India–MNE Tax

Asia-Pacific

India entered into 62 APAs in 2021-2022

April 5, 2022

Prabhakar KS, Shree Tax Chambers, discusses India’s thriving advance pricing agreement (APA) program, its newly released totals for the past year, and its steady backlog of APA applications.

Americas

NFTC letter to US Treasury Secretary Yellen requesting delay in the applicability of the foreign tax credit regulations: National Foreign Trade Council→

March 7, 2022

Asia-Pacific

India refunds US $1.1 billion to UK-based Capricorn Energy (formerly Cairn) to settle tax dispute: BusinessLine→

February 25, 2022

Americas

Has the Indian tax administration removed the sheen from the ‘most favoured nation’ clause in its tax treaties?

February 22, 2022

Priyanshi Chokshi, Raghav Bajaj, and Vinita Krishnan, Khaitan & Co., analyze the ramifications of the Indian Central Board of Direct Taxes’ clarification of the applicability of the “most favoured nation” (MFN) clauses in Indian tax treaties through its February 3 circular.

Asia-Pacific

India’s budget looks to tax cryptocurrencies, extending India’s tax base

February 7, 2022

Mukesh Butani and Seema Kejriwal, BMR Legal Advocates, discuss India’s budget announced on February 1, which carries key tax amendments affecting multinationals doing business in India.

Asia-Pacific

Sri Lanka to sign new tax treaties with India, Czech Republic, Turkey: Daily Mirror Online→

January 26, 2022

Asia-Pacific

OECD review of tax ruling exchange standard finds 36 countries could improve

December 14, 2021

Out of 131 countries the OECD reviewed in a 2020 peer review report released on December 14, 95 received no flags for improvement with respect to implementing the OECD minimum standard on exchange of information on tax rulings; however, 36 countries fell short, including . . .

Asia-Pacific

Taiwan signs tax treaty with South Korea, seeks trade agreements with India and Australia: Lin Chia-nan / Taipei Times→

December 2, 2021

Americas

India and US agree on transition from India’s ‘equalization levy’ digital tax

November 29, 2021

The US and India have reached a compromise on a transition from India’s “equalization levy” digital services tax towards the terms of the October 8 multilateral agreement on new international taxing rules, according to a November 24 . . .

Asia-Pacific

Indian court extends tax exemption of Abu Dhabi Investment Authority to its Jersey trust

November 19, 2021

Ritu Shaktawat and Milind Hasrajani, Khaitan & Co, discuss the October 28 landmark decision by the High Court of Bombay holding that income from debt securities earned by a Jersey trust settled by the Abu Dhabi Investment Authority (ADIA), and of which ADIA is the sole beneficiary, is exempt . . .

Asia-Pacific

Cairn and India to resolve long-running tax dispute

November 3, 2021

On November 3, UK-based Cairn Energy announced that it is engaging with the Indian government, under the provisions of the recent Indian legislation withdrawing a controversial retroactive tax law, to resolve its more than USD 1 billion tax dispute with the country and obtain . . .

Asia-Pacific

India extends applicability of transfer pricing safe harbour rules for another year

October 12, 2021

Gaurav Jain and Priya Bhutani, New Delhi, discuss India’s September 24 extension of the existing transfer pricing safe harbour rules to financial year 2020-21 – welcome news to eligible corporations, but certain stakeholders, such as small and medium enterprises . . .

Africa

G-24 warns that global tax deal will fail without better terms for developing countries

September 21, 2021

An international tax agreement on new profit allocation rules and a minimum tax will “not be sustainable even in the medium run” unless the terms allow developing countries to see fair shares under both pillars of the deal, the G-24 contended in September 19 comments submitted . . .

Asia-Pacific

Australia plans to add 10 new tax treaties in next two years

September 17, 2021

Australia plans to expand its existing network of 45 bilateral tax treaties by entering into 10 new and updated tax treaties by 2023, according to a September 15 announcement from . . .

Africa

India proposes rules to implement farewell to the retro tax

September 16, 2021

Suranjali Tandon, National Institute of Public Finance and Policy, discusses India’s Central Board of Direct Taxes August 28 publication of a consultation document on proposed rules to remove the controversial retroactive application of a law taxing indirect transfers of assets situated in . . .

Asia-Pacific

India intercompany financing: debt versus equity and the pricing of intercompany loans

September 15, 2021

New York City Economist Dr. J. Harold McClure discusses the Mumbai Income Tax Appellate Tribunal’s August 20 ruling against the Indian tax authority in Bennett Coleman & Co Ltd (As successor to Times Infotainment Media Limited) v. Deputy Commissioner of Income Tax, and analyzes the two questions . . .

Americas

Asia to see disparate impacts from global digital tax reforms, IMF reports

September 15, 2021

Global tax reform efforts to address digitalization of the economy would likely have modest revenue effects in Asia, on the whole, according to a September 14 report from the International Monetary Fund; however, the effects would be uneven . . .

Americas

India-US bilateral advance pricing agreements and tax benefits for US multinationals

September 15, 2021

E. Miller Williams, Jr. and Richard L. Slowinski, Alston & Bird, discuss the growing demand for bilateral advance pricing agreements (APAs) between India and the US due to the high potential for adjustments and the risk of . . .

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 . . .

Accounting

India announces rules for book profits tax relief related to APAs, secondary adjustments

September 1, 2021

Ashish Mehta and Sanket Shah, Khaitan & Co., discuss the Indian tax administration’s August 10 release of new rules for computing relief related to the tax on book profits in cases where there was an increase in book profits of a particular financial year on account of an advance pricing agreement (APA) or . . .

Africa

Most favored nation clauses in tax treaties between high- and lower-income countries operate to the disadvantage of the latter, resulting in significant tax base erosion: Deepak Kapoor / ICTD→

August 26, 2021

Asia-Pacific

Switzerland confirms 5% withholding tax rate for dividends paid to India, expects reciprocity

August 23, 2021

Bijal Ajinkya and Raghav Kumar Bajaj, Khaitan & Co, discuss the Swiss tax authority’s August 13 confirmation that dividends received by an Indian resident from a Swiss company will be subject only to a 5% withholding tax rate in Switzerland, but if India does not reciprocate, the Swiss reserve the right to . . .

Asia-Pacific

India withdraws retrospective amendment to tax indirect transfers, big relief for many multinationals

August 13, 2021

Anjul Mathur and Amit Sharma, RSM India, discuss India’s August 4 introduction of a new regulation to withdraw a 2012 amendment, with retrospective effect from 1961, under which the indirect transfer of assets located in India and owned by non-residents was taxed . . .

Africa

Countries take diverse transfer pricing approaches to financial transactions, profit attributions

August 4, 2021

Updated transfer pricing country profiles released by the OECD on August 3 include for the first time information on 20 reviewed countries’ transfer pricing rules applicable to . . .

Asia-Pacific

India’s first year of ‘faceless’ tax assessments runs into legal issues

August 3, 2021

Suranjali Tandon from the National Institute of Public Finance and Policy, New Delhi, analyzes several court decisions issued in June and July that highlight implementation issues with India’s new “faceless” – i.e., digital – tax assessment scheme, which was intended . . .

Africa

Profit shifting persists as corporate tax rates drop 30% in 20 years, OECD study finds

July 29, 2021

The OECD’s annual “Corporate Tax Statistics,” released July 29, reports that the statutory corporate income tax rate in 111 reviewed jurisdictions declined from an average of 28.3% in 2000 to . . .

Africa

Tax dispute peer reviews find Argentine, South African APA programs wanting, Indian MAP issues

July 27, 2021

The latest peer review assessments of countries’ efforts to meet the minimum standard for tax dispute resolution, released by the OECD on July 26, report that both Argentina and South Africa fail the first prong regarding preventing . . .

Asia-Pacific

UK-based Cairn Energy garners court order in France to seize Indian government property valued at more than EUR 20 million in enforcement of international arbitration award: Tribune India→

July 8, 2021

Americas

US Treasury Secretary stresses importance of India’s support for ‘robust global minimum tax’ in call with Indian Finance Minister: U.S. Treasury→

June 29, 2021

Africa

G20 draft communique reportedly endorses global minimum tax

June 22, 2021

A draft communique for the upcoming G20 finance ministers meeting on July 9–10 includes language expressing the countries’ support for a global minimum tax and new rules . . .

Americas

US plans tariffs against six nations as digital tax talks heat up

June 2, 2021

The US Trade Representative on June 2 announced and then immediately delayed implementation of new tariffs on goods from six countries – Austria, India, Italy, Spain, Turkey, and the UK – in response to . . .

Accounting

India to launch e-filing taxpayer portal on June 7

May 27, 2021

The Indian government is planning to launch its new e-filing taxpayer portal on June 7, the Finance Ministry announced . . .

India

India disputes media claims regarding actions it allegedly took to avoid payment of arbitration award in Cairn Energy tax dispute, reasserts legal challenges to arbitral decision: Government of India→

May 26, 2021

Accounting

India government extends tax filing deadlines because of pandemic: Central Board of Direct Taxes→

May 25, 2021

Americas

G7 reportedly close to deal on new rules for taxing multinationals

May 24, 2021

The G7 group of leading economies is getting close to an agreement to shake up the global rules on the taxation of multinational businesses . . .

Asia-Pacific

India sets thresholds for non-resident tax nexus based on economic presence

May 11, 2021

Ritu Shaktawat and Sneh Shah, Khaitan & Co, discuss May 3 Indian government guidance clarifying when a non-resident has a “significant economic presence” in India and is thus deemed to have a taxable presence . . .

Asia-Pacific

Indian court rules most favored nation clause triggered in tax treaty with Netherlands

May 11, 2021

Ritu Shaktawat and Rahul Jain, Khaitan & Co., discuss the High Court of Delhi’s April 22 ruling in a landmark judgment concerning the interpretation of the India-Netherlands tax treaty’s most favored nation clause . . .

Americas

India may oppose US proposal to tax only top 100 companies: Dilasha Seth / Business Standard→

May 10, 2021

Asia-Pacific

How prudent is it to conduct transfer pricing risk adjustments for captive cost centres?

May 4, 2021

Smarak Swain, New Delhi, discusses India’s Income Tax Appellate Tribunal’s recent decision in a transfer pricing dispute, GCO Technologies Centre Pvt Ltd, focusing on whether adjustments should have been made to the comparables to reflect the captive service provider’s risk levels. . .

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.
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