Europe
UK and Sweden sign double tax treaty
The UK’s HM Revenue and Customs on March 30 announced that the UK and Sweden signed a double tax treaty on March 26. The agreement . . .
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Asia-Pacific
Australian Tax Office says company may deduct interest on debt owed nonresident entity despite interposed entities
The Australian Taxation Office on March 19 ruled that a nonresident entity that invests indirectly in an Australian resident company through one or more interposed entities where the final leg in the chain is a debt interest . . .
Europe
UK releases FATCA registration guidelines
The UK’s HMRC released guidelines February 24 on how to register for the Foreign Account Tax Compliance Act (FATCA) using HM Revenue and Customs online . . .
Europe
Luxembourg issues rules on withholding tax rates for dividends paid to German funds
Luxembourg on February 9 released guidance on withholding rates to be applied when a Luxembourg company distributes dividends to German Sondervermögen, writes KPMG in a tax alert. For discussion, see KPMG.
Asia-Pacific
Japan’s ruling parties agree to tax reform
Japan’s ruling coalition on December 30 agreed to policies for a 2015 tax reform bill, which include a reduction in the corporate tax rate to 23.9% percent beginning April 1, restrictions on net operating losses, modifications to research and development tax credits, and limitations on the 95 percent participation exemption, writes EY in a January 7 report. For discussion, see EY.
Asia-Pacific
South Korean tax reform addresses excessive company cash reserves, financial derivatives, thin cap rules
South Korea’s parliament has passed a tax reform package which includes a new 10 percent tax on the excess cash reserves of large corporations, a new tax on capital gains from derivatives transactions, more stringent thin cap rules, and reporting requirements for cross-border related party . . .
Multinational
UK/German compromise on IP regimes should be extended to activities not patentable, Netherlands official says
The Netherlands State Secretary of Finance on December 1 expressed support for a UK/German agreement to put limits on preferential intellectual property tax regimes under the OECD/G-20 base erosion profit shifting plan, but said that incentives should not be limited to activities that are legally protected, such as by patent, writes EY in a December 5 tax alert. The Netherlands does not plan major revisions to its innovation box regime, EY reported. For discussion, See EY.
Asia-Pacific
Indian court rules in favor of Shell in transfer pricing share undervaluation case
The Bombay High Court ruled in favor of an Indian subsidiary of Royal Dutch Shell in a November 18 tax case, striking another blow to the Indian tax department’s theory that the transfer or issuance of undervalued shares by an Indian company to an overseas related party should trigger a transfer pricing assessment . . .
UPDATE (11/27/2014): The Bombay High Court’s decision in Shell is now available: see, Shell India Markets Pvt. Ltd. vs. Union of India and ors
Africa
Malta and Mauritius sign double tax treaty, text available.
The governments of Malta and Mauritius on October 15 signed an agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. See, treaty.
Americas
Mexico issues regulations on deductibility of pro rata expense allocations made by nonresidents to Mexican entities
Mexico issued regulations on October 16 on the deductibility of pro rata expense allocations made by nonresidents to Mexican entities and individuals, including special rules on the deductibility of services incurred between related parties, writes EY in an October 17 alert. For discussion, see, EY.
Asia-Pacific
Singapore MOF responds to consultation on income tax amendments
Singapore’s Ministry of Finance (MOF) on Sept. 24 released its response to pubic consultations on the draft Income Tax (Amendment) Bill 2014. The MOF said it would adopt 32 stakeholder suggestions, including widening the scope of the draft law’s antiavoidance provisions applicable to FATCA reporting obligations and changing aspects of the productivity and innovation credit scheme. See, release, annex.
British Virgin Islands
TIEA between Japan and British Virgin Islands to enter into force
Japan’s Ministry of Finance has announced that on Sept. 11 the mutual notification procedures were completed for entry into force of the Agreement between the Government of Japan and the Government of the British Virgin Islands for the Exchange of Information relating to Tax Matters, signed June 18. As a result, the agreement will enter into force on Oct. 11. Release
Africa
Singapore and Rwanda sign tax treaty, text available
Singapore and Rwanda, on August 26, signed an agreement for the avoidance of double taxation. The agreement provides for a withholding tax rate of 7.5 percent on dividends and 10 percent on interest (zero in the case of a governmental institution), royalties, and professional fees. It also provides for the exchange of information for tax purposes. The agreement will enter into force after its ratification by both countries. Release, Singapore-Rwanda treaty
Americas
IRS updates FATCA FAQs on preexisting obligation election for flow-through entities or intermediaries
A new frequently asked question (FAQ) has been posted to FATCA website in the “General Compliance” category, as follows . . .
Americas
Canada Revenue Agency defines “cost” under new thin cap rules
Neal Armstrong of the law firm Davies has reported that the Canadian Revenue Agency, in a July 22 ruling, T.I. 2014-0526631E5, has defined the word “cost” for purposes of new Canadian thin capitalization rules to mean an asset’s original acquisition cost. See, Tax Interpretations
Asia-Pacific
India negotiating bilateral APAs with many nations
India is negotiating about 50 bilateral advance pricing agreements (APAs) with other . . .
Africa
Gabon signs Convention on Mutual Administrative Assistance in Tax Matters
Gabon, on July 3, signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.. Gabon is the 66th nation to sign the convention. Release.
Asia-Pacific
Europe
Andorra agrees to automatic exchange of tax information
Andorra has agreed to become the 48th country to sign the OECD Declaration on Automatic Exchange of Information in Tax Matters. Release
Americas
Felgran and Harris join AlixPartners’ New York transfer pricing practice
Steven D. Felgran and Steven D. Harri have joined AlixPartners as directors in the firm’s global transfer pricing practice. Both will work from AlixPartners’ New York office. Release
What's New
France releases draft anti-hybrid regulations
The French Tax Administration, on April 15, released draft regulations on anti-hybrid financing provisions, according to a release by EY.
Asia-Pacific
Hong Kong bill lowers captive insurers’ tax
Hong Kong’s Legislative Council on March 19 passed Inland Revenue (Amendment) (No. 3) Bill 2013 to provide a tax concession for captive insurers to enjoy a 50 per cent reduction in the profits tax on their insurance business of offshore risks.
Europe
Asia-Pacific
Europe
Americas
US Senate Foreign Relations Committee approves eight long-pending tax treaties, Rand Paul not present for the vote
In a surprising development, the US Senate Committee on Foreign Relations on November 10 approved without amendment proposed income tax treaties with Chile, Hungary, and Poland; proposed tax protocols with Japan, Luxembourg, Spain, and Switzerland; and a proposed protocol amending the multilateral mutual administrative assistance treaty. . .
Africa
US and Algeria sign FATCA IGA
The US Treasury Department has updated its FATCA website, reporting that Algeria and the US signed a Model 1 intergovernmental . . .
Asia-Pacific
Hong Kong to change legislative proposal on automatic exchange of tax information
The Hong Kong government on October 12 announced that, in response to its public consultation, it will make changes to a legislative proposal to implement the new international standard on automatic exchange of . . .
Europe
Guernsey and Korea sign TIEA
The government of Guernsey has announced that it signed a tax information . . .
Americas
US IRS updates technical FATCA FAQs on data format and structure
Two new FATCA IDES frequently asked questions (FAQs) were posted to the US IRS’s website on September 9 in the “Data Format and Structure” category concerning how to amend a FATCA report and void. . .
Multinational
EY analyzes worldwide implementation of BEPS plan transfer pricing output
About 100 EY firms have contributed to an August report on how the OECD/G20 base erosion profit shifting (BEPS) plan transfer pricing guidelines and documentation rules are being implemented throughout the world. See: EY .
Americas
US signs Model 1 FATCA IGA with St. Vincent and the Grenadines
The US Treasury Department has updated its FATCA website, reporting that St. Vincent and the Grenadines has signed a Model 1 intergovernmental agreement (IGA) with . . .
Asia-Pacific
Americas
Transfer pricing economist Shane Koball joins Baker & McKenzie
Shane Koball has joined Baker & McKenzie as a director of economics, the firm announced July 14. Koball, who is based in . . .
Europe
Poland proposes tougher transfer pricing documentation rules including country-by-country reporting
Poland has proposed amendments to its tax laws that would require some taxpayers to provide additional transfer pricing documentation, including local benchmarking analyses, preparation of a master file, and country-by-country reporting, writes PwC in a May 29 tax alert. See, PwC.
Asia-Pacific
Foreign funds challenge Indian MAT in court
Five foreign funds located in the US and UK have filed a writ peition in Bombay High Court challenging India’s demand for minimum alternative tax (MAT) on profits earned before April 1 from . . .
Europe
EU Commission proposes automatic exchange of tax ruling info, weighs public release of country-by-country reporting data
The European Commission on March 18 released a proposal that would require EU states to automatically exchange information about their tax rulings with other EU states. The Commission also announced plans to study the possibility of imposing greater tax transparency requirements on companies operating in the EU. The proposal, first announced by EU Commission President . . .
Americas
Jerred Blanchard joins Baker & McKenzie’s Houston tax practice
Jerred Blanchard has joined Baker & McKenzie’s tax practice in Houston as Counsel, the firm announced February 5. Blanchard has worked more than 30 years advising clients on mergers and acquisitions . . .
Asia-Pacific
India to apply principles of Vodafone transfer pricing ruling to all cases
The Indian government on January 29 explicitly instructed tax officials to apply the rational behind the Bombay High Court’s decision in Vodafone to all cases. Tax officials must follow the principle “that the premium on share issue was on account of a capital account . . .
