Transfer Pricing

Europe

Polish Deal introduces further domestic measures to limit profit shifting

November 29, 2021

Dr. Monika Laskowska, Warsaw School of Economics, discusses newly proposed amendments to the corporate income tax law set out in the “Polish Deal,” signed into law November 15, introducing several domestic measures that impact intragroup transactions beyond transfer pricing . . .

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 . . .

Europe

Dutch 2022 budget approved by House of Representatives, moves to Senate

November 22, 2021

Jian-Cheng Ku and Rhys Bane, DLA Piper Nederland N.V., discuss the November 11 Dutch House of Representatives’ approval of the government’s 2022 tax plan, including proposals to limit unilateral downward transfer pricing adjustments, implement the last leg of hybrid mismatch rules prescribed by . . .

Asia-Pacific

Australian Taxation Office delays year-end country-by-country reporting deadline

November 19, 2021

Companies facing a December 31 due date for country-by-country reporting obligations will now have until February 4, 2022, to file the reports, according to a November 18 announcement from the Australian Taxation Office, which said it is granting the extra time due to both the . . .

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

Ukraine adopts new procedure on advance pricing agreements for transfer pricing purposes

November 15, 2021

Ivan Shynkarenko, KM Partners, WTS Global, discusses a new procedure applicable to advance pricing agreements for transfer pricing purposes, adopted by Ukraine’s Cabinet of Ministers on October 28, which will become effective on . . .

Asia-Pacific

Australia updates guideline on simplified transfer pricing record-keeping options

November 12, 2021

The Australian Taxation Office on November 11 amended its practical compliance guideline on simplified transfer pricing record-keeping options to provide maximum and minimum . . .

Asia-Pacific

Australian Taxation Office’s transfer pricing audit of ResMed: an illustrative model

November 12, 2021

New York City Economist Dr. J. Harold McClure discusses medical equipment company ResMed’s settlement with the Australian Tax Office (ATO) for USD 381.7 million in additional taxes in connection with an ATO audit over certain transfer pricing issues between . . .

Accounting

EU adopts public country-by-country reporting to deter corporate tax avoidance

November 11, 2021

The EU’s new requirement for multinationals to publicly disclose the amount of tax they pay in each EU country will become law following the approval by the European Parliament on November 11; multinationals will have to begin complying with . . .

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

Taiwan reminds multinational group affiliates of transfer pricing filing obligations

November 9, 2021

In a November 9 release, the National Tax Bureau of the Republic of China (Taiwan) states that Taiwan-based constituent entities of multinational groups meeting the relevant threshold must submit the master file or country-by-country report within . . .

Europe

Romania updates list of large taxpayers required to prepare transfer pricing documentation

November 8, 2021

Adrian ȚAGA, Romanian National Tax Agency, discusses the agency’s October 29 publication of a new order updating the list of large taxpayers that are required to prepare transfer pricing documentation according to a specific set of criteria that relate to . . .

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 . . .

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 . . .

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 . . .

Europe

UK to update diverted profits tax for MAP relief, relieving provisions

October 29, 2021

The UK government will adopt legislative amendments to include the diverted profits tax among the taxes for which relief may be granted under the mutual agreement procedure (MAP) of an applicable tax treaty, according to an October 27 policy paper released in connection with . . .

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 . . .

Asia-Pacific

Bahrain tax guide reviews mutual agreement procedure

October 26, 2021

Bahrain’s National Bureau of Revenue in September issued guidance on the mutual agreement procedure (MAP) for resolving international tax and transfer pricing disputes; it is intended to. . .

Asia-Pacific

Singapore updates tax treaty guide to address arbitration

October 25, 2021

The Inland Revenue Authority of Singapore on October 23 issued a revised edition of its e-tax guide on “avoidance of double taxation agreements” to add guidance on arbitration provisions in Singapore’s double tax treaties.

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 . . .

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

Panama court upholds transfer pricing penalty on operations within special tax-exempt area

October 20, 2021

Rafael Rivera, BDO Panama, discusses an August 27 decision from Panama’s Supreme Court of Justice upholding a USD 1 million transfer pricing penalty in one of the first tax disputes involving operations of a multinational operating within a special tax-exempt area . . .

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 . . .

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 . . .

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 . . .

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 . . .

Europe

‘Polish Deal’ tax reform passes lower house

October 6, 2021

The “Polish Deal” corporate tax bill on October 4 moved to the Senate after the Polish parliament’s lower house (Sejm) approved the bill, which includes changes to transfer pricing regulations, a new . . .

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 . . .

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 . . .

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 . . .

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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