Featured News

The Kenyan High Court sitting in Machakos issued an order suspending the implementation of Kenya’s new minimum tax on business gross revenues on April 19 . . .

Americas

Canada improves completion time for advance pricing agreements

The Canada Revenue Agency reduced the average time to complete a bilateral advance pricing arrangement (APA) by more than one year in 2020, according to the CRA’s 2020 APA program report, released April 27 . . .

Asia-Pacific

Mongolia rejects mining company’s tax claims in international dispute, seeks damages

The government of Mongolia has filed its defense and counterclaim in a USD 155 million international arbitration tax dispute with the operator of the Oyu Tolgai mine, Oyu Tolgai LLC . . .

Asia-Pacific

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

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

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 . . .

Europe

Ukraine tax authorities adopt new rules for nonresident registration

May 7, 2021

Iryna Kalnytska, GOLAW, discusses Ukrainian tax guidance concerning foreign (non-resident) companies that must register with Ukrainian tax authorities . . .

Digital Economy

UK supports Biden’s global tax deal proposal, with caveats

May 6, 2021

The UK’s primary interest in international tax talks is addressing digital taxation and the allocation of taxing rights under the OECD’s “Pillar One,” but it is okay with the US’s not-digital-only approach to Pillar One, according to Mike Williams . . .

Global minimum tax agreement will require substance-based carve-out, Saint-Amans says

May 5, 2021

To reach international agreement, a global minimum tax deal would need to exclude from minimum taxation income from substantive activities within a jurisdiction, according to Pascal Saint-Amans . . .

Americas

Danish High Court rules on beneficial ownership of dividends for tax purposes

May 5, 2021

Susi Baerentzen, Carlsberg Foundation Postdoctoral Fellow, discusses a highly-anticipated High Court of Eastern Denmark ruling issued May 3 that resolves two tax disputes concerning beneficial ownership . . .

Europe

Finnish court decisions on tax neutral mergers with US companies may have positive implications for shareholders in other EU states

May 5, 2021

Marianna Santamala, Bird & Bird Attorneys Ltd, discusses two recent Finnish Supreme Administrative Court decisions that may have a wider impact on shareholders located in the European Union . . .

Digital Economy

OECD preparing plan to stop unilateral tax measures, Saint-Amans says

The OECD is working on a framework to prevent countries from enacting unilateral tax measures, such as digital services taxes, as part of an agreement under the “Pillar One” negotiations . . .

Asia-Pacific

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

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. . .

UN declines to amend model tax treaty on software payment taxation

The UN Committee of Experts on International Cooperation in Tax Matters, at its 22nd session, decided against adding a proposal to add computer software payments to the UN model tax treaty’s definition of royalty payments . . .

Africa

OECD’s Global Forum to train African tax officials

The OECD’s Global Forum launched in April its “Train the Trainer” pilot program – a move to provide local training to African tax auditors and investigators . . .

Asia-Pacific

Global minimum tax opponents will not stop agreement, Saint-Amans says

Negotiations on a global minimum tax on corporations have the momentum that they need to reach an agreement now that France, Germany, and others have signaled support for recent US proposals. . .

Asia-Pacific

New Singapore transfer pricing guide addresses MNE centralised services

Adriana Calderon, Transfer Pricing Solutions Asia Pte Ltd, discusses the Inland Revenue Authority of Singapore’s release on March 19 of transfer pricing guidelines on centralized services . . .
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Digital Economy

UN versus OECD – It’s time for the UN to get going

Kuldeep Sharma, ADIT (CIOT, UK), discusses why it’s time for the UN to come out of the shadows of the OECD, make structural changes to its tax committee and strengthen its Secretariat to bring it at par with the OECD . . .

Denmark

Denmark Supreme Court rules in Tetra Pak transfer pricing case

April 29, 2021

Susi Baerentzen, Carlsberg Foundation Postdoctoral Fellow, discusses the Danish Supreme Court’s April 26 ruling in a landmark transfer pricing case involving a Danish company Tetra Pak that produced and sold plants for manufacturing ice cream . . .

Africa

UN updates transfer pricing manual for developing countries

The United Nations’ latest edition of its practical manual on transfer pricing for developing countries, released April 27, adds new content on financial transactions . . .

Americas

Google UK reports its 2020 financials: the transfer pricing implications

Dr. J. Harold McClure, New York City, discusses the transfer pricing implications of Google UK’s 2020 financial report . . .

Europe

EU preferential regimes and Code of Conduct Group: state of play

Francesca Amaddeo, Tax Law Competence Centre (SUPSI), discusses several developments in April regarding the EU Code of Conduct Group’s effort to rein in tax avoidance . . .

Americas

Brazil’s Supreme Court addresses software taxation

Francisco Moreira, Bocater, Camargo, Costa e Silva, Rodrigues Advogados and Rachel Mira Lagos, Bocater Advogados, discuss a important Brazilian Federal Supreme Court ruling on software taxation . . .

Europe

Spanish guidance clarifies transfer pricing arm’s length range

Mario Ortega and Íñigo García, J&A Garrigues, S.L.P., discuss Spain’s February 24 transfer pricing guidance on arm’s length price . . .

Americas

Mexico amends tax rules on outsourcing, insourcing services

Arturo Treviño Villarreal, Fratelli Consultores, discusses Mexico’s April 23 guidance covering tax rules for outsourcing and insourcing . . .

Europe

EU’s digital levy proposal to run parallel to OECD talks, Commission official confirms

April 23, 2021

The EU’s proposed digital levy would be in addition to any agreement on taxing large digital companies that arises from OECD talks this year, but the levy will be modest, according to Benjamin Angel, the European Commission’s Director of Direct Tax Policy and acting Director of Indirect Tax Policy. Speaking . . .

Americas

Global agreement on new nexus rules and minimum tax likely by October, Saint-Amans says

Momentum is quickly growing for agreement on the final policy approach for new international tax rules on country taxing rights under the OECD’s “Pillar One” . . .

Americas

US Treasury Secretary Yellen says tax moves needed to help tackle climate change

US Secretary of the Treasury Janet L. Yellen spoke on April 21 of the Biden administration’s “whole-of-government approach” to aggressively tackling climate change – including creating a targeted investment tax credit . . .

Europe

Poland clarifies its unique definition of “controlled transaction” for transfer pricing purposes

Dr. Monika Laskowska, Center of Tax Analyses and Studies, discusses Poland’s early April launch of a public consultation on new transfer pricing guidance defining controlled transactions . . .

Asia-Pacific

Maldives publishes advance pricing arrangement regulations

Zaina Zahir, CTL Strategies, discusses the Maldives Inland Revenue Authority’s advance pricing arrangement regulations published on March 16 . . .

Americas

Brazil proposal would enhance tax incentives for technology R&D