Latest

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 . . .

Americas

US IRS extends time to fix R&D tax credit claims under new requirements

The Internal Revenue Service will give taxpayers a little more time to “perfect” research and development (R&D) tax credit claims that fall short of new information requirements, according to a January 5 IRS update . . .

Asia-Pacific

South Korea to extend R&D tax incentives to technologies related to carbon neutrality, including carbon capture and renewable energy, as well as for rare earth elements facing supply shortages: Yonhap / The Korea Herald→

Europe

Italian Revenue Agency provides tax guidance on CFC legislation

Giuliana Polacco and Annarita De Carne, Studio Legale Bird & Bird, discuss the Italian Revenue Agency’s December 27 release of two documents clarifying the controlled foreign companies (CFC) legislation; the current version of the CFC legislation has been amended by . . .

Europe

Lithuania amends corporate income tax law

Robertas Degesys, TGS Baltic, discusses the Lithuanian parliament’s December 7 adoption of several important amendments to Lithuania’s corporate income tax law, including changes to the additional corporate income tax for banks and credit unions, hybrid rules, and . . .

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 . . .

Americas

US IRS explains tax rules for dividends received deduction for foreign income

January 4, 2022

A US Internal Revenue Service “practice unit” released January 4 offers an overview of the rules relating to the dividends received deduction for certain foreign income of US corporations under Internal Revenue Code section 245A . . .

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 . . .

Accounting

US finalizes tax rules for transition from interbank offered rates

January 3, 2022

The US Internal Revenue Service released final regulations on December 30 that provide that certain changes to debt instruments, derivative contracts, and other contracts to change the reference rate due to the discontinuation of the London Interbank Offered Rate (LIBOR) and other interbank offered rates will not result in a tax . . .

Africa

South Africa to reevaluate R&D tax incentive’s continuation, design

December 30, 2021

The South African National Treasury is seeking input on a discussion document released December 15 reviewing the design, implementation, and impact of its research and development (R&D) tax incentive program to determine if the country’s R&D tax regime, which is slated to sunset . . .

Asia-Pacific

Singapore-Jordan tax treaty enters into force

December 30, 2021

The tax treaty signed by the governments of Jordan and Singapore on July 14 entered into force on December 30 following the necessary ratifications and exchange of diplomatic notes; as a result, the treaty provisions will take effect on . . .

Americas

US failure to adopt tax changes included in stalled budget bill to align with OECD minimum tax would result in significant shift in tax revenue from US to foreign countries and increased double taxation: Reuven Avi-Yonah / LinkedIn→

December 30, 2021

Americas

US final foreign tax credit regulations address outstanding issues

December 29, 2021

On December 28, the US Internal Revenue Service released the latest round of final regulations on the foreign tax credit, further amending the rules in response to the 2017 Tax Cuts and Jobs Act and other issues; the final regulations adopt with some changes proposed regulations published on . . .

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 . . .

Asia-Pacific

Australian Taxation Office clarifies eligible expenses for R&D tax incentive

December 28, 2021

The Australian Taxation Office on December 23 updated guidance on expenses that may be claimed in connection with research and development (R&D) tax incentives through a ruling on the “at risk” rule and a determination on deductions subsidized by . . .

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 . . .

Armenia

Singapore-Armenia tax treaty enters into force

December 28, 2021

The tax treaty signed between the governments of Armenia and Singapore in July 2019 entered into force on December 23 and will be effective . . .

Europe

Ireland weighs move to territorial tax system

The Irish Department of Finance on December 22 opened a public consultation inviting comments on a possible transition to a territorial tax regime for corporations; such a system “could be simpler and provide greater certainty for businesses — but would also have to be accompanied by . . .

Carbon Tax

EU looks to pull revenue from share of OECD tax deal, environmental measures

The European Commission on December 22 proposed three “own resources” for the EU budget, including taking a share of the taxing rights to be reallocated to EU member states under Pillar One of the OECD Inclusive Framework tax deal reached in October; the two other proposed . . .

Cyprus

Cyprus postpones deadline for submitting local country-by-country report for 2020 from 31 December 2021 to 31 January 2022: Cyprus tax department→

Americas

Peruvian executive power will modify tax on nonresident entities’ presumed income

Gonzalo Escalante, Zegarra Aguilar Abogados, discusses the Peruvian Congress’s December 17 approval of legislation to allow the executive power to modify tax on nonresident entities’ presumed income; the approved version includes several changes from . . .

Americas

Brazilian tax ruling applies most favoured nation clause in tax treaty with Portugal

Jack Taylor, University of Minho, discusses the Brazilian tax authorities’ September 22 ruling applying the most favoured nation principle in a case under the Brazil-Portugal double tax agreement, determining that sales of shares or equity by . . .

Cyprus

EU directive sets out approach to global minimum tax, adds domestic application

December 22, 2021

The European Commission on December 22 released its proposed directive to implement within the EU the global minimum tax under Pillar 2 of the OECD agreement reached between 137 countries in October; the directive largely tracks the OECD agreement, while adding . . .

Europe

EU shell company directive aims to crack down on tax abuse

December 22, 2021

A proposed directive released by the European Commission on December 22 will step up efforts to tackle the use of shell companies to avoid taxes by denying tax benefits for entities deemed to be shell companies and adding new reporting requirements in . . .

Americas

Pandora papers’ two lessons for transforming tax and financial laws

December 22, 2021

Leopoldo Parada, University of Leeds School of Law, discusses the lessons to be learned from the so-called “pandora papers” since their release by the International Consortium of Investigative Journalists (ICIJ) in October, such as the implications for the structuring of tax and financial laws going forward . . .

Asia-Pacific

Taiwan tax agency states that foreign businesses’ fixed places of business in Taiwan that sell services to domestic business entities must issue uniform invoices and file and pay business taxes: R.O.C. Ministry of Finance→

Asia-Pacific

Cyprus and Jordan signed tax treaty on December 17 that is based on OECD and UN models and incorporates base erosion and profit shifting (BEPS) minimum standards: Cyprus Ministry of Finance→

OECD plans four consultations on tax matters under two-pillar deal

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 . . .

Accounting

Ireland consults on adoption of public country-by-country tax reporting