United States–MNE Tax

Americas

Yellen assures G7 that US tax reform is on track, still shooting for 21% GILTI rate

September 9, 2021

In a September 9 virtual meeting, US Treasury Secretary Janet Yellen told G7 finance ministers that the Biden Administration is “pleased with the progress the U.S. Congress is making” on moving the President’s proposed US international tax reforms and also stressed . . .

Estonia

Two minimum taxes: US eyes robust rate, while small countries seek carve-outs

September 8, 2021

The US should raise the minimum tax on corporate foreign earnings to 21% while the OECD works towards a 15% floor on tax competition, according to a September 7 article from two US Treasury officials . . .

Americas

US R&D tax incentives will be among least generous unless Congress acts, study finds

September 8, 2021

The US will drop to a rank of 32nd among a peer group of 34 large economies in terms of its tax support for research and development (R&D) if it allows the new requirement to amortize R&D expense to take effect as scheduled in 2022, according to a September 7 study from . . .

Americas

US international tax reform debate and advocacy gain steam

September 3, 2021

Congressional Republican tax committee leaders sent their Democratic counterparts a letter on September 2 claiming that the Biden Administration is trying to usurp Congress’s lawmaking authority by binding it to a global tax deal, prompting Treasury Secretary Janet Yellen the next day to . . .

Americas

ICAP multilateral tax risk assurance program applications due September 30

September 2, 2021

Multinational entities interested in participating in the first full round of the OECD Forum on Tax Administration (FTA) International Compliance Assurance Programme (ICAP) have until September 30 to submit the . . .

Americas

US global intangible low-taxed income (GILTI) reform should address diminishing effect the provision has on domestic loss deductions for US companies with concurrent foreign profits: Daniel Bunn / Tax Foundation→

September 2, 2021

Americas

US IRS updates foreign tax credit agency guidance

September 1, 2021

An IRS practice unit published September 1 reviews the rules with respect to the foreign tax credit for businesses, including key concepts, eligible taxpayers, and qualifying taxes – updating the content to reflect . . .

Accounting

US congressman seeks to delay change in R&D expensing rules

August 31, 2021

In an August 26 letter, Congressman John Larson (D-Conn.) urged House Ways and Means Chairman Richard Neal (D-Mass.) to include in the “chairman’s mark” of the budget reconciliation bill a four-year delay in the upcoming requirement for companies to amortize research and development (R&D) expenditures . . .

Americas

US business lobbying groups optimistic they can pick off enough Democratic lawmakers with concerns about economy and US competitiveness to water down proposed corporate and international tax hikes: Karl Evers-Hillstrom / The Hill→

August 31, 2021

Americas

US congressional research papers prepare lawmakers for international tax debate

August 30, 2021

The US Congressional Research Service on August 26–27 published three reports addressing the status of corporate and international tax legislation and reform in anticipation of upcoming debates on corporate tax rates, international tax provisions, and actions related to ongoing . . .

Americas

Amgen transfer pricing dispute – is this Medtronic redux?

August 26, 2021

New York City Economist Dr. J. Harold McClure analyzes the situation surrounding the IRS’s large transfer pricing adjustments for 2010–2015 involving the intercompany pricing between Amgen’s US parent and its Puerto Rican manufacturing affiliate, with issues seeming to mirror those in Medtronic’s . . .

Americas

US Senate unveils international tax reform draft legislation

August 25, 2021

Senate Finance Committee Chairman Ron Wyden (D-Ore.) on August 25 released draft legislation for international tax reform that would retain but modify key provisions of the Republicans’ 2017 tax law, including the global intangible low-taxed income (GILTI) provision, foreign-derived intangible income (FDII), and . . .

Americas

US IRS opens 2022 Compliance Assurance Process application period for large corporate taxpayers seeking to enter program for resolving compliance issues before filing of tax return: US Internal Revenue Service→

August 23, 2021

Americas

Extending Australian tax office’s example of transfer pricing implications from demise of LIBOR

August 20, 2021

New York City Economist Dr. Harold McClure analyzes an example from the Australian Tax Office’s August 12 discussion paper on how to address the transfer pricing implications from the demise of London interbank rates, scheduled to . . .

Americas

Japan releases study group report on international taxation in the digital economy

August 19, 2021

Takato Masuda, Nishimura & Asahi, discusses the August 19 release of the “Study Group on International Taxation in the Digital Economy,” assembled by the Ministry of Economy, Trade and Industry of Japan, providing insight into how the Japanese business sector views the OECD’s two-pillar solution, a digital services tax and . . .

Multinational

Share of profits shifted to tax havens remained roughly constant globally (9%–10%) in latest data (2018) despite OECD BEPS implementation and increased in US (19%–23%) despite enactment of 2017 tax law: Thomas Tørsløv, Ludvig Wier & Gabriel Zucman / Missing Profits→

August 18, 2021

Americas

US Senate adopts R&D tax amendment in budget resolution

August 17, 2021

A bipartisan amendment relating to promoting US competitiveness and innovation through expanded tax incentives for research and development (R&D) made it into the US Senate budget resolution adopted on August 11, specifically calling for . . .

Americas

Singapore guidance on intercompany financing: two illustrations

August 13, 2021

New York City Economist Dr. J. Harold McClure analyzes two examples the Inland Revenue Authority of Singapore (IRAS) provided on August 10 in the sixth edition of its e-tax transfer pricing guidance, extending its coverage of . . .

Accounting

US IRS updates accounting method rules for taxable year of inclusion, credit card fees

August 12, 2021

On August 12, the US Internal Revenue Service outlined procedures (Revenue Procedure 2021-34) for obtaining automatic consent to change methods of accounting to comply with final rules issued in 2020 under Internal Revenue Code Section 451 relating to the taxable year of . . .

Americas

US foreign-derived intangible income (FDII) deduction may be imperfect, but Congress should not repeal without evaluating how doing so could incentivize US companies to move intellectual property assets overseas: Daniel Bunn / Tax Foundation→

August 11, 2021

Americas

US bill proposing tax on corporate book income could undermine R&D incentives

August 11, 2021

A bill announced by US Senator Elizabeth Warren (D-Mass.) on August 9 would impose a tax on the income that large corporations report to their shareholders with an aim to prevent those corporations from using “loopholes” – including tax incentives, like the research and development (R&D) tax credit . . .

Americas

US infrastructure bills clear hurdles, still waiting on corporate tax provisions

August 11, 2021

The US Senate on August 10 approved President Biden’s USD 1 trillion bipartisan traditional infrastructure bill, while on August 11 Senate Democrats adopted the framework for a USD 3.5 trillion partisan “human infrastructure” budget bill. Neither bill, as yet, includes corporate tax measures . . .

Americas

US Congress should take up international tax reform without waiting for OECD talks to conclude, because US can benefit from changes regardless of global deal and acting first will strengthen US negotiating position: The FACT Coalition→

August 9, 2021

Africa

US FDII deduction among international ‘harmful tax practices’ slated to be abolished

August 5, 2021

An update on reviews of preferential tax regimes published by the OECD on August 5 states that the US foreign-derived intangible income (FDII) regime is “in the process of being eliminated.” The new report includes updated conclusions with respect to 18 designated . . .

Americas

US IRS ‘practice unit’ outlines agency process for applying penalty for failure to include reportable transaction information with tax return: Internal Revenue Service→

August 4, 2021

Americas

US, UK competent authorities address tax treaty’s limitation-on-benefits article

July 28, 2021

The US Internal Revenue Service on July 28 published two competent authority arrangements between the US and the UK that clarify the application of the limitation on benefits article in light of the UK’s exit from the EU (Brexit) and the entry into force of the US–Mexico–Canada Agreement (USMCA).

Accounting

US IRS explains tax rules for MNE branch income in a foreign currency

July 28, 2021

A practice unit published by the US Internal Revenue Service on July 26 describes the rules applicable to US multinational enterprises that enter into foreign currency transactions through . . .

Americas

US bill would create tax credit for US companies investing in Puerto Rico and other US territories to offset impact of global intangible low-taxed income (GILTI) provisions: Laura Weiss / Roll Call→

July 28, 2021

Americas

Global minimum tax could create confusion with current CFC rules

July 28, 2021

Thomas Locher, Tax Foundation’s Center for Global Tax Policy, discusses how the implementation of a global minimum tax could create confusion with current CFC rules, raising questions about . . .

Americas

EU continues to wrangle over global minimum tax’s carve-outs, rate

July 26, 2021

A July 21 study from the EU Tax Observatory predicts that a substance carve-out under the agreement for a proposed global minimum tax could exacerbate tax competition and would reduce by 15% to 30% the tax revenues that the EU would otherwise . . .

Accounting

FASB updates accounting standard for leases

July 23, 2021

A July 19 US accounting standards update from the Financial Accounting Standards Board (FASB) revises guidance related to a lessor’s accounting for certain leases with . . .

United States

US bill introduced to establish border carbon adjustment that would impose fee on carbon-intensive imports to account for costs US businesses incur in complying with environmental standards: Senator Chris Coons (D-Del.)→

July 22, 2021

Americas

US IRS advises on transfer pricing adjustments for Altera-related ‘reverse claw-backs’

July 21, 2021

A US Internal Revenue Service Office of Chief Counsel memorandum published on July 16 offers taxpayer advice with respect to transfer pricing issues related to cost sharing agreements containing “reverse claw-back” provisions, which operate . . .

Americas

Ireland seeks input on OECD tax proposals’ impact on Irish tax policy

July 20, 2021

The Irish Department of Finance on July 20 opened a consultation on implications for Ireland’s corporate tax policy arising from the two-pillar proposal for overhauling the international tax framework recently . . .

Americas

Nike’s transfer pricing state aid dispute: the underlying issues

July 19, 2021

New York City Economist Dr. J. Harold McClure analyzes the issues underlying the transfer pricing dispute involving Nike, following the General Court of the European Union’s July 14 ruling declining to annul the European Commission’s state aid investigation regarding . . .

OECD

US nonpartisan agency’s review of Pillars 1 & 2 reports US companies may prefer Pillar 1 adoption to alternative of digital services taxes, while Pillar 2 would allow for more government tax revenues: Congressional Research Service→

July 16, 2021

OECD

Yellen predicts US businesses will press Congress to approve global corporate tax overhaul plans because of the tax certainty such an agreement would offer: Christopher Condon / Accounting Today→

July 14, 2021

Americas

G20 reaffirms tax deal while EU delays digital levy, US eyes legislation

July 12, 2021

The communique issued by the G20 finance ministers at the conclusion of their July 9–10 meeting did not break substantial new ground in international tax talks, but the discussions seemed to help clear a hurdle in helping to . . .

Accounting

US IRS explains steps to adjust for tax R&D costs reported in financial statements

July 9, 2021

A practice unit issued by the US Internal Revenue Service on July 7 walks through the steps for large business & international (LB&I) taxpayers to adjust research and development (R&D) expenses reported in . . .

Khaled Al Zaabi on Spanish government proposes digital services tax: “We are seeking assistance with Digital Assets and International Tax Consulting to help Abu Dhabi UAE Oil Company navigate the…” October 24 ,2024

Emma Hinson Sims on The Pillar One blueprint — the potential future of international taxation and transfer pricing: “HAPPY BIRTHDAY TO A VERY SMART, BEAUTIFUL, YOUNG LADY ON JANUARY 13TH.” January 6 ,2024

David Valdez on US Tax Court resolves Whirlpool tax dispute involving Mexican maquiladora structure: “Greetings Whirlpool Mexico, I’m trying to contact someone involved with the decision making for transportation from all of your Mexican…” October 20 ,2023

Jose Dominguez on The new US international tax rules: what you need to know about GILTI, FDII, BEAT etc.: “Very informative article. Question. Do you have a software to compute these US International Calcs to make them in house?” April 12 ,2023

Ciro César Soriano de Oliveira on Danish High Court rules on beneficial ownership of dividends for tax purposes: “Dear Ms Susi, This article is immensely clarifying. I’d like to know whether Danish Supreme Court has already granted its…” March 24 ,2023

May 19 – 20	Tax Council Policy Institute Conference	Washington, D.C.
May 19 – 20	IFA Second European Region Conference	Milan, Italy
May 24	IFA Webinar Series Pillar Two: An Update	Virtual Event
Sept. 4 – 8	IFA Congress	Berlin