Featured News

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 . . .

Austria

EU reaches agreement on public country-by-country tax reporting

Negotiating teams from the European Council and European Parliament reached an agreement on June 1 on a proposed directive that would require public disclosure of country-by-country tax information by certain . . .

Asia-Pacific

Glencore prevails in the Cobar copper transfer pricing dispute, but should it have?

New York City Economist Dr. J. Harold McClure discusses Glencore’s transfer pricing dispute with the Australian Taxation Office and assesses whether the courts reached the correct conclusions. . .

Asia-Pacific

South Korea expands R&D tax breaks to bolster semiconductor industry

The Republic of Korea signaled its intention to heavily boost its semiconductor industry with an announcement on May 13 that it will offer up to 50 percent tax credits on research and development (R&D) investment and up to 20 percent . . .

Africa

Kenya tax bill alters permanent establishment definition, increases transfer pricing reporting requirements

Ian Mota, Rödl & Partner, discusses Kenya’s Finance Bill 2021, which includes a new “permanent establishment” definition, country-by-country reporting requirement, and new rules for determining “control” among related entities . . .

Americas

US Treasury ‘Green Book’ details Biden’s international tax plans

May 28, 2021

The US Treasury’s Green Book, released today alongside President Biden’s FY 2022 Budget, outlines the specific tax provisions that the Administration seeks to enact this year, including significant proposals for overhauling . . .

Americas

Argentina issues pandemic-related transfer pricing relief, guidance

May 27, 2021

Hernán Ubertazzi, 3D Asesores, discusses the Argentina tax agency’s announcement on April 30 on transfer pricing documentation deadlines and recommendations regarding the treatment of controlled transactions that took place during the pandemic . . .

Digital Economy

Self-assessment of Spain’s digital services tax postponed until July

May 27, 2021

Alma Delia Virto Aguilar, Postdoctoral researcher at the University of Valencia and Professor, International Taxation LLM, UNIR, discusses the status of Spain’s digital services tax . . .

Africa

Hungary, Ireland, UK reiterate resistance to global minimum tax while Germany remains optimistic

Hungary, Ireland, and UK officials have again warned that their countries will not accept the global minimum . . .

Americas

Key US Republican draws lines for global tax deal

US Senator Mike Crapo (R-Idaho) sent Treasury Secretary Janet Yellen a letter on May 24 outlining potential terms that he would consider acceptable in a global tax deal . . .

Americas

Costa Rica joins OECD

The OECD officially welcomed Costa Rica as its 38th member country on May 25 after it completed the process for ratification of the OECD convention and deposited its instrument of accession . . .

Asia-Pacific

Australia’s High Court lets Glencore’s transfer pricing win stand

In a significant win for the taxpayer, the High Court of Australia on May 21 refused to hear an appeal of the lower court’s decision in a transfer pricing dispute between Glencore and Australia’s tax authority . . .

Asia-Pacific

Japan enacts corporate, income, inheritance tax reforms

Takato Masuda of Nishimura & Asahi discusses Japanese corporate, income, and inheritance tax reforms enacted March 26 . . .

Estonia

Greece, Hungary, Iceland fall short of tax dispute resolution goals, OECD review finds

Iceland has no bilateral advance pricing agreement (APA) program in place, and Greece, Hungary, and the Slovak Republic are failing to timely resolve mutual agreement procedure (MAP) cases, according . . .

Americas

US Senate Finance Committee to consider overhauling energy tax code

May 25, 2021

The US Senate Finance Committee is set on May 26 to consider the Clean Energy For America Act, sponsored by Chairman Ron Wyden (D-OR), which would eliminate a number of temporary tax credits and replace them with emissions-based, technology-neutral credits . . .

Europe

EU consults on measures to combat use of shell companies to avoid taxes

A new European Commission initiative launched May 20 is exploring ways to fight the continued use of shell companies, i.e., entities with little or no economic substance, in cross-border arrangements . . .

Americas

G7 reportedly close to deal on new rules for taxing multinationals

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

Carbon Tax

European Commission to propose green taxes in July

The European Commission plans to propose tax changes, including a carbon border adjustment mechanism, in July to support a European “Green Deal,” . . .

Europe

Ukraine’s new transfer pricing reporting forms

Yuri Nikolaychuk, Associate Partner, Rödl & Partner, Kyiv, discusses recent updates to Ukraine’s required transfer pricing documentation . . .

Americas

The EU Commission’s objections to Amazon’s transfer pricing approach

New York City Economist Dr. J. Harold McClure examines why the EU Commission’s objections to Amazon’s transfer pricing approach resulted in Amazon’s win . . .

Americas

US agrees to 15% global minimum tax rate, boosting odds for Pillar 2 agreement

May 21, 2021

The US, which has been leading the push for a global agreement on a minimum corporate tax, has proposed a minimum tax rate of 15% – a concession from the 21% rate that the Biden Administration previously . . .

BEPS multilateral tax treaty signatories provide interpretation guidelines

May 20, 2021

Issues relating to the interpretation and implementation of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) should be resolved under several guiding . . .

Europe

EU Advocate General advises on Portugal’s disparate tax treatment of dividends

May 20, 2021

Advocate General Kokott of the Court of Justice of the European Union (CJEU), in a May 6 opinion, advised the CJEU to rule that EU free movement of capital requirements . . .

Europe

Poland plans enhanced R&D tax incentives in economic recovery effort

May 20, 2021

The Polish Ministry of Finance announced on May 5 various tax plans, including enhanced research and development incentives, in connection . . .

Europe

EU report finds states could improve policies on R&D incentives, tax avoidance

The European Commission’s Annual Report on Taxation 2021, released May 18, finds that EU member states have made progress in bringing their tax policies in line with EU priorities, but areas for improvement remain . . .

Europe

The UN transfer pricing manual’s guidance on IP valuation and royalty rates

New York City Economist, Dr. J. Harold McClure, discusses the latest edition of the United Nations Practical Manual on Transfer Pricing for Developing Countries, released April 27, which includes some useful observations on the nature of intangible assets, yet it has a very sparse discussion of the evaluation of intercompany royalty rates . . .

Asia-Pacific

Australian draft guidance clarifies tax compliance for intangibles arrangements

The Australian Taxation Office set out its compliance approach to various international arrangements relating to intangible assets and the associated tax compliance risks in a draft . . .

Africa

South African tax guidance explains withholding rules on interest, royalties

The South African Revenue Service has issued guidance clarifying the application of withholding tax provisions applicable to interest and royalties in two interpretation notes . . .

Austria

ECJ rules interest payments due for untimely value-added tax refunds

The European Court of Justice ruled on May 12 that refunds resulting from adjustments to the amount of value-added tax that a taxpayer owes must be paid with interest when not paid within a reasonable period of time . . .

Asia-Pacific

Sailing Pakistan’s IT exports through the winds of tax credits

Muhammad Khurram Shabbir, Ph.D. student, NUML, discusses Pakistan’s Federal Board of Revenue’s revelation of a proposal to give more tax concessions to the IT export sector . . .

Digital Economy

Ambitious EU tax agenda includes new common corporate tax base proposal

The European Commission on May 18 announced several proposals that would dramatically alter the taxation of multinational groups, including proposals to allocate MNE profits among EU states using formulary apportionment and require MNEs to publish their effective tax rates . . . .

Americas

Chile clarifies VAT and withholding tax rules for foreign digital services

Fernando Barros and Tomás Kovacevic, Barros y Errázuriz Abogados, Santiago, discuss the Chilean tax agency’s April 21 issuance of regulations on the application of value-added tax (VAT) to digitalized services provided from abroad . . .

Africa

African Tax Administration Forum proposes simpler, more equitable “Pillar One”

The African Tax Administration Forum on May 12 sent a revised Pillar One proposal to the OECD Inclusive Framework, emphasizing . . .

Europe

EU court’s state aid decision in Amazon tax case published in English