured by the wages of, the Vendor’s employees (or subcontractors), as required by the Federal Social Security Act and all amendments thereto and/or any other applicable federal, state or local law.

  • Allocation Year Means (i) the period commencing on the Closing Date and ending on December 31, 2006, (ii) any subsequent period commencing on January 1 and ending on the following December 31, or (iii) any portion of the period described in clause (ii) for which the Company is required to allocate Profits, Losses and other items of Company income, gain, loss or deduction pursuant to Article V.

  • Taxable Allocation means, with respect to any Series, the allocation of any net capital gains or other income taxable for federal income tax purposes to a dividend paid in respect of such Series.

  • Tax Return means any return, declaration, report, claim for refund, or information return or statement relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof.

  • Tax Benefit Schedule is defined in Section 2.02 of this Agreement.

  • Tenant’s Taxes means (a) all taxes, assessments, license fees and other governmental charges or impositions levied or assessed against or with respect to Tenant's personal property or Trade Fixtures in the Premises, whether any such imposition is levied directly against Tenant or levied against Landlord or the Property, (b) all rental, excise, sales or transaction privilege taxes arising out of this Lease (excluding, however, state and federal personal or corporate income taxes measured by the income of Landlord from all sources) imposed by any taxing authority upon Landlord or upon Landlord's receipt of any rent payable by Tenant pursuant to the terms of this Lease ("Rental Tax"), and (c) any increase in Taxes attributable to inclusion of a value placed on Tenant's personal property, Trade Fixtures or Alterations. Tenant shall pay any Rental Tax to Landlord in addition to and at the same time as Base Rent is payable under this Lease, and shall pay all other Tenant's Taxes before delinquency (and, at Landlord's request, shall furnish Landlord satisfactory evidence thereof). If Landlord pays Tenant's Taxes or any portion thereof, Tenant shall reimburse Landlord upon demand for the amount of such payment, together with interest at the Interest Rate from the date of Landlord's payment to the date of Tenant's reimbursement.