Featured News

The UK HM Revenue and Customs is considering potential new transfer pricing documentation requirements that would require businesses to prepare and provide specific documentation to support their transfer pricing . . .

Europe

Netherlands legislative proposal tackles transfer pricing mismatches

Jian-Cheng Ku and Tim Mulder, of DLA Piper Netherlands N.V., discuss the Dutch government’s publication on March 4 of its legislative proposal to tackle double non-taxation resulting from transfer pricing mismatches. . .

Asia-Pacific

US multinationals tax payments halved, investment and revenues boosted following 2017 tax overhaul, JCT report finds

US MNEs paid substantially lower corporate taxes following the 2017 Tax Cut and Jobs Act, both domestically and globally, a March 19 report from the US congressional Joint Committee on Taxation concludes. . .

Asia-Pacific

Singapore adopts BEPS-compliant IP tax incentives

Edmund Leow SC of Dentons Rodyk & Davidson LLP, Singapore, discusses Singapore regulations on its new concessionary income tax rules for intellectual property, which came into effect on January 22. . .

Featured News

Greek transfer pricing guidance addresses the COVID-19 pandemic

Emmanouela Kolovetsiou-Baliafa of KG Law Firm, Athens, Greece, discusses a Greek Independent Authority for Public Revenues circular providing guidance on the transfer pricing implications of the COVID-19 pandemic. . .

Europe

EU approves DAC 7 rules on digital platform tax reporting, joint audits

As expected, the EU Council on March 22 approved DAC 7, establishing new EU-wide rules that require digital platforms . . .

Asia-Pacific

Mongolia’s first transfer pricing assessment – what could be the issues?

Dr. J. Harold McClure, New York economist, discusses the issues surrounding Mongolia’s first transfer pricing assessment. . .

Asia-Pacific

Georgia amends transfer pricing rules for APAs, reduces thresholds

Gela Barshovi of TPsolution, Tbilisi, Georgia, discusses March 2 Georgia Ministry of Finance guidance amending the transfer pricing rules concerning the unilateral advance pricing agreement procedure . . .

Europe

EU sues UK for failure to recover Gibraltar tax benefits from multinationals

The European Commission reported on March 19 that it is referring the UK to the Court of Justice of the European Union for failing to comply with the Commission’s decision requiring it to recover €100 million of illegal state aid in Gibraltar. . .

Asia-Pacific

Bahrain introduces country-by-country reporting requirements

Abdulrahman Bucheeri and Raman Ohri of Keypoint Solutions, Manama, discuss Bahrain ministerial guidance introducing country-by-country reporting requirements, released on February 4 . . .

Americas

US Tax Court finds microcaptive insurer failed to provide insurance for tax purposes

March 22, 2021

The US Tax Court held on March 10 that a microcaptive insurer purportedly established to insure a number of related construction companies did not actually provide insurance for federal tax purposes because the insurer neither distributed risk nor acted as an insurer commonly would. . .

Americas

Canada’s tax treaty MAP inventory increased in 2019, new report shows

March 22, 2021

The Canada Revenue Agency published on March 8 the annual report on its mutual agreement procedure program for the calendar year 2019, revealing that MAP inventory increased that year. ..

Asia-Pacific

Mongolia issues first transfer pricing assessment

March 18, 2021

The Mongolian government has issued its first transfer pricing tax assessment, hitting a mining company with a tax bill of approximately USD 228 million and a denial of USD 1.5 billion in carried forward . . .

Europe

Ireland consults on adoption of authorized OECD approach for attributing profits to branches

Ireland’s Department of Finance on March 16 launched a public consultation on its proposal to adopt into Irish law the “authorized OECD approach” for the attribution . . .

Americas

Canadian mining company seeks NAFTA arbitration in Mexico transfer pricing dispute

First Majestic Silver, a publicly traded Canadian mining company, has resorted to international arbitration to resolve an ongoing transfer pricing dispute with the Mexican government over tax reassessments the government made in conflict with the terms of an advance pricing agreement. . .

Digital Economy

CJEU confirms Polish and Hungarian progressive turnover taxes do not violate EU law

On March 16, the Court of Justice of the European Union upheld the General Court’s judgments that two progressive turnover taxes – a Polish tax on the retail sector and a Hungarian tax on advertisement revenue – do not violate EU state aid law. . .

Americas

Mathias Cormann appointed OECD Secretary General

The OECD council on March 15 named former Australian finance minister Mathias Cormann as its next leader beginning in June. He will become the first secretary-general from. . .

Asia-Pacific

Transfer pricing for Indian software distribution affiliates

New York City economist, Dr. J. Harold McClure, notes that Indian tax authorities may take a closer look at transfer pricing following their loss in a landmark decision involving the taxation of foreign-based software providers . . .

Africa

EU to implement digital levy regardless of OECD-led effort

March 16, 2021

The EU Commission will continue to press ahead with its proposal for an EU digital levy to fund EU operations even if a global international tax . . .

Europe

UK proposes ‘super deduction’ for plant and machinery, launches R&D tax incentive review

March 16, 2021

The UK published its Finance Bill on March 11, detailing the tax provisions announced in the 2021 UK budget, including the super deduction to boost economic recovery and a review of the UK’s current R&D tax incentives. . .

Council of the European Union

EU advances DAC 7 proposals to share digital platform tax information

March 16, 2021

Francesca Amaddeo of the Tax Law Competence Centre, Manno, Switzerland, discusses recent developments regarding the EU’s proposed DAC 7 directive . . .

Featured News

UN tax committee to issue proposed model treaty language on taxing rights for automated digital services

March 15, 2021

A subcommittee of the UN Committee of Experts on International Cooperation in Tax Matters has announced that it is finalizing language on a proposed article for inclusion in the UN Model Tax Convention attributing . . .

Featured News

“Platform for Collaboration on Tax” toolkit offers guidance on negotiating tax treaties

March 11, 2021

On March 10, the “Platform for Collaboration on Tax” – a joint initiative of the IMF, OECD, UN, and World Bank Group – launched the final version of its Toolkit on Tax Treaty Negotiations. . .

Asia-Pacific

India Supreme Court settles the debate – software sale is not taxable as royalty

March 10, 2021

Ritu Shaktawat and Krutika Chitre, Khaitan & Co, Mumbai, discuss the Supreme Court of India’s new landmark ruling putting to rest a long-standing contentious issue surrounding the characterization of income in the hands of non-resident software manufacturers . . .

Europe

Dutch job-related investment tax credit: strengthening the Dutch tax incentive toolbox

March 9, 2021

Jian-Cheng Ku, Gabriël van Gelder, & Mehdi el Manouzi, of DLA Piper, discuss the Netherlands’ introduction in January of a new tax incentive scheme — the so-called job-related investment tax credit (baangerelateerde investeringskorting) . . .

Americas

Can GILTI and the GloBE be harmonized in a Biden administration?

Daniel Bunn, Vice President of Global Projects, Tax Foundation, discusses the need for the US’s GILTI rules and the Inclusive Framework’s GloBE proposal to be harmonized . . .

Americas

US Tax Court decision in Coca-Cola is at odds with economic principles

Dr. Ednaldo Silva of RoyaltyStat, Bethesda, Md., identifies flaws in the US Tax Court’s decision in the Coca-Cola transfer pricing dispute . . .

Africa

Zambia introduces country-by-country reporting

Rubeena Dina and Kennedy Munyandi, of GTS Africa, discuss the Zambian government’s issuance of transfer pricing regulations addressing country-by-country reporting, which became effective January 1 . . .

Europe

EU to negotiate public country-by-country reporting