Bermuda has gazetted the Corporate Income Tax Act, 2023, which imposes a corporate income tax on certain Bermuda businesses forming part of large MNE groups.
Starting January 1, 2025, corporate income tax shall be chargeable to a Bermuda Constituent Entity Group on its net taxable income for each fiscal year. The amount of corporate income tax chargeable to the Bermuda Constituent Entity Group for a fiscal year shall be 15 percent of the net taxable income of the Bermuda Constituent Entity Group.
The corporate income tax shall apply to Bermuda businesses that are part of MNE Groups with annual revenue of over EUR 750 million.
The Government has introduced certain tax credits to support Bermuda’s economic goals and maintain the global attractiveness of the jurisdiction.
The Finance Ministry has issued frequently asked questions (FAQs) on the Corporate Income Tax Act, 2023, to assist entities in determining if and when they are within the scope of the Act, and to provide guidance as to how certain provisions of the Act are to be interpreted.
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Denmark has gazetted regulation terminating its tax treaty with Russia.
The regulation was published in the Official Gazette on November 15.
The termination will take effect from January 1, 2024.
On November 22, 2023, the Swiss Federal Council adopted the dispatch on the approval and implementation of an additional agreement supplementing the country’s tax treaty with France.Continue Reading
A review petition has been filed in the controversial most-favored-nation (MFN) judgment delivered by the Indian Supreme Court last month.Continue Reading
Bermuda has issued a third public consultation paper on the proposed corporate income tax that would be apply to MNEs with annual revenue of EUR750m or more.Continue Reading
Barbados will levy an increased corporate tax rate of nine percent for most corporations from January 2024.Continue Reading
Russia will pass legislation to ease consequences for Russian businesses resulting from recent suspension of certain tax treaty provisions, the Finance Ministry has said.Continue Reading
New Zealand will implement a digital services tax in 2025 if international agreement on the issue fails to pass through, Finance Minister Grant Robertson has said.Continue Reading
Indonesia’s Minister of Investment has dismissed the global minimum tax proposal as a self-serving ‘trick’ being pulled by developed nations.Continue Reading
The Chartered Institute of Taxation (CIOT) has welcomed proposed reforms to the UK legislation on transfer pricing, permanent establishments, and diverted profits tax.Continue Reading
Germany has signed protocols to amend its tax treaties with Austria and Switzerland.Continue Reading
Russian Finance Ministry has rejected UK’s request to withdraw the partial suspension of the Russia-UK tax treaty.Continue Reading
The UK government has asked Russia to revoke the suspension of the 1994 UK-Russia tax treaty.Continue Reading
A reduced corporate income tax rate of 15 percent will apply to Curacao companies earning up to ANG 500,000.Continue Reading
Finnish government is seeking views on draft Minimum Taxation Act that would implement the EU Directive on global minimum tax into Finnish domestic tax law.Continue Reading
The Cabinet Secretary of the National Treasury of Kenya is seeking public comments on draft tax treaties with Belgium and Egypt.Continue Reading
Czech government has approved a draft tax law that would implement a global minimum tax at the rate of 15 percent.Continue Reading
A majority of UK tax leaders expect their tax planning and business operations to experience moderate to significant change once the global minimum tax is implemented, according to a EY Tax and Finance Operations Survey.Continue Reading
The General Court of the European Union has dismissed a legal challenge to EU Directive 2022/2523 of 14 December 2022, on ensuring a global minimum taxation for multinational enterprise (MNE) groups.Continue Reading
The global minimum tax is expected to bring over USD 600 million to Swiss cantons, according to a report by the Swiss Federal Department of Finance.Continue Reading
Bermuda is consulting stakeholders on a new corporate tax regime from 2025 in view of the OECD’s proposed global minimum tax rules.Continue Reading
TP News is announcing its first annual International Tax Law Student Essay Writing Competition 2023.
We are now inviting original submissions from students enrolled in a full-time undergraduate law course around the world. Co-authorship is possible.
The submission must seek to identify and answer a point of law that involves interpretation of one or more provisions of a tax treaty. The essay should not be descriptive in nature and must show outstanding analysis, while adding to the existing tax treaty jurisprudence.
We will not accept submissions over 3,000 words. We do not accept footnotes or endnotes, use hyperlinks instead.
All submissions will go through two rounds of selection process. Based on an initial screening by TP News team, shortlisted submissions will be sent out for blind peer review. We, therefore, encourage students to avoid mentioning their names/affiliations anywhere in their essays. Please note that all submissions will be put through our standard plagiarism detection process.
The top three entries will be published on TP News.
Submissions must be emailed to us as Microsoft Word documents by 11:59 pm UTC on November 7, 2023. We expect to receive a high number of entries and would be unable to respond individually.
Winners will be announced on our website and social media handles in January 2024.
For questions or clarifications, please contact: [email protected]
Canada’s government is seeking public input on draft tax legislation to implement a global minimum corporate tax rate, commonly known as GloBE, approved by the OECD’s Inclusive Framework.Continue Reading
The Dutch tax authority has released an unofficial English translation of the Transfer Pricing Decree 2022, which came into effect in July last year.Continue Reading
A vast majority of tax leaders from multinational enterprises (MNEs) are preparing for the impact of international tax changes resulting from OECD’s Pillar Two project, Deloitte’s 2023 Global Tax Policy Survey has revealed.Continue Reading
Slovakia’s Finance Ministry is seeking public input on draft tax law aimed at implementing a 15 percent global minimum corporate tax rate.Continue Reading
UK tax authority has published draft tax law aimed at imposing tougher legal consequences on promoters of tax avoidance schemes.Continue Reading
Members of the Ways and Means Committee, the chief tax-writing committee of the US House of Representatives, have expressed deep concerns about the Biden Administration’s ongoing negotiations with the OECD on the global minimum tax.Continue Reading
Global professional services firm Alvarez & Marsal (A&M) has appointed Imran Khan to bolster the firm’s UK transfer pricing practice.Continue Reading
The increase in additional tax revenue from OECD’s international tax reform would be rather ‘moderate’ for Germany, Florian Neumeier, Head of the ifo Research Group Taxation and Fiscal Policy, has said.Continue Reading
On 28 July 2023, the Luxembourg Council of Ministers adopted a bill transposing the EU Directive on global minimum tax into the country’s domestic tax law.Continue Reading
Ireland’s Department of Finance is seeking stakeholders’ views on implementing into Irish legislation the EU tax directive on Pillar Two rules, also known as Global anti-Base Erosion (GloBE) rules.Continue Reading
Business at OECD (BIAC) has said that there is still important work to be done in relation to the OECD’s ongoing tax work on Pillar Two rules, commonly known as GloBE.Continue Reading
International tax policy of the United States should be set by the United States, not by other countries, David Schizer, Dean Emeritus, Columbia Law School, has said.Continue Reading
UK government has published draft legislation to implement the undertaxed profits rule under its domestic law.Continue Reading
The European Commission has decided to refer Luxembourg to the Court of Justice of the European Union for failing to correctly transpose EU anti-tax avoidance rules.Continue Reading
The European Commission has called on Hungary to align its corporate income tax rules with EU anti-tax avoidance rules.Continue Reading
The OECD has published further administrative guidance on the global minimum tax rules under Pillar Two, including two new safe harbors.Continue Reading
The OECD is consulting stakeholders on a vital aspect of its two-pillar solution to address digital economy taxation.Continue Reading
The US Chamber of Commerce has urged the Canadian government to refrain from unilaterally imposing a digital services tax pending international agreement.Continue Reading
Ireland’s Department of Finance is consulting stakeholders on new tax measures that would prevent double non-taxation arising from outbound payments to low or no tax jurisdictions.Continue Reading
Canada’s Finance Minister Chrystia Freeland has said that the government will implement its domestic digital services tax measures from January 2024 in the absence of any multilateral agreement on Pillar One.Continue Reading
138 tax jurisdictions have agreed an ‘Outcome Statement” on ways to move forward with historic, major reform of the international tax system.Continue Reading
EU digital companies have written to the OECD asking it to extend the standstill agreement on digital services tax.Continue Reading
The OECD has rubbished media claims that it pressured Australian government into weakening the country’s tax bill aimed at tackling tax avoidance.Continue Reading
Japan’s tax treaty with Azerbaijan will enter into force on August 4, 2023.Continue Reading
Norwegian government has terminated tax treaties signed with Barbados, Curacao, Jamaica, Sierra Leone, and Trinidad and Tobago.Continue Reading
Baker McKenzie Luxembourg has promoted Miguel Pinto de Almeida and Nicolas Jeangeorges in the firm’s Tax and Transfer Pricing Practice Group.Continue Reading
The Australian government has deferred the public country-by-country reporting requirements to July 2024.Continue Reading
Alvarez & Marsal Tax LLP has appointed transfer pricing expert Rasmus Steiness as a Senior Director.
Steiness will work with Managing Director Richard Syratt in London to help international clients solve increasingly complex transfer pricing issues.
Steiness brings more than 16 years of experience supporting banking, capital market, and fintech clients. He specializes in the alignment of tax and operating models, IP, and financial transactions.
The membership of Russia and Belarus in the Intra-European Organisation of Tax Administrations (IOTA) has been terminated. Continue Reading
Czech Finance Ministry has updated the official list of tax treaties on its website.Continue Reading
Latvia’s Finance Ministry published an updated list of tax havens on June 27.Continue Reading
The OECD has launched an improved version of the BEPS MLI matching database that will allow tax authorities and other interested parties to make projections on how the MLI modifies a specific tax treaty.Continue Reading
Ireland has signed into law a new public country-by-country tax reporting requirement.Continue Reading
Denmark’s Finance Ministry has published for public input a draft bill seeking to implement the EU Directive on Pillar Two into the country’s domestic tax law.Continue Reading
The reason for this is simple:
There are 137 countries coloured on that map. Each has signed up to the OECD global minimum tax (sometimes referred to as GLoBE or “Pillar Two”).
Some are already implementing – including such free market stalwarts as Singapore. Others are discussing implementation details. And many others have signed but are yet to kick off implementation – international tax measures are always slow, and there have been distractions. There is an interactive version of our OECD globe here.
This means GLoBE is likely to have a critical mass of implementing countries. Its design renders that very important.Continue Reading
UK government has published partial draft technical guidance setting out additional information on administration, chargeability, and scope for multinational top-up tax and domestic top-up tax legislation.Continue Reading
The European Commission has proposed new rules to make withholding tax procedures in the EU more efficient and secure for investors, financial intermediaries, and tax administrations.Continue Reading
UK government is seeking stakeholders’ views on potential reforms to the UK international tax legislation on transfer pricing, permanent establishment, and Diverted Profits Tax.Continue Reading
Singapore will implement the Global Anti-Base Erosion (GloBE) Rules, that is, Income Inclusion Rule and Undertaxed Profits Rule, and Domestic Top-up Tax from January 1, 2025.Continue Reading
The OECD, on February 2, released technical guidance to assist governments with implementation of the 15 percent global minimum corporate tax rate.Continue Reading
The UK tax authority is consulting on the draft Transfer Pricing Records Regulations, 2023.Continue Reading
The OECD, today, released key documents as part of its two-pillar solution to reform international tax rules to address the tax challenges arising from globalization and digitalization.Continue Reading
US Treasury Secretary, Janet Yellen, has welcomed EU agreement on implementation of a global minimum tax on corporations.Continue Reading
EU member states, on December 12, reached agreement to implement a minimum tax rate for large businesses at the EU-level.Continue Reading
The Court of Justice of the European Union (CJEU) has held that the EU DAC6 Directive violates the right to respect for communications between a lawyer and his or her client.Continue Reading
The Dutch State Secretary of Finance, Marnix van Rij, has expressed the government’s concerns regarding the recent UN resolution to establish an international tax cooperation framework.Continue Reading
The Dutch government has published 15 responses to its public consultation on the draft Minimum Tax Rate Act, 2024.Continue Reading
Registration is open for an OECD webinar on Amount B under the Two-Pillar Solution to tackle digital economy taxation.Continue Reading
Members of the European Parliament (MEPs) have adopted their opinion to the EU Commission’s proposed legislation aimed at clamping down on shell companies used for tax purposesContinue Reading
The Dutch finance ministry has launched a new project to tackle “remarkable tax arrangements.”Continue Reading
UK government has raised more revenue than expected in digital services tax and has increased the amount of UK tax paid by big digital companies, according to a report by the National Audit Office.Continue Reading
A global minimum corporate tax rate and the reallocation of taxing rights between jurisdictions must be implemented in due time to provide a fairer and more stable global corporate tax system, Paolo Gentiloni, European Commissioner for Economy, has said.Continue Reading
The UK government has received 20 written responses from tax and law firms on the proposed mandatory disclosure rules (MDR). Continue Reading
On November 22, 2022, the OECD released the latest mutual agreement procedure (MAP) statistics covering 127 tax jurisdictions.Continue Reading
A United Nations committee has approved draft resolution on “Promotion of inclusive and effective international tax cooperation at the United Nations.”Continue Reading
On November 18, 2022, Malta gazetted Transfer Pricing Rules, 2022.
As per the rules, in ascertaining the total income of any company:
where any amount incurred or due, in the year preceding the year of assessment under any cross-border arrangement to which the transfer pricing rules apply, differs from the arm’s length amount, it shall be deemed that the arm’s length amount was incurred or due as opposed to the actual amount incurred or due; and
where any amount accrued or derived, in the year preceding the year of assessment under any cross-border arrangement to which the transfer pricing rules apply, differs from the arm’s length amount, it shall be deemed that the arm’s length amount was accrued or derived instead of the actual amount accrued or derived.
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Spain has been awarded for taking the shortest time in closing transfer pricing cases under the mutual agreement procedure (MAP) set out in tax treaties.
The 2021 MAP Statistics were presented during the OECD Tax Certainty Day, where tax officials and stakeholders took stock of the tax certainty agenda and discussed ways to further improve dispute prevention and resolution. The MAP Award is given in recognition of efforts by competent authorities in dealing with MAP cases.Continue Reading
The Swiss Federal Council has appointed Tamara Pfammatter as the new Director of the Federal Tax Administration (FTA) with effect from April 1, 2023.
Pfammatter, who will succeed Adrian Hug, is currently an ambassador and a member of management at the State Secretariat for International Finance (SIF). As the Head of the Tax Division, she is responsible for Switzerland’s international tax dossiers and for the multilateral negotiations in the OECD’s project on taxing the global economy.
For over a year prior to her current post, she was deputy divisional head in the Tax Division and divisional head in the Corporate Taxation Policy Division at SIF. From 2009 to 2020, she worked as a project leader in the Tax Policy Division of the FTA.
The Australian government is expanding its tax treaty network to provide improved certainty to taxpayers and guard against tax avoidance practices.
New negotiations are planned with Bulgaria, Colombia, Croatia, Cyprus, Estonia, Latvia, and Lithuania. These countries add to the current program which includes Portugal, Slovenia, Greece, and Luxembourg.Continue Reading
The revision of the code, the first one since 1997, means that member states will broaden the scope of the tax measures under scrutiny when examining harmful tax practices within the EU.Continue Reading
The Court of Justice of the European Commission annuls the European Commission’s 2015 finding that Luxembourg granted selective tax advantages to Fiat through a transfer pricing ruling, in breach of EU state aid rules.Continue Reading
The Commission has decided to extend the scope of its original investigation to specify further the measure in favour of MJN GibCo, in line with the Court’s indications, and reassess the information submitted by the UK in relation to MJN GibCo 2012 tax ruling.Continue Reading
The EU tax blacklist now consists of 12 jurisdictions: American Samoa, Anguilla, Bahamas, Fiji, Guam, Palau, Panama, Samoa, Trinidad and Tobago, Turks and Caicos Islands, US Virgin Islands, and Vanuatu.Continue Reading
UK government, on July 20, released draft rules aimed at ensuring multinational enterprises (MNEs) operating within the UK pay a global minimum level of tax.
The draft rules are in line with the agreement on a 2 Pillar solution to reform the international tax framework made by the G20 — Organisation for Economic Co-operation and Development Inclusive Framework on Base Erosion and Profit Shifting (BEPS) last year.Continue Reading
By Dr. Björn Heidecke (Director, Transfer Pricing, Deloitte, Germany) & Neeraj-Kumar Popat (Senior Manager, Transfer Pricing Deloitte, Germany)
On June 8, 2021 Germany implemented modifications to the Transfer Pricing Legislation in both the Foreign Tax Act (Außensteuergesetz) and the Fiscal Code (Abgabenordnung). Most of the modifications were already proposed with a previous initiative in March 2020 (for further information see Link: Proposed modifications to the German Transfer Pricing Legislation), however, this initiative was excluded from the final legislation passing process. In a subsequent initiative, most of the modifications from the previous initiative were included and proposed in January 2021. This proposal was now finally implemented in June 2021.Continue Reading
The reporting will take place within 12 months of the date of the balance sheet for the financial year in question. The directive sets out the conditions under which a company may defer the disclosure of certain information for a maximum of five years. Continue Reading
Anguilla, Dominica, and Seychelles are now included in the state of play document (Annex II), which covers jurisdictions that do not yet comply with all international tax standards but that have committed to implementing tax good governance principles.Continue Reading
The consultation will run until September 10.Continue Reading
DAC6 Schema Version 1.1 is applicable for all exchanges until July 31, 2021.Continue Reading
The tax reform package will include a reallocation of taxing rights – where companies pay tax wherever they conduct business – and a global minimum effective tax rate of at least 15 percent to tackle aggressive tax planning and stop the corporate tax “race to the bottom.” Continue Reading
The guidance clarifies the terms and conditions that taxpayers must fulfil to avail MAP, including access to MAP, submitting MAP requests, and the various deadlines, among others.Continue Reading
Under this tax scheme, interest deductibility is denied in relation to loan arrangements between affiliated companies established within the EU, irrespective of whether the terms and conditions of those arrangements remain at arm’s length or not.Continue Reading
The WCO facilitator focused on the Customs valuation treatment of related-party transactions and instruments adopted by the Technical Committee on Customs Valuation. The OECD facilitator elaborated on the arm’s length principle and its application, comparability analysis, and transfer pricing documentation. Continue Reading
The G7 (which includes the UK, the US, Canada, Japan, Germany, France, Italy, plus the EU) agreed the principles of an ambitious two Pillar global solution to tackle the tax challenges arising from an increasingly globalized and digital global economy.Continue Reading
On March 18, 2021, the Government approved Law to require taxpayers/ intermediaries to report information on certain tax arrangements.
The penalty relief applies to:
Reportable cross-border arrangements that have been made between 25 June 2018 and 30 June 2020 and had to be submitted by 28 February 2021.
Reportable cross-border arrangements that had been made between 1 July 2020 and 31 December 2020 and had to be submitted by 31 January 2021.
Reportable cross-border arrangements made between 1 January 2021 and 31 August 2021, that had to be submitted within 30 days from the date they were made available for implementation or were ready for implementation or the first step in the implementation has been made, whichever occurred first.
Reportable cross-border arrangements for which secondary intermediaries provided aid, assistance or advice, between 1 January 2021 and 31 August 2021 and had to submit information within 30 days beginning on the day after they provided aid, assistance or advice.
On March 18, 2021, the Government approved Law to require taxpayers/ intermediaries to report information on certain tax arrangements.
The OECD has received comments from 22 stakeholders including the Big 4, Mexican Institute of Public Accountants, International Chamber of Commerce, European Business Initiative on Taxation, Business at OECD (BIAC), and Vienna University of Economics and Business, among others.Continue Reading
The reporting will take place within 12 months from the date of the balance sheet of the financial year in question. The directive sets out the conditions under which a company may obtain the deferral of the disclosure of certain elements for a maximum of five years.Continue Reading
The Observatory will be fully independent in conducting its research, objectively informing policymakers and suggesting initiatives that could help to better tackle tax avoidance and aggressive tax planning, among other things.Continue Reading
The paper analyzes corporate tax spillovers in Europe with a focus on the channels and magnitudes of both profit shifting and corporate income tax competition.Continue Reading
Tállai emphasized that Hungary would not relinquish one of the most important elements of its economic sovereignty, the right to set taxes. According to him, the idea of a global minimum tax is in the interests of several high-taxing economic powers, because they were disadvantaged by international tax competition.Continue Reading
On the agenda are measures to ensure greater public transparency by proposing that certain large companies operating in the EU publish their effective tax rates.Continue Reading
By Błażej Kuźniacki (Attorney-at-Law, Deputy Director for Strategic Tax Advice & Dispute Resolution,PwC Poland) & Katarzyna Kotowska (Senior Associate, Transfer Pricing, PwC Poland) & Piotr Niewiadomski (Tax Advisor, Director in Transfer Pricing, PwC Poland)
The definition of controlled transaction in the light of Polish Corporate Income Tax Act (CIT Act) and explanatory memorandum
According to Article 11a point 6 of the CIT Act, a controlled transaction refers to economic activity identified on the basis of actual behavior of the parties to the transaction, including allocation of income to the foreign permanent establishment (PE), where the conditions are imposed/made as a result of existing relations.Continue Reading
The Conference has agreed that as with any international agreement, the MLI shall be interpreted in good faith in accordance with the ordinary meaning to be given to the terms of the treaty in their context and in the light of its object and purpose.Continue Reading
Donohoe said that he desired “an outcome that is a fair and balanced compromise by and for all the 139 countries in the OECD Inclusive Framework.”
 100vw, 557px”/></p><p>Ireland’s commitment remains resolute towards reaching an agreement on digital economy taxation, Ireland’s Minister for Finance, Paschal Donohoe, has said.Continue Reading</p><p style=)
 100vw, 519px”/>Ireland’s Finance Minister on April 7 launched a public consultation on Ireland’s future tax treaty policy, particularly in the context of potential outcomes of international tax discussions at the OECD.Continue Reading</p><p>Janet Yellen, who took oath as the 78th Secretary of the US Department of the Treasury on January 26, held a discussion with counterparts in France, Germany and the UK on digital economy taxation.Continue Reading</p><p>The update revisits the guidance issued by the OECD Secretariat on the impact of the COVID-19 pandemic on tax treaties in April last year.Continue Reading</p><p>According to the update, Ireland will seek to implement interest limitation rules in accordance with the Anti-Tax Avoidance Directive (ATAD) standard; legislate for new international tax transparency rules for digital platforms; legislate for reverse hybrids aspect of ATAD anti-hybrid rules; adopt the authorized OECD approach for transfer pricing of branches; and consider actions that may be needed in respect of outbound payments from Ireland and our wider withholding tax regime.Continue Reading</p><p>The toolkit aims to help countries implement effective transfer pricing documentation requirements so that they can protect their tax bases, reduce profit shifting, and raise much-needed revenues for the recovery phase.Continue Reading</p><p>For Estonia, the BEPS MLI will enter into force on May 1, 2021. Continue Reading</p><p>In a release issued on January 14, the USTR said that the each one of these digital services taxes discriminates against US companies, is inconsistent with prevailing principles of international taxation, and burden or restricts US commerce.Continue Reading</p><p>Access to submit DAC6 reports shall be available in the coming days, the tax authority said.Continue Reading</p><p>The meeting will be held virtually and will be open to the public.</p><p>Continue Reading</p><p>In particular, the Presidency will address the challenges of European taxation, including the model for taxation of the digital economy, under the principles of fairness and tax efficiency.Continue Reading</p><p>The Blueprints reflect the convergent views of the Inclusive Framework on many of the key policy features, principles and parameters of both Pillars, and identify remaining technical and administrative issues as well as policy issues where divergent views among Inclusive Framework members remain to be bridged.Continue Reading</p><p>The US Trade Representative said that it has decided to suspend the tariffs in light of the ongoing investigation of similar DSTs adopted or under consideration in ten other jurisdictions.Continue Reading</p><p>US Trade Representative has published findings on digital service tax in India, Italy, and Turkey calling it discriminatory and burdensome.Continue Reading</p><p>The meeting will be held on January 14-15, 2021.Continue Reading</p><p>Maltese tax authority issues key guidance on DAC6 reportable cross-border arrangements. The guidance explains key concepts with the help of illustrations.Continue Reading</p><p>The UK tax authority, HM Revenue and Customs, has announced that it will repeal the DAC6 reporting requirement in 2021 and replace it with the OECD’s mandatory disclosure rules (MDR).</p><p>The announcement was made after completion of the negotiations between the UK and the EU on a Free Trade Agreement (FTA).</p><p>In a letter sent to stakeholders on December 31, HMRC said that reporting under DAC6 will still be required for a limited time, but only for arrangements which meet hallmarks under Category D, in line with the UK’s obligations under the FTA.</p><p>Category D sets out specific hallmarks concerning automatic exchange of information and beneficial ownership.</p><p>The International Tax Enforcement (Disclosable Arrangements) (Amendment) (No. 2) (EU Exit) Regulations, 2020 – laid before the House of Commons on December 30 – state that “(5) For the purposes of these Regulations, the DAC is to be read as if— (h) in Annex IV, Part 1 [the Main Benefit Test] and hallmark categories A, B, C and E in Part II were omitted.”</p><p>In the coming year, the UK will consult on and implement the OECD’s MDR as soon as practicable, to replace DAC6 and transition from European to international rules, HMRC told stakeholders.</p><p>Comments on the draft Circular on DAC6 must be submitted to the Italian tax authority by January 15, 2021.Continue Reading</p><p>The Tax and Duty Manual Manual on DAC6 has been updated in a number of respects. The updates are set out in Appendix V. Continue Reading</p><p>Greece has dropped Oman and Seychelles from the list of preferential tax regimes for 2019.Continue Reading</p><p>The guidance on transfer pricing implications of the COVID-19 pandemic represents the consensus view of the 137 members of the OECD Inclusive Framework on BEPS.Continue Reading</p><p>Germany and Pakistan have deposited their instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI).Continue Reading</p><p>The public consultation meeting will be held virtually on January 14-15, 2021.Continue Reading</p><p>The information provides with a better understanding of the extent to which the HTVI approach described in Chapter VI of the Transfer Pricing Guidelines has been adopted and is applied in practice by countries around the world. Continue Reading</p><p>81 jurisdictions are now fully in line with the BEPS Action 5 minimum standard.Continue Reading</p><p>Canada states that Denmark’s reservation “exceeds the scope of cases for which a reservation may be made under that provision.”Continue Reading</p><p>Around 85 percent of the MAPs concluded for transfer pricing cases in 2019 fully resolved the issue, which reflects an improvement in the collaborative approach taken by competent authorities.Continue Reading</p><p>DAC6 has been implemented into Maltese legislation by virtue of legal notice L.N. 342 of 2019.Continue Reading</p><p>Comments must be received by December 14.Continue Reading</p><p style=)
In July 2020, the General Court annulled the Commission’s 2016 decision concluding that Ireland granted illegal State aid to Apple through selective tax breaks.Continue Reading
The new tax treaty implements the minimum standards in accordance with the OECD’s project on base erosion and profit shifting. Continue Reading
By Dr. Björn Heidecke (Director, Deloitte Germany, Hamburg) & Tatchamon Nanavaratorn (Senior Consultant, Deloitte Germany, Hamburg)
As part of the obligation to implement the European-wide mechanism to counter base erosion and profit shifting, the German Federal Ministry of Finance circulated a draft law on 10 December 2019 (hereafter referred to as “draft law”). Besides conforming to the requirement as directed by the EU Anti-Tax Avoidance Directive, the draft law brings about the modification to the current transfer pricing legislation of both the Foreign Tax Act (Außensteuergesetz) and the Fiscal Code (Abgabenordnung), and it introduces topics not previously codified into the legislation in accordance with the BEPS concepts introduced by the OECD. The draft law takes a strict stance on businesses’ actual conducts rather than their contractual arrangements.Continue Reading
The 30-day time period will commence on January 1, 2021. Continue Reading
The deferral is aimed at providing taxpayers and intermediaries dealing with the impacts of the Covid-19 pandemic with additional time to ensure that they can comply with their obligations.Continue Reading
The guidance covers topics such as the purpose of reporting, the kinds of arrangements that must be reported, who should report the information, the list of information that must be submitted, and the reporting timelines.Continue Reading
The guidance states that the OECD’s Multilateral Instrument on BEPS adopted in Finland on February 13, 2019, must be taken into account when applying tax treaties.Continue Reading
The DAC6 reporting requirement was originally intended to take effect from July 1, 2020, postponement has been agreed in view of COVID-19 pandemic.Continue Reading
These ten trading partners are: Austria, Brazil, the Czech Republic, the European Union, India, Indonesia, Italy, Spain, Turkey, and the United Kingdom.Continue Reading
The Commission clarified that the beginning of application of DAC6 will remain July 1, 2020, and the reportable arrangements made during the postponement period will have to be reported once the deferral has terminated. Continue Reading
The suspension of DAC 6 reporting obligation applies both to domestic and cross-border tax arrangements.Continue Reading
The Government is introducing from April 1, 2020, a new two percent digital services tax on the revenues earned by certain digital businesses.Continue Reading
By Géry Bombeke (Partner, Baker McKenzie, Brussels)
On February 25, 2020, the Belgian Tax Administration published a new transfer pricing Circular (Circular 2020/C/35) (TP Circular) summarizing the post-base erosion and profit shifting (BEPS), OECD Transfer Pricing Guidelines and reflecting the tax authority’s views thereon.Continue Reading
Global law firm White & Case LLP has hired Will Smith as a partner in the firm’s London office.
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Emily Clark has joined corporate law firm Travers Smith LLP as head of tax.
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Comments must be received by May 27.Continue Reading
International Tax Authority informs BVI Constituent Entities, that are part of Multinational Entity Group, that it will soon be ready to receive filings for CbC reporting.Continue Reading
Between 2019-2020, HMRC secured GBP 480 million through DPT investigations.Continue Reading
The BEPS MLI will enter into force for these two countries on May 1, 2020.Continue Reading
The BEPS MLI will enter into force for Liechtenstein on April 1, 2020.Continue Reading
The tax treaty applies from January 1, 2020.Continue Reading
The tax treaty will become effective after both countries have completed their respective domestic procedures.Continue Reading
The OECD will hold a public consultation meeting on December 9. Continue Reading
French Finance Minister, Bruno Le Maire, termed the US’ proposed action as unacceptable.Continue Reading
The Commission may bring the cases before the Court of Justice of the EU if Austria and Ireland do not act by February 1, 2020.Continue Reading
Earlier in July 2019, the US Trade Representative opened an investigation into whether the French DST is discriminatory in nature and harms US’ interests.
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Comments must be received by December 16, 2019.Continue Reading
The paper highlights the marked rise in corporation tax receipts and corporate profitability since 2014.Continue Reading
Comments must be received by December 2.Continue Reading
The protocols contain an anti-abuse clause.Continue Reading
Comments must be received by November 12, 2019. Continue Reading
For Denmark the BEPS MLI will enter into force on January 1, 2020.Continue Reading
By Catherine O’ Meara (Partner, Matheson, Dublin)
The Irish Government recently published a Transfer Pricing Rules Feedback Statement, which confirms that changes to the country’s transfer pricing rules and their implementation are forthcoming.Continue Reading
The rulings practically resulted in over 50 percent and in some cases up to 90 percent of those companies’ accounting profit being tax exempt.Continue Reading
Gurría also described the delivery of the OECD’s BEPS package in 2015 as one of the two “big bang” developments that transformed the global tax landscape in recent years.Continue Reading
The Protocol will be effective for requests for information made on or after the date of entry into force for tax years on or after January 1, 2009.Continue Reading
Amazon is a major UK employer and currently employs over 27,500 UK people. The company said that this number would increase to over 29,500 this year.
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The tax authority is considering whether to appeal the decision.Continue Reading
The proposals would be included in Finance Bill, 2019 and, if enacted, would apply for chargeable periods commencing January 1, 2020.Continue Reading
Mandatory binding arbitration clause is included in the tax treaty protocols to resolve tax treaty disputes.Continue Reading
The BEPS MLI will enter into force in both countries on December 1, 2019.Continue Reading
While members of the Inclusive Framework on BEPS did not yet agree on the conclusions, they committed to work together to deliver a final report in 2020, with an update in 2019.Continue Reading
Austria proposes to impose a five percent digital tax to close tax loopholes and ensure that large digital corporations are called to account.Continue Reading
For Georgia the BEPS MLI will enter into force on July 1, 2019. Continue Reading
Armenia has newly joined the OECD’s Inclusive Framework on base erosion and profit shifting.Continue Reading
Transfer pricing advisory Questro International has hired Chris Whitehouse as a transfer pricing partner for its Zurich office.
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For Ireland, the BEPS MLI will enter into force in May 2019.Continue Reading
Transfer pricing specialist Questro International has hired Manuel Koch as a Partner for the firm’s office in Stuttgart, Germany.
Koch brings significant experience of over ten years specialization in transfer pricing consulting. Koch has wide experience in international tax planning engagements for international corporates including holding and principal structures as well as Swiss finance branches and IP boxes.Continue Reading
The Commission is looking into five tax rulings issued by the Dutch tax authority to Nike group companies in the Netherlands between 2006 to 2015.Continue Reading
The treaty will be effective from April 1, 2019.Continue Reading
The new anti-abuse measures entered into force on January 1, 2019.Continue Reading
Gibraltar must recover unpaid taxes of around EUR100m from companies that benefited from the corporate tax exemption regime for interest and royalties as well as from the five tax rulings.Continue Reading
The OECD has made 60 jurisdiction-specific recommendations on issues such as improving the timeliness of the exchange of information and ensuring that exchanges of information are made with respect to preferential tax regimes that apply to income from intellectual property.Continue Reading
By Elizabeth Sidi (Senior Tax Consultant, PwC, Bulgaria)
Bulgaria is introducing new interest limitation rules and a new controlled foreign corporation regime from January 1, 2019.
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Important process of ratifying the BEPS MLI is on. In 2019-2020, the provisions will come into effect, says Akhilesh Ranjan.
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The legislation is intended to enter into force in July 2019. Continue Reading
France and Germany urged the EU Council to adopt the proposed digital services tax by March 2019.Continue Reading
By Bram Markey (Director, Transfer Pricing, PwC Belgium)
The Belgian tax authority has issued a draft Circular on the 2017 update to the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations.Continue Reading
An arbitration clause is included in the new tax treaty to resolve double taxation disputes.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable at [email protected]
Netherlands will be putting into place stricter requirements for the issue of international tax rulings by the end of June 2019.
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The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable at [email protected]
Ireland and Malta have agreed to close the “Single Malt” – an aggressive tax planning structure in which some multinational corporations use a company incorporated in Ireland but tax-resident in Malta.
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The Norwegian Government has submitted to the Parliament a proposal to ratify the OECD’s Multilateral Instrument to implement tax treaty-related measures to tackle base erosion and profit shifting (BEPS).Continue Reading
By Bram Markey (Director, Transfer Pricing, PwC Belgium)
The EU Joint Transfer Pricing Forum has published a report, which aims to address the lack of guidance on bilateral and multilateral transfer pricing audits.
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DIGITALEUROPE, which represents the digital technology industry in Europe, has called upon governments to negotiate a comprehensive, global, long-term tax solution at the OECD-level to address the tax challenges of the digital economy.
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The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
The OECD has published a report covering the assessment of 53 preferential tax regimes as part of its work under base erosion and profit shifting (BEPS) Action 5, on harmful tax practices.
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On November 14, 2018, Ireland’s Department of Finance published for public comments a consultation document on the hybrid mismatch and interest limitation measures to be introduced as part of the implementation of the EU Anti-Tax Avoidance Directives (ATAD and ATAD2).
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By Erinda Xhaferraj (Tax Manager, PwC, Albania) and Edland Graci (Transfer Pricing Senior Associate, PwC, Spain)
The amendment in 2014 of Albania’s Income Tax Law and the release of the Transfer Pricing Instruction introduced changes that are of importance to Albanian taxpayers performing cross-border transactions. For the first time taxpayers were faced with a complex and sophisticated legislation, which required the application of arm’s length in intra-group transactions.Continue Reading
The OECD has published new guidance for the development of synthesised texts to facilitate the interpretation and application of tax agreements modified by the Multilateral Convention to Implement Tax Treaty Measures to Prevent Base Erosion and Profit Shifting (BEPS MLI).Continue Reading
More than 60 delegates from 16 countries met recently at the regional meeting of the Inclusive Framework on base erosion and profit shifting (BEPS) in Eastern Europe and Central Asia to discuss implementation of the BEPS measures.Continue Reading
The UK Government is seeking stakeholders’ views on the detailed design, implementation, and administration of the proposed two percent digital services tax (DST).Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
UK would introduce a two percent digital services tax (DST) to ensure digital businesses pay tax that reflects the value they derive from UK users, UK Chancellor Philip Hammond announced in his October 29 Budget Speech.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
Ukraine has published a draft law aimed at implementing some of key measures proposed under the OECD’s base erosion and profit shifting (BEPS) project.
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The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
Ireland’s Government has signed an Order to facilitate ratification of the OECD’s Multilateral Instrument to implement tax treaty-related measures to prevent base erosion and profit shifting (BEPS).Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
US Treasury Secretary Steven Mnuchin has issued a statement noting “strong” concerns with countries’ consideration of a digital services tax proposal.
In March 2018, the EU Commission announced it proposal to introduce an interim tax, which would cover the main digital activities that currently escape tax altogether in the EU.Continue Reading
Senior tax experts met at an event in Portugal on October 23 to discuss the strategic importance of the OECD’s work on base erosion and profit shifting (BEPS) and the challenges faced by tax administrations in implementing the BEPS proposals.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
The US Senate Committee on Finance has asked the European Commission to “abandon” its proposal to introduce a three percent digital services tax on revenues arising from the supply of certain digital services.Continue Reading
Antigua and Barbuda, Dominica, and Saint Vincent and the Grenadines have newly joined the OECD’s Inclusive Framework on base erosion and profit shifting (BEPS).
The Inclusive Framework on BEPS allows interested countries and jurisdictions to work with the OECD and Group of Twenty nations on monitoring the implementation of the BEPS proposals.Continue Reading
Japan and Spain signed a new tax treaty on October 16. The tax treaty wholly amends the existing tax treaty between Japan and Spain, which entered into force in 1974.
As per the new tax treaty, a withholding tax exemption applies to investment income from interest and royalties. Withholding tax on dividends is also exempt in certain situations.Continue Reading
Japan and Croatia signed a new tax treaty on October 19.
The new tax treaty provides for a reduced withholding tax on dividends, interest, and royalties. In some case, these are exempt.Continue Reading
The Swiss Federal Council on October 17 decided to expand the list of countries with which Switzerland would exchange country-by-country (CbC) reports.
The legal basis for the exchange of CbC reports entered into force for Switzerland on December 1, 2017. Switzerland had then submitted to the OECD a list of 108 countries with which the Government will exchange CbC reports.Continue Reading
The OECD on October 10 published its 2017 mutual agreement procedure (MAP) statistics covering 85 tax jurisdictions.
According to the 2017 MAP statistics, new transfer pricing MAP cases are up by 25 percent and other MAP cases by 50 percent. Anecdotal evidence suggests that the increase in new MAP cases is due to a range of factors including the effects of the new reporting framework and increased awareness of and expectations from taxpayers about MAP, the OECD noted.Continue Reading
Leading audit, tax, and consulting firm RSM has appointed two new tax directors to join the firm’s Manchester office.Continue Reading
Liberia is a typical example amongst developing African countries making noticeable effort to expand their tax base to the size it should appropriately be, therefore collecting more taxes and adapting to the fast-changing local and global business environment.Continue Reading
By Bram Markey (Director, Transfer Pricing, PwC Belgium)
The Large Enterprises Division of the Belgian tax administration has announced the launch of a two-year pilot project aimed at transforming the traditional approach of ex-post tax investigations towards a system of proactive, real-time, and constructive dialogue on corporate tax affairs.
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The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
Ireland would introduce key international tax measures in Finance Bill 2018 to comply with the EU Anti-Tax Avoidance Directive, Finance Minister Paschal Donohoe said in his 2019 Budget Statement released on October 9. The Finance Bill 2018 is due to be published on October 18.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
The Norwegian Government on October 8 presented the country’s National Budget 2019, which includes a series of measures to tackle base erosion and profit shifting (BEPS).Continue Reading
The tax treaty between Japan and Iceland will enter into force on October 31, 2018, Japan’s Finance Ministry has announced.Continue Reading
The protocol to amend the Switzerland-Latvia tax treaty entered into force on September 3, 2018, and will take effect from January 1, 2019. Continue Reading
Senior tax officials from over 20 countries recently met at a workshop to share experiences from the first year of country-by-country (CbC) reporting and explore how information can be used most effectively in the tax risk assessment of MNE groups.Continue Reading
Aruba has now joined the OECD’s Inclusive Framework on base erosion and profit shifting (BEPS).
The Inclusive Framework on BEPS allows interested countries and jurisdictions to work with the OECD and Group of Twenty nations on monitoring the implementation of the BEPS proposals.Continue Reading
Australia, France, Japan, and the Slovak Republic have deposited their instruments of ratification of the OECD’s Multilateral Convention to implement tax treaty-related measures to prevent base erosion and profit shifting (BEPS).
For these four countries, the BEPS Convention would enter into force from January 1, 2019. The Convention entered into force last month for New Zealand, Serbia, Sweden, and the UK.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
The EU Commission is now to withdraw infringement proceedings against Ireland as the Government has now completed full recovery of the alleged State aid from Apple.Continue Reading
Saudi Arabia has become the 84th tax jurisdiction to sign the base erosion and profit shifting (BEPS) Multilateral Convention.
The BEPS Convention, negotiated by over 100 countries and jurisdictions, updates the existing network of 1,400 bilateral tax treaties and reduces opportunities for tax avoidance by multinational enterprises.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
The EU Commission on September 19 decided that Luxembourg’s tax treatment of McDonald’s Europe Franchising does not violate the Luxembourg-US tax treaty and that tax rulings granted to McDonald’s do not infringe EU State aid rules.
The decision follows an in-depth investigation launched in December 2015, based on doubts that Luxembourg might have misapplied its tax treaty with the US.Continue Reading
The International Chamber of Commerce (ICC) has largely welcomed the OECD’s public discussion draft on the transfer pricing aspects of financial transactions.
The discussion draft deals with follow-up work in relation to base erosion and profit shifting (BEPS) Actions 8-10, on assuring that transfer pricing outcomes are in line with value creation.Continue Reading
The OECD has published a set of newly established bilateral for the exchange of country-by-country (CbC) reports with respect to Bermuda, Curaçao, Hong Kong (China), and Liechtenstein.Continue Reading
Former OECD Head of Transfer Pricing, Jefferson P. VanderWolk, has joined international law firm Squire Patton Boggs as a partner in the Tax Strategy & Benefits Practice. VanderWolk will work from the firm’s Washington DC office.Continue Reading
The OECD has issued further interpretative guidance on the implementation of country-by-country (CbC) reporting to provide certainty to tax administrations and multinational enterprises (MNEs).Continue Reading
Israel and Lithuania have newly deposited with the OECD their instrument of ratification for the Multilateral Instrument to implement tax treaty-related base erosion and profit shifting (BEPS) measures.Continue Reading
The OECD has published new transfer pricing country profiles for Costa Rica, Greece, Republic of Korea, Panama, Seychelles, South Africa, and Turkey. The OECD has also updated the information contained in Singapore’s profile.Continue Reading
By Mika Ohtonen (Head of Tax, Roschier, Finland) & Laura Puro (Senior Associate, Roschier, Finland)
Finland’s Ministry of Finance last month published a draft proposal on amending the Finnish controlled foreign corporation (CFC) statute. While the purpose of the draft is to implement the CFC provisions of the Anti-Tax Avoidance Directive (ATAD), the proposed changes are materially stricter than required by the ATAD.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
Ireland’s Finance Minister Paschal Donohoe has published the country’s Corporation Tax Roadmap outlining the steps that the Government will take in the area of international tax law over the next few years.Continue Reading
A new OECD report reveals that countries have used recent tax reforms to lower corporate income tax.
Tax Policy Reforms 2018 highlights the continuation of a trend toward corporate income tax rate cuts, which has been largely driven by significant reforms in a number of large countries with traditionally high corporate tax rates.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
The OECD on August 30 published stage 1 mutual agreement procedure (MAP) peer review reports of the following eight jurisdictions: Australia, Ireland, Israel, Japan, Malta, Mexico, New Zealand, and Portugal.Continue Reading
Transfer pricing advisory firm Quantera Global has announced its strategic partnership with Africa Transfer Pricing, a professional services firm specializing in transfer pricing in South Africa.Continue Reading
The Former Yugoslav Republic of Macedonia has newly joined the OECD’s Inclusive Framework on base erosion and profit shifting (BEPS).Continue Reading
The Swiss Federal Council on August 22 adopted the dispatch concerning a protocol of amendment to the Swiss-UK tax treaty for the attention of Parliament.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
The Swiss Federal Council on Wednesday adopted the dispatch on the OECD’s Multilateral Convention to implement tax treaty-related base erosion and profit shifting (BEPS) measures.Continue Reading
By Sami Tuominen (Partner, Head of Tax, Bird & Bird, Finland) & Marianna Santamala (Associate, Bird & Bird, Finland)
The Finnish Ministry of Finance recently proposed amendments to the current Finnish legislation concerning controlled foreign corporations (CFC). On August 6, 2018, the Finance Ministry submitted a proposal for Government Bill on the amendments to the Act on taxation of members of controlled foreign companies (Act). The Act is currently going through a consultation round and the Ministry would accept input until the end of this month. The purpose of the Act is to prevent the avoidance of taxation in Finland by utilizing corporations established in states with low taxation.Continue Reading
The Swiss Federal Council on August 15 adopted the dispatch on the tax treaty with Saudi Arabia.Continue Reading
By Stefaan De Ceulaer (Director, Tax and Legal Support, PKF International)
The Belgian Parliament on June 29 adopted the Programme Act, which introduces in Belgian tax law specific transfer pricing documentation requirements, that is, in article 321/1 to 321/7 of the Income Tax Code (Programme law of July 1, 2016 gazetted on July 4, 2016), in response to Action 13 of the OECD’s base erosion and profit shifting (BEPS project. Continue Reading
In a significant expansion drive, Grant Thornton, leading audit, tax, and advisory firm, has added offices in Aruba, Bonaire, Curaçao, and St. Maarten, boosting its already wide presence in 13 locations across the Caribbean.Continue Reading
By Marcin Jamroży (Associate Professor, Warsaw School of Economics, and Partner, Rödl & Partner, Poland)
Poland’s Finance Ministry recently published a draft tax Bill to implement key changes to the country’s transfer pricing documentation rules. The draft Bill is aimed at simplifying Poland’s transfer pricing regulations and lowering the bureaucratic and administrative burden for enterprises. The philosophy of a simple, transparent, and friendly tax system should be written into the law. At the same time, it is underlined that the draft Bill should be sealed against loopholes and incorporate the new OECD recommendations. The new regulation is proposed to be effective from January 1, 2019.Continue Reading
By Mario Ortega Calle (Partner, Garrigues, Madrid) and Laura Jiménez (Associate, Garrigues, Madrid)
Spain’s General State Budget for 2018, published by Law 6/2018 of July 3, 2018, in the Official Gazette, has amended the country’s patent box regime to bring it in further alignment with the “nexus approach” developed by the OECD under Action 5 of the base erosion and profit shifting (BEPS) project.Continue Reading
Guernsey’s Government is consulting businesses on a law that would require companies tax-resident in Guernsey to demonstrate they have sufficient substance in the island.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
The UK tax authority, HM Revenue and Customs (HMRC), raised GBP388m from the diverted profits tax (DPT) legislation in 2017-18, according to the Transfer Pricing and Diverted Profits Tax Statistics published on July 31.Continue Reading
Global law firm DLA Piper has announced the appointment of Vicki Bales as a Transfer Pricing director in the firm’s international tax practice. Bales will be based in London.Continue Reading
Houthoff, one of the largest law firms in the Netherlands, has hired Franka Sturm as Counsel for the firm’s tax practice.
Sturm has over 13 years of experience as a tax specialist in international practice with a focus on M&A and oil and gas.
Before joining Houthoff, Sturm worked with the Dutch Tax and Customs Administration and with PwC as a Senior Tax Manager.
The OECD is seeking taxpayers’ input for the sixth round of base erosion and profit shifting (BEPS) Action 14 Stage 1 peer reviews of eight new jurisdictions.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
Multinational enterprises (MNEs) are “changing their behavior” as a direct result of recent tax measures taken to tackle base erosion and profit shifting (BEPS), the OECD has told the Group of Twenty (G-20) Finance Ministers.Continue Reading
Ukraine has become the 83rd tax jurisdiction to sign the base erosion and profit shifting (BEPS) Multilateral Convention.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
The OECD has published a progress report setting out the major tax developments that took place in the last year concerning the OECD’s base erosion and profit shifting (BEPS) project.Continue Reading
Senior tax officials from 20 countries in Europe and Central Asia recently met in Georgia to discuss ways to tackle tax avoidance and to implement the base erosion and profit shifting (BEPS) proposals.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
The Confederation of European Business (BusinessEurope) has said that a global agreement is needed on changes to international tax rules concerning the digital economy to ensure a global level-playing field encompassing all major tax jurisdictions.Continue Reading
Law firm Baker McKenzie has announced the election of 13 new tax partners.
The newly elected partners are: Michael Nixon (Singapore), Simone Bridges (Sydney), Kirill Vikulov (Moscow), David Jamieson (London), Jessica Eden (London), Rodrigo Castillo Cottin (Bogota), Paul F. DePasquale (New York), Tatyana Johnson (New York), Victor Alejandro Morales-Chavez (Mexico City), Jonathan Welbel (Chicago), Joshua Nixt (New York), Andrew C. O’Brien-Penney (Chicago), and Ivan Tsios (Chicago).Continue Reading
By Diletta Fuxa (Senior Manager), Studio Associato Servizi Professionali Integrati, Member of Fieldfisher
On May 14, 2018, Italy’s Ministry of Economy and Finance issued a Decree, which lays down new transfer pricing guidelines in compliance with the provisions set forth in article 110 (7) of the Income Tax Code (Testo Unico delle Imposte sui Redditi).Continue Reading
The Platform for Collaboration on Tax – a joint initiative of the IMF, the OECD, the UN, and the World Bank Group – has published for public comments a revised version of its report on taxation of offshore indirect transfers of assets.Continue Reading
The UK Government has published a final list of its reservations and notifications under the Multilateral Convention to implement tax treaty-related base erosion and profit shifting (BEPS) measures.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
The European Economic and Social Committee (EESC) has called for a fair, consensus-based international solution at the OECD-level to tackle tax challenges posed by the digital economy.
The EU advisory body said that contrary to common international corporate taxation practice, the European Commission’s proposals aims to tax businesses’ turnover instead of profits, and to levy taxes where sales take place instead of where value is created. This approach, it noted, could jeopardize the integrity of the EU single market and lead to double taxation.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
The UK Government has published draft legislation that would make technical amendments to the country’s corporate interest restriction rules to ensure the corporation tax regime works as intended.Continue Reading
Guernsey has signed a new tax treaty with the UK. The new tax treaty replaces the one that has been in force since 1951.
The new tax treaty is based, broadly, on the OECD Model Tax Convention, which Guernsey has generally followed in its negotiations with other jurisdictions in recent years. The text of the tax treaty incorporates some of the recent international standards designed to prevent base erosion and profit shifting (BEPS). Continue Reading
The governments of UK and Isle of Man signed a new tax treaty on July 2.
The tax treaty is based on the latest OECD Model Tax Convention and includes provisions to reflect the OECD’s base erosion and profit shifting (BEPS) measures.Continue Reading
The OECD today called for stakeholders’ input on a discussion draft on financial transactions, which deals with follow-up work in relation to base erosion and profit shifting (BEPS) Actions 8-10, on assuring that transfer pricing outcomes are in line with value creation.
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The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
At a hearing of the General Court of the European Union on July 2, the Dutch Government put forward three points to demonstrate that it did not provide selective tax advantages to Starbucks in violation of the EU state aid rules.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
Kazakhstan, Peru, and the UAE have signed the base erosion and profit shifting (BEPS) Multilateral Convention, the OECD has announced, adding that Estonia intends to sign the Convention on June 29.Continue Reading
Global advisory firm Duff & Phelps has hired Ted Keen, who will serve as the European leader for the firm’s transfer pricing practice from London.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
The Swiss Federal Tax Administration (FTA) will exchange this month 109 country-by-country (CbC) reports of multinational enterprises’ (MNEs) with 35 foreign tax jurisdictions.Continue Reading
Introduction
The transfer pricing of intangible properties has always been a significant issue for multinational enterprises (MNEs). The excellent idea devoted to this matter with the current drive of the OECD to counter tax base erosion is dim long over-due. Indeed, the case with transfer pricing is technically considered a neutral concept but erroneously taken as an offensive action of MNEs that permits them to transfer profits generated by intangibles to so-called tax havens. Although, the arm’s length principle enshrine in the OECD Model has been misidentified as the primary instrument to tackle such abusive behavior of MNEs.Continue Reading
Introduction
When states attain membership of the European Union (EU), the governments are in charge of enacting and implementing their local direct taxation policy. The tax framework of the member-states shall not contravene or interfere the laid down policies and directives of the EU institutions; therefore, the sovereignty of member states is extremely safeguarded. Although the EU faces difficulties to come up with results that would be generally accepted by all member states, it has taken every step to integrate all Member States’ corporate direct taxation systems since the 1950s.Continue Reading
The OECD has released additional guidance on the attribution of profits to permanent establishment (PE), as part of its work on base erosion and profit shifting (BEPS) Action 7.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
The OECD’s Multilateral Convention to implement tax treaty-related measures to prevent base erosion and profit shifting (BEPS) will enter into force on July 1, 2018.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
The OECD on March 16 released its Interim Report on the Tax Challenges Arising from Digitalisation, noting a lack of consensus among countries on either the merit or the need for interim measures to address the tax challenges posed by the digital economy.Continue Reading
On March 12, 2018, the OECD published mutual agreement procedure (MAP) peer review reports of the following eight jurisdictions: Czech Republic, Denmark, Finland, Korea, Norway, Poland, Singapore, and Spain. Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
In a first, the European Commission has stressed that tax rules in seven EU member states facilitate corporate tax avoidance by multinational enterprises (MNEs).Continue Reading
Austria’s leading tax lawyer, Franz Althuber, has left DLA Piper to start his own firm, Althuber Spornberger & Partners.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
In his recent address to the Irish Tax Institute, Ireland’s Finance Minister, Paschal Donohoe, outlined views on critical tax issues such as the country’s low corporate tax rate, the impact of US tax reforms, and digital taxation.Continue Reading
The arm’s length principle treats the members of a multinational enterprise (MNE) as operating in separate entities, rather than as inseparable parts of a single, unified business. Therefore, it is required that MNEs follow the same pricing policy for intra-group and uncontrolled transactions, under comparable circumstances. Otherwise, the controlled companies shall take the necessary measures and adjust their profits by reference to the conditions, which would have obtained between independent enterprises.Continue Reading
The UK Government has published an Order, which would update the definition of “transfer pricing guidelines” in the UK legislation.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
In a 24-page long letter to the country’s Parliament, Dutch State Secretary for Finance, Menno Snel, has set out a detailed tax plan to tackle multinational tax avoidance, including measures to prevent the internationally-oriented Dutch tax system from being used as a conduit to tax havens.Continue Reading
An amending Protocol to the UK-Mauritius tax treaty was signed on February 28, 2018.Continue Reading
By Marco Greggi (Professor, International Tax Law, University of Ferrara)
The Italian Finance Ministry, on February 21, 2018, published for stakeholders’ comments two draft transfer pricing regulations. The first Regulation is a proposed decree that deals with substantive aspects of transfer pricing regulations (analyzed in this article), while the second Regulation concerns corresponding adjustments (procedural aspects). The second Regulation on corresponding adjustments will be analyzed in a forthcoming article.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
The OECD is working with Brazil to examine the similarities and gaps between the Brazilian and OECD approaches to valuing related-party, cross-border transactions for tax purposes.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
On February 26, 2018, the European Commission published the non-confidential version of its decision concluding that Luxembourg granted undue tax benefits worth around EUR250m to Amazon.Continue Reading
KPMG UK has announced the appointment of Sarah Churton to its international tax practice.Continue Reading
By Jian-Cheng Ku (Legal Director, DLA Piper Nederland N.V.) and Jeroen Swart, (Tax Adviser, DLA Piper Nederland N.V.)
On February 18, 2018, the Dutch State Secretary of Finance announced that it will revise the Dutch tax ruling practice in light of results from a review conducted to examine if Dutch tax rulings met Dutch procedural requirements. Over 4,000 Dutch tax rulings were reviewed.
Current practice and review
A tax ruling provides Dutch taxpayers with the opportunity to obtain advance certainty on the tax consequences of proposed legal transactions. Taxpayers and the tax authorities are able to avoid potential disputes through tax rulings, which provide upfront assurance. The Dutch tax ruling practice is considered an important pillar of the Dutch business climate.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
Europe is determined to introduce key changes to the EU corporate tax framework to address the tax challenges posed by the digital economy, EU Tax Commissioner Pierre Moscovici has said.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
On February 20, 2018, the UK Government published “Statement of Practice 1 (2018)” on the country’s mutual agreement procedure (MAP) framework. The Statement supersedes “Statement of Practice 1 (2011).”Continue Reading
Japan and Spain have agreed in principle to the text of a new tax treaty.
The new tax treaty will replace the existing treaty between both countries, which entered into force in 1974.Continue Reading
Serbia has newly joined the OECD’s Inclusive Framework on base erosion and profit shifting (BEPS).Continue Reading
By Bram Markey (Director, Transfer Pricing, PwC Belgium)
The Belgian tax authorities are increasing their manpower, shifting focus areas, and stepping up national and international cooperation with other tax authorities, with a clear view to audit transfer pricing and other international tax matters in a more targeted and efficient way, writes Bram Markey, Director, Transfer Pricing at PwC Belgium. Continue Reading
Ireland and Ghana signed a new tax treaty on February 7, 2018. The procedures to ratify the treaty are underway.
Ireland is also negotiating and renegotiating existing treaties with foreign jurisdictions.
According to the tax authority, Ireland’s existing treaty base will also be updated to incorporate provisions set out in the Multilateral Convention to implement tax treaty-related measures to prevent base erosion and profit shifting.
By Aurelio Massimiano (Partner, Maisto e Associati) and Matteo Cataldi (Associate, Maisto e Associati)
On December 29, 2017, the Italian Government published Law No. 205 of December 27, 2017 (Budget Law) in the Italian Official Journal, which contains key tax measures including a new tax on digital transactions (Web Tax) and revisions to the definition of permanent establishment (PE) in the domestic law.Continue Reading
By Terence WILHELM (Attorney at Law, Managing Partner, CARA Avocats, France)
On December 31, 2017, the French Government gazetted Finance Act, 2018, which revises the current transfer pricing documentation requirements in France. Accordingly, companies falling within the ambit of the new requirements will need to newly submit to the tax authority a two-fold documentation comprising “master” and “local” files, developed under Action 13 of the OECD’s base erosion and profit shifting (BEPS) project. The revised transfer pricing documentation requirement is inserted in Article L13AA of the French Procedural Tax Book (Livre des procedures fiscales) and is applicable to fiscal years beginning January 1, 2018.
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By Alex Cooper
On February 2, 2018, the Cayman Islands’ Ministry of Financial Services issued an Industry Advisory on the Islands’ country-by-country (CbC) reporting notification requirements.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
On February 7, 2018, the Norwegian Government published detailed taxpayer guidance on the mutual agreement procedure (MAP) framework set out in Norway’s tax treaties.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
The OECD today released additional guidance for tax administrations and multinational corporations on the implementation of country-by-country (CbC) reporting requirement.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
The Australian Government today published for stakeholders’ comments a draft legislation to implement the OECD’s Multilateral Convention to implement tax treaty-related base erosion and profit shifting (BEPS) measures in Australia.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
The European Commission is likely to table a legislative proposal on EU rules on taxation of profits of multinational corporations in the digital economy by March 2018.Continue Reading
Italy and Colombia have signed a new tax treaty in line with the base erosion and profit shifting (BEPS) project.Continue Reading
Senior officials from Greece and Bulgaria met on January 18, 2018, to discuss ways to tackle base erosion and profit shifting by certain Greek businesses, who transfer their headquarters to Bulgaria to benefit from a low corporate tax rate in Bulgaria.Continue Reading
Țuca Zbârcea & Asociații Tax SRL, an affiliate of Romanian law firm Țuca Zbârcea & Asociații, has hired transfer pricing specialist Andreea Florian to strengthen its tax advisory practice.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
Eight tax administrations, including the UK and the US, have launched a pilot program for the multilateral risk assessment of multinational corporations.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
Barbados, Côte d’Ivoire, Jamaica, Malaysia, Panama, and Tunisia have newly signed the base erosion and profit shifting (BEPS) Multilateral Convention, the OECD announced on January 24, 2018.Continue Reading
On January 15, 2018, the Government of Hong Kong announced that it has entered into a bilateral arrangement with France to automatically exchange country-by-country (CbC) reports filed by multinational corporations.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
Following commitments made at a high political level to remedy EU concerns, the Council of the European Union, on January 23, 2018, removed eight tax jurisdictions, including Panama, from the EU list of non-cooperative jurisdictions for tax purposes.
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On January 17, 2018, multinational law firm DLA Piper announced the appointment of Federico Pacelli as a partner in its international tax practice based in Italy. Federico will be leading the firm’s Italian transfer pricing team.
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The new tax treaty between Ireland and Kazakhstan became effective on January 1, 2018.
The tax treaty, which was signed by both countries in April 2017, entered into force on December 29, 2017.
Maltese Finance Minister, Edward Scicluna, has stressed that the country’s international tax regime is in line with the OECD’s BEPS proposals.Continue Reading
In a major expansion drive, Dutch law firm Houthoff has welcomed Paulus Merks as a new partner in the tax team.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
On December 18, 2017, the OECD released the 2017 edition of the OECD Model Tax Convention, which incorporates significant changes developed under BEPS project.Continue Reading
The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also regularly writes news stories about transfer pricing and international tax law. Alex is reachable on email ([email protected]) and by phone (+447808558597).
There are now over 1,400 automatic exchange relationships in place among tax administrations committed to exchanging country-by-country (CbC) reports as of mid-2018.Continue Reading
The Irish Tax and Customs is has opened the filing facility for the receipt of country-by-country (CbC) reports for fiscal years ending in 2016.Continue Reading
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Publish date : 2024-01-15 08:00:00
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