OECD–MNE Tax

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 . . .

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 . . .

Europe

Ireland 2022 budget strategy papers address corporate, international tax policies

September 16, 2021

The Irish Department of Finance on September 16 published a series of papers examining tax policy in advance of Budget 2022, including issues related to corporate tax and international . . .

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 . . .

Europe

Finland budget includes corporate tax, R&D, transfer pricing proposals

September 14, 2021

Finnish Prime Minister Sanni Marin’s 2022 budget proposes several tax provisions impacting corporations with an aim to encourage investment and economic growth in the country, as reported in a September 9 release from . . .

Multinational

Non-OECD, non-G20 countries have joined multilateral tax Inclusive Framework primarily due to combination of EU tax haven ‘naming and shaming’ and acculturation through prior involvement with OECD: Shu-Yi Oei / SSRN→

September 14, 2021

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 . . .

Europe

Corporate tax rates down 10 percentage points among OECD, G20, EU countries

September 9, 2021

The combined statutory corporate income tax rates among OECD, G20, and EU countries dropped in parallel from 2000–2021, 10 percentage points in each group, while broadly maintaining their positions relative to each other, according to a September 8 OECD tax . . .

Estonia

Two minimum taxes: US eyes robust rate, while small countries seek carve-outs

September 8, 2021

The US should raise the minimum tax on corporate foreign earnings to 21% while the OECD works towards a 15% floor on tax competition, according to a September 7 article from two US Treasury officials . . .

Americas

US R&D tax incentives will be among least generous unless Congress acts, study finds

September 8, 2021

The US will drop to a rank of 32nd among a peer group of 34 large economies in terms of its tax support for research and development (R&D) if it allows the new requirement to amortize R&D expense to take effect as scheduled in 2022, according to a September 7 study from . . .

Americas

US international tax reform debate and advocacy gain steam

September 3, 2021

Congressional Republican tax committee leaders sent their Democratic counterparts a letter on September 2 claiming that the Biden Administration is trying to usurp Congress’s lawmaking authority by binding it to a global tax deal, prompting Treasury Secretary Janet Yellen the next day to . . .

Americas

ICAP multilateral tax risk assurance program applications due September 30

September 2, 2021

Multinational entities interested in participating in the first full round of the OECD Forum on Tax Administration (FTA) International Compliance Assurance Programme (ICAP) have until September 30 to submit the . . .

Multinational

Objections to regulatory efforts to curb international tax arbitrage have merit but should not deter international cooperative efforts to tackle exploitation of mismatches in tax laws: Ruth Mason and Pascal Saint-Amans / SSRN→

September 2, 2021

Africa

Togo becomes latest country to endorse global tax reforms

August 31, 2021

The West African nation of Togo became the 140th country to join the OECD/G20 Inclusive Framework on base erosion and profit shifting (BEPS) and the 134th Inclusive Framework member to endorse the two-pillar international tax reform statement released earlier this summer, according to an August 31 . . .

Americas

US congressional research papers prepare lawmakers for international tax debate

August 30, 2021

The US Congressional Research Service on August 26–27 published three reports addressing the status of corporate and international tax legislation and reform in anticipation of upcoming debates on corporate tax rates, international tax provisions, and actions related to ongoing . . .

Americas

US Senate unveils international tax reform draft legislation

August 25, 2021

Senate Finance Committee Chairman Ron Wyden (D-Ore.) on August 25 released draft legislation for international tax reform that would retain but modify key provisions of the Republicans’ 2017 tax law, including the global intangible low-taxed income (GILTI) provision, foreign-derived intangible income (FDII), and . . .

Global minimum tax’s ‘GloBE’ maze – more than meets the eye!

August 25, 2021

Noopur Trivedi and Jitesh Golani, international tax researchers, analyze a hypothetical case study evaluating the effect that the intricate rules under the global anti-base erosion (GloBE) proposal in the July 1 OECD/G20 Inclusive Framework statement can have when implemented in a typical multinational . . .

Europe

Poland corporate tax bill clarifies definition of place of management

August 24, 2021

Monika Laskowska, Warsaw School of Economics, discusses the Polish Ministry of Finance’s June 28 launch of a public consultation for a new tax bill called the “Polish Deal,” which includes amendments to regulations that might raise concerns amongst associated companies, such as the broadening . . .

Europe

Germany adopts substantial transfer pricing and anti-treaty shopping rule changes

August 20, 2021

Thomas Schänzle, Christian Port, Florian Gimmler, Justus Eisenbeiß, Christian Witthus, Kevin Prashil Brusa and Rabea Lingier, Baker & McKenzie, analyze the far-reaching, practical implications of the amendments to the anti-treaty-shopping provision and transfer pricing rules in Germany’s Withholding Tax Relief Modernization Act (AbzStEntModG), which took effect June 9 . . .

Americas

Japan releases study group report on international taxation in the digital economy

August 19, 2021

Takato Masuda, Nishimura & Asahi, discusses the August 19 release of the “Study Group on International Taxation in the Digital Economy,” assembled by the Ministry of Economy, Trade and Industry of Japan, providing insight into how the Japanese business sector views the OECD’s two-pillar solution, a digital services tax and . . .

Morocco publishes mutual agreement procedure guide for resolving tax disputes

August 16, 2021

Nour Ali, DNV, discusses Morocco’s Mutual Agreement Procedure (MAP) guide, released July 5 through the General Tax Administration of the Ministry of Economy and Finance, for resolving tax disputes not in accordance with . . .

Asia-Pacific

Gulf Cooperation Council countries and businesses prepare for global minimum tax

August 16, 2021

Raman Ohri, Keypoint, discusses the dilemma that the July 1 inclusive framework agreement on a global minimum tax created for Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates . . .

Americas

Barbados becomes 133rd country to join global tax agreement, holdouts dwindle to six

August 13, 2021

The agreement on international tax reform that was endorsed by the majority of the 139 “Inclusive Framework” countries on July 1 grew one country stronger on August 12 as Barbados became the latest . . .

Asia-Pacific

Taiwan amends tax treaty rules on residency, permanent establishment, treaty abuse

August 12, 2021

On August 12, Taiwan’s Ministry of Finance promulgated amendments to the regulations governing the application of double tax treaties to update the decade-old rules for developments in international tax trends and conventions, improve administrability, and . . .

Asia-Pacific

Singapore joins multilateral convention to implement tax treaty related measures to prevent base erosion and profit shifting: OECD→

August 11, 2021

Africa

Maldives, Papua New Guinea, and Rwanda join multilateral treaty for international tax cooperation and exchange of information: OECD→

August 11, 2021

Multinational

OECD’s ‘Inclusive Framework’ has failed to give developing countries enough of a voice to affect international tax reforms and the resulting discontent will threaten the stability of the international tax regime: Yariv Brauner / SSRN→

August 11, 2021

Americas

Brazil’s upcoming tax reform will impact inbound investors

August 10, 2021

Luis Felipe de Campos, Rolim, Viotti, Goulart, Cardoso Advogados, discusses the substitute tax reform bill that Brazil’s Ministry of Economy presented to Congress on June 25, including provisions affecting corporate tax rates, profit distributions, interest . . .

Americas

US Congress should take up international tax reform without waiting for OECD talks to conclude, because US can benefit from changes regardless of global deal and acting first will strengthen US negotiating position: The FACT Coalition→

August 9, 2021

Asia-Pacific

Hong Kong tax agency advises on tax and transfer pricing effects of Covid-19

August 9, 2021

The Hong Kong Inland Revenue Department on July 29 clarified its approach to the disruptions caused by Covid-19 with respect to various tax issues, including issues related to tax residence, permanent establishment . . .

Africa

US FDII deduction among international ‘harmful tax practices’ slated to be abolished

August 5, 2021

An update on reviews of preferential tax regimes published by the OECD on August 5 states that the US foreign-derived intangible income (FDII) regime is “in the process of being eliminated.” The new report includes updated conclusions with respect to 18 designated . . .

Africa

Countries take diverse transfer pricing approaches to financial transactions, profit attributions

August 4, 2021

Updated transfer pricing country profiles released by the OECD on August 3 include for the first time information on 20 reviewed countries’ transfer pricing rules applicable to . . .

Europe

Poland business transfer pricing forum advises on Covid-19 impact

August 3, 2021

Dr. Monika Laskowska at the Center of Tax Analyses and Studies, Warsaw School of Economics, discusses the Polish Ministry of Finance’s July 13 publication for public consultation of recommendations on the impact of Covid-19 on transfer pricing . . .

Asia-Pacific

India’s first year of ‘faceless’ tax assessments runs into legal issues

August 3, 2021

Suranjali Tandon from the National Institute of Public Finance and Policy, New Delhi, analyzes several court decisions issued in June and July that highlight implementation issues with India’s new “faceless” – i.e., digital – tax assessment scheme, which was intended . . .

OECD

Inclusive Framework’s statement on international tax reform does not contain stringent enough terms to ensure MNEs are taxed where economic activity occurs but may be an important step in that direction: The BEPS Monitoring Group→

August 2, 2021

Africa

Ireland, Lithuania, Hungary offer lowest tax rates for R&D, OECD study finds

August 2, 2021

An OECD taxation working paper on corporate effective tax rates for research and development (R&D) released on July 29 reports that the effective average tax rate on R&D investments in Ireland, Lithuania, and Hungary range from -2% to -4% – suggesting . . .

Digital Economy

UK consults on tax information reporting by digital platforms

July 30, 2021

On July 30, the UK HMRC opened a consultation on rules to require digital platforms to report to the tax authority information relating to the . . .

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.
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