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Europe

Irish Finance Minister outlines reasoning in joining global tax deal

November 10, 2021

The benefits to Ireland of joining the OECD/G20 global tax deal “far outweigh” the downsides of remaining outside the deal, which would carry “very real risks,” Irish Finance Minister Paschal Donohoe explained in a November 10 address to . . .

Africa

‘Tax Inspectors Without Borders’ expands developing country tax and transfer pricing assistance

November 9, 2021

Tax Inspectors Without Borders – a joint initiative of the OECD and United Nations Development Programme – expanded the scope of its assistance to developing country tax administrations, according to the initiative’s 2021 annual report released November 9, amid challenges faced by . . .

Europe

Romania updates list of large taxpayers required to prepare transfer pricing documentation

November 8, 2021

Adrian ȚAGA, Romanian National Tax Agency, discusses the agency’s October 29 publication of a new order updating the list of large taxpayers that are required to prepare transfer pricing documentation according to a specific set of criteria that relate to . . .

Americas

Peruvian legislative project would modify tax on nonresident entities’ presumed income

November 8, 2021

Gonzalo Escalante, Zegarra Aguilar Abogados, discusses the Peruvian prime minister’s October 27 delivery to congress of a legislative project seeking to increase the presumed income applicable to nonresident entities and their branches or other . . .

Africa

Côte d’Ivoire finance bill 2022 will adjust tax on related party transactions

November 8, 2021

Moïse Gnakouri, Catholic University of Louvain, discusses the Côte d’Ivoire’s 2022 finance bill, unveiled on October 20, which adjusts the taxation of intra-group transactions; it provides that the withholding tax on non-commercial profits and/or value-added tax (VAT) is due as soon as . . .

Asia-Pacific

Jordan publishes executive instructions for transfer pricing rules

November 8, 2021

Nour Ali, DNV, discusses Jordan’s September 16 release of the country’s latest transfer pricing guidance regarding the disclosure form, local file, master file, and country-by-country report, along with specific . . .

Accounting

Ireland considers new tax measures for outbound payments

November 5, 2021

The Irish Department of Finance on November 5 launched a public consultation on the introduction of new corporate tax rules applicable to outbound payments of interest, royalties, and dividends; the measures would deny . . .

Americas

Global minimum tax will work, if implemented, OECD’s Saint-Amans says

November 4, 2021

OECD tax policy director Pascal Saint-Amans in a November 4 interview expressed that the political agreement on a 15% global minimum effective tax rate is a big deal, he is very pleased with the outcome, and he has little fear of companies attempting to exploit loopholes to evade the tax because . . .

Americas

Biden administration’s budget bill tax revenue estimates confirmed, partly

November 4, 2021

The revenue expected to be raised from the tax provisions included in the current draft of the Democrats’ Build Back Better budget is largely in line with the Biden administration’s claims, based on estimates released November 4 by the non-partisan US Congressional . . .

Europe

French transfer pricing case highlights functional analysis at heart of tax litigation

November 4, 2021

Patrick Donsimoni, La Boetie, discusses the French supreme tax court’s October 4 decision, underlining that a group’s transfer pricing policy must be in line with the structuring of its supply chain since the functional analysis is decisive for . . .

Accounting

US budget bill tax provisions’ effective dates, rates, thresholds

November 3, 2021

Following a November 2 off-year election that many pundits consider an initial bad omen for the Democrats, Biden and the party continue to finalize the details – and secure the votes – for the signature portion of the President’s agenda, including several notable corporate and international tax . . .

Asia-Pacific

Spanish Supreme Court denies access to MAP in domestic GAAR tax case

November 2, 2021

Aitor Navarro, Carlos III University, discusses the September 22 Spanish Supreme Court decision regarding SGL Carbon Holding (ECLI:ES:TS:2021:3572), addressing the denial of a mutual agreement procedure (MAP) initiation request on the grounds of tax abuse in a case involving . . .

Europe

Norway proposes important changes to rules on tax-free cross-border reorganizations

November 2, 2021

Sander Pettersen, CMS Kluge Advokatfirma AS, discusses the Norwegian Ministry of Finance’s September 3 release of a proposal to simplify cross-border mergers, demergers and share exchanges to facilitate . . .

Africa

Global tax deal to proceed with G20 endorsement, but not all is resolved

November 1, 2021

At the end of their October 30–31 summit in Rome, the leaders of the G20 adopted a declaration supporting the implementation of new international tax rules – urging the OECD “to swiftly develop the model rules and multilateral instruments” necessary to . . .

Americas

White House’s hopes of an international tax revenue windfall may be overblown

October 29, 2021

Alex M. Parker, Capitol Counsel LLC, discusses how, without the political support for raising tax rates, Democrats are looking to an overhaul of the international tax system to help pay for the USD 1.75 trillion spending package; but some recent estimates say . . .

Americas

Biden ‘confident’ has votes for new tax and spending framework

October 28, 2021

US President Biden announced on October 28 a new framework for his “Build Back Better” bill, which he is now “confident … can pass both houses of Congress,” following . . .

Europe

UK will amend R&D tax reliefs, increase bank corporate tax rate

October 28, 2021

The UK government announced plans to reform tax incentives for research and development (R&D) as well as increase the corporate tax rate for banks as part of the 2021 autumn budget . . .

Accounting

US tax plan shifts, with corporate minimum tax in, rate hikes out

October 27, 2021

Democrats appear poised to adopt for their budget bill a corporate minimum tax of 15% on the book income of the most profitable companies, with an updated proposal for such a tax released October 26 by . . .

Europe

Italy introduces new patent box regime

October 27, 2021

Luca Tortorella and Michele Targa, Gatti Pavesi Bianchi Ludovici, discuss Italy’s October 21 repeal and replacement of the former patent box regime, which, from 2021 onwards, shift it from a profit-based incentive to an extra deduction for certain R&D costs incurred by . . .

Americas

Paraguay clarifies transfer pricing rules

October 27, 2021

Horacio Sánchez Pangrazio, FERRERE, discusses Paraguay’s October 14 and September 15 clarifications of its transfer pricing rules, providing further regulation regarding . . .

Europe

EU Commission seeks to ease withholding tax mechanism on cross-border investments

October 26, 2021

Francesca Amaddeo, Tax Law Competence Centre (SUPSI), discusses the EU Commision’s public consultation launched September 28 on an initiative to address impediments to cross-border investment posed by the burdensome nature of withholding tax mechanisms, which according to . . .

Europe

Netherlands issues policy decree clarifying hybrid mismatch tax measures

October 25, 2021

Jian-Cheng Ku, Rhys Bane, and Mehdi el Manouzi, DLA Piper Nederland N.V., discuss the Dutch government’s October 11 decree clarifying hybrid mismatch measures of the EU Anti-Tax Avoidance Directive 2 (ATAD 2), based on the first experiences with the . . .

Africa

E-invoicing and interaction with transfer pricing: a Middle East and African perspective

October 25, 2021

Rubeena Dina and Aniruddha Saha, GTS Africa, discuss the global trend of tax authorities’ introducing electronic invoicing requirements and the implications for transfer pricing in the Middle East and Africa . . .

Digital Economy

Irish Finance Bill 2021 adopts transfer pricing, international tax changes

October 22, 2021

The Finance Bill 2021 released by the Irish government on October 21 sets out legislative changes related to transfer pricing, anti-tax avoidance measures, planned tax treaty ratifications, and various . . .

Accounting

European digital services taxes to stay for now, with offsetting credits, countries agree

October 21, 2021

Under an October 21 agreement between the United States and Austria, France, Italy, Spain, and the UK, the European countries can keep their existing digital services taxes in place pending implementation of Pillar 1 of the OECD global tax deal; however, multinational groups . . .

Europe

Germany updates tax dispute resolution and mutual agreement procedures

October 21, 2021

Timo Turek, Ypsilon International GmbH, discusses Germany’s updated guidance from August 27 on international dispute resolution, replacing the existing guidance from 2018, which, for the first time . . .

Customs

European Commission work programme 2022 includes tax projects

October 21, 2021

The European Commission will work to ensure “swift and consistent” implementation within the EU of the two-pillar global tax agreement to show “EU’s leadership in global tax fairness,” according to its work programme 2022 released October 19, including a new . . .

Platform for Collaboration on Tax shifts priorities in response to global tax deal

October 20, 2021

The Platform for Collaboration on Tax – a joint initiative of the OECD, United Nations, International Monetary Fund, and World Bank Group – is reevaluating its international tax priorities in light of the Inclusive Framework agreement reached . . .

Americas

Panama court upholds transfer pricing penalty on operations within special tax-exempt area

October 20, 2021

Rafael Rivera, BDO Panama, discusses an August 27 decision from Panama’s Supreme Court of Justice upholding a USD 1 million transfer pricing penalty in one of the first tax disputes involving operations of a multinational operating within a special tax-exempt area . . .

Europe

France amends rules regarding withholding tax calculation for dividends

October 19, 2021

Nathalie Valluis, French tax lawyer, discusses Article 7 of the French Finance Bill for 2022, released September 22, which, If adopted as it stands, will allow non-resident legal entities to re-calculate the withholding tax applicable to dividends from French sources on a . . .

Europe

Italy-France tax treaty’s interaction with parent-subsidiary EU directive

October 19, 2021

Michele Targa, Gatti Pavesi Bianchi Ludovici, discusses the Italian Supreme Court’s September 15 decision on the concurrent application of the Italy-France tax treaty and an EU directive to a dividend distribution by a French-resident subsidiary to its Italian-resident . . .

Africa

Country-by-country reporting adopted in more than 100 jurisdictions, OECD reports

October 18, 2021

More than 100 jurisdictions have in place a domestic legal framework for requiring country-by-country reporting by large multinational enterprises, according to an OECD report released October 18, noting that additional jurisdictions have . . .

Developing countries need transfer pricing rule simplifications, OECD advises G20

October 18, 2021

The OECD highlights the importance for developing countries of streamlining complex transfer pricing rules and facilitating access to country-by-country reports in October 13 recommendations to . . .

Asia-Pacific

Thailand clarifies its transfer pricing documentation requirements

October 15, 2021

Paul Ashburn and Rohit Sharma, HLB Thailand, discuss Thailand’s September 30 release of a notice on the transfer pricing documentation that corporate taxpayers will be required to provide to support their analysis of the terms of their . . .

Europe

EU Advocate General opinion addresses Finnish taxation of non-Finnish investment funds

October 15, 2021

Ville Alahuhta, Bird & Bird Attorneys Ltd., discusses the EU Advocate General’s October 6 publication of an opinion on the Finnish tax treatment of a French investment fund in case C-342/20, addressing the . . .

Europe

EU directive will implement OECD tax deal ‘as is’

October 13, 2021

The European Commission “will try” to deliver in December a directive to implement the OECD tax deal within the EU and that directive “will implement the agreement as is,” according to October 12 comments by Benjamin Angel, Director of the European Commission DG TAXUD, who . . .

Austria

Austria updates transfer pricing guidelines

October 13, 2021

Iris Burgstaller, TPA Austria and Baker Tilly, discusses the Austrian Ministry of Finance’s October 7 publication of the final version of the revised Austrian transfer pricing guidelines, replacing the 2010 guidelines to incorporate OECD developments, particularly the . . .

Accounting

Ireland 2022 budget’s tax changes include 15% corporate rate, new incentives

October 12, 2021

The Irish government’s Budget 2022, announced October 12, includes an increase in the corporate tax rate to 15% in line with last week’s OECD tax agreement, expanded relief for start-up companies, a new tax credit for . . .

Africa

European Parliament approves proposal to step up fight against harmful tax practices

October 12, 2021

Vasiliki Koukoulioti, Ph.D. researcher at Queen Mary University of London, discusses the European Parliament’s October 7 adoption of a draft resolution calling for an in-depth reform of European policy to combat harmful tax practices by toughening . . .

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

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