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, the Philippines, China, Thailand, Bangladesh, and Viet Nam have tax-sparing provisions.
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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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Tax sparing is a means by which the tax system of a capital-exporting country can be made to
Sample 1Sample 2

Examples of Tax sparing in a sentence

  • 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 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.

  • The Company is in compliance in all material respects with all terms and conditions required to maintain such Tax exemption, Tax holiday or other Tax-sparing arrangement and the consummation of the transactions contemplated hereby will not have any adverse effect on the continuing validity and effectiveness of any such Tax exemption, Tax holiday or other Tax- sparing arrangement or order.

  • Target and each of its subsidiaries are in material compliance with all terms and conditions of any Tax exemptions or other Tax- sparing agreement or order of a foreign government.

  • Tax sparing agreements, territorial tax reforms, and foreign direct investment.

  • 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.

  • Finance expense Finance expense was consistent at $0.4 million when compared to Q3 2013.

  • Tax sparing credit.Under Mauritius' domestic tax law, unilateral double taxation relief in the form of an ordinary credit is available for foreign-source income that has been subject to tax abroad.

  • Tax sparing involves the source country providing a tax credit not only on tax which has been paid to the host country but also on tax which has been spared by the host country as a part of a tax incentive scheme.


More Definitions of Tax sparing

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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Related to Tax sparing

  • 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 for Borrower and its Subsidiaries, on a consolidated basis for any period, all state and federal income taxes paid or due to be paid during such period.

  • 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.

  • Operating Cost means the costs associated with operating a multifamily development once the project is placed in service.

  • Consolidated Tax Expense means, for any period, the tax expense of Holdings and its Subsidiaries, for such period, determined on a consolidated basis in accordance with GAAP.