Latest

Asia-Pacific

Updated transfer pricing guidelines in Saudi Arabia

Asmae Bazaani of Deloitte Middle East, Dubai, analyzes Saudi Arabia transfer pricing guidelines, issued on June 1, which provide clarifications in several key areas, particularly in relation to documentation requirements and intangibles . . .

Africa

Transfer prices based on EBITDA, not EBIT

Dr. Ednaldo Silva, Founder & Director at RoyaltyStat, discusses whether transfer pricing analysis of operating profits should be based on EBITDA or EBIT . . .

Europe

Norway Supreme Court rules in favor of Shell subsidiary in transfer pricing dispute

Michael Vorndran, Nord Advisory AS, Oslo, Norway, discusses a May 28 decision of the Norwegian Supreme Court in a transfer pricing case between the Shell group’s Norway subsidiary, A/S Norske Shell, and the Norwegian oil taxation office . . .

Americas

Mexico proposal would temporarily reduce VAT from 16 percent to 10 percent: KPMG→

June 16, 2020

Europe

Italy clarifies VAT reporting obligations of online marketplaces

June 16, 2020

Davide Anghileri, a tax researcher with the University of Lausanne, Switzerland, discusses June 1 Italian Revenue Agency guidance clarifying the VAT reporting obligations of online platforms . . .

Americas

The Puma Nordic and Columbia Sportswear transfer pricing cases and the limits of the TNMM

June 15, 2020

Dr. Harold McClure, a New York economist, analyzes a recent Swedish transfer pricing case, Puma Nordic, and a 2015 Indiana transfer pricing case, Columbia Sportswear, where the transactional net margin method (TNMM) was applied to determine the return of a distribution affiliate . . .

Americas

US IRS solicits input for priority guidance plan

The US IRS has, in Notice 2020-47, invited the public to submit recommendations. . .

Americas

OECD’s Gurría warns of trade wars should digital tax deal fail: BBC News→

Americas

US continues to block digital tax agreement, French minister says: Isabel Gottlieb / Bloomberg Tax→

Americas

US, Curacao agree to exchange country-by-country tax reports on large multinational groups

US Treasury this week announced that the US and Curacao have signed a competent authority agreement . . .

Europe

German cabinet passes stimulus tax measures

Berlin tax practitioner, Ninja-Antonia Reggelin, notes today’s passage by Germany’s cabinet of law implementing the tax measures relevant to business, identifying a few changes from the German finance ministry’s earlier draft . . .

Asia-Pacific

Hong Kong updates guidance on taxation of financial instruments, foreign exchange differentials→

Council of the European Union

EU compromise gives states the option to delay DAC6 reporting by six months: KPMG→

Europe

Malta updates consolidated group rules: Office of the Commissioner for Revenue→

Europe

Ireland updates guidance on allowances for scientific research: Tax and Duty Manual→

Czech Republic

Czech ruling coalition agrees to 5% digital tax on large firms: Reuters→

Europe

Professors argue that digital service taxes violate EU law but cite recent ECJ cases that suggest that the court will not strike them down: Ruth Mason & Leopoldo Parada / SSRN→

Taxing offshore indirect transfers, the Platform’s new toolkit

Francesca Amaddeo, a Researcher at the Tax Law Competence Centre (SUPSI), Manno, Switzerland writes about the Platform for Collaboration on Tax’s June 4 toolkit on taxation of offshore indirect transfers . . .

Europe

Germany proposes substantial VAT rate reduction, tax loss carryback expansion

German tax professional Ninja-Antonia Reggelin discusses a German finance ministry draft law released last week addressing tax policy measures relevant for businesses that were agreed to by German coalition parties in a stimulus package earlier this month . . .

Europe

Matti Vanhanen appointed Finland Minister of Finance: Finland Ministry of Finance→

June 9, 2020

Bringing clarity to documenting intercompany financing during a pandemic

June 9, 2020

Harold McClure, a New York, economist, discusses appropriate transfer pricing documentation of financial transactions in the light of the market volatility created by the COVID-19 pandemic. . .

Belgium

Belgium to introduce tax loss carryback, recovery reserve in response to pandemic

June 9, 2020

Geoffroy Galéa, Of Counsel, Head of the Tax Practice, Fieldfisher Brussels, discusses June 5 Belgian government tax proposals aimed at bolstering the liquidity and restoring the solvency of Belgian businesses in the current COVID-19 context . . .

Africa

Senegal cancels tax treaty with Mauritius

Moïse Gnakouri, a Doctoral Researcher, Catholic University of Louvain, Belgium, writes about the Senegal government’s decision to cancel its tax treaty with Mauritius . . .

Americas

Professor advocates worldwide digital tax based on country-specific income thresholds but subject to a worldwide de minimis amount: Assaf Harpaz / SSRN→

Council of the European Union

EU report provides an overview of outstanding tax issues under negotiation in the Council: Council of the European Union→

Asia-Pacific

South Korea auditing Starbucks’ tangible asset and service transaction transfer pricing: Hankyoreh→

Asia-Pacific

Malaysia explains tax incentives for life sciences companies: Inland Revenue Board of Malaysia→

June 5, 2020

Europe

Netherlands announces plans for new dividend withholding tax

June 4, 2020

Jian-Cheng Ku and Rhys Bane of DLA Piper Nederland N.V., Amsterdam, discuss the Dutch government’s May 29 announcement of its intention to propose an additional withholding tax on dividends to step up its fight against tax avoidance . . . .

Asia-Pacific

Israel transfer pricing guidance addresses documentation and burden of proof

June 4, 2020

Jordan Stotland, CPA, of Stotland | Consulting, Israel, discusses a tax circular issued by the Israel Tax Authority on June 2 addressing the burden of proof in transfer pricing audits and the technical factors required for regulatory compliant transfer pricing documentation . . .

Asia-Pacific

Thailand signs Multilateral Convention on Mutual Administrative Assistance in Tax Matters: OECD→

Americas

Mexico SAT settles nine large MNE’s pre-2019 tax bills, seeks additional tax from six more MNEs, to audit law firms promoting aggressive structures: The Yucatan Times→

Europe

EU considering new corporate tax on less than .2 percent of turnover to aid States harmed by coronavirus: Reuters→

Americas

Whirlpool’s maquiladora: the Mexican transfer pricing perspective

Dr. Harold McClure, a New York economist, discusses transfer pricing issues with respect to Whirlpool’s Mexico affiliate, which conducted toll manufacturing operations on behalf of a Luxembourg affiliate, as described in the recent Tax Court case, Whirlpool Financial Corporation v. Comr. . . .

Americas

Spain says digital tax uses objective criteria, won’t discriminate against US MNEs: Reuters→

Europe

EU court reexamines VAT treatment of rebates

Daan Arends and Wouter Kolkman of DLA Piper Netherlands discuss a May 28 decision of Court of Justice of the European Union in the World Comm Trading case, which revisits the VAT consequences for businesses that receive rebates . . .

Americas

Mexico issues tax rules on withholding by digital service providers, online platforms

Arturo Treviño Villarreal, a tax partner with Fratelli Consultores, Monterrey, Mexico, discusses new rules published by Mexico’s tax authorities on May 12 that provide additional guidance on the taxation in Mexico of digital services and transactions performed on technological platforms . . .

Americas

US to investigate digital services taxes in India, Brazil, Turkey, Indonesia, the European Union, five EU countries

The Office of the US Trade Representative (USTR) today announced that it has initiated an investigation into digital services taxes proposed or adopted in . . .

Asia-Pacific

New Malaysian guidelines clarify tax rules for determining “place of business”: LHDN Malaysia→