Foreign Foundations Research Articles

Poland: Tax labyrinths and legal landscapes—the odyssey of family foundations in Poland

Abstract The Polish Family Foundation Law, introduced in May 2023, was designed to facilitate the preservation and management of family wealth. Its success has exceeded expectations with over 1,500 foundations established in its first year. This article examines the law’s impact, its reception, and the practicalities of establishing a Polish foundation. It also explores the implications for existing foreign foundations, analyzing the challenges posed by the exit tax regulations, Controlled Foreign Corporation rules and withholding tax developments. The article further discusses potential legal adjustments needed to align the law with European Union principles and the opportunities for foreign foundations related to it.

Greece: Greek tax treatment of foreign private foundations

Abstract The concept of foreign foundations pursuing statutory purposes other than charitable purposes does not exist in Greek civil law and is also not expressly recognized in Greek inheritance and gift tax law. On the other hand, from a Greek income tax point of view, Article 2 of the Greek Income Tax Code, applicable as of 1 January 2014, explicitly includes foundations of any type within the definition of legal entities. Moreover, in July 2017, the Greek Ministry of Finance issued Guidelines regulating the Greek tax treatment of foreign foundations of a non-charitable nature, which until then was entirely a matter of interpretation due to the lack of relevant legal provisions. This has resulted in trusts and foreign private foundations now being accorded similar tax treatment under the relevant Guidelines.

FOLKLORE AND LITERARY SOURCES OF FRANKO’S "PARABLE ON FRIENDSHIP"

The article analyzes the literary and folklore sources of Franko’s "Parable on Friendship". It has been ascertained that this poetic piece from "My Emerald" collection is obviously rooted in the exemplum "On Semifriendship" from "the book of true to life maxims, parables and novellas" "Disciplina clericalis" (1106) by Medieval writer Petrus Alfonsi. The long-lasting literary journey of the key motif (a friend in need) has been traced through a story from "Gesta romаnorum" collection (early 14th c.), a tale from Don Juan Manuel’s book "Tales of Count Lucanor" (1335) and a novella from Boccaccio’s "The Decameron" (1353). It is remarked that each of the listed sources was subject of Ivan Franko’s considerable academic interest. The researcher offered numerous insights on Petrus Alfonsi’s book, the collection of an unknown author under the title “Gesta Romanorum”, tales by Juan Manuel and novella collection by Giovanni Boccaccio, remarking their essential influence on the literary and folklore tradition of the European people. The texts from the mentioned books were scrupulously analyzed by the Ukrainian scholar in the national literary contexts. Special emphasis is placed on the folklore spin-off in the popular plot development. A folk tale on putting the friendship to test has been identified in the collected records by Polish folklorist Zofia Rokossovska "Bajki (skazki) zo wsi Jurkowszczyzny (powiatu Zwiahelskiego, gubernii Wołyńskiej)" (1897 р.), which was brought out shortly before Franko started working on "My Emerald" and may have given him an additional and final inspiration to apply "own patterns" to "a foreign foundation" or in other words to come up with an original reception of a popular topic. The article also offers a comparative analysis of certain matching motifs and establishes a degree of their closeness to Franko’s parable.

Legalitas Pendirian Yayasan Oleh Orang Asing Di Indonesia

The research was conducted for the sole purpose of knowing the legality of establishing a foundation as a legal entity operating in the social, religious, and humanitarian fields, in this case the foundation was founded by foreigners. This research uses a method with normative research in addition to legislation is used as an approach, in addition to facts and conceptual analysis used as an approach in this research method. The results of the study indicate that the legali ty of the establishment of a foundation by foreigners in Indonesia has now been determined in Law Number 28 of 2004 concerning Amendments to Law Number 16 of 2001 concerning Foundations where foreigners in this context have more opportunities to set up a foundation. Regulations on foreign foundations are related to their establishment which are further emphasized in Government Regulation Number 63 of 2008 concerning the Implementation of the Law on Foundations as an implementing regulation that provides legal certainty to foreigners in establishing a foundation. as well as the nation, and the State of Indonesia.

United States: highlights of legal and tax differences of statutory foundations and private foundations

Abstract The article approaches the analysis of foundations primarily from an entity classification and tax point of view. First, the authors address the various options how a foreign foundation can be classified under U.S. tax law. Subsequently, the authors take a closer look at U.S. statutory foundations, which now exist under the laws of New Hampshire and Wyoming. In a third section, they explain the concept of a private foundation, which under U.S. federal tax law refers to a tax-exempt charitable organization. These private foundations are compared with statutory foundations with regard to their legal and tax law differences. The authors come to the conclusion that the ability to tailor a statutory foundation to meet specific needs using an entity with legal personality is very likely its greatest attribute that founders find attractive.

Distributions from Foreign Foundations and Trusts—The Case-law of the German Federal Fiscal Court (BFH)

Abstract The taxation of distributions from foreign foundations and trusts to beneficiaries resident in Germany is highly relevant in practice, but continues to be fraught with uncertainties. The article shows that recent case-law of the German Federal Fiscal Court (BFH) has clarified the position only partially. It is shown that economic double taxation burdens can only be avoided with careful planning which should ideally start before establishing German tax residency.

Contributions to charitable foundations—French tax perspective

Abstract Gifting assets to foreign charitable foundations could constitute a taxable event in France under French gift or inheritance tax. Such gifts thus require careful planning, as, depending on the localization and nature of that foreign charitable foundation, they might be taxed in France and hence jeopardize the initially intended charitable project, at least from the standpoint of its financing. Assessing whether the charitable project would indeed qualify for French preferential tax rules, requires a good understanding of both the respective foreign charitable institution and its French counterpart.

Recent developments in German taxation of distributions of foreign trusts and foundations to their Germany-based beneficiaries

Abstract Distributions of foreign trusts and foundations to their Germany-based beneficiaries may be subject to German income and gift tax. Fortunately, German tax authorities now have implemented a judgment of the German Federal Fiscal Court rendered on 3 July 2019 stating that distributions made by a foreign foundation to its Germany-based beneficiaries are not subject to German gift tax provided that (i) the distribution has been made in accordance with the foundation’s statutes and (ii) the beneficiary does not have a claim regarding the distribution received. However, there are still some cases in which gift tax may be levied on such distributions, so that the risk of potential double taxation with both income and gift tax is still not completely off the table.

Recognition of foreign family foundations in Switzerland

Abstract Swiss Family Foundations are not commonly used for asset protection or estate planning purposes due to a de facto prohibition of family maintenance foundation. Since families are often spread over different countries and continents and assets are located in various jurisdictions, contributions of assets to a foundation may very well be an optimal solution, also because these assets no longer fall within the scope of the estate. For this purpose, foundations are set up in jurisdictions like Liechtenstein.

UAE private foundations—an overview

Abstract Most Middle Eastern entrepreneurial families are familiar with foreign offshore trusts and foundations and have been using these tools to ensure wealth preservation and inter-generational continuity for several generations. In that context, the United Arab Emirates (UAE) now counts three foundation regimes (in the Abu Dhabi Global Market, the Dubai International Financial Centre and the Ras Al Khaimah International Corporate Centre) and provides a local solution to wealth management and preservation, family succession planning, corporate structuring and asset protection. The purpose of this article is to present the context, mechanisms and interests in relation to UAE private foundations.

A Study of Grant Support from Russian Scientific Foundations to Domestic Publications in Leading International Journals (based on Data from Scopus and Web of Science, the Russian Foundation for Basic Research, and the Russian Science Foundation)

This article presents a scientometric analysis of funding information provided in publications with Russian affiliation in leading scientific journals that are indexed in both main citation databases, Scopus and Web of Science. Metadata of the array of publications with Russian affiliation that were published in Nature Index journals in 2014–2017 were used as a base for comparing the completeness of data on grant foundations in the two databases and identifying Russian foundations and organizations linked to the largest number of such publications. The article analyzes the grant support for publications of the leading Russian universities and examines the dynamics of activity of both Russian and foreign foundations, as well as international co-authorship. Conclusions are drawn about the significant superiority of the Web of Science in terms of completeness of information indexing and about the distribution of references to the Russian Foundation for Basic Research (RFBR) and the Russian Science Foundation (RSF). The number of publications that acknowledge the RFBR as the grant sponsor previously exceeded the number of publications that acknowledge the RSF; however, the trend has recently changed, as the RSF has started to show up in a larger number of publications; the role of foreign grant sponsors remains significant. Additionally, directions of comparative citation impact analysis depending on the grant sponsor are outlined.

Childbirth transformation and new style midwifery in Beijing, 1926 – 1937

ABSTRACT This article offers a comparative analysis of the transformation of midwifery practices in Beijing city and its rural neighborhood in China between 1926 and 1937. From the 1920s onwards, impelled by supports of governments, academic groups and foreign foundations, a reform of midwifery practices was triggered across China. Beijing was one of the forerunners in this reform. Through examining the midwifery regulations, the new style midwifery service, the midwife education/training programs, as well as the consequential influences on birth attendants and birth outcomes (neonatal, infant and maternal mortality rates) in Beijing’s first health district and the nearby Qinghe district, this article shows that in the urban district the trained birth attendants performed better than the untrained personnel in preventing neonatal deaths. Also, the growing use of trained midwifery contributed to the reduction of infant and maternal mortality rates in the urban community. However, because of the paucity of sources of rural areas, such positive outcomes cannot be ascertained in the rural district. Yet an obvious urban-rural divergence in midwifery services and maternal care is still observed.

COPING STRATEGIES FOR OVERCOMING STRESS BY ATHLETES

Skilled athletes encounter numerous stress factors at various stages of their sports activity. To achieve success in their professional activity, athletes have to increase their own stress resistance, using different techniques and methods. Successful mastery and choice of coping strategies determine the response of a skilled athlete to internal and external stress factors, which actualizes the study of issues related to stress management in the course of professional activity. Objective. Coverage of contemporary foreign theoretico-methodical foundations of stress resistance and the use of coping strategies in sport and the identification of modern conceptual and categorical apparatus used by leading foreign scientists. Methods. Analysis, synthesis, comparison, generalization. Results. Based on the analysis of existing theoretico-analytical researches, modern approaches to the problem of stress and formation of stress resistance are considered. Features of individual coping strategy usage by athle­tes engaged in mixed martial arts are determined. The peculiarities of coping strategy selection and influence of personal factor on their use are revealed. New types of coping strategies for stress management are described. Availability of a strong correlation between the effectiveness of one coping strategy and possibility to choose another one, if needed, is described.

Abu Dhabi Foundations Regime: strategic location in the Middle East for legacy planning towards emerging high growth markets

Abstract Most Middle East entrepreneurial families are familiar with foreign offshore trusts and foundations, and have been using these tools to ensure wealth preservation and inter-generational continuity for several generations. In that context, the new foundation regime was introduced in 2017 in the Abu Dhabi Global Market, a Middle East common law familiar jurisdiction, meeting all the requirements for a simple-to-understand, cost-effective, and sustainable vehicle dedicated to wealth management and preservation, family succession planning, tax planning, asset protection, corporate structuring, and for public interest foundations (excluding charities). The purpose of this article is to present to the reader the context, mechanisms, and interests to use Abu Dhabi Global Market private foundations.

Indonesian approaches to perception of the international relations and worldwide policy

In this article authors analyze sources and bases of political culture of Indonesia, reveal features of national approaches to the international relations, and also consider influence of national peculiarities on the international relations and foreign policy perception in Indonesia. The relevance of the study is due to a low degree of research of the influence of political culture, ideas, traditions and ideologies on the Indonesian foreign policy. The purpose of the research is to identify the characteristics and to analyze the development of Indonesian political thinking, the ideological and conceptual foreign policy foundations. This article is an interdisciplinary paper at the junction of the theory and history of international relations, cultural studies, sociology, ethnology. The authors apply a combination of system, comparative and historical (historical-genetic) method. Also, the authors rely on the school of constructivism in international relations. The results of the study are presented in the form of conclusions containing analysis of the influence of ideological, ethnic and political factors on the perception of international relations and world political processes by Indonesian society.

Foreign Foundation Held Able to Treat Assets of Foreign Investment Vehicle as Those of Disregarded Entity, With Income Subject to Excise Tax

The IRS granted a foreign private foundation an extension of time to file an entity classification election on behalf of a disregarded entity, thereby causing the entity's income and assets to be exempt from federal income tax but with the income subject to the private foundation excise tax (Priv. Ltr. Rul. 201808010).

Konkurencyjność gospodarki województwa małopolskiego a rozwój ekosystemu startupowego

W XXI wieku konkurencyjna gospodarka regionu jest gospodarką opartą na wiedzy i nowych technologiach. Przedsiębiorstwa typu startup wraz z ekosystemem startupowym stały się wyznacznikiem innowacyjności regionu. Artykuł ma na celu ukazanie zależności pomiędzy rozwojem krakowskiego środowiska startupowego a wzrostem konkurencyjności województwa małopolskiego. Za podstawowe czynniki oddziałujące na konkurencyjność Małopolski uznano liczbę udzielonych patentów na wynalazki krajowe przez Urząd Patentowy RP, dynamikę zatrudnienia w B+R, nakłady inwestycyjne na B+R, liczbę przedsiębiorstw z kapitałem zagranicznym oraz PKB per capita w cenach bieżących. Po przeprowadzonej analizie korelacji wykazano, że najsilniejsze zależności zachodzą pomiędzy PKB per capita w cenach bieżących a liczbą przedsiębiorstw z kapitałem zagranicznym oraz nakładami inwestycyjnymi na B+R. Główny ośrodek miejski, jakim jest w analizowanym obszarze Kraków, stał się magnesem skupiającym wokół siebie osoby zakładające startupy, budujące innowacyjną gospodarkę oraz całe zaplecze biznesowe. Krakowski ekosystem startupowy ma pozytywny wpływ na konkurencyjność regionu małopolskiego z uwagi na gromadzenie wysoko wykwalifikowanego kapitału społecznego, krajowych i zagranicznych inwestorów, fundacji i instytucji wspierających pomysłodawców w zmaterializowaniu idei, działalności instytucji i administracji publicznej w kierunku współpracy z obszarem nauki i biznesu.

Foreign Foundation Ruled to Not Have Excess Business Holdings

The IRS ruled that a foreign private foundation will not have an excess business holding in a company because the company is not a business enterprise and will constructively own only 20 percent of the voting stock of another company that is a business enterprise (Priv. Ltr. Rul. 201737003).

Innocent foundations beware: the US Government’s far-reaching power of civil asset forfeiture, and what innocent foundations and other fiduciaries need to know to prepare

With the recent acquittal of former Credit Suisse executive Raoul Weil exposing cracks in the US Government’s prosecution of offshore tax offences, the US authorities may increasingly look for simpler alternatives. Civil asset forfeiture actions are a far-reaching option for the Government to seize property—including property located overseas—linked to or derived from alleged tax-related offences. Recent cases suggest that the US Government is already turning to civil asset forfeiture actions as part of its offshore enforcement strategy. Prudent foreign foundations and other fiduciary structures should be aware of the civil asset forfeiture laws in the USA and plan accordingly.

Human Rights Constitutionalism in Indonesia’s Foreign Policy

This article examines conceptual discourse of human rights constitutionalism as fundamental part of making policies in international relations. There are two key questions, first, to what extent human rights constitutionalism has been brought into discourse of its foreign policies, and second, how such human rights constitutionalism has been shaped by various actors, state and non state’s relations. The politics of 'image’ has been developed from regime to regime. However, such politics does not reflect substantially in progressing of human rights development. As part of democratic governance, and in the context of a more globalized society, Indonesia should rethink of its foreign policy foundations, especially in terms of transnational issues such as human rights, environment, and poverty. Therefore, central discussion in this regards is how to strengthen human rights constitutionalism is not merely internal and/or domestic affairs, but also this should build stronger and brave policies to develop and prioritize humanity values throughout international relations.