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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 . . .

Asia-Pacific

Pakistan reportedly will be out an extra USD 150 million in tax revenues annually if it stays outside global tax deal, according to OECD estimates: Mehtab Haider / The News→

Europe

Germany updates tax dispute resolution and mutual agreement procedures

Timo Turek, Ypsilon International GmbH, discusses Germany’s updated guidance from August 27 on international dispute resolution, replacing the existing guidance from 2018, which, for the first time . . .

Customs

European Commission work programme 2022 includes tax projects

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 . . .

Asia-Pacific

Thailand adopts new tax incentives for industry and automation investments

The Thailand Board of Investment on October 11 approved new tax incentives to encourage companies to invest in productivity enhancement and automation to speed up its “Industry 4.0” initiative, including . . .

Platform for Collaboration on Tax shifts priorities in response to global tax deal

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

Bermuda’s tax advantage in (re)insurance industry will diminish under global minimum tax, which will reduce, but not eliminate, gap in effective tax rate between Bermuda and non-Bermuda companies: Fitch Ratings→

Africa

Kenya contends revenue threshold for companies subject to Pillar 1 of OECD agreement is too high, lower threshold is needed for developing countries to benefit: Kenya Revenue Authority→

Americas

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

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

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 . . .

Estonia

Estonia’s joining global tax deal may mean some companies will look elsewhere, but there will be no mass exodus, and Estonian companies could have been worse off outside deal, Finance Ministry predicts: Baltic Times→

Europe

France amends rules regarding withholding tax calculation for dividends

Nathalie Valluis, French tax lawyer, discusses Article 7 of the French Finance Bill for 2022, released September 22, which, If adopted as it stands, will allow non-resident legal entities to re-calculate the withholding tax applicable to dividends from French sources on a . . .

Europe

Italy-France tax treaty’s interaction with parent-subsidiary EU directive

Michele Targa, Gatti Pavesi Bianchi Ludovici, discusses the Italian Supreme Court’s September 15 decision on the concurrent application of the Italy-France tax treaty and an EU directive to a dividend distribution by a French-resident subsidiary to its Italian-resident . . .

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 . . .

Americas

US IRS outlines R&D tax credit claim information requirements

October 18, 2021

New guidance from the Internal Revenue Service specifies information that taxpayers must provide when filing research and development (R&D) tax credit claims for their claims to be . . .

Americas

US Democrats consider delaying until 2023 hike in global intangible low-taxed income (GILTI) rate, and possibly only increasing to 15%, to align with OECD agreement, appease moderates: Laura Weiss / Roll Call→

October 15, 2021

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 Advocate General opinion addresses Finnish taxation of non-Finnish investment funds

October 15, 2021

Ville Alahuhta, Bird & Bird Attorneys Ltd., discusses the EU Advocate General’s October 6 publication of an opinion on the Finnish tax treatment of a French investment fund in case C-342/20, addressing the . . .

Accounting

European accounting group’s top priorities: intangibles, sustainability, crypto

October 14, 2021

The European Financial Reporting Advisory Group (EFRAG) on October 11 recommended to the International Accounting Standards Board (IASB) what it considers to be the highest priority projects for . . .

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

US IRS again defers applicability of rules on foreign-currency branch income

On October 12, the US Internal Revenue Service announced that it would amend certain regulations on the taxable income of “qualified business units,” such as foreign branches, that operate in a foreign currency to delay their applicability for . . .

Accounting

Ireland 2022 budget’s tax changes include 15% corporate rate, new incentives

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→

Africa

European Parliament approves proposal to step up fight against harmful tax practices

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 . . .

Asia-Pacific

India extends applicability of transfer pricing safe harbour rules for another year

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 . . .

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→

Americas

Trinidad and Tobago proposes tax incentives for R&D, digital, foreign investment

The 2022 budget statement presented by the finance minister of Trinidad and Tobago on October 4 includes several business tax measures, including incentives for digital sector start-ups, a research and development (R&D) capital allowance, and a reduced . . .

Europe

CJEU to review German transfer pricing obligation: do national tax rules affect EU freedoms?

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 . . .

Bulgaria

EU advocate general opinion addresses withholding tax on unpaid interest