Jun 19, 2023 15:41
12 mos ago
39 viewers *
German term
United States
Computer/IT and Corporate Communications
Native in: English (Variant: US) 
, Spanish 
Works in: German to English, Spanish to English, Italian to English
wird (an die Unentgeltlichkeit) angeknüpft
German to English
Bus/Financial
Law: Taxation & Customs
Hi everyone.
I am translating a document that explains recent changes in Liechtenstein tax law, and this section describes laws governing real-estate investments by private-asset structures in the country, here is the context:
Obliegt der Entscheid über konkrete Immobiliensinvestitionen dem geschäftsführenden Organ, wird dadurch eine Wirtschaftliche Tätigkeit angenommen.
Lediglich die Feststellung genereller Vermögensquoten für Immobilieninvestments kann durch die PVS erfolgen.
***Bei Vermietung der Immobilie wird an die Unentgeltlichkeit angeknüpft.***
I am not sure what is meant exactly by "wird an die Unentgeltlichkeit angeknüpft ". Thank you for your assistance.
I am translating a document that explains recent changes in Liechtenstein tax law, and this section describes laws governing real-estate investments by private-asset structures in the country, here is the context:
Obliegt der Entscheid über konkrete Immobiliensinvestitionen dem geschäftsführenden Organ, wird dadurch eine Wirtschaftliche Tätigkeit angenommen.
Lediglich die Feststellung genereller Vermögensquoten für Immobilieninvestments kann durch die PVS erfolgen.
***Bei Vermietung der Immobilie wird an die Unentgeltlichkeit angeknüpft.***
I am not sure what is meant exactly by "wird an die Unentgeltlichkeit angeknüpft ". Thank you for your assistance.
Proposed translations
21 mins
Sam Habach
United States
United States
Native in English
Works in field
United States
High quality, flexibility, fast delivery
Native in: English
Works in: Swedish to English, German to English, Norwegian to English, and 3 more.
the concept of non-remuneration is applied.
"When renting out the property, the concept of non-remuneration is applied."
It implies that the arrangement in the context of renting out the property is non-commercial or non-profit, with no payment or consideration involved.
It implies that the arrangement in the context of renting out the property is non-commercial or non-profit, with no payment or consideration involved.
+1
9 hrs
Michael Martin, MA
United States
United States
Native in German
&
English
Works in field
United States
Creativity wins in the long run
Native in: German (Variant: Germany) , English (Variant: US)
Works in: German to English
Related KudoZ points
:
53
the no-charge requirement will be triggered
Makes sense to me.
"In the event of the property being leased, the no-charge requirement is/will be triggered."
"In the event of the property being leased, the no-charge requirement is/will be triggered."
Peer comment(s):
| agree |
Andrew Bramhall
: Yes, possibly ' no charge requirement CLAUSE', to round it off.
16 hrs
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Thanks, Andrew!
|
20 hrs
Adrian MM.
Austria
Austria
Native in English
Specializes in field
Austria
Retd.T&I, Barrister & Austro-Advokat
Native in: English (Variants: British, Scottish)
Works in: Spanish to English, English to Spanish, French to English, and 5 more.
Related KudoZ points
:
20
there will be a transactional tie-up (as a dealing for no consideration)
bei Vermietung der Immobilie : if the (land &) building / real estate is let, the transaction will be classified as one made for no (good or valuable) consideration.
The letting does not count as a conveyance or other transfer of land & building.-
There's nothing missing - 'es' is understood as literally tying up with the 'wird' as an impersonal expression.
Valuable consideration means for money or money's worth. Good consideration connotes 'in return for natural love and affection, so gifts and other transfers between family members.
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Note added at 20 hrs (2023-06-20 12:37:07 GMT)
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understood: for no *taxable* consideration / quid pro quo
The letting does not count as a conveyance or other transfer of land & building.-
There's nothing missing - 'es' is understood as literally tying up with the 'wird' as an impersonal expression.
Valuable consideration means for money or money's worth. Good consideration connotes 'in return for natural love and affection, so gifts and other transfers between family members.
--------------------------------------------------
Note added at 20 hrs (2023-06-20 12:37:07 GMT)
--------------------------------------------------
understood: for no *taxable* consideration / quid pro quo
Peer comment(s):
| neutral |
AllegroTrans
: "transactional tie-up" conveys nothing, never seen it used, albeit your explanation makes sense and is free (for once) of waffle about your past
2 hrs
|
1 day 2 hrs
Andrew Bramhall
United Kingdom
United Kingdom
Native in English
United Kingdom
Flair and accuracy tailored to your text
Native in: English
Works in: Spanish to English, German to English
Related KudoZ points
:
4
It will be deemed non-remunerative
If the decision on specific real estate investments is made by the managing body,this is taken to mean the assumption of economic activity.
Only the determination of general asset ratios for real estate investments can be made by the PVS.
If the real estate is rented out, it is deemed to be non-remunerative (i.e, free of charge(s).
Only the determination of general asset ratios for real estate investments can be made by the PVS.
If the real estate is rented out, it is deemed to be non-remunerative (i.e, free of charge(s).
Discussion
I'm curious to know what Robert's solution looks like; hope he tells us.
Best wishes
"Zulässig bleibt das Halten von Immobilen jedoch insbesondere in folgenden Fällen:
- Die PVS überlässt die Immobilie unentgeltlich einem Begünstigten oder Anteilseigner; dies stellt eine zulässige Gewinnverwendung dar;
- die PVS verwendet die Immobilie für ihre eigenen Zwecke, ohne dass hieraus Einnahmen erzielt werden"
See part in bold. Not sure why we have to overcomplicate things, since this is rental income (or lack thereof), pure and simple.
https://www.irs.gov/taxtopics/tc415
Or, as someone else put it:
"As the mere exercise of ownership and the granting of benefits by the entity to its shareholders or beneficiaries are not considered commercial activities, the holding of a property does not constitute a commercial activity as long as the property is used by the PAS or its shareholders and beneficiaries and no rent is charged."
https://www.lexology.com/library/detail.aspx?g=a444dd5d-3d78...
Best
"Liechtenstein hat mit dem neuen Steuergesetz eine steuerlich privilegierte Institution zur Vermögensverwaltung und Asset Protection geschaffen: Für Privatvermögensstrukturen (PVS), die keine wirtschaftliche Tätigkeit ausüben, sondern ausschliesslich der Vermögensverwaltung und Asset Protection dienen, fällt nur die Mindestertragssteuer an."
https://www.private.ch/media/docs/private/2018/01/de/038_Lie...
You're also exempt from filing tax returns here. However, that means you're going to run into some problems if real estate is part of your "portfolio":
"Anders als bei bankable assets werden beim Halten (Besitzen) von Immobilien in aller Regel Einnahmen aus der Nutzung der Immobilie (beispielsweise durch Vermietung) erzielt. Da die Vermietung somit regelmässig eine wirtschaftliche Tätigkeit begründet, ist auch das weitere Halten einer direkt durch den Investor übertragenen Liegenschaft grundsätzlich unzulässig."
https://archiv.llv.li/files/onlineschalter/Dokument-1510.pdf
There are a few exceptions to this rule and that's what the sentence in question refers to.
[to be continued...]
PVS must be private Vermögensstruktur, though I'm not sure what that means.