Transfer Pricing

Americas

The road to audit-proof transfer pricing documentation: Song / CrossBorder Solutions→

February 24, 2022

Americas

Apple v. European Commission: Outcome could strengthen or weaken Commission’s success in challenging lack of arm’s length principles in TP methods through state aid concerns: Cantley and Dietrich / SSRN→

February 24, 2022

Europe

Romania approves changes to advance tax ruling program

February 24, 2022

Adrian ȚAGA, Romania’s National Tax Agency, discusses the Romanian government’s February 16 approval of changes to the organizational structure of both the Ministry of Finance and the National Tax Agency, allowing the transfer of the advance tax rulings (ATR) unit to the Ministry of Finance.

Americas

The applicability of the Spanish GAAR to conduit structures after the CJEU Danish cases

February 23, 2022

Aitor Navarro, Carlos III University, discusses the Spanish tax authorities’ December 16, 2021 publication of a panel report on the applicability of the domestic GAAR to a conduit arrangement aimed at benefiting from an exemption at source on the payment of interest income to EU residents.

Europe

Spanish National Court challenges the application of an internal CUP in favor of the TNMM

February 22, 2022

Mario Ortega and Rubén López, J&A Garrigues, S.L.P. discuss the Spanish National Court’s December 20, 2021 decision resolving a case revolving around the selection and application of certain transfer pricing methods.

Americas

Mexico’s 2022 income tax law takes effect, incorporates notable transfer pricing changes

February 14, 2022

Francisco Arballo, Grupo Consultor EFE, discusses Mexico’s 2022 income tax law, which went into effect in January, incorporating several amendments the Mexican legislature proposed in September 2021, including various changes in transfer pricing.

Denmark

Danish Tax Agency issues clarification on master file filing requirements

February 14, 2022

Joel André Malan, Danish Tax Agency, discusses new Danish guidance, published on January 31, stating that a taxpayer unable to provide a master file for a given year can be granted a temporary reprieve, providing that three conditions are met.

Europe

Year-end transfer pricing adjustments and DAC6 obligations in Italy: an additional administrative burden for MNEs?

February 8, 2022

Luca Tortorella, Gatti Pavesi Bianchi Ludovici, discusses the Italian Revenue Agency’s December 31 resolution clarifying that year-end transfer pricing adjustments may be communicated for DAC6 purposes; DAC6 introduces complicated features and adds further reportable obligations.

Americas

Mexico says adios to advanced pricing agreements for maquiladoras: CrossBorder Solutions→

February 7, 2022

Czech Republic

Italy’s new clarifications concerning VAT treatment of transfer pricing adjustments

February 1, 2022

Diletta Fuxa, Studio Associato Servizi Professionali Integrati, discusses the Italian tax authority’s December 30 release regarding the VAT treatment of transfer pricing year-end adjustments in its response to . . .

Africa

UAE announces 9% corporate income tax rate, sets tone on regional corporate tax competition

January 31, 2022

Mourad Chatar and Sarah Bahous, Value Square, discuss the United Arab Emirates’ January 31 announcement that it will implement a federal corporate tax regime at a standard nine percent rate, which will apply to relevant businesses from . . .

Americas

Paraguay requires new transfer pricing section on income tax return

January 31, 2022

Francisco Arballo, Grupo Consultor EFE, discusses Paraguay’s December 30, 2021 publication of a new income tax return format, including a new section differentiating the transfer pricing adjustments made to intercompany transactions based on the sixth method, which is . . .

Europe

Swedish Administrative Court of Appeal did not consider multiple-year data, adjusted the taxable result

January 26, 2022

Emiliha Ferrão, Censio Tax, discusses Sweden’s Administrative Court of Appeal’s November 2021 ruling in favor of the Swedish Tax Authority in a case involving a change of transfer pricing methodology and a restrictive use of multiple-year results to support . . .

OECD transfer pricing guidelines get first update in five years

January 20, 2022

In the new 2022 edition of the OECD’s transfer pricing guidelines released on January 20, the OECD has made three significant additions and revisions to the guidelines for multinational enterprises and tax administrations, reflecting several enhancements developed over . . .

Asia-Pacific

Taiwan highlights changes in new tax treaty protocol with UK

January 18, 2022

Taiwan’s Ministry of Finance on January 18 explained the changes in the new amending protocol to the UK-Taiwan tax treaty, which took effect on January 1 after entering into force on . . .

Americas

Poland transfer pricing laws under review to strengthen system against tax evasive behavior

January 14, 2022

Dr. Monika Laskowska, Warsaw School of Economics, discusses the Polish Ministry of Finance’s participation since November in a project coordinated by the European Commission to reform Polish transfer pricing regulations; the project is planned to . . .

Asia-Pacific

Australian Taxation Office plans review of advance pricing arrangement program

January 13, 2022

The Australian Taxation Office announced on January 12 that in 2022 it is conducting a review of its advance pricing arrangement (APA) program, focusing on whether the program is assuring transfer pricing risk in the most efficient manner, as well as . . .

Africa

Swiss international tax update addresses OECD deal, treaties, MAP

January 12, 2022

Switzerland’s State Secretariat for International Financial Matters on January 10 issued a report on various ongoing tax projects, including the country’s take on the OECD deal, as well as the status of tax treaty negotiations, tax information exchange, mutual agreement procedure (MAP), and recent . . .

Americas

Barbados country-by-country reporting tax law takes effect

January 12, 2022

Barbados tax legislation enacting country-by-country reporting came into operation on December 31, 2021, following publication in the Official Gazette on . . .

Africa

EU tax transparency directive: When turkeys vote for Christmas

January 10, 2022

Cédric Maheo, CWA Morocco, discusses how the EU directive on public country-by-country reporting for large multinationals, published in the Official Journal of the European Union on December 1, will give tax authorities in the developing world new data on multinationals operating in . . .

Africa

Nigeria transfer pricing local file requirement takes effect as suspension withdrawn

January 6, 2022

Nigeria’s Federal Inland Revenue Service on January 4 issued a notice withdrawing its previous suspension of the local file country-by-country reporting requirement for local branches and subsidiaries of multinational groups that are . . .

Europe

Finnish transfer pricing adjustment provision amendments are now in force

January 5, 2022

Marianna Santamala, Bird & Bird Attorneys Ltd, discusses the new amendments to the Finnish transfer pricing adjustment clause included in section 31 of the Finnish Assessment Procedure Act, which came into effect on January 1, 2022, and apply to tax years beginning on . . .

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 . . .

Europe

Ireland updates mutual agreement procedure guidelines for tax disputes

December 28, 2021

The Irish Revenue Department on December 23 published updated guidelines for requesting mutual agreement procedure (MAP) assistance for resolving cross-border tax and transfer pricing disputes; the updates incorporate a . . .

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 . . .

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 . . .

Africa

South Africa proposes model legislation to introduce APA program

December 16, 2021

The South African Revenue Service (SARS) on December 10 published a high-level model and draft legislation for the introduction of an advance pricing agreement (APA) program, and plans to launch a pilot . . .

Europe

Portugal updates transfer pricing guidance on documentation, APAs

December 16, 2021

Cabrini McCarrick, Regan van Rooy, discusses the guidance Portugal issued November 26 on transfer pricing documentation and advanced pricing agreements, providing for additional clarity and certainty regarding . . .

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 . . .

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 . . .

Asia-Pacific

Azerbaijan amends tax laws relating to CFCs, tax havens, transfer pricing

December 10, 2021

Leyla Safarova, BM Morrison Partners, discusses Azerbaijan’s significant tax code changes, which will become effective on January 1, 2022, including new controlled foreign corporation (CFC) rules and transfer pricing amendments, as well as measures focused on . . .

Europe

Italy tax agency issues circular on transfer pricing documentation rules

December 9, 2021

Luca Tortorella and Michele Targa, Gatti Pavesi Bianchi Ludovici, discuss the Italian revenue agency’s November 26 release of Circular No. 15/E clarifying new instructions relating to amended transfer pricing documentation requirements issued last year that increase the administrative burden on . . .

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 . . .

Asia-Pacific

Israeli transfer pricing case addresses reclassification of trademark transaction, arm’s-length R&D pricing

December 8, 2021

Assaf Hasson, Assaf Hasson & Co., discusses the Israeli Jerusalem District Court’s recent ruling in favor of the Israel Tax Authority in a transfer pricing case, Sephira & Offek Ltd. and Israel Daniel Amram, involving the reclassification of a trademark transaction between . . .

Accounting

Zambian budget 2022 includes corporate income tax, transfer pricing changes

December 3, 2021

The Zambia Revenue Authority on November 5 published an overview of tax measures in the Minister of Finance’s 2022 budget address, including changes to the corporate income tax rate and amendments to transfer pricing regulations . . .

Americas

Coca-Cola denied reconsideration in transfer pricing dispute due to ‘futile’ arguments

December 2, 2021

The US Tax Court will not reconsider its 2020 transfer pricing decision that increased Coca-Cola’s US taxable income by about USD 9 billion in a case involving the pricing of cross-border intercompany royalties; in an order dated October 26, the court denied Coca-Cola’s motion, stating it would be “futile” . . .

Africa

Kenya trial to bridge transfer pricing and customs in landmark customs audit case

December 2, 2021

Mourad Chatar and Sarah Bahous, Value Square, discuss the Kenya Tax Appeal Tribunal’s landmark October 29 ruling in favor of the taxpayer against the Commissioner of Customs and Border Control in yet another case that sheds light on the interplay between transfer pricing and customs . . .

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) . . .

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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