Two weeks to 10 July 2020
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Responding to the business impacts of COVID-19
As the international response continues, visit our global crisis centre webpage and our COVID-19 hub on TheSuite continue to keep up to date on this topic. Of particular relevance to multinational companies operating in the UK:
EU MDR - full regime now in force in the UK but reporting deadlines deferred
EU MDR entered into force in the UK on 1 July 2020. Taxpayers or their intermediaries must therefore now report cross border arrangements which fall within certain broadly defined hallmarks to EU tax authorities. Reportable arrangements must be disclosed to tax authorities within 30 days of certain reporting trigger events, although EU member states have the option to defer the first reporting deadlines for six months due to the COVID-19 pandemic. UK regulations (SI 2020/713) introducing deferred reporting deadlines have been laid before parliament. Read more.
DST following the Report Stage of the Finance Bill
The UK Finance Bill provisions on the digital services tax (DST) and proposed new clauses and amendments affecting them were discussed at the Report Stage in the House of Commons on 1 July. There were no changes agreed to the draft legislation in this area but some lively debate, particularly about changes that didn’t make it into the Bill. Read more.