Featured News

A subcommittee of the UN Committee of Experts on International Cooperation in Tax Matters has released a discussion draft and . . .

Africa

South Africa prevails with a TNMM analysis in transfer pricing dispute, but should it have?

New York City economist, Dr. J. Harold McClure, discusses South Africa’s win in a transfer pricing dispute with a catalytic converter manufacturer in ABC (Pty) Ltd. v. Commissioner . . .

Europe

Netherlands adds new minimum substance requirements to conditional withholding tax anti-abuse rule

Roderik Bouwman and Rhys Bane, DLA Piper, Amsterdam, discuss the Netherlands government’s latest regulations clarifying the new conditional withholding tax on interest and royalty payments, which became effective on January 1. . . .

Asia-Pacific

EU Code of Conduct Group’s taxation work program released

Francesca Amaddeo, a Lecturer-Researcher, at the Tax Law Competence Centre (SUPSI), Manno, Switzerland, discusses the Council of the European Union’s February 9 release of the Code of Conduct Group’s new work plan under the Portuguese Presidency . . .

Digital Economy

Is the EU (unintentionally) undermining ongoing OECD work on digital taxation?

Oliver Treidler, TP&C GmbH, discusses the January 14 European Commission inception impact assessment and request for public feedback on the design of an EU digital levy . . .

Africa

OECD publishes assessment of cross-border tax dispute resolution in 13 more countries

The OECD on February 1 published assessments of the cross-border tax dispute resolution processes in Aruba, Bahrain . . .

Asia-Pacific

Taiwan amends transfer pricing guidance for intangible transactions

February 16, 2021

Yuanchang, Toby, SU, General Manager, Fu Ten TP Consulting, Taiwan, discusses the final version of Taiwan transfer pricing regulations, released last year . . .

Africa

Stakeholders weigh-in on BEPS Action 14 standards for cross-border tax dispute resolution

Parwin Dina, Lead Client Service Partner and Global Tax Leader, GTS (Global Tax Services) UAE, discusses an OECD consultation meeting, held February 1, addressing OECD Secretariat proposals with respect to a 2020 review of BEPS Action 14, concerning cross-border tax dispute resolution . . .

Americas

Dominican Republic guidance addresses transfer pricing thresholds, tax haven list

Jessica Barbieri an Associate at BaseFirma Venezuela discusses Dominican Republic tax authority guidance issued earlier this month covering various tax issues, including new transfer pricing thresholds and updates to the tax haven list . . .

Asia-Pacific

Qatar’s new transfer pricing documentation rules

Rubeena Dina, Partner at Global Tax Services, UAE and Director at GTS Africa – Mauritius discusses Qatar’s new transfer pricing regulations . . .

Europe

Portugal increases taxes on the acquisition and ownership of real estate assets

Diogo Ortigão Ramos and João Pedro Russo, Cuatrecasas, Portugal discuss tax changes introduced by the Portuguese State Budget for 2021 which are effective January 1 . . .

Europe

Switzerland aims to make tax system more competitive

February 8, 2021

Switzerland’s Federal Department of Finance is developing new tax rules designed to improve Switzerland’s attractiveness as a business . .

Europe

Poland APA statistics reveal alarming trends

February 3, 2021

Dr. Monika Laskowska of the Center of Tax Analyses and Studies, Warsaw School of Economics, discusses trends in Poland’s advance pricing agreement program, as revealed by recent statistics published by Poland’s tax authority . . .

Asia-Pacific

India’s Budget – Implications for the international business community

February 3, 2021

Mukesh Butani and Seema Kejriwal, Partners at BMR Legal, provide a detailed look at the tax implications for the international business community of India’s financial year 2021-22 budget, which includes controversial changes to India’s equalisation levy . . .

Americas

Mexico amends tax rules applying to digital service providers, online platforms

February 3, 2021

Arturo Treviño Villarreal, a Tax Partner at Fratelli Consultores, Monterrey, Mexico, discusses new Mexican rules which entered effect on January 1 that address the income tax and VAT treatment of digital services and transactions performed on technological platforms . . .

Asia-Pacific

Israeli tax circular addresses intercompany recharges from stock-based compensation

February 2, 2021

Jacky Houlie of JH & Co. Law Office and Shlomo Hubscher, JH Consulting Ltd., Tel Aviv-Yafo, discuss a recently issued tax circular released by the Israeli tax authorities . . .

Africa

First Look: OECD consultation focuses on improving cross-border tax dispute resolution

February 1, 2021

The OECD today hosted a consultation meeting on a planned review of minimum standards, agreed to by OECD and G20 countries in 2015, that aim to improve cross-border tax dispute resolution for multinational . . .

Asia-Pacific

First Look: India’s Budget – A step towards clarity for foreign investor taxation

February 1, 2021

Mukesh Butani and Seema Kejriwal, of BMR Legal in Delhi, take a first look at the Indian government’s budget proposals for 2021–22, released today, focusing on several important proposals that affect international taxation . . .

Americas

New Paraguay law extends withholding tax to digital services

January 27, 2021

Valeria Saavedra, Senior Associate, at Basefirma Venezuela, Caracas, discusses a new Paraguay law, effective January 1, which imposes income tax withholding on payments made to nonresidents that provide digital services . . .

Americas

COVID-19 and tax treaties: the updated OECD guidance

January 27, 2021

Parwin Dina, Lead Client Service Partner and Global Tax Leader at GTS (Global Tax Services) UAE, discusses the OECD’s updated guidance on COVID-19 and tax issues, issued January 21 . . .

Europe

EU blacklist does not properly identify tax havens, Parliament says

January 27, 2021

Francesca Amaddeo, Lecturer-Researcher at the Tax Law Competence Centre (SUPSI), Manno, Switzerland, discusses an European Parliament non-legislative resolution, issued January 18, criticizing the EU tax blacklist . . .

Europe

Ferragamo France’s transfer pricing dispute and resale price method abuse

January 25, 2021

Dr. J. Harold McClure, a New York City economist, notes that a recent transfer pricing case decided by France’s Supreme Administrative Court appears to involve a distribution affiliate with persistent operating losses despite purporting to use arm’s length margins, a pattern discussed in detail by Dr. Ednaldo Silva in his January 6 MNE Tax article . . .

Digital Economy

Italian digital services tax takes its first steps

January 25, 2021

Francesca Amaddeo, Lecturer-Researcher at the Tax Law Competence Centre (SUPSI), Manno, Switzerland, discusses the Italian revenue agency’s January 15 release of final guidance on the national digital services tax, provision n. 13185/2021. . .

Europe

Swedish court denies telecom giant’s tax deduction for exchange losses

Erik Koponen, Transfer Pricing Specialist at Thorning Koponen Consulting, Sweden, discusses a Swedish Lower Administrative Court decision issued on January 4 that upheld the Swedish tax agency’s denial of a deduction for losses related to a currency conversion of a loan . . .

Africa

Rwanda introduces transfer pricing regulations

Rubeena Dina, Director at GTS Africa – Mauritius, discusses a Rwandan government ministerial order establishing general rules on transfer pricing . . .

Asia-Pacific

Vietnam’s transfer pricing regulations create new challenges

Tu Ha, Transfer Pricing Director at Duff & Phelps, Vietnam, discusses new Vietnam transfer pricing regulations, effective from December 20, 2020, that replace all former transfer pricing regulations . . .

Africa

Transfer pricing and the cumulative advertising effects on sales

Dr. Ednaldo Silva, founder and managing director of RoyaltyStat, Bethesda, Md., discusses the effect of advertising on enterprise-level sales, arguing that marketing intangible producing activities such as advertising expenses cannot coexist with the legal concept of limited function distributor or retailer . . .

Europe

New Italian budget law permits advance pricing agreement rollback

January 19, 2021

Francesca Amaddeo, Lecturer-Researcher, Tax Law Competence Centre (SUPSI), Manno, Switzerland, discusses a new Italian law related to advance pricing agreements . . .

Africa

“Platform for Collaboration on Tax” toolkit helps countries set up transfer pricing documentation regimes

January 19, 2021

The “Platform for Collaboration on Tax,” a joint initiative of the IMF, OECD, UN, and World Bank Group today released a toolkit aimed at helping developing countries establish an effective transfer pricing . . .

Americas

US says Austria, Spain, UK digital taxes discriminate, warns on EU tax, three others

January 15, 2021

Digital services taxes enacted in Austria, Spain, and the UK discriminate against US companies within the meaning of Section 301 of the US Trade Act of 1974, the Office of the US Trade Representative . . .

Africa

Arm’s length principle mutations: control of risk in the OECD guidelines and variations in practice

Andrew Hickman, UK consultant and former OECD Transfer Pricing Head, observes that a “mutated” form of the arm’s length principle is being applied in practice that differs from the 2017 OECD transfer pricing guidelines, and considers whether the guidelines should adopt these changes or if these mutations should be abolished . . .

Africa

OECD releases 20 comments on BEPS Action 14, new tax dispute resolution proposals

The OECD today released 180+ pages of public comments from 20 groups responding to a planned 2020 review of Action 14 of the OECD/G20 base erosion . . .

Council of the EU

EU agenda includes public country-by-country reporting

Francesca Amaddeo, Lecturer-Researcher, Tax Law Competence Centre (SUPSI), Manno, Switzerland, discusses the Portuguese Presidency of the Council of the European Union’s January 1 announcement of its priority program, including tax policy priorities . . .

Europe

Swedish tax agency clarifies DAC6 transfer pricing hallmarks