Tax

Yes. Under the capital investment tax. Foreign lenders at a rate of 15%, and debt security holders at a rate of 10%.

In the first case: The tax is assessed by the holder of the income, except when they do not have a residence, registered office, effective management or fixed establishment in Angola, in which case it should be assessed by the debtor of the income.

Regarding the debt security holder, the liquidation is made by the entities that are responsible for the payment of the income, which are responsible for the totality of the tax and legal additions, in case of non-payment.

If such entities do not have a residence, head office, place of effective management or permanent establishment in Angola to which the payments are attributable, the beneficiary of the income shall be liable to pay the tax.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (e.g. by virtue of incorporation, residence or local branch)?

Generally no.

Would the same analysis apply to interest payments under a debt security (e.g. a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

No.

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

The transfer of funds into Brazil by way of loan  between a foreign lender and a domestic borrower is subject to the financial transactions tax (IOF), at a 6% tax rate, if the loan’s average maturity term is 180 days or less. For loans with an average maturity longer than 180 days, the IOF is currently reduced to 0%.

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

No.

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

No.

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

Lenders who are not resident in Colombia and whose only Colombian source income are interest payments, are not required to file an income tax return in Colombia, provided that any applicable withholding tax has been adequately charged. In this event, the withholding tax becomes the final tax due in Colombia. If these conditions are not fulfilled, an income tax return is due and the tax has to be calculated according to the general rules (which tax the profits of foreign lenders on a net, rather than gross, basis at a rate ranging from 33% to 40%).

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Yes. However, if the exception from withholding tax for interest payments on debt securities issued and traded outside of Colombia applies, an income tax return would not be required.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

Double tax treaties and relevant EU Directives apply to any payments of interest from Czech Republic to lenders resident in other countries.

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

No.

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

No.

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding tax (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

A lender which is not resident in Germany would only be subject to tax in Germany to the extent it receives German source income. German source income in this regard only includes interest paid on a:

• loan secured by real estate located in Germany or ships registered in a German register; and
• profit-participating loan.

Therefore, a lender which is not resident in Germany, would not be taxed on ‘plain vanilla’ interest income in Germany.

It should also be noted in this regard that most German double tax treaties exclude a German taxing right on interest payable or paid to a lender resident in the other contracting state (meaning that there is full exemption), and otherwise, most German double tax treaties limit Germany´s taxing right to 10% withholding tax.

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Interest paid on a bond is generally not included in German source income. It is, however, included in German source income if:

• the bond is not held in a securities deposit account at the financial services provider paying out the interest; and
• the interest is paid on presentation of the respective interest coupon either in cash or by crediting such amount to an account of a person or entity that is not a bank or a financial services provider.

It should also be noted in this regard that most German double tax treaties exclude a German taxing right on interest paid or payable to a person resident in the other contracting state (meaning there is full exemption). Otherwise, most German double tax treaties limit Germany's taxing right to a withholding tax rate of 10%.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (e.g. by virtue of incorporation, residence or local branch)? 

No. 

Would the same analysis apply to interest payments under a debt security (e.g. a bond)? 

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

No, provided that the lender does not have a permanent establishment in the jurisdiction of the borrower (ie in Hungary).

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Yes.

The lender should not (in practice) be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (e.g. by virtue of incorporation, residence or local branch). The same analysis would apply to interest payments made in respect of debt securities.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

No.

Would the same analysis apply to interest payments under a debt security (eg a bond)?

In general terms interest on bonds paid to foreign qualified investors is exempt from withholding tax and the securities to the bond may benefit, upon specific option, to the Substitutive Tax regime.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (e.g. by virtue of incorporation, residence or local branch)?

The lender will be taxed on interest payments under a loan in the jurisdiction of the borrower.

The entity receiving interests is supposed to record and declare it under their corporate income tax heading.

There is no withholding tax on interest for natural persons.

Would the same analysis apply to interest payments under a debt security (e.g. a bond)?

Yes, it will.

Suppression of income tax on interest on Treasury bills and bonds taken out by natural persons (Article 12).

The General Tax Code subjects the income from non-bond loans to the tax on receivables (IRC) and fixes the applicable rates as follows:

• 10% for bonds and bonds of 3, 6, 9 or 12 months;
• 5% for those whose maturity is 3 to 5 years.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding tax (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (e.g. by virtue of incorporation, residence or local branch)?

No.

Would the same analysis apply to interest payments under a debt security (e.g. a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding tax (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

No.

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (e.g. by virtue of incorporation, residence or local branch)? 

No. 

Would the same analysis apply to interest payments under a debt security (e.g. a bond)? 

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

No.

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Yes.

No.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding tax (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

No, unless the lender holds 5% or more of the shares in the borrower, and holds its participation with tax avoidance being the primary goal or one of the primary goals. In that instance, the lender is charged with corporate income tax at a rate ranging between 19% and 25% in 2019 and 16.5% and 25% in 2020, depending on the total amount of income received.

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding tax (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (e.g. by virtue of incorporation, residence or local branch)?

No.

Would the same analysis apply to interest payments under a debt security (e.g. a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

No.

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

No.

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

No.

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

No.

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Yes.

In general, foreign lenders and foreign debt security holders not engaged in a trade or business in Puerto Rico are not subject to Puerto Rico income tax on interest payments, unless they fall within the definition of ‘related persons’ of the Puerto Rico Internal Revenue Code of 2011, as amended.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding tax (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

No.

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of withholding tax (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

No.

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (e.g. by virtue of incorporation, residence or local branch)?

A withholding tax applies to interest payments remunerating loans granted by lenders (company) or individuals who do not have a permanent establishment or are not resident in Senegal.

Holders of debt securities are taxable if they are tax resident.

Would the same analysis apply to interest payments under a debt security (e.g. a bond)?

The same analysis applies to interest payments under a bond. The General Tax Code subjects the income from non-bond loans to the tax on deposit (IRC) and fixes the applicable rates as follows:

• 16% for income from receivables deposits and guarantees; and
• 8% for income from receivables deposits and guarantees opened in the accounts of a bank, a financial institution, etc.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

No.

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding tax (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (e.g. by virtue of incorporation, residence or local branch)?

No.

Would the same analysis apply to interest payments under a debt security (e.g. a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding tax (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

No.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding tax (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

No.

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding tax (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

No.

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (e.g. by virtue of incorporation, residence or local branch)?

No.

Would the same analysis apply to interest payments under a debt security (e.g. a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

No.

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

No.

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

No.

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (eg by virtue of incorporation, residence or local branch)?

No.

Would the same analysis apply to interest payments under a debt security (eg a bond)?

Yes.

Will the lender be taxed on interest payments under a loan in the jurisdiction of the borrower (other than by way of the application of withholding taxes (if any)), assuming the lender is not otherwise resident in that jurisdiction for tax purposes (e.g. by virtue of incorporation, residence or local branch)?

Federal taxes

A lender which is not resident in the US, e.g. a corporation, can be subject to income tax in the US at regular graduated tax rates, even without a physical presence, by engaging in a financing trade or business, or using the debt instrument in any other trade or business within the US. To have such a trade or business, US activities must be conducted on a considerable, continuous, and regular basis.

State and local taxes

A lender which is not resident in the US, e.g. a corporation, can be subject to income tax in the jurisdiction of the borrower even without a physical presence by engaging in a financing trade or business or otherwise using a note in its trade or business within that jurisdiction, or simply based on receiving a certain threshold of interest from borrowers and other income from within the jurisdiction (so called 'economic nexus').

Would the same analysis apply to interest payments under a debt security (e.g. a bond)?

Federal taxes

Yes, the analysis described above is applicable to interest payments under both a loan and other forms of debt securities.

State and local taxes

Yes, the analysis described above is applicable to interest payments under both a loan and other forms of debt securities.