OECD–MNE Tax

Europe

Dutch government plans amendments to CFC tax and transfer pricing rules

January 4, 2022

Robert Jean Kloprogge and Olivier Elsenburg, Simmons & Simmons LLP, discuss the prospect Dutch coalition government’s December 15 publication of its 2021–2025 agreement, including a plan to adopt recommendations regarding the Dutch controlled foreign company (CFC) rules from . . .

Europe

Malta consults on draft transfer pricing rules, APA program

December 29, 2021

The Maltese government on December 20 opened a consultation seeking feedback on draft transfer pricing rules with the intention of using the feedback to craft final transfer pricing rules to be published in late 2022 and then apply the rules to tax years beginning in . . .

Carbon Tax

EU looks to pull revenue from share of OECD tax deal, environmental measures

December 23, 2021

The European Commission on December 22 proposed three “own resources” for the EU budget, including taking a share of the taxing rights to be reallocated to EU member states under Pillar One of the OECD Inclusive Framework tax deal reached in October; the two other proposed . . .

Cyprus

EU directive sets out approach to global minimum tax, adds domestic application

December 22, 2021

The European Commission on December 22 released its proposed directive to implement within the EU the global minimum tax under Pillar 2 of the OECD agreement reached between 137 countries in October; the directive largely tracks the OECD agreement, while adding . . .

OECD plans four consultations on tax matters under two-pillar deal

December 21, 2021

The OECD announced on December 21 that it will seek stakeholder input on four elements of the October 8 international tax agreement; two of the consultations will address components of the Pillar 1 profit allocation rules, and the other two will address . . .

GloBE model rules: a peek into key provisions

December 20, 2021

International tax researchers Noopur Trivedi and Jitesh Golani discuss key highlights of the OECD’s much-awaited global anti-base erosion (GloBE) model rules, released on December 20, along with a commitment by the OECD to finalize the commentary and safe harbors in . . .

Americas

US tax bill stumbles as OECD rolls out global minimum tax rules

December 20, 2021

The path toward US implementation of the internationally agreed global minimum tax hit a roadblock on December 19, as a key US Senator announced he will not support the President’s bill that would adopt the tax changes; the news came just one day before the OECD’s release of . . .

Americas

ATO prevails in Singapore Telecom Australia intercompany financing litigation

December 20, 2021

New York City Economist Dr. J. Harold McClure analyzes Australia’s Federal Court of Appeals ruling on December 17 in favor of the Australian Tax Office in Singapore Telecom Australia Investments Pty Ltd v. Commissioner of Taxation – a transfer pricing case involving intercompany interest payments in . . .

Americas

Canada’s Trudeau outlines corporate and international tax priorities in mandate letter

December 17, 2021

Canadian Prime Minister Justin Trudeau includes various high-level tax policy objectives — such as measures targeting bank income and tax avoidance, as well as research and development (R&D) amendments — in a December 16 mandate letter to . . .

Americas

Canada advances digital services tax bill despite OECD pact, US objections

December 15, 2021

Canada introduced draft legislation on December 14 to implement its planned digital services tax – with a built-in delay and contingency deferring to implementation of the OECD multilateral agreement; however, if the OECD agreement under Pillar 1 is not timely implemented . . .

Africa

Kenya issues draft tax regulations on common reporting standard

December 14, 2021

The Kenyan government on December 14 published common reporting standard draft regulations under the Tax Procedures Act relating to the exchange of information in tax matters . . .

Asia-Pacific

OECD review of tax ruling exchange standard finds 36 countries could improve

December 14, 2021

Out of 131 countries the OECD reviewed in a 2020 peer review report released on December 14, 95 received no flags for improvement with respect to implementing the OECD minimum standard on exchange of information on tax rulings; however, 36 countries fell short, including . . .

Americas

Panama adapts laws on exchange of information for tax purposes to international standards

December 14, 2021

Lilia Isabel Lee, BDO Panama, discusses Panama’s November 11 approval of Law 254, amending legislation on international tax transparency and adapting the exchange of information for tax purposes to international . . .

Africa

OECD updates and expands transfer pricing country profiles

December 13, 2021

The OECD today released updated transfer pricing country profiles for 21 countries, including three countries for which it has not previously published profiles: Albania, Kenya, and . . .

Accounting

US Senate draft of budget bill tweaks corporate tax provisions

December 13, 2021

US Senate Finance Committee Chairman Ron Wyden (D-Ore.) on December 11 unveiled his version of the House’s approved budget bill for consideration in the Senate, revising some corporate tax provisions adopted in the House version, including the corporate minimum tax and . . .

Belgium

Belgium and France sign new tax treaty

December 13, 2021

Moïse Gnakouri, Catholic University of Louvain, discusses the new tax treaty Belgium and France signed on November 9, which complies with new international standards, and includes several changes, including the taxation of capital gains on the sale of shares of companies with assets consisting . . .

Accounting

Seychelles to amend business tax rates, expand transfer pricing capacity

December 9, 2021

The government of Seychelles plans to reduce its business tax rates beginning in January 2022, according to the national budget delivered November 12, and is working on other business and international tax reforms, including expanding transfer pricing . . .

Americas

OECD countries’ tax revenues fell in 2020, but less than their GDPs

December 6, 2021

The ratio of tax revenues to GDP in OECD countries rose slightly in 2020 amid the Covid-19 pandemic, as nominal tax revenues generally fell but did so at a lower rate than countries’ GDPs, according to the OECD’s 2021 annual revenue statistics released December 6; corporate income tax revenues . . .

Carbon Tax

EU’s ‘number one priority’ in tax is implementing OECD deal, Gentiloni says

December 1, 2021

Making the recent OECD Inclusive Framework agreement operational “is now crucial,” European Commissioner for Economy Paolo Gentiloni said in November 30 remarks to the European Parliament’s subcommittee on tax matters; however, it’s not the only ambitious tax initiative in the . . .

Europe

Dutch committee presents report on conduit companies and associated tax policy options

December 1, 2021

Jian-Cheng Ku, Gabriël van Gelder and Rhys Bane, DLA Piper Nederland N.V., discuss a Dutch government committee’s November 22 findings on the presence of conduit companies in the Netherlands and what tax and non-tax measures should be taken against . . .

Europe

UK updates slew of tax initiatives, including R&D, transfer pricing, MDR

November 30, 2021

The UK government on November 30, in a planned “Tax Administration and Maintenance Day,” outlined updates to numerous tax policy plans, including measures relating to research and development (R&D) tax reliefs, transfer pricing documentation, mandatory disclosure rules (MDR) . . .

Americas

Tax dispute resolution via mutual agreement procedure works, mostly, but is still slow

November 23, 2021

Around 75% of mutual agreement procedure (MAP) cases concluded worldwide in 2020 – both for transfer pricing and other tax cases – resulted in full resolution of the issue, according to the OECD’s 2020 MAP statistics released November 22, with only . . .

Asia-Pacific

Turkey and US agree on phase-out of digital tax

November 23, 2021

The US Treasury announced on November 22 that it has reached an agreement with the Turkish government on Turkey’s transition from its digital services tax to the new taxing rules under the . . .

Europe

Swiss federal act on implementation of international tax agreements: ready for January 2022

November 23, 2021

Francesca Amaddeo, Tax Law Competence Centre (SUPSI), discusses the Swiss Federal Council’s November 10 introduction of the federal act on the implementation of international tax agreements (ITAIA), applicable from 1 January 2022, that aims to update . . .

Europe

EU tax competition driven by R&D and other incentives, not just rates

November 22, 2021

Tax incentives for research and development (R&D) have narrowed corporate tax bases in EU countries and could be considered “a novel corporate tax competition driver,” according to a November 22 EU Tax Observatory report on new forms of . . .

Americas

US corporate and global minimum tax measures clear House, debate moves to Senate

November 19, 2021

The US House of Representatives today approved a modified version of President Biden’s Build Back Better bill – including corporate and international tax changes – following protracted debates on the revenue and economic impacts of the provisions; the Senate will take up the bill sometime after . . .

Accounting

OECD must engage business advisory group on tax deal implementation, BIAC asserts

November 18, 2021

Continued lack of engagement by the OECD with the business stakeholders represented by “Business at OECD” (BIAC) with respect to implementing rules for the OECD’s global tax deal will result in outcomes that are not administrable, according to a November 16 letter to OECD tax leaders from . . .

Multinational

United Nations tax body is needed to address cross-border tax abuse and reform global tax regulations; OECD deal gave developing countries a voice but didn’t listen: José Antonio Ocampo / Project Syndicate→

November 17, 2021

Africa

International tax-related information exchange generates billions in revenue, Global Forum reports

November 17, 2021

The automatic exchange of financial account information between countries is linked directly to at least EUR 3 billion in additional tax revenues; it also has contributed, through voluntary disclosure and other programs, to more than EUR 112 billion in additional tax revenues, according to a November 17 . . .

Africa

Egypt slowly adopting tax changes on base erosion and profit shifting

November 16, 2021

Sherif Sabakhawy, TAXONOMY, discusses Egypt’s slow-moving steps towards attaining international tax norms outlined in the OECD’s base erosion and profit shifting (BEPS) project . . .

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 . . .

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 . . .

Africa

Kenya prefers its digital tax, which hits 89 companies in the country, to global tax deal, which would only hit 11 (exempting Uber and others); also objects, with Nigeria, to deal’s mandatory binding arbitration: Carlos Mureithi / Quartz Africa→

November 5, 2021

Asia-Pacific

Mauritania becomes 141st country to join global tax ‘Inclusive Framework’

November 4, 2021

The OECD Inclusive Framework gains another member, with the northwestern Africa country of Mauritania joining as the 141st member, according to a November 4 OECD release. Mauritania is also joining the October 8 global tax pact.

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 . . .

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

May 19 – 20	Tax Council Policy Institute Conference	Washington, D.C.
May 19 – 20	IFA Second European Region Conference	Milan, Italy
May 24	IFA Webinar Series Pillar Two: An Update	Virtual Event
Sept. 4 – 8	IFA Congress	Berlin