OECD–MNE Tax

Asia-Pacific

Singapore finance minister explains why global tax deal is a ‘challenging development’

November 2, 2021

In a November 1 reply to a parliamentary question about potential revenue gains under the OECD global tax deal, Singapore’s Minister for Finance Lawrence Wong explained that such estimates are not so simple and, moreover, the agreement presents some challenges for . . .

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 . . .

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 . . .

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 . . .

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

Brazil, China, Russia MAP tax dispute resolutions could improve, peer reviews show

October 19, 2021

There are signs that the competent authorities of Brazil, Russia, and China have insufficient resources to keep up with their caseloads for resolving tax and transfer pricing disputes through mutual agreement procedure (MAP), according to peer review reports released October 18 by the OECD, while . . .

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 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 . . .

Multinational

Global tax pact’s ‘revolution’ builds on old concepts – long-standing apportionment rules between US states in case of Pillar 1 and century-old ‘single tax principle’ in case of Pillar 2: Reuven Avi-Yonah / LinkedIn→

October 12, 2021

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 . . .

Multinational

OECD tax deal compromise did not deliver all that many wanted, but it still represents several ‘major steps forward’ and was probably ‘as good a deal’ as the OECD – or the UN – could have got: Richard Murphy / Tax Research UK→

October 11, 2021

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 . . .

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 . . .

Africa

Multilateral convention to implement tax treaty related measures to prevent BEPS gains 96th signatory in Namibia, will enter into force for Andorra and Spain in January 2022: OECD→

September 30, 2021

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 . . .

Europe

Ireland reportedly ready to increase corporate tax rate to 15% if OECD agrees to strike from agreement term that global minimum tax be ‘at least’ 15%: Pat Leahy & Cormac McQuinn / Irish Times→

September 27, 2021

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 . . .

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 . . .

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

Ciro César Soriano de Oliveira on Danish High Court rules on beneficial ownership of dividends for tax purposes: “Dear Ms. Susi, This article is very clarifying. I wonder whether Danish Supreme Court has already granted its decision referred…” 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