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Asia-Pacific

India extends applicability of transfer pricing safe harbour rules for another year

October 12, 2021

Gaurav Jain and Priya Bhutani, New Delhi, discuss India’s September 24 extension of the existing transfer pricing safe harbour rules to financial year 2020-21 – welcome news to eligible corporations, but certain stakeholders, such as small and medium enterprises . . .

Europe

CJEU to review German transfer pricing obligation: do national tax rules affect EU freedoms?

October 11, 2021

Francesca Amaddeo, Tax Law Competence Centre (SUPSI), discusses Germany’s July 15 request that the European Court of Justice review German transfer pricing documentation requirements and associated sanctions in the case C-431/21, X GmbH & Co. v Finanzamt Bremen, following . . .

Bulgaria

EU advocate general opinion addresses withholding tax on unpaid interest

October 11, 2021

Stoycho Dulevski, Kolev, Angelov & Miteva Law Firm, discusses the September 30 EU Advocate General’s opinion regarding the assessment of withholding tax on unpaid interest in Case С-257/20 Vivacom Telecom Bulgaria, focusing on the . . .

Africa

Global tax talks reach ‘critical mass’ for landmark deal by tweaking details

October 8, 2021

The historic October 8 agreement on a global minimum tax and new rules for allocating taxing rights for large multinationals both firms up issues left open in the initial July statement and reflects concessions that were made to bring into the deal a few new countries, including . . .

Americas

OECD and Ireland strike tax deal as others in EU line up, developing countries shrug

October 7, 2021

Ireland announced October 7 that it is joining the OECD tax deal, cutting the holdouts down to just five nations out of the 140 in the Inclusive Framework that are scheduled to meet Friday, October 8, to . . .

Digital Economy

Digital taxes should remain for companies outside Pillar 1, BEPS Monitoring Group says

October 6, 2021

The BEPS Monitoring Group contends in October 5 comments that multinational enterprises that are not in-scope of the global tax deal’s Pillar 1 partial reallocation of taxing rights to market jurisdictions should remain subject to . . .

Americas

Mexico proposes new transfer pricing rules of the game

October 6, 2021

Jesús Aldrin Rojas M., QCG Transfer Pricing Practice, discusses the Mexican government’s September 8 decree that would modify the transfer pricing regime to enhance its effectiveness as a tax collection and audit instrument for the tax authorities, providing new and aggressive rules of the game for . . .

Americas

Dominican Republic introduces country-by-country reporting rule – a decade after transfer pricing documentation obligations entered into force

October 5, 2021

José Rafael Monsalve, transfer pricing economist and international tax advisor, discusses the Dominican Republic’s October 5 release of specific regulations for the country-by-country report – a decade after transfer pricing documentation obligations entered into force – through . . .

Europe

Italy draft guidance clarifies transfer pricing documentation requirements

October 5, 2021

Giuliana Polacco, Annarita De Carne, Francesco Drago and Camilla Cominelli, Studio Legale Bird & Bird, discuss the Italian Revenue Agency’s September 20 publication of the draft of a long-awaited circular letter on transfer pricing, focused on the documentation necessary to verify the correct application . . .

Americas

Switzerland, Estonia, Ireland seek concessions in global tax deal

October 4, 2021

OECD Secretary-General Mathias Cormann told the Swiss Finance Minister that he personally does not see a consensus on a global minimum tax at a rate above 15%, attempting to allay Swiss concerns about the Inclusive Framework’s July statement referring to . . .

Europe

Finnish court rules on arm’s length range and transfer pricing adjustment point

October 1, 2021

Heikki Vesikansa, Jenni Parviainen and Stefan Stellato, Hannes Snellman Attorneys Ltd., discuss Finland’s Supreme Administrative Court’s September 13 publication of a year-book decision examining the use of comparable data in determining the arm’s length range and the transfer pricing . . .

Africa

Global minimum tax negotiations focus on carve-outs, EU consensus, closing deal

September 30, 2021

Negotiators are seeking to achieve final consensus on the details of the global minimum tax deal, according to September 29 comments from European Commission official Benjamin Angel, with talks centering on the terms for carve-outs and other technical aspects that might bring into the fold remaining . . .

Asia-Pacific

Ukraine advances tax treaty protocols with Denmark and Qatar

September 30, 2021

Iryna Kalnytska, GOLAW, discusses the Ukraine government’s September 2 publication of a draft tax law ratifying the protocol to the 1996 tax treaty between Ukraine and Denmark, along with the same day signing of a protocol with . . .

Europe

Poland considers delayed introduction of ‘hidden divided’ non-deductibility concept

September 29, 2021

Dr. Monika Laskowska, Warsaw School of Economics, discusses the Polish Finance Ministry’s September 28 announcement that it might postpone until 2023 its plans to introduce a controversial provision that would limit the deductibility of so-called “hidden dividend” payments as part of the “Polish Deal” tax bill that . . .

Accounting

European Council advances directive on public country-by-country tax reporting

September 28, 2021

The Council of the European Union on September 28 adopted its position on the proposed directive that would require large multinationals operating in the EU to publicly disclose certain information on the income taxes they pay on a country-by-country . . .

Asia-Pacific

Indian decision on COVID-induced forced stay has tax implications for MNEs

September 28, 2021

Ashish Mehta and Ujjval Gangwal, Khaitan & Co., discuss the Indian Supreme Court’s September 7 decision not to entertain taxpayer petitions seeking an exclusion of COVID-19-induced forced/involuntary stay for financial year 2020-21, for the purpose of . . .

US Democrats’ hopes of overhauling TCJA’s foreign taxes stemmed by global pressure

September 27, 2021

Alex M. Parker, Capitol Counsel LLC, discusses why the most recent version of the Democrats’ plan for overhauling the US tax code – approved by the House Ways and Means committee on September 15 – suggests the party may be backing down on its promise to repeal a key part of the Tax Cuts and Jobs Act’s . . .

Europe

Dutch 2022 budget plan includes tax proposals on transfer pricing, hybrids

September 27, 2021

Jian-Cheng Ku, Gabriël van Gelder, and Rhys Bane, DLA Piper Nederland N.V., discuss the Dutch government’s September 21 tax proposals for 2022, including several direct tax measures that would affect multinational enterprises, such as limiting unilateral downward transfer pricing adjustments and . . .

Europe

Ukraine Ministry of Finance clarifies general tax consultation on deemed dividends

September 27, 2021

Ivan Shynkarenko, KM Partners, WTS Global, discusses the Ukraine Ministry of Finance’s August 20 approval of, and clarifications to, the general tax consultation covering the application of new rules on deemed dividends’ taxation . . .

Americas

OECD’s GloBE rules: Blending in with jurisdictional blending

September 24, 2021

Noopur Trivedi and Jitesh Golani, international tax researchers, discuss how – out of the multiple design elements of the global minimum tax in the OECD/G20 July 1 statement – the adoption of “jurisdictional blending” for computation of effective tax rate, and consequent top-up tax, is one of the most pivotal . . .

Belgium

Belgian court rules against retroactive application of transfer pricing guidelines

September 24, 2021

Moïse Gnakouri, Catholic University of Louvain, discusses a June 8 decision from Belgium’s Court of Appeal of Ghent in a transfer pricing dispute between the Belgian tax authorities and a taxpayer in a case involving the application of a concept introduced in OECD transfer pricing guidelines in a tax year prior to . . .

Accounting

Groups urge FASB to prioritize public country-by-country tax reporting

September 23, 2021

The US Financial Accounting Standards Board should adopt in its standard-setting agenda a requirement for companies to report information in the notes to their financial statements on the disaggregation of country-by-country income tax, according to a September 22 letter signed by 63 organizations that . . .

Americas

Mexico authorities publish third set of effective tax rates for large taxpayers

September 23, 2021

Arturo Treviño Villarreal, Fratelli Consultores, discusses Mexico’s September 5 publication of the third set of metrics related to effective rates for income tax purposes applicable to large taxpayers, prescribing effective tax rates of large taxpayers more likely to garner scrutiny from . . .

Americas

Colombia approves tax reform with corporate rate increase, numerous changes

September 22, 2021

María Helena Padilla, González y Prieto Abogados, discusses the Colombian Congress’s September 9 approval of the social investment law with tax measures to fund new social programs, including an increase in the corporate . . .

Africa

G-24 warns that global tax deal will fail without better terms for developing countries

September 21, 2021

An international tax agreement on new profit allocation rules and a minimum tax will “not be sustainable even in the medium run” unless the terms allow developing countries to see fair shares under both pillars of the deal, the G-24 contended in September 19 comments submitted . . .

Americas

Argentine Supreme Court rules against Molinos in tax treaty abuse case

September 20, 2021

Hernán Ubertazzi, 3D Asesores, discusses Argentina’s Supreme Court’s September 2 endorsement of the Argentine Tax Authority’s position regarding the abuse by Molinos Río de La Plata of the Argentina-Chile double taxation agreement, in a case involving . . .

Estonia

EU state of the union address calls for tax reforms

September 17, 2021

European Commission President Ursula von der Leyen stressed the importance of fair taxation and initiatives to expand the tax base in her 2021 state of the union address on September 15, emphasizing . . .

Belgium

EU Court of Justice overrules lower court in Belgian tax exemption state aid case

September 16, 2021

Setting aside the General Court’s 2019 decision, the Court of Justice of the European Union on September 16 concluded that the European Commission sufficiently demonstrated that Belgian “excess profits” tax exemptions granted to multinational companies constituted . . .

Africa

India proposes rules to implement farewell to the retro tax

September 16, 2021

Suranjali Tandon, National Institute of Public Finance and Policy, discusses India’s Central Board of Direct Taxes August 28 publication of a consultation document on proposed rules to remove the controversial retroactive application of a law taxing indirect transfers of assets situated in . . .

Europe

Italian tax agency’s participation exemption interpretation: bull in the china shop

September 16, 2021

Daniele Majorana, Miccinesi Tax, discusses the Italian tax agency’s recent guidance clarifying that the taxable base of the exit tax must be determined on the difference between the market value of the transferred going-concern, considered as a whole, and the tax value of the . . .

Asia-Pacific

India intercompany financing: debt versus equity and the pricing of intercompany loans

September 15, 2021

New York City Economist Dr. J. Harold McClure discusses the Mumbai Income Tax Appellate Tribunal’s August 20 ruling against the Indian tax authority in Bennett Coleman & Co Ltd (As successor to Times Infotainment Media Limited) v. Deputy Commissioner of Income Tax, and analyzes the two questions . . .

Americas

Asia to see disparate impacts from global digital tax reforms, IMF reports

September 15, 2021

Global tax reform efforts to address digitalization of the economy would likely have modest revenue effects in Asia, on the whole, according to a September 14 report from the International Monetary Fund; however, the effects would be uneven . . .

Americas

India-US bilateral advance pricing agreements and tax benefits for US multinationals

September 15, 2021

E. Miller Williams, Jr. and Richard L. Slowinski, Alston & Bird, discuss the growing demand for bilateral advance pricing agreements (APAs) between India and the US due to the high potential for adjustments and the risk of . . .

Americas

Brazilian National Congress approves income tax reform preliminary text

September 14, 2021

Carolina Becman and Kassia Paulo, Gaia Silva Gaede Advogados, discuss the Brazilian National Congress’s September 2 approval of the preliminary text for income tax reform, making important changes from the original draft and including a reduction in the corporate income tax rate from . . .

Cyprus

Cyprus to introduce transfer pricing legislation

September 14, 2021

Marios Palesis, T.P. Alfa Services, discusses new transfer pricing legislation that was submitted to the Cyprus parliament in June, defining the persons required to maintain documentation files and report related party transactions, as well describing the type of information . . .

Americas

US House bill adds detail, moderation to corporate tax reform plans

September 13, 2021

Legislative corporate and international tax proposals to fund the Democrats’ budget reconciliation bill unveiled September 12 by House Ways and Means Committee Chairman Richard Neal (D-Mass.) contain the most comprehensive legislative language to date for . . .

Americas

US Senate bill would amend pass-through rules to address corporate tax abuse

September 10, 2021

Senate Finance Committee Senator Ron Wyden (D-Ore.) released a discussion draft on September 10 for legislation that would tighten rules around partnerships and other pass-through entities to prevent large corporations and wealthy investors from . . .

Europe

Polish Deal introduces new minimum tax for corporations

September 10, 2021

Dr. Monika Laskowska, Warsaw School of Economics, discusses the Polish government’s acceptance of a new tax bill on September 8, including the introduction of a minimum corporate income tax . . .

Accounting

US IRS priority plan adds tax projects on intangibles, hybrids, R&D

September 10, 2021

The US Internal Revenue Service priority guidance plan for 2021–2022, released September 9, lists several new corporate and international tax guidance projects for the coming year, supplementing . . .

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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