Tax & The Digital Economy
7 days ago
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of the digitalisation of business.
In this edition, we look at Vietnam's new law to make platforms responsible for the tax obligations of sellers. We also consider Australia's imminent release of a ruling and guidance on the application of withholding tax (WHT) to software royalties and an Indian Tribunal case where management services were not technical services subject to WHT under the tax treaty with the UK..
Tax & The Digital Economy
February 7th 2024 01:32 PM
A collection of the brief insights throughout January 2024 of the type provided on an ad hoc basis in our Latest digital tax byte update.
In this edition, we cover the European Commission's last minute publication of some Frequently Asked Questions before the commencement of many Member State Pillar Two regimes following the minimum tax Directive (and action against those not having yet adopted), a failed challenge to the EU's Directive on this before the Court of Justice and revised estimates of the impact coming from the OECD. We also note the European Commission's announcement of the coming into force of new cross-border VAT reporting measures and the extension of the deadline in Germany for complying with various requirements of the rules implementing DAC7 on reporting by digital platforms (plus action from the European Commission on Germany and Poland for failure to communicate implementation). India has also issues the third set of guidelines on its 1% e-commerce Withholding Tax. The Australian Tax Office has published an updated draft ruling on software taxation.
International Tax
February 5th 2024 03:28 PM
Welcome to the latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
January 26th 2024 03:15 PM
HMRC’s report presents statistics across a variety of areas including TP enquiries, Advance Pricing Agreements (APAs), Mutual Agreement Procedures (MAPs), Advance Thin Capitalisation Agreements (ATCAs), DPT investigations and Profit Diversion Compliance Facility cases (PDCFs). It shows the additional yield, number of cases resolved and length of time to resolve cases across each area. A summary of the statistics is set out below.
International Tax
January 10th 2024 08:48 AM
On 15 December 2023, the General Court of the EU rendered its judgment in Fugro NV vs Council regarding the action for annulment brought by the company against the Pillar Two Directive (T-143/23). The Court decided that the company does not have legal standing to challenge the Directive. As a result, the action was rejected, being considered inadmissible, and there was also no need for the Court to adjudicate on the applications to intervene made by the Kingdom of the Netherlands and other parties.
Transfer Pricing
January 19th 2024 08:41 AM
The IRS Office of Chief Counsel on December 29, 2023 issued long-awaited guidance on the effects of group membership on financial transactions under Section 482. The guidance was issued in the form of a generic legal advice memorandum (GLAM), AM 2023-008 , titled “Effect of Group Membership on Financial Transactions under Section 482 and Treas. Reg. § 1.482-2(a).” The GLAM examines the application of the 482 regulations applicable to intercompany loans and other areas of the 482 regulations, including realistic alternatives and passive association, in the context of intercompany lending. Applying these principles, the GLAM concludes that the IRS may consider group membership in determining the arm’s length rate of interest for intercompany loans based on implicit financial support expected from another group member.
Tax & The Digital Economy
January 8th 2024 11:36 AM
A collection of the brief insights throughout December 2023 of the type provided on an ad hoc basis in our Latest digital tax byte update.
In this edition, we cover Colombia's proposed significant economic presence measures and a provisional EU deal on employment status for digital platform workers. Countries have agreed a March/June 2024 timeframe for Pillar One Amount A materials as well as further Administrative Guidance on Pillar Two GloBE rules and we've sent a reminder about our Pillar Two tracker. New Zealand has published guidance on its forthcoming digital platform operator reporting rules and Japan is set to introduce consumption tax obligations on B2C type digital service platforms.
Transfer Pricing
December 22nd 2023 04:39 PM
What happened?
France’s Finance Bill for 2024, adopted on December 16, through article 22, introduces four measures reinforcing the French tax administration’s control of transfer pricing policies applied by multinational groups operating in France:
- Lowering of the thresholds for Master File/Local File requirements, now capturing a wider range of French subsidiaries of middle-sized groups.
- Higher penalties for missing or incomplete transfer pricing documentation.
- Shifting to the taxpayer the opposability and burden-of-proof rules for transfer pricing documentation and related reassessments.
- Adoption of the OECD’s Hard-to-Value Intangibles (HTVI) ex post control approach, combined with an extension of statute of limitations to six years for transfers of HTVIs.
Transfer Pricing
December 12th 2023 11:42 AM
In this TP Talks episode, Kristina Novak (Principal in PwC’s US National Tax Services Transfer Pricing Practice), Jessica Yin (Transfer Pricing Partner, PwC Shanghai), Rong Zhen (Corporate Tax and Forex Partner, PwC Shanghai), and Nancy Chen (Transfer Pricing Senior Manager, PwC Shanghai) discuss why many MNCs operating in China have been more attentive to year-end transfer pricing adjustments (TPAs), what TPAs Chinese subsidiaries might need to undertake, the challenges cross-border TPAs present in China, and options available for MNCs to implement year-end adjustments. The speakers also address indirect tax implications for upward TPAs, and how taxpayers can respond to a potential inquiry.
Tax & The Digital Economy
7 days ago
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of the digitalisation of business.
In this edition, we look at Vietnam's new law to make platforms responsible for the tax obligations of sellers. We also consider Australia's imminent release of a ruling and guidance on the application of withholding tax (WHT) to software royalties and an Indian Tribunal case where management services were not technical services subject to WHT under the tax treaty with the UK..
International Tax
December 20th 2023 03:23 PM
The OECD Secretariat published the latest set of Administrative Guidance on the Global Anti-Base Erosion Model Rules (GloBE rules) of Pillar Two on 18 December 2023 intended to clarify the operation of the GloBE rules. This is the third set of administrative guidance, and along with the guidance released in February and July 2023 it will be incorporated into a revised version of the GloBE Commentary , which, according to the OECD, will be released in 2024. This latest release is the final set of guidance supplementing and clarifying the Pillar Two rules before they come into effect in many countries from 1 January 2024. Further guidance is expected in 2024 across a range of issues.
International Tax
December 18th 2023 10:21 AM
The Court of the Justice of the European Union (“CJEU”) has rendered its judgment in the case C-475/21 P regarding the appeal brought by Amazon group companies and Luxembourg against the judgment of the General Court of the European Union (“GC”) of 12 May 2021 (T-816/17 and T-318/18). In essence, the CJEU upheld the GC judgment despite errors in the GC’s reasoning.
Tax & The Digital Economy
December 13th 2023 11:37 AM
A collection of the brief insights throughout November 2023 of the type provided on an ad hoc basis in our Latest digital tax byte update.
In this edition, we cover the EU Parliament's ECON committee recommendations including deferral of the VAT in the Digital Age package, while the Netherlands has postponed the penalty regime for its VAT e-commerce One Stop Shop, Norway has expanded the requirements for its VAT e-commerce regime and Brazil has progressed the gradual overhaul of its indirect tax system with the introduction of a two tier VAT regime. We also note a statement by 48 countries of their intention to implement the OECD's crypto asset reporting framework (CARF) and Italy's issuance of a Circular on taxation of crypto assets, including digital currency. The UK has incorporated its guidance on digital platform operator reporting into the HMRC manual on information exchange while Canada has confirmed in its fall economic statement the intention to go ahead with introducing a digital services tax..
International Tax
December 11th 2023 06:00 PM
Welcome to our final 2023 update on recent developments in international and treasury tax of interest to multinationals operating in the UK. We will return in 2024!
International Tax
December 8th 2023 08:53 AM
On 5 December 2023, the Grand Chamber of the Court of the Justice of the European Union rendered its judgment in the joined cases C-451/21 P and C-454/21 P regarding the appeals brought by Luxembourg and the Engie group companies against the judgments of the General Court of the European Union of 12 May 2021 (T-516/18 and T-525/18) that previously confirmed the existence of State aid under article 107 TFEU. The CJEU ruled that the European Commission erred in its State aid analysis of the tax rulings granted to the Engie group.
Transfer Pricing
October 31st 2023 11:44 AM
The OECD on 11 October 2023 released a package of guidance in relation to Amount A of Pillar One: the text of a consensus-based Multilateral Convention (MLC) and accompanying explanatory statement, an Understanding on the Application of Certainty for Amount A of Pillar One (UAC), and an update to the economic impact assessment of Pillar One. Notably absent from the package is any further guidance on Amount B (i.e., transfer pricing for routine distribution and marketing transactions), which the Inclusive Framework (IF) continues to work on, post-consultation, to provide final guidance by the early part of 2024.
Transfer Pricing
October 16th 2023 11:37 AM
In this TP Talks episode, Kristina Novak (Principal in PwC’s US National Tax Services Transfer Pricing Practice), David Swenson (Consultant in PwC’s US National Tax Services Transfer Pricing Practice), and Mark Thomas (Principal in PwC’s US National Tax Services Transfer Pricing Practice) discuss the current tax and transfer pricing controversy landscape, including the current audit environment, the impact of global tax reform, the IRS’s recently announced audit initiative, and more.
Tax & The Digital Economy
7 days ago
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of the digitalisation of business.
In this edition, we look at Vietnam's new law to make platforms responsible for the tax obligations of sellers. We also consider Australia's imminent release of a ruling and guidance on the application of withholding tax (WHT) to software royalties and an Indian Tribunal case where management services were not technical services subject to WHT under the tax treaty with the UK..
Tax & The Digital Economy
November 2nd 2023 03:49 PM
A collection of the brief insights throughout October 2023 of the type provided on an ad hoc basis in our Latest digital tax byte update. In this edition, we cover the release by the OECD of a package of materials for Amount A of Pillar One and proposals from the UN tax committee on other aspects of the digitalisation and globalisation of the economy. We also note the update of the OECD's FAQs on digital platform reporting, the adoption of the EU rules (DAC8) on reporting of crypto asset and e-money transactions and proposed new US digital asset reporting regulations. We comment too on a Kenya notice about starting enforcement proceedings in relation to those offering registerable digital services. Japan has clarified the definition of Importer of Record under new customs laws and there is an update on the US state of New Mexico's digital advertising tax.
International Tax
November 1st 2023 08:32 AM
The Hungarian Ministry of Finance published on 18 October the draft legislation for public consultation to implement EU Directive 2022/2523/OECD Model Rules on the global minimum tax (GloBE). The draft legislation closely aligns with the OECD Model Rules, Commentary, and Administrative Guidance published thus far.
International Tax
October 30th 2023 03:39 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
October 25th 2023 09:05 AM
The European Finance Ministers, sitting as the Council of the EU, approved the recommendations of the EU Code of Conduct Group in relation to the updated list of non-cooperative jurisdictions. Three jurisdictions, Antigua and Barbuda, Belize, and Seychelles were all added to Annex I (the so-called EU blacklist). British Virgin Islands, Costa Rica, and Marshall Islands were removed from the previous Annex I list (published in February 2023).
International Tax
October 25th 2023 08:58 AM
The Council of the EU recently adopted a Directive amending the EU rules on administrative cooperation in the area of taxation (DAC8). The amendments primarily pertain to the reporting and automatic exchange of information on certain revenues from crypto asset transactions and the provision of advance tax rulings for the wealthiest (high net worth) individuals. The Directive aims to strengthen the existing legislative framework by broadening the scope for registration and reporting obligations and improving overall administrative cooperation between tax administrations.
International Tax
October 19th 2023 01:11 PM
The Cyprus Ministry of Finance on 3 October, launched a public consultation on Cyprus’ transposition into its national law of the EU Directive aimed at ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups dated 14 December 2022.
International Tax
October 16th 2023 06:05 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
September 29th 2023 04:15 PM
On 27 September 2023, the General Court of the European Union (GCEU) delivered its judgments upholding several appeals brought by the Kingdom of Spain and several companies against the European Commission’s (EC) decision declaring the Spanish tax scheme on the deduction for indirect acquisitions of shareholdings in foreign companies to be unlawful State aid. As a result, the GCEU annulled the EC’s decision.
International Tax
September 19th 2023 11:31 AM
The European Commission published a new package of proposals on 12 September to put forward: i) a single set of tax rules for doing business in the EU (Business in Europe: Framework to Income Taxation (BEFIT)); ii) harmonised transfer pricing rules within the EU ( Council Directive on Transfer Pricing); and iii) a Head-Office Tax system for micro, small, and medium-sized enterprises (SMEs) (the HOT proposal).
Transfer Pricing
August 29th 2023 10:50 AM
The enactment in the UK of the Spring Finance Bill 2023 - which received royal assent in July to become Finance (No.2) Act 2023 (the Act) - brought to a formal conclusion a more than two-year process to update the UK’s transfer pricing documentation requirements, which started in March 2021 with the release of a public consultation document. In response, various proposals have been put forward; some have been included in the new legislation, and others have been put on hold or noted for further consultation in the near future.
Transfer Pricing
July 21st 2023 09:51 AM
The Brazilian Government issued Provisional Measure (PM) 1152/22 on December 29, 2022, seeking alignment with the arm’s-length principle (ALP) in accordance with the OECD Transfer Pricing Guidelines. The PM was amended and ratified by the Congress, a process which was concluded on May 10. Afterwards, the PM was converted into Law 14,596, published on June 15.
International Tax
July 25th 2023 08:52 AM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
July 18th 2023 01:02 PM
On 17 July 2023, the OECD/G20 Inclusive Framework on BEPS (IF) released four important documents related to Pillar One and Pillar Two and a Progress Report to the G20 Finance Ministers and Central Bank Governors for their meeting on 17-18 July. These publications follow last week’s IF plenary meeting and resulting “Outcome
Statement,” which provided an update on the status and timeline for implementing Amount A and B of Pillar One and the Pillar Two Subject-to-Tax Rule (STTR).
International Tax
July 18th 2023 08:10 AM
On 19 June 2023, the UK government launched an eight week consultation on possible changes to three of the most fundamental aspects of the UK’s taxation of multinational enterprises (MNEs):
- Transfer pricing - the basis on which profits are divided between jurisdictions as a result of transactions between two or more legal entities within the same MNE.
- Permanent establishments - the attribution of part of the profits of a single legal entity to two or more jurisdictions.
- Diverted Profits Tax - a targeted measure introduced in 2015 to counter what HMRC considers to be “contrived arrangements designed to avoid profits being taxed in the UK”.
The specific issues under consideration in each of these categories is set out below.
Transfer Pricing
July 14th 2023 01:49 PM
On 12 July 2023, the OECD published an Outcome Statement that provides an update on the status and timeline for implementing the two Pillars of the project addressing the tax challenges arising from the digitalisation of the economy. The Outcome Statement has been signed by 138 of the 143 members of the Inclusive Framework (IF) - those who haven’t signed it are Belarus, Canada, Pakistan, the Russian Federation and Sri Lanka. While the Outcome Statement notes progress made on both pillars, it also acknowledges that differences remain between countries. Importantly, the timeline for releasing a multilateral convention (MLC) for Amount A of Pillar One has been delayed to the second half of 2023 (with a goal of it entering into force during 2025).
Tax & The Digital Economy
7 days ago
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of the digitalisation of business.
In this edition, we look at Vietnam's new law to make platforms responsible for the tax obligations of sellers. We also consider Australia's imminent release of a ruling and guidance on the application of withholding tax (WHT) to software royalties and an Indian Tribunal case where management services were not technical services subject to WHT under the tax treaty with the UK..
Tax & The Digital Economy
July 11th 2023 04:32 PM
A collection of the brief insights throughout June 2023 of the type provided on an ad hoc basis in our Latest digital tax byte update. In this edition, we provide access to a new African indirect tax guide with useful information across 43 countries including tax measures directed at the digital economy and a special report by the New Zealand revenue authorities on the VAT/GST full liability model for platforms. We note that Israel has dropped VAT plans for B2C digital services and Jersey has published overseas retailers' GST guidance notes. France has published a revised doctrine/guidance on its Digital Services Tax, Hungary has proposed changes to its Payment Services Tax, Kenya's President has approved the Finance Bill containing the new Digital Asset Tax and Canada has passed its law on digital platform reporting. There are relevant state tax updates for Maryland and Georgia. The IASB has also issued an Exposure Draft on deferred tax accounting for Pillar 2 by SMEs.
Transfer Pricing
July 5th 2023 06:12 PM
In this TP Talks episode, Ugo Cannavale (Transfer Pricing Leader for PwC Italy), Andrew Hwang (Americas Operational Transfer Pricing Leader, PwC US), and Antonino De Benedictis (EMEA Operational Transfer Pricing Leader, PwC UK) discuss why Operational Transfer Pricing (OTP) is increasingly becoming a priority for in-house tax and finance professionals, the value and benefits OTP offers the broader finance function and C-Suite, scalability of OTP to accommodate small to large scale transformations, and practical considerations for implementing OTP.
Transfer Pricing
July 5th 2023 06:08 PM
In this TP Talks Special Edition podcast, David Ledure (Transfer Pricing Partner, PwC Belgium), Martin Cazaux (Transfer Pricing Principal, PwC US), and Tony Koivula (Transfer Pricing Manager, PwC Finland) discuss debt capacity and transfer pricing, focusing on the US’s and EU’s history of looking at debt capacity, the varying approaches to analyzing debt capacity, Australia’s draft legislation on proposed new interest limitation rules, debt serviceability, and reassessment of debt capacity and double taxation.
International Tax
June 19th 2023 04:43 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
June 12th 2023 02:55 PM
On 6 June 2023, the Department of Finance Canada released its consultation paper to gather stakeholder input on various questions and proposals related to Canada’s transfer pricing legislation.
International Tax
June 9th 2023 08:07 AM
The Netherlands legislative proposal to transpose Pillar Two into the Dutch company tax system, titled ‘Minimum Tax Act 2024 (Pillar Two),’ was submitted to the Dutch Parliament on 31 May. The Netherlands is the first country within the European Union to release its domestic Pillar Two legislation. By doing so, the Netherlands takes the next step in implementing Pillar Two, effective 31 December 2023.
International Tax
June 23rd 2023 12:24 PM
In this webcast held on Thursday 22 June, our panel provided an update on Pillar Two implementation globally, and proposed some practical steps organisations can take to overcome some of the key challenges they are facing. They also walked through the technology solutions being developed for compliance and reporting.
Transfer Pricing
May 25th 2023 11:02 AM
In this TP Talks episode, Ugo Cannavale (Transfer Pricing Leader for PwC Italy), Michela Chin (Transfer Pricing leader for PwC Brazil), and Matias Pedevilla (Transfer Pricing Principal with PwC US and global leader of PwC's Global Coordinated Documentation service) discuss the overhaul of Brazil’s transfer pricing system, focusing on the main changes that have been introduced, the implications of the pending rules for multinationals, and what companies should be doing now.
International Tax
May 22nd 2023 05:59 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
May 10th 2023 11:04 AM
The Acting Director of IRS Treaty and Transfer Pricing Operations (TTPO) on April 25 released a memorandum titled “Interim Guidance on Review and Acceptance of Advance Pricing Agreement (APA) Submissions,” which includes an attachment setting forth provisions that will be incorporated into the IRS Internal Revenue Manual by 2025 (collectively, the Guidance).
The Guidance outlines procedures and criteria for TTPO personnel — including Advance Pricing and Mutual Agreement (APMA) personnel — to follow in evaluating whether a proposed APA should be accepted into the APA process or in another TTPO workstream.
International Tax
May 9th 2023 03:47 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
May 4th 2023 06:26 PM
Trusts can have filing and tax payment obligations under the Pillar Two rules, and whether groups are in scope is determined on the basis of a deemed accounting consolidation, which can be difficult to apply to investments owned by trusts.
Transfer Pricing
April 20th 2023 08:48 AM
This TP Talks episode is part 3 of a three-part series on Pillar Two, where Ugo Cannavale (Transfer Pricing Leader for PwC Italy), Kartikeya Singh (Transfer Pricing Principal in PwC’s US National Tax Services practice), and Giorgia Maffini (Transfer Pricing and Tax Policy Director with PwC UK) discuss the latest Pillar Two developments, country level developments, and what companies need to prioritize from a transfer pricing perspective.
International Tax
April 25th 2023 03:11 PM
On this webcast from Tuesday 25 April, our tax policy specialists reviewed unresolved technical issues, as well as the administrative guidance to date. They also discussed how countries are implementing the rules, and how businesses can deal with what we know and don’t know. In the latter category, one big question is what is being built into the regime for increasing tax certainty during the transition and beyond?
International Tax
April 11th 2023 04:19 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
April 11th 2023 11:37 AM
On 23 March 2023 as set out in the Spring Finance Bill, updated draft UK legislation was released for an income inclusion rule (“IIR”) and new draft legislation for a domestic minimum top-up tax, as part of the latest installment of the UK’s implementation of the OECD’s Pillar Two project.
International Tax
April 13th 2023 03:04 PM
The Australian government has released draft legislation to require certain large multinationals (known as Country by Country (CbC) reporting parent entities) to publicly disclose the information in their CbC reports broken down by jurisdiction, as well as publicly disclose other new tax and financial information.
Corporate Tax (CT)
April 5th 2023 02:55 PM
Corporate Tax (CT)
April 5th 2023 03:20 PM
I am pleased to welcome you to the European Business Tax Forum’s (EBTF) fourth annual study of the Total Tax Contribution (TTC) of the largest multinational companies (MNCs) headquartered in the EU, EFTA and the UK.
Transfer Pricing
April 5th 2023 01:01 PM
The IRS Advance Pricing and Mutual Agreement Program (APMA) on March 27 issued its 24th Annual Statutory Report (the report) concerning Advance Pricing Agreements (APAs). The Report observes that during calendar year 2022, APMA completed substantially fewer APAs than in 2021, with a slight increase in processing times. A total of 77 APAs were executed in 2022 as compared to 124 APAs executed in 2021. For APAs completed in 2022, the average processing time was 42.0 months, a slight increase from the prior-year average of 39.2 months.
Transfer Pricing
April 4th 2023 01:13 PM
The United Kingdom released draft legislation on March 23, containing an income inclusion rule (IIR) and new draft legislation for a Domestic Minimum Top-up Tax, as part of the latest installment of the UK’s implementation of the OECD’s Pillar Two project. Both the UK IIR (‘Multinational Top-up Tax’) and the UK domestic minimum tax apply for accounting periods beginning on or after December 31, 2023.
International Tax
April 5th 2023 12:42 PM
On 28 March 2023 Canada’s Deputy Prime Minister and Minister of Finance, Chrystia Freeland, presented the government’s budget.
Transfer Pricing
March 31st 2023 09:47 AM
International Tax
March 27th 2023 05:35 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
March 28th 2023 09:55 AM
In this TP Talks Special Edition podcast, David Ledure (Transfer Pricing Partner, PwC Belgium), Dan Pybus (PwC’s EMEA Financial Transactions TP Leader), Bob Ritter (PwC’s US Financial Transactions TP Leader), and Hiral Mistry (Transfer Pricing Partner, PwC Australia) discuss changing financial market conditions, tax policy changes, what to expect from tax authorities in 2023, as well as a look back at 2022.
Investment Management
March 20th 2023 05:34 PM
At the end of December 2022, the Italian government introduced in the Italian Income Tax Act (IITA) law an investment management exemption (IME), that provides a safe harbour aimed at certainty that foreign investment funds (and controlled entities) will not trigger a permanent establishment (PE) due to activities in Italy of a fund’s (senior) asset manager.
International Tax
March 16th 2023 11:53 AM
The UK’s Chancellor of the Exchequer, Jeremy Hunt, delivered his Spring Budget 2023 on 15 March 2023. Most significantly from an international perspective, Pillar Two Policy Paper was amongst the package of documents that were published on Budget Day. Whilst light on new details, the paper is a reminder that UK implementation of Pillar Two is rapidly approaching. We now eagerly await the publication of the Finance Bill on 23 March, which we expect to include draft legislation for an Income Inclusion Rule (IIR) and Qualified Domestic Minimum Top-up Tax (QDMTT), both of which are scheduled to be introduced in the UK for accounting periods beginning on or after 31 December 2023.
Tax & The Digital Economy
March 14th 2023 10:51 AM
A collection of the brief insights throughout February 2023 of the type provided on an ad hoc basis in our Latest digital tax byte update.
This edition includes draft update ESS regulations for Kenya, guidance on VAT reporting for e-commerce in the UAE and pre-registration procedures for those without a presence in Egypt. There are reminders of the deadline for feedback on DAC7 implementing regulations and registering for our webcast on DAC7 more widely while New Zealand's political parties argue about making platform responsible for GST of sellers. UAE plans ahead for pre-registering digital businesses for the incoming corporate tax while Singapore and Hong Kong plan to implement the Pillar 2 GloBE rules and a domestic top-up tax for businesses’ financial years starting from 1 January 2025. South Africa noted the imminent publication of draft legislation for consultation and Bermuda flagged the second half of 2023 for decisions on Pillar 2. There are also updates in the form of new Washington State sourcing rules and a Massachusetts State nexus decision. We also consider the sales and use tax implications of metaverse transactions.
International Tax
March 16th 2023 05:01 PM
Pillar Two brings unprecedented changes to the global tax system, impacting large multinational companies that operate under the reformed international tax
framework. We recently published our Pillar Two Data Input Catalog, which highlights the urgency for taxpayers to start preparing for Pillar Two, outlining anticipated divergences in Pillar Two rules, calculation complexities, and considerations in developing an extensive data strategy.
Transfer Pricing
February 17th 2023 05:52 PM
In this TP Talks episode, new podcast host Ugo Cannavale (Transfer Pricing Leader, PwC Italy) is joined by Monica Cohen-Dumani (International Tax Services Partner, PwC Switzerland), and Brad Slattery (Global VCT Transfer Pricing Leader, PwC US) to discuss the role ESG and transparency play in driving value in operating model transformation and how transfer pricing plays a key part. The speakers focus on the EU Corporate Sustainability Directive and how tax and transfer pricing is tied into the Directive and ESG overall, the value chain implications as a result of increased transparency, and considerations around the procurement function. The speakers finish with key takeaways.
International Tax
March 13th 2023 05:45 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Tax & The Digital Economy
7 days ago
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of the digitalisation of business.
In this edition, we look at Vietnam's new law to make platforms responsible for the tax obligations of sellers. We also consider Australia's imminent release of a ruling and guidance on the application of withholding tax (WHT) to software royalties and an Indian Tribunal case where management services were not technical services subject to WHT under the tax treaty with the UK..
International Tax
February 16th 2023 11:02 AM
On 14 February 2023, the EU’s ECOFIN Council approved the latest list of non-cooperative jurisdictions for tax purposes. Four jurisdictions, Russia, British Virgin Islands, Costa Rica and Marshall Islands were all added to Annex I (the so-called blacklist).
International Tax
February 14th 2023 02:42 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
January 30th 2023 06:40 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
February 8th 2023 12:48 PM
HMRC’s statistics report across a variety of areas, including TP enquiries, Advance Pricing Agreements (APAs), Mutual Agreement Procedures (MAPs), Advance Thin Capitalisation Agreements (ATCAs), DPT investigations and Profit Diversion Compliance Facility cases (PDCFs) highlighting the additional yield, number of cases and length of time to resolve cases, across each area.
International Tax
February 8th 2023 11:26 AM
The OECD released Administrative Guidance (‘guidance’) on the Pillar Two Global Anti-Base Erosion Rules (GloBE Rules) on 2 February. The guidance was approved by the OECD/G20 Inclusive Framework on BEPS (IF) and is therefore not subject to public consultation. The guidance primarily focuses on (some but not all) previously unaddressed areas under the GloBE Rules.
Tax & The Digital Economy
February 8th 2023 11:08 AM
A collection of the brief insights throughout January 2023 of the type provided on an ad hoc basis in our Latest digital tax byte update.
This edition includes measures taken just prior to the end of December 2022 by France, Germany, Spain (with later Parliamentary discussion), Belgium, Finland, Croatia (with subsequent consultation on some details) and Slovenia on DAC7 in relation to reporting by digital platform operators; the OECD has meanwhile published a set of FAQs on its Model Rules for such operators. The European Commission has published for consultation a draft Implementing Regulation for determining the DAC7 equivalence of similar regimes in non-EU countries and also sent a notice to non-notifying Member States. Tanzania has also published a notice on registration by non-resident electronic service providers. There has been some further progress in the challenges to Maryland's digital advertising tax.
International Tax
February 6th 2023 06:15 PM
The European Directive that will oblige those multinational groups and entities whose revenues exceed 750 million euros to make public relevant tax and financial information aggregated on a country-by-country basis on their website has been transposed into Spanish law.
International Tax
February 2nd 2023 01:07 PM
The stakes rarely have been higher as business leaders seek to manage operations and plan investments in an environment of uncertainty.
International Tax
January 17th 2023 03:45 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
January 20th 2023 08:45 AM
The Brazilian Government on December 29 issued Provisional Measure (MP) 1.152/22 seeking alignment with the arm’s length principle (ALP) in accordance with the OECD Transfer Pricing Guidelines. The MP is effective immediately with the force of federal law. In order to remain effective, Congress must ratify the MP within 60 days from the date of publication (discounting Congressional recess, the initial deadline is April 2023), and convert it into ordinary law. This term may be extended for an additional period of 60 days (i.e., by June 2023). Congressional amendments to the provisions of the MP may be proposed by February 3, 2023.
International Tax
September 27th 2019 02:07 PM
A draft Law prepared by the Portuguese Government, aiming at implementing the EU Directive on the mandatory disclosure and exchange of cross-border tax arrangements, also known as DAC6, is currently under public consultation.
Tax & The Digital Economy
7 days ago
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of the digitalisation of business.
In this edition, we look at Vietnam's new law to make platforms responsible for the tax obligations of sellers. We also consider Australia's imminent release of a ruling and guidance on the application of withholding tax (WHT) to software royalties and an Indian Tribunal case where management services were not technical services subject to WHT under the tax treaty with the UK..
Finance & Treasury
January 25th 2023 11:29 AM
In the last few years, factors including the COVID pandemic, the Ukraine conflict, general economic volatility and significant changes in the local and international tax environment, have meant that there is increased focus on risk management, with increasingly complex financing and hedging strategies being adopted.
Tax & The Digital Economy
January 4th 2023 03:39 PM
A collection of the brief insights throughout December 2022 of the type provided on an ad hoc basis in our Latest digital tax byte update.
This edition includes information on the OECD's release of a consultation document on a multilateral tax convention provision on removing DSTs and other unilateral measures and an OECD webinar on Amount B of Pillar 1. It also comments on the latest developments in the cases challenging Maryland's digital advertising tax and the USTR concerns about Canada's proposed DST. On Pillar 2, it also covers EU Member States finally agreeing on an implementation Directive, as well as OECD consultations on the GloBE information return and on tax certainty plus implementation guidance on safe harbours and relief from penalties in the early years. ATAF has published its suggested approach to countries introducing their own minimum taxes. We comment too on the publication by the European Commission of proposals for its VAT in the Digital Age initiative and on the Bulgarian and Czech Republic's implementation of DAC7 rules on digital platform operators.
International Tax
December 22nd 2022 09:06 AM
The draft MLC provisions focus on Digital Services Taxes (DSTs) and other Relevant Similar Measures and they reflect the commitments with respect to the removal of all existing DSTs and other relevant similar measures and the standstill of such future measures. The consultation document includes two articles: one detailing that DSTs will be withdrawn under Pillar One and the other describing the three characteristics of a DST-like tax which should be withdrawn.
International Tax
December 22nd 2022 09:03 AM
Unlike the other Pillar Two releases on Tax Certainty and the GloBE Information Return, the rules on safe harbours and penalty relief are not subject to a public consultation process. This release takes the form of an Inclusive Framework approved publication.
International Tax
December 22nd 2022 10:36 AM
The GloBE Model Rules require MNE groups to file a standardised GloBE information return (GIR) in each relevant jurisdiction that has introduced the GloBE rules. The public consultation document on the GIR indicates that the ultimate objective of the GIR is to develop a consistent and transparent set of standards for information collection that preserves consistency and certainty of outcomes for MNE groups, while avoiding a significant increase in taxpayer and tax administrations’ compliance burdens.
International Tax
December 22nd 2022 08:59 AM
Given the complexity of the Pillar Two rules and the differences that could arise in the interpretation or application of the rules among jurisdictions, the OECD started working on exploring mechanisms to provide further tax certainty with respect to the GloBE rules. This public consultation on Pillar Two – Tax Certainty for the GloBE Rules seeks input from stakeholders with respect to the scenarios where differences in interpretation or application of the GloBE rules between two or more jurisdictions may arise.
International Tax
December 20th 2022 08:55 AM
On 15 December, the EU Council formally adopted the EU minimum tax Directive by written procedure. The written procedure ended with this unanimous agreement, notwithstanding the fact that Hungary abstained from the final vote, and Sweden made a written observation on a specific provision of the Directive. The Directive will enter into force on the day following its publication in the Official Journal of the European Union. Member States shall transpose the Directive into their domestic law by 31 December 2023. All Member States voted in favour of the accompanying Council Statement. This outcome follows a week of speculation on the deal after Poland reserved its support until yesterday’s EU Council meeting.
International Tax
December 15th 2022 02:53 PM
The European Parliament’s recommendations to the EU Commission on a fair and simple taxation strategy included further categories of income and assets, such as crypto assets, to include in the scope of automatic exchange of information. The seventh potential update published by the European Commision to the EU’s Directive on Administrative Cooperation on Tax (DAC), which would make this DAC8, is to address certain deficiencies that have been identified in the scope of the automatic exchange of information, including to set minimum levels of financial penalties with respect to serious non-compliance.
International Tax
December 19th 2022 06:25 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Corporate Tax (CT)
November 17th 2022 10:29 AM
The EU’s public country-by-country reporting (CbCR) Directive, published in December 2021, is currently being transposed into individual Member States’ legislation. The latest date for this to apply is for accounting periods beginning on or after 22 June 2024
(for a December year, publication would be needed by 31 December 2026 for the 31 December 2025 year-end). However, local countries can apply earlier and determine their own penalty regime. The Romanian Official Gazette has formally published the regulations to implement the Directive, effective for accounting periods beginning on or after 1 January 2023 (i.e. publish by 31 December 2024). This may accelerate the requirement to disclose country-by-country data for your EU-wide operations and countries in the EU black/grey list.
International Tax
November 15th 2022 08:13 AM
The Romanian Government recently formally introduced the EU public country-by-country (CbC) requirements, transposing into the national legislation the provisions of EU Directive 2021/2101.
International Tax
November 14th 2022 05:33 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
October 31st 2022 09:24 AM
In this TP Talks episode, David Ernick (Transfer Pricing Principal in PwC’s US National Tax Services practice) is joined by Stephan Rasch (PwC Transfer Pricing Partner based in Munich) and Michael Shaw (PwC Transfer Pricing and Tax Disputes Director based in London) to discuss transfer pricing controversy in the EU and UK, touching on the audit environment, APAs, litigation trends, and more.
International Tax
November 10th 2022 08:43 AM
On 8 November 2022, the Court of Justice of the European Union (CJEU) published its final decision on two appeals regarding the formal State aid investigation by the European Commission dating back to October 2015 in relation to an Advance Pricing Agreement (“APA” or “tax ruling”) of Fiat Finance & Trade Ltd (“FFT”). The European Court of Justice annulled the European Commission’s decision setting aside the finding that FTT had received State aid.
Tax & The Digital Economy
7 days ago
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of the digitalisation of business.
In this edition, we look at Vietnam's new law to make platforms responsible for the tax obligations of sellers. We also consider Australia's imminent release of a ruling and guidance on the application of withholding tax (WHT) to software royalties and an Indian Tribunal case where management services were not technical services subject to WHT under the tax treaty with the UK..
Tax & The Digital Economy
November 3rd 2022 02:48 PM
A collection of the brief insights throughout October 2022 of the type provided on an ad hoc basis in our Latest digital tax byte update.
This edition includes the publication of draft Pillar 2 legislation in the Netherlands, an update on various VAT issues to consider in the Gulf Cooperation Council states and the release by the OECD of a Crypto Asset Reporting Framework (and update to CRS for financial institutions). It also covers a ruling outlawing Maryland's state digital advertising tax, the likely implementation of the Danish media cultural contribution and Turkish investigations into cloud and software licensing services. The UK has published a technical consultation on its proposals for digital platform reporting.
International Tax
November 2nd 2022 09:04 AM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
September 28th 2022 11:29 AM
In recent years there has been a substantial increase in the number and size of transfer pricing (TP) disputes with tax authorities worldwide. Alongside an increasing importance for taxpayers to be able to sufficiently demonstrate that they have taken reasonable care in managing their TP, tax authorities are expanding their lines of enquiry to include assessing how they implement, execute and monitor the application of their TP policies. Through adopting this forensic focus, tax authorities are commonly finding discrepancies between a taxpayer’s intended TP policy and the TP outcomes following execution and, as a result, placing an onus on the taxpayer to demonstrate that they have taken reasonable care of its TP implementation / execution processes.
Corporate Tax (CT)
August 2nd 2022 10:37 AM
What is Country by Country Reporting (CbCR)?
The Organisation for Economic Co-operation and Development (OECD) adopted a form of CbCR as a high level risk assessment tool for tax administrations, as part of its project to strengthen international standards on Base Erosion and Profit Shifting (BEPS). It is applied in the UK to accounting periods commencing on or after 1 January 2016.
Tax & The Digital Economy
August 2nd 2022 03:11 PM
A collection of the brief insights throughout July 2022 of the type provided on an ad hoc basis in our Latest digital tax byte update.
This edition includes an OECD consultation on consolidated Pillar 1 Amount A materials, UK draft legislation for implementing Pillar 2 and an update on Maryland's US Sales Tax rules. It also covers Indian guidelines on crypto assets and an insight into the global indirect treatment of non-fungible tokens (NFTs). There are updates too on Kenyan amended VAT treatment of various digital services, but its failure to sanction a rise the in DST rate. We also include draft legislation on transposing the EU's DAC 7 on platform reporting for Italy, Poland and Germany with an update on the UK's plans following consultation on implementing the OECD Model Rules in this area.
International Tax
August 1st 2022 09:00 AM
As part of 2022 tax reform, the Korean Ministry of Strategy and Finance (MOSF) recently announced the introduction of draft domestic legislation for a global minimum tax. Korea’s summary draft rules, released in Korean, correspond closely to the OECD’s Pillar Two Model Rules, which was led by the OECD / G20 and has been agreed upon by 141 countries in the Inclusive Framework. Detailed legislation is expected in December.
Transfer Pricing
July 27th 2022 01:47 PM
HMRC has released the first tranche of draft legislation to change the UK’s transfer pricing documentation rules.
International Tax
July 28th 2022 07:59 AM
For inclusion in Finance Bill 2022/23, the UK has released draft legislation to introduce the OECD’s Pillar Two Model Rules into UK law. The draft legislation includes an Income Inclusion Rule (IIR), to be known in the UK as the Multinational Top-up Tax, which will apply to accounting periods beginning on or after 31 December 2023.
International Tax
July 25th 2022 06:32 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
July 27th 2022 01:47 PM
On 23 March 2021 HMRC released a public consultation document setting out some proposed changes to UK transfer pricing documentation requirements and on 30 November 2021 published its consultation outcome, summarising the representations it received, providing government comments and setting out a way forward, including further consultation on draft legislation and guidance in 2022.
Transfer Pricing
July 28th 2022 01:48 PM
The Cyprus Parliament on June 30 approved the long-awaited amendments to the Cyprus Income Tax Law and new Regulations to introduce Transfer Pricing (TP) documentation compliance obligations (Master File, Cyprus Local File, Summary Table) for Cyprus tax resident persons, and permanent establishments of non-Cyprus tax resident persons situated in Cyprus, that engage in transactions with related parties (Controlled Transactions). A formal Advance Pricing Agreement (APA) procedure has also been introduced. Specific penalties for non-compliance with the new obligations are now in place by an amendment to the Assessment and Collection of Taxes Law. The law amendments and Regulations are effective from the tax year 2022 onwards.
Transfer Pricing
July 22nd 2022 10:24 AM
The Dutch Ministry of Finance published a transfer pricing decree on 1 July 2022, replacing the prior version from 2018, but also retracting the prior guidance on the use of a spread for financial services companies, so-called financial intermediaries (‘Dienstverleningslichamen’ or DVLs), in a questions and answers decree from 2014.
Transfer Pricing
July 22nd 2022 10:24 AM
The Dutch Ministry of Finance published a transfer pricing decree on 1 July 2022, replacing the prior version from 2018, but also retracting the prior guidance on the use of a spread for financial services companies, so-called financial intermediaries (‘Dienstverleningslichamen’ or DVLs), in a questions and answers decree from 2014.
International Tax
July 20th 2022 09:48 AM
The European Commission has launched a public consultation on measures to address the role of “enablers that facilitate tax evasion and aggressive tax planning” in the European Union (Securing the Activity Framework of Enablers - SAFE).
International Tax
July 21st 2022 01:03 PM
The Australian independent Parliamentary Budget Office (PBO) has released its estimates of the budget impacts of the incoming Australian Labor Party (ALP) Government’s proposed tax policy measures. This 2022 Election Commitments Report is prepared based on the election commitments of the new government. The report is not formal government policy, much less legislation. However, the report is intended to ‘hold parties to account’ regarding their election commitments.
Tax & The Digital Economy
7 days ago
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of the digitalisation of business.
In this edition, we look at Vietnam's new law to make platforms responsible for the tax obligations of sellers. We also consider Australia's imminent release of a ruling and guidance on the application of withholding tax (WHT) to software royalties and an Indian Tribunal case where management services were not technical services subject to WHT under the tax treaty with the UK..
International Tax
July 18th 2022 10:40 AM
The OECD released a Progress Report on Amount A of Pillar One on 11 July 2022. The OECD is seeking public comments by 19 August 2022. This alert provides a short overview of the report and some initial observations.
International Tax
July 1st 2022 09:05 AM
The German Ministry of Finance recently issued a circular to extend the ‘simplified withholding tax procedure’ regarding German IP nexus rules to payments received before 1 July 2023.
Corporate Tax (CT)
June 29th 2022 10:19 AM
A review of the tax disclosures in the FTSE100 reveals an increase in tax transparency over the last 8 years, with some leaders dedicating time and energy to developing voluntary disclosures to inform the debate on tax transparency and improve understanding.
International Tax
June 27th 2022 05:21 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Tax & The Digital Economy
July 1st 2022 05:33 AM
A collection of the brief insights throughout June 2022 of the type provided on an ad hoc basis in our Latest digital tax byte update. This edition includes an insight into Kenya's new ESS rules and a publication on AsiaPac's ESS and other indirect tax digital development path as well as some new VAT incentives in Thailand. An overarching Pillar 1 consultation may be announced in early July while the UK has confirmed that its Pillar 2 rules will apply to accounting periods beginning on or after 31 December 2023. Nepal and Tanzania are the latest countries to announce the potential introduction of digital services taxes. We also cover India Guidelines on application of WHT on transfer of crypto assets.
International Tax
June 20th 2022 02:12 PM
On 16 June 2022, the Court of Justice of the European Union (CJEU) rendered its judgment in the case C-572/20 (ACC Silicones) finding that German requirements for withholding tax refund claimed by non-resident corporate taxpayers with a portfolio shareholding are in breach of EU law.
Transfer Pricing
June 17th 2022 09:45 AM
Today (17 June) the EU Finance Ministers met to agree a new compromise text covering the introduction of a minimum taxation proposal by the EU Member States. No political agreement to the text has been reached, on the basis that unanimous approval for the proposal was not forthcoming. According to the French Finance Minister Bruno le Maire, and agreed by Poland, who until today remained the only country to oppose the proposal, all conditions were met to reach unanimous support. However, as was widely anticipated in the days before the meeting took place, Hungary declined to approve the compromise text, thereby revoking its previous support for the proposal.
International Tax
June 13th 2022 05:01 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Tax & The Digital Economy
June 13th 2022 03:27 PM
A collection of the brief insights throughout May 2022 of the type provided on an ad hoc basis in our Latest digital tax byte update.
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of digitalisation of business. This edition includes an OECD announcement on a delay to Pillar One, our latest Africa tax report that includes digital economy insights and a proposed 6% streaming levy in Denmark..There is also insight into the UK's proposal to introduce platform reporting rules with effect from 1 January 2024.
International Tax
June 13th 2022 02:47 PM
The General Court of the EU has dismissed both the UK and ITV plc’s applications made in respect of the European Commission’s UK Controlled Foreign Company State aid decision.
International Tax
June 1st 2022 04:57 PM
The OECD released the public consultation documents on the Amount A - Tax Certainty Framework for Amount A and Tax Certainty for Issues Related to Amount A on 27 May 2022.
International Tax
June 1st 2022 09:14 AM
Watch the replay from 31 May where our specialists discuss the importance of ESG positioning in corporate strategy, buy-side due diligence, sell-side divestiture planning, and credits & incentives.
International Tax
May 30th 2022 06:51 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
May 26th 2022 09:06 AM
Portugal introduced changes to its Advance Pricing Agreement (APA) regime and transfer pricing (TP) documentation requirements on November 26, 2021. Following these amendments, TP documentation must be prepared by July 15 of the year following the tax calendar year (or the 15th day of the 7th month of the year following the taxpayer’s fiscal year-end). Most large taxpayers also are obliged to deliver the TP documentation file to the Portuguese Tax Authorities.
Transfer Pricing
May 12th 2022 01:04 PM
Brazil’s Ministry of the Economy reaffirmed on April 12 its commitment to ‘fully converge’ its transfer pricing (TP) rules to the arm’s-length standard (ALS), bringing the rules in line with the OECD TP Guidelines. Specific draft legislation has not yet been released. This announcement is of increased significance to taxpayers in light of the recently adopted final regulations (TD 9959) (the ‘Final Regulations’) by the US Department of Treasury (Treasury) and Internal Revenue Service (IRS) addressing various aspects of the US foreign tax credit (FTC) regime, as well as BEPS 2.0 developments.
Transfer Pricing
May 6th 2022 03:12 PM
The statistics report across a variety of transfer pricing areas, including enquiries, Advance Pricing Agreements (APAs), Mutual Agreement Procedures (MAPs), Advance Thin Capitalisation Agreements (ATCAs), DPT investigations and Profit Diversion Compliance Facility cases (PDCFs) highlighting the additional yield, number of cases and length of time to resolve cases, across each area. A summary of the statistics and our view of these are set out below.
International Tax
June 1st 2022 09:14 AM
Watch the replay from 31 May where our specialists discuss the importance of ESG positioning in corporate strategy, buy-side due diligence, sell-side divestiture planning, and credits & incentives.
International Tax
May 5th 2022 08:02 AM
Watch the replay from 4 May where our specialists discuss the controversy challenges companies are facing and ways they can minimize risk to their business operations.
International Tax
May 2nd 2022 10:59 AM
View the recording of our webcast where our global tax policy team and subject specialists discussed the latest guidance on global minimum tax (Pillar 2).
International Tax
May 3rd 2022 11:02 AM
Insurance MNEs that operate in more than one jurisdiction, and that are within the scope of the OECD’s rules related to Pillar One and Pillar Two, need to monitor further development of these rules and analyze how they may affect them.
International Tax
May 3rd 2022 05:25 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
April 25th 2022 10:39 AM
The OECD released the public consultation document on the Pillar One - Amount A: Extractive Exclusion on 14 April 2022. Comments on the consultation document are due by 29 April 2022. This alert provides a short overview of the proposed approach to the Extractives Exclusion and some initial observations.
International Tax
April 19th 2022 06:08 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Tax & The Digital Economy
April 13th 2022 12:28 PM
A collection of the brief insights throughout March 2022 of the type provided on an ad hoc basis in our Latest digital tax byte update.
This edition includes publication of the Commentary on Pillar 2 GloBE Rules together with the status of attempts to implementation those rules across the EU and also in Switzerland. We focus too on the consultation on the Implementation Framework for the GloBE Rules and on a possible extension of the EU's blacklist criteria for non-cooperative jurisdictions regarding Pillar 2.
Tax & The Digital Economy
7 days ago
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of the digitalisation of business.
In this edition, we look at Vietnam's new law to make platforms responsible for the tax obligations of sellers. We also consider Australia's imminent release of a ruling and guidance on the application of withholding tax (WHT) to software royalties and an Indian Tribunal case where management services were not technical services subject to WHT under the tax treaty with the UK..
Transfer Pricing
April 8th 2022 08:30 AM
The IRS Advance Pricing and Mutual Agreement Program (APMA) on March 22 issued its 23rd Annual Statutory Report (the Report) concerning Advance Pricing Agreements (APAs). The Report observes that during calendar year 2021, APMA completed almost the same number of APAs as those completed in 2020, without significant increase in processing times. A total of 124 APAs were executed in 2021 as compared to 127 APAs executed in 2020. For APAs completed in 2021, the average processing time was 39.2 months, a slight increase from the prior year’s average of 38.5 months.
Tax & The Digital Economy
April 6th 2022 11:34 AM
On 4 April 2022, the OECD released draft Model Rules for domestic legislation on the scope of Amount A of Pillar One. Comments to the draft Model Rules are due by 20 April 2022. This alert provides a short overview of the draft Model Rules and some initial observations.
International Tax
April 4th 2022 05:29 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
March 29th 2022 10:16 AM
China recently signed unilateral Advance Pricing Arrangements (APAs) with two companies located in the Jiangsu Province and the Guangdong Province, respectively. These were the first two signed unilateral APA cases under the simplified procedures in China since the Public Notice on Matters Regarding the Application of Simplified Procedures of Unilateral Advance Pricing Arrangements became effective. The two cases took four months from application to formal signing, providing the companies with tax certainty on their transfer pricing arrangements in a quick and efficient manner.
International Tax
March 21st 2022 06:55 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
March 17th 2022 08:00 AM
The OECD released Commentary and illustrative Examples to the Pillar Two Model Rules (Model Rules) on 14 March 2022. This alert includes several highlights of what is, and is not, in the Commentary, plus some initial observations.
International Tax
March 16th 2022 08:02 AM
EU Finance Ministers met on 15 March to debate and ultimately vote on a compromise text covering the introduction of a minimum taxation by the EU Member States. While there was broad support for the compromise text, it was not supported unanimously.
Transfer Pricing
March 3rd 2022 08:53 AM
In this TP Talks episode, Horacio Peña (PwC’s Global Transfer Pricing Leader), Kartikeya Singh (Transfer Pricing Principal in PwC’s US National Tax practice), and Giorgia Maffini (Transfer Pricing and Tax Policy Director with PwC UK) discuss the OECD Pillar Two Model Rules, including an overview of the rules, some of the nuances and elements of complexity, and highlights the role of transfer pricing in the new system of Pillar Two taxation.
International Tax
March 7th 2022 07:13 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
February 22nd 2022 08:43 AM
Finland has introduced a new amendment to the Tax Assessment Procedure Act which entered into force on 1 January 2022.
International Tax
February 21st 2022 06:36 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
February 21st 2022 11:46 AM
The Pescara Tax Court of First Instance recently ruled that a Luxembourg SICAV is comparable to an Italian investment fund and, therefore, is entitled to the refund of the full withholding tax suffered on the dividends received from Italian companies.
Transfer Pricing
February 16th 2022 10:47 AM
n this Financial Transactions Transfer Pricing quarterly podcast, Bob Ritter (PwC’s US Financial Transactions Transfer Pricing leader) is joined by Laura Valestin (Partner in PwC’s National Tax practice in Washington DC, specializing in financial products), and Chad Clark (Director in PwC’s Financial Markets and Real Estate practice, based in Austin, TX) to discuss LIBOR and the final regulations released by the IRS and US Treasury that provide tax guidance with respect to alterations to debt instruments, derivative contracts, and other contracts that replace interbank offered rates with qualified replacement rates, or fallback replacement rate provisions. They also highlight changes from the proposed regulations and provide key considerations for companies.
International Tax
February 8th 2022 04:10 PM
On 4 February 2022, the OECD released draft Model Rules with respect to nexus and revenue sourcing under Amount A of Pillar One. Comments to the draft Model rules are due by 18 February 2022. This alert provides a short overview of the draft Model Rules and some initial observations. It should be noted that this is the first in a series of several sets of rules that the OECD is expected to release over the coming months, with very short comment periods, as part of a 'rolling consultation'.
Transfer Pricing
February 8th 2022 11:31 AM
Following the publication of Austria’s draft Transfer Pricing Guidelines (draft ATPG) in 2020, the Austrian Federal Ministry of Finance issued the final Austrian Transfer Pricing Guidelines (ATPG 2021 or Guidelines) in October 2021. The ATPG 2021 extensively revise the 2010 Transfer Pricing Guidelines (ATPG 2010) and aim to reflect the OECD BEPS project-related developments, latest jurisprudence, and administration practice in Austria.
This insight provides a comprehensive overview of the key changes in the final ATPG 2021 compared to the draft ATPG, as well as the ATPG 2010.
International Tax
February 7th 2022 02:58 PM
On 30 September 2021, the International Taxation Department of China’s State Taxation Administration (STA) released its “Questions and Answers on Anti-Tax Avoidance During Pandemic Prevention and Control” (the "Q&A") on its portal. This is the first time that the STA has provided, in written form, prescriptive instructions for tax authorities and MNEs when analyzing the impact of the COVID pandemic from a transfer pricing perspective.
International Tax
February 7th 2022 06:13 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
February 3rd 2022 01:01 PM
The Cyprus Parliament recently passed two bills amending the Cyprus tax legislation, with the goal of strengthening the Cyprus tax framework in order to prevent abuse, evasion, and avoidance of tax. In addition, the Cyprus Tax Authority (CTA has announced an additional extension of the submission deadline for DAC6 reports (without penalties) to 31 January 2022. Cyprus also has several treaty updates.
Transfer Pricing
February 2nd 2022 01:29 PM
In this episode, we feature an excerpt from PwC’s Global Transfer Pricing Conference, focusing on ESG factors as drivers of value creation and levers to manage risks, concentrating on supply chain/value chain analysis, tax transparency, intercompany financial transactions, and deals. The panelists include Ronan Finn (Ireland TP country leader and PwC’s global TP ESG leader), Jayde Thompson (Transfer Pricing partner – PwC Australia), Noor Sanders (Transfer Pricing partner – PwC Netherlands), and Shane McEvoy (Transfer Pricing partner – PwC US).
Transfer Pricing
February 2nd 2022 01:23 PM
The Organisation for Economic Co-operation and Development (OECD) recently published the fourth annual peer review report of Base Erosion and Profit Shifting (BEPS) Action 13 – Country-by-Country (CbC) Reporting and the seventh batch of the Stage 2 peer review reports of Action 14 – Mutual Agreement Procedure (MAP) for Mainland China and Hong Kong SAR.
The peer review reports evaluate the progress made by jurisdictions of the OECD/G20 Inclusive Framework on BEPS (IF), including Mainland China and Hong Kong SAR, in implementing the BEPS Action 13 and Action 14. The reviews show positive results for Mainland China and Hong Kong SAR, which indicate both competent authorities’ continuous efforts and commitment to participate in global efforts to address BEPS issues.
Tax & The Digital Economy
February 1st 2022 12:11 PM
A collection of the brief insights throughout January 2022 of the type provided on an ad hoc basis in our Latest digital tax byte update. This edition includes the publication of Nigeria's Finance Act 2021 with tis effective 6% Digital Service Tax (DST).and the announcement by the UAE of a Federal corporate tax with rates potentially tailored to the Pillar Two minimum tax regime. We've seen the launch of an EU consultation on digital VAT, as well as of a Ukrainian Information Notice for VAT on e-services. We also comment on debates around an e-levy in Ghana and the optimism being shown in relation to changes to US GILTI.
Tax & The Digital Economy
7 days ago
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of the digitalisation of business.
In this edition, we look at Vietnam's new law to make platforms responsible for the tax obligations of sellers. We also consider Australia's imminent release of a ruling and guidance on the application of withholding tax (WHT) to software royalties and an Indian Tribunal case where management services were not technical services subject to WHT under the tax treaty with the UK..
International Tax
January 12th 2022 01:03 PM
Watch the replay from this webcast held on 10 January 2022, as our panel of PwC specialists discuss Model Rules, including definitions, scope, timeline, tax accounting issues, administration of the rules, and touch briefly on the December 22 EU draft Directive on minimum taxes, as well as the interactions with current US legislative proposals.
International Tax
January 13th 2022 12:49 PM
The IRS and Treasury recently published final regulations under Sections 860A, 860G, 1001, 1271, 1275, and 7701(1). These regulations provide tax guidance with respect to alterations to debt instruments, derivative contracts, and other contracts that replace interbank offered rates (IBORs) - e.g., London Interbank Offered Rate (LIBOR) - with qualified replacement rates or provide fallback replacement rate provisions.
International Tax
January 10th 2022 06:33 PM
Welcome to our first edition for 2022 on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Tax & The Digital Economy
January 7th 2022 09:54 AM
A collection of the brief insights throughout December 2021 of the type provided on an ad hoc basis in our Latest digital tax byte update. This edition includes the publication by the Model Rules for the 15% minimum ETR under Pillar Two of the G20/OECD Inclusive Framework digitalisation project and by the European Commission on proposals to implementation them across the EU. There is also a warning from the Australian tax authorities for businesses to be prepared for Pillar Oen and Pillar Two changes. It also provides an update on the US Senate Finance Committee progress on the Build Back Better reconciliation bill, Canada consulting on its deferred DST, a Nigerian statement on the reasons they wouldn't sign the global deal and plans for Cyprus to increase its tax rate as a result of Pillar Two. The UK concluded its G7 presidency with an acknowledgement of the digital tax achievement.
International Tax
January 4th 2022 02:15 PM
The Australian Taxation Office recently finalised Practical Compliance Guideline PCG 2021/5 (PCG) which sets out the expectations regarding the Commissioner's assessment of risk in connection with the imported hybrid mismatch rules, including the Commissioner's approach to reviewing whether a taxpayer has undertaken reasonable enquiries in relation to the rules for non-structured arrangements.
International Tax
December 21st 2021 08:06 AM
The OECD released the long-awaited Pillar Two 15% minimum effective tax rate Model Rules on 20 December, just days before the expected release of a draft EU Directive on minimum taxes.
International Tax
December 13th 2021 05:27 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK. The next edition will be in January 2022.
Transfer Pricing
December 13th 2021 11:59 AM
Following the release by HMRC on 30 November 2021 of the outcome to its consultation, there are a number of significant changes on the way for UK transfer pricing documentation. Dan Pybus, PwC UK Transfer Pricing Partner, discusses the key developments and next steps with PwC's Diane Hay.
International Tax
November 29th 2021 05:51 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
November 15th 2021 08:44 AM
Following a final debate between MEPs in the European Parliament plenary session, a majority of MEPs voted on 11 November to pass changes to amend Directive 2013/34/EU, which deals with financial reporting of certain types of undertakings (the EU Accounting Directive). This vote follows the political agreement reached with the Council in June and a further updated text that was agreed in September 2021. The amendments have become known as public country-by-country reporting (pCbCR) requirements.
International Tax
November 15th 2021 06:40 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
October 28th 2021 04:04 PM
The Australian Taxation Office (ATO) recently released its decision impact statement in relation to the transfer pricing decision in Commissioner of Taxation v Glencore Investments Pty Ltd, affirming that the decision outcome was ‘mostly unfavourable to the Commissioner’. The decision impact statement follows the High Court’s refusal in May 2021 for the Commissioner to apply for special leave to appeal the decision of the Full Federal Court of Australia.
International Tax
November 1st 2021 05:34 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Tax & The Digital Economy
November 1st 2021 12:38 PM
A collection of the brief insights throughout October 2021 of the type provided on an ad hoc basis in our Latest digital tax byte update.
This edition includes announcements around a new OECD/G20 Inclusive Framework Statement on 8 October, while the Irish Budget on 12 October gave a little more detail on Ireland's plans and G20 Finance Ministers gave a brief endorsement. A subsequent agreement then covered transitional relief for DSTs in UK, France, Italy, Spain and Austria while India seems to have indicated it will await 'implementation' of the deal. We also cover updates on the US domestic proposals which are linked to the deal, a Latvian proposal that would have introduced a DST and the news than Canada will progress its DST legislation but hold it in abeyance for now..
Transfer Pricing
October 20th 2021 02:12 PM
In this episode, we take an excerpt from our recent Global Transfer Pricing Conference, with Ian Dykes (Transfer Pricing Partner, PwC UK), Giorgia Maffini (Tax Policy and Transfer Pricing Senior Manager, PwC UK), Will Morris (Deputy Global Tax Policy Leader, PwC US) discussing the OECD global tax agreement focusing on where we are now and the sticking points in moving forward. They also discuss where further developments might be heading after the introduction of Pillars 1 and 2.
International Tax
October 4th 2021 05:35 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Tax & The Digital Economy
October 1st 2021 03:52 PM
A collection of the brief insights throughout September 2021 of the type provided on an ad hoc basis in our Latest digital tax byte update.
This edition includes the latest from both sides of the US Congress on international tax reform and from the Philippines Parliament on VAT for digital services, proposals from the Czech Ministry of Finance on reporting by platforms in accordance with DAC7, Vietnam's incoming regime that goes beyond reporting to require withholding at source and Pakistan's application of withholding tax to online marketplaces. Some recent developments in relation to VAT on e-services in South Africa warrant attention. Singapore has clarified aspects of its e-commerce GST regime.
Tax & The Digital Economy
7 days ago
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of the digitalisation of business.
In this edition, we look at Vietnam's new law to make platforms responsible for the tax obligations of sellers. We also consider Australia's imminent release of a ruling and guidance on the application of withholding tax (WHT) to software royalties and an Indian Tribunal case where management services were not technical services subject to WHT under the tax treaty with the UK..
International Tax
September 6th 2021 05:10 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
August 30th 2021 09:42 AM
China’s State Taxation Administration (STA) on July 26 issued the Public Notice on Matters Regarding the Application of Simplified Procedures of Unilateral Advance Pricing Arrangements (STA Public Notice [2021] No.24, hereinafter referred to as “Public Notice 24”). The STA previously sought public consultation on the draft simplified procedures for unilateral APAs (Consultation Draft) on March 19, 2021 (see PwC’s prior Tax Insight ). Public Notice 24 consolidates feedback and opinion of all relevant stakeholders. Compared with the Consultation Draft, Public Notice 24 further relaxes the conditions for the application of simplified procedures for unilateral APAs, effective September 1, 2021.
Tax & The Digital Economy
7 days ago
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of the digitalisation of business.
In this edition, we look at Vietnam's new law to make platforms responsible for the tax obligations of sellers. We also consider Australia's imminent release of a ruling and guidance on the application of withholding tax (WHT) to software royalties and an Indian Tribunal case where management services were not technical services subject to WHT under the tax treaty with the UK..
International Tax
August 6th 2021 08:13 AM
The IRS has released two competent authority agreements entered into by the US and the UK to express their agreement on the application of certain aspects of the limitation on benefits article of the US-UK income tax treaty (Article 23). The expressed agreement is in light of Brexit and the USMCA, which replaced the NAFTA. Under the new agreements, the two countries have agreed that neither Brexit nor NAFTA’s replacement by the USMCA should adversely impact the ability of US or UK tax residents to qualify as ‘equivalent beneficiaries’ under the US-UK income tax treaty.
International Tax
August 23rd 2021 03:49 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
August 4th 2021 12:54 PM
International Tax News is designed to help multinational organisations keep up with the constant flow of tax developments.
International Tax
August 10th 2021 02:55 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Tax & The Digital Economy
August 2nd 2021 10:38 AM
A collection of the brief insights throughout July 2021 of the type provided on an ad hoc basis in our Latest digital tax byte update.
This edition includes the G20 agreement/ Inclusive Framework Statement, postponement of details of an EU digital levy, Canada's GST/HST draft legislation, Gibraltar's rate increase reaction to Pillar 2 and confirmation of assent to Kenya's Finance Act 2021. The IMF has also published a Technical Note on recommended VAT measures on imported digital services and low-value imported goods. A primer on deferred tax will help shed light on the related issues being discussed on the Pillar 2 discussions.
International Tax
July 26th 2021 04:43 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK. This edition includes: 1) Details of draft legislation published on HMRC "Legislation Day"; 2) 130 countries and jurisdictions have joined a new two-pillar plan to reform international taxation rules; and 3) An overview of the UK patent box regime.
Transfer Pricing
July 26th 2021 01:44 PM
In line with international tax trends, the Taiwan Ministry of Finance (MOF) on June 24 issued a Decree (Tai Tsai Ji No. 11024508100) which grants flexibility for income adjustments for cross-border bilateral or multilateral advance pricing arrangements (BAPAs). The new Decree stipulates that when the Taiwan tax authorities negotiate cross-border BAPAs with the competent authorities of the treaty partners, both authorities may determine the method of examining whether the controlled transactions fall within the arm's-length range. They can adopt the results of the controlled transactions either on a year-by-year basis or using the average results of the controlled transactions of the covered years as a whole.
Transfer Pricing
July 21st 2021 04:36 PM
The fifth of a regular series of short videos highlighting key issues and developments in the transfer pricing field. This episode discusses the imminent introduction of Public Country-by-Country Reporting within the European Union and what it means for multinational groups.
International Tax
July 14th 2021 09:59 AM
At the 9th - 10th July G20 meeting, the G20 endorsed the position reached by 132 of the 139 Inclusive Framework members to move forward with the two-Pillar approach and to begin work on the technical discussions in advance of the next OECD/IF and G20 meetings in October.
International Tax
July 12th 2021 01:09 PM
On 10 July, all the G20 countries endorsed an historical agreement on Pillar 1 and 2 (G20 Communiqué), following the Inclusive Framework (IF) agreement of last week.
Transfer Pricing
July 23rd 2021 12:22 PM
The IRS on July 16 released AM 2021-004, a legal advice memorandum issued by Associate Chief Counsel (International) (the "CCM"). The CCM provides non-taxpayer-specific legal advice regarding the potential timing and amount of adjustments arising from transfer pricing examinations of stock-based compensation (SBC) costs involving taxpayers' cost-sharing agreements (CSAs) that included so-called "reverse claw-back" provisions which are assumed to have been triggered by a final decision in the Altera litigation. (See our July 7, 2020 Tax Insight for details of the case.)
The CCM provides an indication of the adjustments that the IRS intends to pursue on examination of taxpayers that did not include SBC costs under their CSAs, and in particular how the IRS intends to coordinate such adjustments with the income inclusions triggered under taxpayers’ contractual reverse claw-back clauses. The CCM represents the IRS’s effort to provide definitive answers on this coordination issue.
Transfer Pricing
July 16th 2021 12:20 PM
This Financial Transactions Transfer Pricing quarterly podcast features a discussion of the end of LIBOR, focusing on why and when the majority of LIBOR term rates will expire and the replacement rates; certain exceptions with regard to US dollar LIBOR tenors; general tax and transfer pricing considerations; potential challenges converting from the old overnight LIBOR to the new overnight reference rates, and available options for reference rates with a longer maturity; developments across the Asia-Pacific region; and key takeaways.
Tax & The Digital Economy
July 5th 2021 10:22 AM
On July 1, 130 countries of the 139 members of the OECD Inclusive Framework on Base Erosion and Profit Shifting committed to fundamental changes to the international corporate tax system. The 130 countries include the G7 members (Canada, France, Germany, Italy, Japan, the United Kingdom and the United States), emerging economies like Brazil, China and India, and jurisdictions like Switzerland, Singapore, Bermuda, and the Cayman Islands. However, Ireland, Hungary, Estonia, Barbados, Kenya, Nigeria, Peru, Sri Lanka, Saint Vincent and the Grenadines did not sign on to the consensus.
Transfer Pricing
June 29th 2021 03:09 PM
The third of a regular series of short videos highlighting key issues and developments in the transfer pricing field. This episode discusses the impact that increased flexibility of location for key decision makers can have on transfer pricing arrangements and how to go about addressing the issues involved.
International Tax
June 29th 2021 10:44 AM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
June 23rd 2021 11:56 AM
Committees of the European Parliament and the Council of the EU have agreed to compromise text on a Directive on public country-by-country reporting (‘Public CbCR’). The text will amend Directive 2013/34/EU, which deals with financial reporting of certain types of undertakings (the Accounting Directive).
The agreed changes will require multinational groups or standalone undertakings with a total consolidated revenue of at least €750m, in that and the previous financial year, whether headquartered within the European Union or not, to publicly disclose the corporate income tax they pay in each EU Member State plus in each of the countries that are either on the EU list of non-cooperative jurisdictions for tax purposes (‘the EU’s blacklist’) or listed for two consecutive years on the list of jurisdictions that do not yet comply with all international tax standards but have committed to reform (the ‘EU’s grey list’).
This Directive aims to make corporate tax in the European Union more transparent by introducing the same reporting obligations for European businesses and non-European multinational companies doing business in the European Union through their branches and subsidiaries. While some commentators believe the proposal does not go far enough (particularly regarding aggregated vs. disaggregated information), the proposal nevertheless is a significant step towards multinationals’ tax information becoming available for public scrutiny.
Transfer Pricing
June 18th 2021 10:52 AM
The fourth of a regular series of short videos highlighting key issues and developments in the transfer pricing field. This episode discusses the challenges ahead from the disappearance of LIBOR as a published financing reference rate at the end of 2021.
International Tax
June 14th 2021 02:46 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
June 14th 2021 10:22 AM
The Australian Taxation Office has amended its guidance on the rules regarding the creation of a permanent establishment in Australia in response to the COVID-19 pandemic.
International Tax
June 9th 2021 08:17 AM
The G7 Finance Ministers announced an agreement on June 5, in which the participating countries committed to new taxing rights that allow countries to reallocate some portion of profits of large multinational companies to markets (i.e., where sales arise—'Pillar One’), as well as enact a global minimum tax rate of at least 15% (‘Pillar Two’). The meeting marked an early test of whether the US position on the OECD Inclusive Framework’s ‘Taxation of the Digitalising Economy’ project would provide momentum to finding a common base for agreement.
Tax & The Digital Economy
June 2nd 2021 12:39 PM
A collection of the brief insights throughout May 2021 of the type provided on an ad hoc basis in our Latest digital tax byte update.
International Tax
June 1st 2021 08:58 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
May 24th 2021 08:58 AM
This is the second of a regular series of short videos highlighting key issues and developments in the transfer pricing field.
Operational transfer pricing supports the implementation and execution of transfer pricing policies while facilitating a better management of the risks involved in cross border transactions. This is particularly important given the increasing complexity of supply chains and the regulatory environment, and ever-changing tax requirements. Dan Pybus, PwC UK Transfer Pricing Director, gets the views of Antonino de Benedictis, PwC UK Transfer Pricing Director and UK Operational TP Leader.
International Tax
May 25th 2021 07:58 AM
The European Commission released a “Communication on Business Taxation for the 21st Century” on 18 May, setting a tax agenda for the next two years with five key actions. The aim is to align the EU tax framework with the new realities of the globalised and digitalised economy post-Covid, and to ensure that Member States’ tax systems are fit for purpose. In the Commission’s words: “the EU needs a robust, efficient and fair tax framework that meets public financing needs, while also supporting the recovery and the green and digital transition by creating an environment conducive to fair, sustainable and job rich growth and investment”.
Transfer Pricing
May 20th 2021 09:58 AM
Irish Revenue recently released Part 35A-01-01, Transfer Pricing Tax and Duty Manual (Tax and Duty Manual). The Manual seeks to give taxpayers additional guidance on the new rules introduced by Finance Bill 2019. Note: Parallel to issuing the guidance described in this summary, Irish Revenue issued Part 35A-01-02 on the Transfer Pricing Documentation Obligations and Part 35A-01-03 about Guidelines on Low Value Intra-Group Services, which are applicable for accounting periods prior to January 1, 2020.
International Tax
May 18th 2021 11:33 AM
The General Court of the European Union, on May 12, rendered its judgments (T-816/17 and T-318/18) regarding the action brought by Amazon group companies and Luxembourg against the European Commission's final State aid decision of October 4, 2017 (SA.38944).
Transfer Pricing
May 20th 2021 08:47 AM
The General Court of the European Union on May 12 rendered its judgments (T-516/18 and T-525/18) regarding the action brought by Engie (formerly GDF Suez) group companies and Luxembourg against the final State aid decision of the European Commission of June 20, 2018 (SA.44888).
International Tax
May 17th 2021 05:35 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
May 4th 2021 03:59 PM
Digital Service Taxes, or DSTs, have been permeating the trade environment since 2018, but COVID-19 and the OECD's digitalisation of the economy project, have accelerated the focus.
International Tax
May 4th 2021 06:26 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Tax & The Digital Economy
May 5th 2021 11:07 AM
A collection of brief insights throughout April 2021 of the type provided on an ad hoc basis in our latest Digital Tax Byte update.
Transfer Pricing
April 19th 2021 02:32 PM
Her Majesty’s Revenue and Customs (HMRC), the UK‘s tax authority, has asked for comments on proposed changes to its transfer pricing documentation rules. While these proposals would align the UK’s current rules more closely with the documentation requirements of other jurisdictions and with the BEPS Action 13 Report, they also contain some novel features. Listen to our podcast and read more in our PwC Tax Insights.
Transfer Pricing
April 15th 2021 10:33 AM
This is the first of a regular series of short videos highlighting key issues and developments in the transfer pricing field.
This episode discusses the emergence and increasing importance of the requirement to identify senior decision makers, and to evaluate their contribution in terms of the accurate delineation of a transaction and the concept of value creation. Dan Pybus, PwC UK Transfer Pricing Director, gets the views of Ian Dykes, PwC UK Transfer Pricing Partner.
Transfer Pricing
April 12th 2021 04:16 PM
China’s State Taxation Administration (STA) issued on March 19 a consultation draft (Consultation Draft) of "Public Notice on Matters Concerning the Application of a Simplified Procedure to Unilateral Advance Pricing Arrangements (APAs)" on its official website. The simplified procedure introduced in the Consultation Draft requires fewer steps and provides a timeline of 9-12 months to complete a unilateral APA application process.
Tax & The Digital Economy
April 6th 2021 04:54 PM
A collection of the brief insights throughout March 2021 of the type provided on an ad hoc basis in our latest Digital Tax Byte update.
International Tax
April 6th 2021 05:40 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Tax & The Digital Economy
7 days ago
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of digitalisation of business.
Transfer Pricing
March 24th 2021 04:57 PM
HMRC released a public consultation document on 23 March 2021 setting out some proposed changes to UK transfer pricing documentation requirements.
These proposals could substantially increase the obligations for many UK taxpayers, and HMRC has invited contributions from businesses, advisers and representative bodies on “possible options and design ideas which could benefit UK business and HMRC”. The consultation period is relatively short, running for 10 weeks with a deadline of 1 June 2021.
International Tax
March 25th 2021 09:47 AM
On 22 March 2021, the Council of the European Union adopted an EU Directive expanding the scope of automatic exchange of information to digital platform operators and amending existing provisions on administrative cooperation in the field of taxation (“DAC7”). DAC7 introduces the 6th amendment to the Directive 2011/16/EU on administrative cooperation in the field of taxation (“DAC”).
The new rules aim to provide the EU Member States’ tax authorities with the information necessary to ensure the enforcement of tax rules (such as income tax and VAT) regarding commercial activities performed with the intermediation of digital platforms and to introduce standardised reporting requirements that should reduce the administrative burdens on the digital platform operators.
Transfer Pricing
March 24th 2021 11:39 AM
In this episode, our Transfer Pricing professionals discuss their recent experience with APAs in Japan and the US generally, as well as touch on bilateral APAs between the US and Japan. The panelists focus on lessons from prior economic downturns and how an APA can be a tool to manage uncertainty. The panelists also discuss maximizing the utility of an APA for triangle transactions, US APMA’s outlook on APAs, and takeaways.
Transfer Pricing
March 24th 2021 08:47 AM
While EU Member States, advisors and taxpayers are still navigating the DAC6 landscape, the European Union is moving quickly to expand reporting obligations in the digital world. On March 10, the European Parliament (EP) adopted the DAC7 text featuring the new digital platform reporting rules proposed last year by the EU Commission. On March 22, the EU Council adopted the new rules, applicable January 1, 2023. Separately on March 10, the Commission launched a public consultation on DAC8, which would impose reporting obligations for e-money and crypto assets.
International Tax
March 22nd 2021 03:26 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Tax Dispute Resolution
March 12th 2021 02:25 PM
HMRC remains committed to providing an effective and efficient APA programme amid the challenges of finite resource and lengthening periods taken to reach agreement.
International Tax
March 15th 2021 08:17 AM
Most of the EU Member States that deferred the DAC6 reporting deadlines due to the pandemic postponed them to February 28, 2021. Thus, the extended deadline for reporting cross-border arrangements satisfying at least one of the DAC6 hallmarks and whose first step was implemented on or after June 25, 2018 has passed.
International Tax
March 17th 2021 12:49 PM
Interest limitation rules ("ILR"), as required by the EU Anti Tax Avoidance Directive, are set to be transposed into Irish law later this year and take effect from 1 January 2022.
Transfer Pricing
March 2nd 2021 10:51 AM
The Danish Parliament has adopted amendments that further tighten its comprehensive transfer pricing documentation regulations. The amendments introduce a mandatory submission requirement of the Master file and Local files (of all Danish entities) to the Danish Tax Authority within 60 days after the income tax return due date. The new rules are effective for income years starting from January 1, 2021.
International Tax
March 2nd 2021 11:01 AM
During an informal video conference on 25 February 2021, a majority of EU Member States (through their Ministers of Internal Market and Industry) expressed support for the compromise text of a proposed Directive on public country-by-country reporting (pCbCR). The disclosure of certain tax information by undertakings and branches is now supported by 15 Member States, including the current Presidency (Portugal) as a non-tax matter that requires a ‘qualified majority’ of votes to proceed.
Tax & The Digital Economy
March 1st 2021 10:13 AM
A collection of the brief insights throughout February 2021 of the type provided on an ad hoc basis in our Latest digital tax byte update.
International Tax
February 24th 2021 10:40 AM
The German Ministry of Finance issued a circular on February 11 that provides updated filing and withholding procedures for royalties attributable to IP registered in a German book or register. By taking advantage of this new simplified process within the prescribed time limits, taxpayers have an opportunity to avoid penalties that may otherwise be imposed.
International Tax
February 22nd 2021 03:55 PM
The latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
February 17th 2021 03:12 PM
This podcast features a discussion of how companies can utilize automation for both large and small scale transfer pricing transactions, including automation of transfer pricing adjustments, profit monitoring and allocation, and specific processes and transfer pricing calculations.
Tax & The Digital Economy
7 days ago
15 February 2021
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of digitalisation of business.
Transfer Pricing
February 12th 2021 09:10 AM
Ten years after first publication of the Austrian Transfer Pricing Guidelines, the Austrian Federal Ministry of Finance issued its long-awaited update of the Austrian Transfer Pricing Guidelines for consultation (draft TPG 2020). An extensive revision of the 2010 guidelines (TPG 2010), the draft TPG 2020 aims to reflect in the latest jurisprudence and administration practice in Austria, including recent developments related to the Base Erosion and Profit Shifting (BEPS) project from the Organisation for Economic Co-operation and Development (OECD) OECD/G20 Inclusive Framework.The final guidelines may be published before the end of the first quarter 2021 and will be effective upon publication.
International Tax
February 8th 2021 02:02 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
February 11th 2021 04:25 PM
Welcome to our EUDTG bimonthly newsletter, featuring summaries of all the relevant ECJ and national court cases and decisions, and EU policy initiatives related to EU direct tax law and state aid.
Transfer Pricing
February 2nd 2021 12:42 PM
During PwC’s recent Global Tax Controversy and Dispute Resolution (TCDR) Conference, David Swenson, Global Leader of PwC’s Global TCDR Network, interviewed John Hughes, Director of the IRS Advance Pricing and Mutual Agreement (APMA) program, which carries out MAP and APA negotiating responsibilities on behalf of the office of the US Competent Authority (USCA). The interview included recommendations to taxpayers for achieving favorable results across a number of important topics facing taxpayers in today’s dispute prevention and resolution environment.
Tax & The Digital Economy
7 days ago
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of digitalisation of business.
Tax & The Digital Economy
February 3rd 2021 03:15 PM
A collection of the brief insights throughout January 2021 of the type provided on an ad hoc basis in our Latest digital tax byte update.
Transfer Pricing
January 28th 2021 11:30 AM
This TP Talks Special Edition podcast is the first Financial Transactions quarterly podcast, featuring a regional update on Chapter X of the OECD Guidelines, regulatory changes, market conditions and the pandemic, as well as an update on LIBOR.
International Tax
January 25th 2021 04:46 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Tax & The Digital Economy
January 22nd 2021 08:38 AM
Businesses, advisers, trade organisations, academics, and NGOs were eager to ‘have their say’ in relation to the Blueprint Reports for Pillar One and Pillar Two frameworks seeking adjustments to the international tax system to meet the challenges of digitalisation/ globalisation. The OECD received more than 200 response letters with 3,500 pages of comments (marginally more on Pillar Two than on Pillar One), and the virtual public meetings featured over 3,000 viewers.
Tax Dispute Resolution
January 18th 2021 11:23 AM
A recent article in the Financial Times announced that HMRC has “multiple live criminal investigations involving transfer pricing disputes”. HMRC’s focus on transfer pricing (and profit diversion more generally) has intensified and the approach to enquiries is perceived by clients as increasingly challenging. There is also an increased focus by HMRC on understanding any “behaviour” that led to any inaccuracy in the returns, with implications for penalties and HMRC’s assessing position. The article, and our experience of seeing HMRC’s Fraud Investigation Service (“FIS”) as integral members of TP enquiry teams, is further indication of HMRC’s intent to challenge TP arrangements.
International Tax
January 11th 2021 04:35 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Tax & The Digital Economy
7 days ago
January 2021
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of digitalisation of business.
Tax & The Digital Economy
January 11th 2021 10:20 AM
A collection of the brief insights throughout December 2020 of the type provided on an ad hoc basis in our Latest digital tax byte update.
Tax Reporting & Strategy
January 5th 2021 02:31 PM
Following the agreement of the EU/UK Trade and Cooperation Agreement (TCA) on Christmas Eve, to great surprise HMRC laid some amending regulations on 29 December 2020 which fundamentally change the application of EU MDR/DAC6 in the UK.
International Tax
January 4th 2021 10:59 AM
Italy’s digital services tax became effective January 1, 2020, with a sunset clause linked to the outcomes of the OECD’s Pillars. Businesses that earn Italian digital revenues above certain thresholds are subject to the tax, and a traditional ‘nexus’ is not required. For FY 2020, the 3% tax must be paid by February 16, 2021 and a specific tax return must be filed by March 31, 2021.
International Tax
December 18th 2020 12:07 PM
This episode features a discussion of how companies may address the impact of the pandemic on their business for transfer pricing purposes. The panelists address how companies can use publicly available information on third-party behavior to support their business decisions stemming from economic disruptions, focusing on actions to take in the immediate, near term, and a long term.
Transfer Pricing
December 16th 2020 09:53 AM
As part of the Base Erosion and Profit Shifting (BEPS) Action 14 minimum standard (Make Dispute Resolution Mechanisms More Effective), the OECD released the 2019 mutual agreement procedure (MAP) statistics on November 18, covering 105 jurisdictions and almost all MAP cases worldwide.
Transfer Pricing
January 5th 2021 10:05 AM
The Organisation for Economic Co-operation and Development (OECD) recently issued Guidance on transfer pricing implications of the COVID-19 pandemic as part of its efforts to provide policy recommendations to respond to the COVID-19 pandemic.
Transfer Pricing
December 14th 2020 08:49 AM
The Italian Revenue Agency on November 23 issued the long-awaited Act of the Director of the Revenue Agency no. 360494 (New Act). The New Act introduces significant and substantial changes to the rules related to the ‘appropriate’ Transfer Pricing documentation that must be prepared in order to support the application of the arm’s-length principle to intercompany transactions, and hence establishes the new requirements for opting-in the Italian penalty protection regime.
International Tax
December 14th 2020 03:19 PM
Welcome to our last update for 2020 on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
December 14th 2020 09:00 AM
The State Taxation Administration (STA) on October 29 published the “China Advance Pricing Arrangement Annual Report (2019)” (2019 Annual Report). The 2019 Annual Report contains statistical data and analysis of the advance pricing arrangement (APA) cases from 2005 to 2019.
Transfer Pricing
December 3rd 2020 09:27 AM
Our previous article highlighted the uncertainty surrounding the impact of the UK’s departure from the EU on access to EU-specific mechanisms for relieving double taxation. As this article explains, it has just been confirmed that those options will cease to be available unless a request has been submitted before 31 December 2020.
International Tax
November 30th 2020 03:54 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
November 20th 2020 03:46 PM
HMRC have just announced that the required format for filing CbC reports in the UK is changing from 1 January 2021. The OECD published a new version of the CbC XML schema earlier this year, and HMRC have confirmed that the new CbC XML schema must be used for all reports sent to HMRC on or after 1 January 2021.
Transfer Pricing
November 24th 2020 12:21 PM
This TP Talks episode features an in-depth discussion of the October 12 OECD Blueprint on Pillar One, focusing on important considerations with regard to scoping, sourcing rules, and segmentation — when to segment, how to segment. The speakers also focus on the uncertainties surrounding the arm’s-length principle, and fixed returns for routine marketing and distribution activities. Finally, the speakers discuss open items, including dispute resolution options.
International Tax
November 16th 2020 02:16 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
November 2nd 2020 12:08 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Tax & The Digital Economy
November 12th 2020 05:03 PM
A collection of the brief insights throughout October 2020 of the type provided on an ad hoc basis in our latest digital tax byte update.
Tax & The Digital Economy
7 days ago
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of digitalisation of business.
International Tax
October 21st 2020 01:49 PM
US Treasury and the IRS on September 1 released Final Regulations (the 2020 Final Regulations) for the Base Erosion and Anti-Abuse Tax (BEAT) under Section 59A as enacted by the 2017 tax reform legislation (the Act). The BEAT rules require certain corporations to pay a minimum tax on taxable income as computed without certain deductions for certain payments to foreign related parties.
International Tax
October 21st 2020 07:52 AM
Further to the Berlioz Investment Fund case (C682/15), the European Court of Justice of the
European Union (CJEU) continues to review
the legal framework of the exchange of information between EU Member States for tax purposes.
International Tax
October 19th 2020 12:02 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
October 13th 2020 11:29 AM
On 12 October, the OECD released a series of documents regarding the ongoing work of the OECD/G20 Inclusive Framework.
Transfer Pricing
September 29th 2020 01:41 PM
There is now extensive, although still fragmented and not fully perfectly aligned (if not outright contradictory), guidance on COVID-19 related Transfer Pricing (TP) issues coming from a number of sources.
International Tax
September 21st 2020 12:52 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
September 7th 2020 03:01 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
September 15th 2020 04:06 PM
The Profit Diversion Compliance Facility (‘PDCF’) opened in January 2019 to encourage businesses, not already under enquiry, to review their transfer pricing positions and produce a disclosure report and proposal to address any high-risk positions taken.
International Tax
September 18th 2020 08:03 AM
The Chilean Internal Revenue Service recently issued Resolution No. 101, which incorporates two new affidavits (‘Annual Master File Affidavit’ and ‘Annual Local File Affidavit’) regarding transfer pricing in Chile.
International Tax
September 17th 2020 02:59 PM
The Taiwan Ministry of Finance (MOF) has released a draft amendment to the Rules Governing Assessment of Profit-Seeking Enterprise Income Tax on Non-Arm’s Length Transfer Pricing (TP Assessment Rules). Once the notice period is over, the amendment will be effective from January 1, 2020.
International Tax
September 17th 2020 03:10 PM
In July, the Japanese tax authority underwent a significant reorganization that combined responsibility for examinations relating to international tax and examinations relating to transfer pricing, which previously had been separate. This change may result in increased scrutiny of transfer pricing for certain taxpayers.
Transfer Pricing
August 21st 2020 05:56 PM
In this TP Talks Special Edition podcast, Kartikeya Singh (Transfer Pricing Partner, PwC US), Marta Milewska (Transfer Pricing Partner, PwC Mexico), and Paul Tang (Transfer Pricing Partner, PwC China) discuss the challenges of comparing current year financial performance to prior year benchmarks in light of recent economic shocks. Through conversation, they explore data limitations impacting comparability, delineating atypical conditions, and adjustments or refinements that may improve comparability.
Tax & The Digital Economy
August 21st 2020 04:06 PM
A collection of the brief insights throughout July 2020 of the type provided on an ad hoc basis in our Latest digital tax byte update.
Tax & The Digital Economy
7 days ago
The latest addition to our series of brief insights into the working of the UK supranational bodies reviewing the taxation of digitalisation of business.
International Tax
August 10th 2020 02:10 PM
In our DAC6 Pulses we keep you informed about the implementation of EU MDR (aka DAC6) in the different EU member states.
This edition focuses on the optional deferral of DAC6 deadlines.
International Tax
August 10th 2020 02:12 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
July 29th 2020 02:08 PM
The European Commission adopted a new Tax Package on 15 July and, at the European Council meeting 17-21 July, leaders agreed elements of the wider agenda that included other key tax measures. In this Alert we summarise the three separate but related initiatives of the Tax Package and note the Council’s conclusions on recent discussions.
Transfer Pricing
July 29th 2020 01:32 PM
Departmental Interpretation and Practice Notes No. 48 — Advance Pricing Arrangement (APA) issued in 2012, has been revised (Revised DIPN 48), seeking to facilitate a more streamlined, transparent, and efficient APA application process for taxpayers.
International Tax
July 27th 2020 09:21 AM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Tax & The Digital Economy
7 days ago
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of digitalisation of business.
Transfer Pricing
July 21st 2020 11:08 AM
The Australian Taxation Office (ATO) has released guidance on the impact of COVID-19 on transfer pricing arrangements as well as a separate notice highlighting the intention to review changes to related-party arrangements in light of the current environment that may be deemed to result in certain Australian tax advantages. Both publications were released via the ATO website on June 19, 2020.
International Tax
July 10th 2020 01:47 PM
On July 8, 2020, the OECD published the second edition of its Corporate Tax Statistics report, including for the first time aggregated information from country-by-country reports on the global tax and economic activities of nearly 4,000 MNEs. This information covers groups headquartered in 26 jurisdictions and operating across more than 100 jurisdictions worldwide, representing anonymised 2016 country-by-country report data.
International Tax
July 13th 2020 07:42 AM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Tax & The Digital Economy
7 days ago
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of digitalisation of business.
Tax & The Digital Economy
7 days ago
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of digitalisation of business.
Tax & The Digital Economy
July 2nd 2020 04:22 PM
collection of the brief insights throughout June 2020 of the type provided on an ad hoc basis in our Latest digital tax byte update.
International Tax
June 29th 2020 01:13 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
June 15th 2020 08:04 AM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
June 18th 2020 09:02 AM
The European Council adopted new reporting obligations in order to promote the automatic exchange of information in relation to reportable cross-border arrangements. DAC6 is the sixth amendment to the original Directive on Administrative Cooperation (DAC) adopted in 2011. DAC 6 obligates intermediaries to report cross-border agreements that may be indicative of “potentially aggressive tax planning” to their respective national authorities.
Transfer Pricing
June 11th 2020 09:59 AM
In this TP Talks Special Edition podcast, transfer pricing partners Andrew Casley, Marco Fiaccadori and Mohamed Serokh discuss transfer pricing policy considerations in addressing immediate and short-term business disruption impacts, as well as key considerations for developing long-term strategies.
Transfer Pricing
June 10th 2020 09:17 AM
The Federal Administration of Public Revenue (AFIP) on June 5, 2020, issued General Resolution No. 4733 in the Official Gazette, postponing (as described further in this Tax Insight) the previous June due dates for complying with the filing requirements set forth in General Resolution 4717 (GR 4717) published May 15 in the Official Gazette (see PwC Tax Insight issued in May 2020).
Transfer Pricing
May 29th 2020 08:32 AM
Argentina published General Resolution 4717 (GR 4717) on May 15 in the Official Gazette. Through GR 4717, which supersedes GR 1122, the Federal Administration of Public Revenue (AFIP) sets forth formalities, requirements, and other conditions for taxpayers that carry out transactions that are governed by transfer pricing regulations and/or that import and export goods from/to independent parties. GR 4717 regulates the modifications introduced to the Income Tax Law and its Regulatory Decree regarding transfer pricing — as a result of the latest tax reform (see PwC Tax Insights issued in January 2018 and January 2019) — and applies to fiscal years ended from December 31, 2018 onward.
Transfer Pricing
June 11th 2020 10:34 AM
In this podcast, Chris Desmond (PwC US Transfer Pricing Partner), Lionel Van Reet (PwC Belgium Customs and International Trade Partner), and Maytee Pereira (PwC US Customs and International Trade Managing Director) discuss transfer pricing and the interrelationship with customs and trade in the current economic environment, focusing on the impact on consumer markets, duty drawback, managed margin and trade impact considerations, as well as key takeaways.
Transfer Pricing
May 28th 2020 09:02 AM
The OECD recently initiated a review under BEPS Action 13 of country-by-country reporting (CbCR) based on a mandate in the final 2015 BEPS report that an assessment occur in 2020. CbCR is a minimum standard for participating BEPS Inclusive Framework (IF) members, pursuant to which all large multinational enterprises (MNEs) are required to prepare a CbC report with aggregate data on the global allocation of income, profit, taxes paid and economic activity among tax jurisdictions in which it operates. This CbC report is shared with tax administrations in these jurisdictions, for use in high level transfer pricing and BEPS risk assessments. The first CbCR reporting requirement took effect in 2016 in some jurisdictions, so in-scope multinationals and tax authorities have only had a few years of experience with this complex reporting framework.
Transfer Pricing
May 28th 2020 08:41 AM
The Internal Revenue Service’s Advance Pricing and Mutual Agreement (APMA) Program handles APAs and MAP cases in the United States. This article summarizes recent developments at APMA, including: (1) developments related to the current economic environment, including handling of pending and current APAs and the allowance of electronic filing of APA applications; (2) the recently released 2019 APA statistics; and (3) PwC’s interview with Mr. John Hughes, Director of APMA, from early February, while he was in Tokyo for APMA meetings with Japan’s National Tax Administration (NTA), focusing on US-Japan APA and MAP relations .
Transfer Pricing
May 19th 2020 11:16 AM
Due to the COVID-19 pandemic, the European Commission (EC) published a proposal on May 8 for a Council Directive amending Directive 2011/16/EU on administrative cooperation in the field of taxation (DAC). The proposed Directive sets out deferrals of the reporting and exchanging of information deadlines for financial account information under DAC2 (EU Common Reporting Standard, or CRS) and for mandatory disclosure rules under DAC6 (‘EU MDR’). For a complete overview on DAC6, please refer to our PwC Insight.
International Tax
May 18th 2020 11:53 AM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
May 14th 2020 09:06 AM
We are currently operating in an unprecedented commercial environment and during these challenging times critical decisions will need to be made to ensure that businesses are able to continue to operate. It is therefore understandable that the tax implications of these decisions may not be at the forefront of mind, with overall business survival the key focus.
Transfer Pricing
May 6th 2020 08:55 AM
Antonino De Benedictis and Colin Robertson discuss cost deduction considerations with regards to COVID 19.
Transfer Pricing
May 1st 2020 06:14 PM
James Andrews and Dan Pybus discuss liquidity risk considerations with regards to COVID-19.
Transfer Pricing
May 5th 2020 09:04 AM
Intercompany pricing can have a magnified impact on a BCM business’ financial and tax position during times of severe disruption. Transfer pricing therefore should be an important consideration for BCM businesses in these times.
Transfer Pricing
April 24th 2020 10:50 AM
Intercompany pricing can have a magnified impact on an insurance business’ financial and tax position during times of severe disruption. Transfer pricing therefore should be an important consideration for insurance businesses in these times.
Transfer Pricing
April 14th 2020 04:03 PM
Loic Webb-Martin discusses how your captive insurance company can help you mitigate the financial impact of COVID 19.
Transfer Pricing
April 14th 2020 10:24 AM
On March 25, the IRS Advance Pricing and Mutual Agreement Program (APMA) issued its 21st Annual Statutory Report (the Report) concerning Advance Pricing Agreements (APAs). The Report reveals that, as compared to the prior year, APMA completed more APAs and completed them somewhat more quickly. A total of 120 APAs were executed in 2019 as compared to 107 APAs executed in 2018. For APAs completed in 2019, the average processing time was 40 months, a slight decrease from the prior year’s average of 43 months.
International Tax
April 9th 2020 06:22 PM
Sonia Watson and Nick Palazzo-Corner discuss PE risk considerations with regards to COVID-19.
Transfer Pricing
April 9th 2020 03:05 PM
The Tax function plays a critical role as companies refocus on their cash strategies in a downturn economy. In such times, Tax and Treasury functions need to align on financing and repatriation options to maintain sufficient levels of liquidity.
In connection with intercompany financing policies, transfer pricing becomes critical and should be refined or developed in light of the external financing activity in which the group is engaged. As access to cash has become more challenging, businesses are looking to draw cash from all existing facilities and resources, internal and external, expand capacity, and deploy cash where needed. The overall impact of this difficult economic period will vary by group as well as by industry and sectors, but most groups will be affected.
Transfer Pricing
April 9th 2020 01:47 PM
In this podcast, Paige Hill, Krishnan Chandrasekhar and Dan Pybus discuss liquidity from a macroeconomic point of view, addresses current intercompany liquidity considerations, and consider the impact of the current economic environment on debt valuation and pricing.
Transfer Pricing
April 7th 2020 11:46 AM
The current crisis is likely to affect many businesses. The financial performance of the business may be impacted by a number of risks being realised, e.g. supply chain disruption, market risk, capacity risk, forex risk, credit risk, operational risk etc. As a result many businesses will have losses / extra costs in the system.
Disruption of this magnitude throws open significant transfer pricing (“TP”) questions as to how this disruption should be dealt with and whether TP policies and models need to be modified in order to be consistent with the arm’s length principle. This is particularly prevalent, for example, where limited risk models are involved. The question will arise whether the existing TP policies for limited risk entities (e.g. limited risk distributors or contract manufacturers) should be adjusted in light of the crisis such that there should be some degree of sharing of the exceptional financial pain that is being realised.
This update focuses on the scenario of limited risk models - in reality the TP consequences are wide reaching for broader models, e.g. fully fledged distribution/manufacturing, royalty policies, etc. Many of the considerations in terms of reviewing the position for limited risk models will also apply more broadly.
Transfer Pricing
April 2nd 2020 06:26 PM
Australia has announced a range of measures in response to the COVID-19 crisis that broadly are consistent with the global response, including economic stimulus and cash flow support measures.
However, measures specifically related to international tax and transactions include: administrative guidance around residency and permanent establishment (PE) issues arising due to travel restrictions; changes in the Foreign Investment Review Board (FIRB) framework for assessing transactions; and stimulus measures that could affect cross-border transactions, including accelerated depreciation and instant asset write-offs.
Transfer Pricing
March 27th 2020 08:55 AM
In this podcast, PwC discuss key areas of the OECD’s final paper on the transfer pricing aspects of financial transactions that are likely to be impactful and relevant to the Americas region, as well as key contradictions between the paper and legislation in local markets, and what taxpayers should be considering in the short-term. See also our prior podcasts on Captive Insurance, Delineation, Interest Rate Pricing, Cash Pooling, and Guarantees.
International Tax
March 23rd 2020 09:44 AM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Tax & The Digital Economy
March 11th 2020 03:43 PM
A collection of the brief insights throughout February 2020 of the type provided on an ad hoc basis in our Latest digital tax byte update.
Tax & The Digital Economy
7 days ago
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of digitalisation of business.
International Tax
March 6th 2020 04:06 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
March 6th 2020 08:55 AM
The United Kingdom (UK) Tax Authority (Her Majesty’s Revenue and Customs or HMRC) has introduced a number of different approaches to address what it sees as shortcomings in the application of the arm’s-length principle by some taxpayers. This initiative has resulted in a series of guidelines and compliance processes for multinational entities (MNEs) with a UK presence, including the Diverted Profits Project (DPP), which seeks to minimize profit diversion arrangements by MNEs.
Transfer Pricing
February 28th 2020 09:14 AM
In this podcast, Dan Pybus, David Ledure, Jörg Hülshorst, Omar Moerer, and Michael Butler discuss key areas of the OECD’s final paper on the transfer pricing aspects of financial transactions that are likely to be impactful and relevant to the EMEA region, as well as key contradictions between the paper and legislation in local markets, and what taxpayers should be considering in the short-term.
International Tax
February 21st 2020 03:30 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
February 6th 2020 03:45 PM
HMRC has published its TP statistics for the year to 31 March 2019. An outline of the numbers and trends is relatively simple to report (for example here). It is also possible to ‘lift the lid’ a little and think about what these all mean in practical terms.
Tax & The Digital Economy
7 days ago
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of digitalisation of business.
Transfer Pricing
February 19th 2020 11:12 AM
The OECD BEPS project recommended that the presence of a permanent Establishment (PE) required under most double tax treaties to give taxing rights to a host country should be determined by taking into account certain activities in that country of related businesses. These changes to the PE threshold could apply in situations that multinationals may not expect.
The proposed changes to the PE definition can be applied under a new treaty or through the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI), potentially under an existing treaty.
Transfer Pricing
February 14th 2020 09:58 AM
The OECD Secretariat hosted a webcast on February 13 in which it presented preliminary findings on economic analysis of Pillars One and Two of the digitalizing economy project. The OECD analysis suggests that the combined effects of the two pillars, based on assumptions without prejudging key policy design features of the framework, results in an initial estimate of a 4% increase of corporate income tax revenue collected – about $100 billion annually across all jurisdictions – with little effect on investment costs. The OECD will continue to refine these findings as new data is shared. Policymakers will be discussing the analysis as the Inclusive Framework (IF) continues discussions to reach a consensus solution on the key design features by July 2020.
Transfer Pricing
February 20th 2020 09:34 AM
In this podcast we discuss highlights of the Final and Proposed BEAT Regulations, including the impact of the BEAT regulations on transfer pricing, treatment of loss transactions, reversal of the position of the 2018 Proposed Regulations regarding Section 15 relief, what taxpayers should keep in mind with regard to the SCM exception, and what the regulations clarified (or did not clarify) on netting and cost sharing. The panelists also discuss key takeaways now that the regulations are in play, including how the final and proposed BEAT regulations have affected what companies see as short and long-term solutions.
Transfer Pricing
February 11th 2020 11:13 AM
Following the conclusion of a two-day meeting on January 29-30, the OECD/G20 Inclusive Framework on BEPS (the ‘Inclusive Framework’) issued a package of documents that update the state-of-play regarding work on tax challenges arising from the digitalization of the economy, and set forth a revised work program. The Inclusive Framework endorsed the OECD Secretariat’s concept of a ‘Unified Approach’ to Pillar One on profit allocation/nexus rules and committed to achieving agreement within 2020. Whether Pillar One will apply only as a safe harbor will be held for ultimate decision until the key design features have been agreed, as countries’ views strongly differ on this point -- although it is agreed that unilateral measures will need to be withdrawn. A long-awaited public presentation of the OECD’s economic analysis of the two Pillars will be made in February.
Tax Dispute Resolution
February 3rd 2020 07:52 AM
HMRC’s recently published statistics for TP/DPT covering 1 April 2018 to 31 March 2019 confirm that tackling profit diversion remains a priority area for HMRC.
Transfer Pricing
February 11th 2020 10:53 AM
The OECD published a consultation document Review of Country-by-Country Reporting (BEPS Action 13) on 6 February 2020 and launched a public consultation that will end on 6 March 2020, to be followed by a public hearing on 17 March 2020. It seeks to address the implementation and operation of the BEPS Action 13 minimum standard on country-by-country reporting (CbCR) of tax information to tax authorities. The 2020 review mandated by that standard is to consider whether changes should be made to require the reporting of additional or different data, the appropriateness of the applicable revenue threshold, and the effectiveness of filing and dissemination mechanisms. Extra questions are posed, including whether the reports are being used appropriately and effectively by tax authorities.
International Tax
January 27th 2020 01:33 PM
According to the EU Council Directive 2018/822 (DAC6), Member States should have adopted and published, by 31 December 2019 at the latest, the laws, regulations and administrative provisions necessary to comply with the Directive. This is the reason why December was a month full of DAC6 developments, details of which can be found below.
Tax & The Digital Economy
February 3rd 2020 10:12 AM
A collection of the brief insights throughout January 2020 of the type provided on an ad hoc basis in our Latest digital tax byte update.
Tax & The Digital Economy
7 days ago
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of digitalisation of business.
3 February 2020
The OECD on 31 January 2020 released materials agreed by the Inclusive Framework (IF) and made further comments in a Tax Talks webcast later the same day. You can visit the site for slides and a replay of the webcast on demand.
Transfer Pricing
December 5th 2019 07:29 AM
Treasury and the IRS on December 2, 2019, released 343 pages of final regulations and 59 pages of proposed regulations for the Base Erosion and Anti-Abuse Tax (BEAT) under Section 59A as enacted by the 2017 tax reform legislation. The BEAT rules require certain corporations to pay a minimum tax on taxable income as computed without deductions for certain payments to foreign related parties. This Insight lists some of the key highlights we have identified thus far.
Transfer Pricing
December 3rd 2019 07:47 AM
Today, Treasury released Final Regulations and Proposed Regulations under Section 59A (‘the base erosion and anti-avoidance tax' or ‘BEAT’). BEAT, which requires certain US corporations to pay a minimum tax associated with deductible payments to non-US related parties, was enacted by the 2017 tax reform act. Treasury previously released proposed regulations under Section 59A on December 13, 2018 (published December 21, 2018 in the Federal Register).
International Tax
November 29th 2019 09:08 AM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
November 25th 2019 01:08 PM
On 21 November 2019, the Australian Taxation Office (ATO) issued draft guidance in the form of Taxation Determination TD 2019/D12 (Draft TD) on the application of Australia’s hybrid mismatch rules in relation to the United States (US) “GILTI” rules which, in essence, include certain income of controlled foreign companies (CFCs) in the US tax base.
In short, the Commissioner of Taxation (Commissioner) considers that US taxation of payments as a result of the application of the GILTI regime does not mean that amount is subject to foreign tax (STFT) because the GILTI regime does not “correspond” to Australia’s CFC rules.
International Tax
November 27th 2019 03:16 PM
International Tax News is designed to help multinational organisations keep up with the constant flow of tax developments.
Transfer Pricing
November 22nd 2019 10:22 AM
The US Court of Appeals for the Ninth Circuit on November 12 issued an order denying Altera’s petition for rehearing en banc in the case of Altera Corp. v. Commissioner. The order means that the Ninth Circuit will not reconsider its June 7, 2019 decision upholding the validity of Treas. Reg. sec. 1.482-7A(d)(2), requiring stock-based compensation costs to be included in the costs shared in a cost-sharing agreement. The June 7 decision is not yet final, however, because Altera may file a petition requesting the US Supreme Court to review the decision.
International Tax
November 15th 2019 02:59 PM
The EU Council Directive 2018/822 (DAC6) regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements. DAC6 aims at transparency and fairness in taxation by imposing mandatory disclosure requirements for certain arrangements with an EU cross-border element where the arrangements fall within certain "hallmarks" mentioned in the Directive and in certain instances where the main or expected benefit of the arrangement is a tax advantage.
Where the first step in a reportable cross-border arrangement is implemented between 25 June 2018 and 30 June 2020, the arrangement should be reported by 31 August 2020. As the DAC6 implementation deadline approaches, several Member States have issued draft DAC6 legislation while some others have already passed their DAC6 laws. Therefore, it is already necessary to monitor the developments on national DAC6 implementation. For this purpose, we have prepared this digital newsletter to keep you updated on DAC6 developments in Europe.
Tax & The Digital Economy
November 18th 2019 02:10 PM
PwC submitted a comment letter on November 12 regarding the OECD Secretariat’s consultation paper on the unified approach under Pillar 1 of the Work Programme on the Tax Challenges of the Digitalisation of the Economy.
It is clear that the OECD/G20 Inclusive Framework’s “Programme of Work to Develop a Consensus Solution to the Tax Challenges Arising from the Digitalisation of the Economy” (“Work Programme”) entails the most significant reforms of the international tax system in decades, namely a reallocation of taxing rights and the introduction of a global minimum tax. This effort is made even more ambitious and significant because of the aim to produce a final report to the G20 by the end of 2020 — a mere 13 months away. Although we understand the ambitious deadlines from a political perspective, we urge the Inclusive Framework (“IF”) to strive for full consensus on all aspects of the Work Programme before seeking final endorsement by the G20. Rules to avoid double taxation, to prevent and resolve conflicts, administrative rules, and ordering rules are instrumental to make the new framework effective and to prevent the chaos the IF envisages if the challenges are not addressed in a multilateral setting. In addition, it is pivotal that the process for both Pillar 1 and Pillar 2 results in minimum standards that are implemented via a binding international public law instrument.
International Tax
November 15th 2019 07:38 AM
The 2020 Italian draft budget (Draft Budget) introduces a 3% unilateral ‘Digital Services Tax’ (DST). The DST will apply beginning January 1, 2020. The Italian government expects the DST to generate roughly 708 million EUR in tax revenue per year.
Although it does not contain any specific references, the Italian DST is structured similarly to the recently introduced French DST and the European Commission’s proposal (2018/0073 (CNS) - Proposal for a Council Directive on the common system of a digital services tax on revenues resulting from the provision of certain digital services).
International Tax
November 15th 2019 08:13 AM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Tax Dispute Resolution
October 30th 2019 07:39 AM
The Profit Diversion Compliance Facility (‘PDCF’) opened in January 2019 to enable businesses, not already under enquiry, to disclose any profit-diverting arrangements and structures that might be caught by Diverted Profits Tax rules and to get their affairs up to date without an HMRC investigation.
Find out what it means for you in our flyer below and contact Diane Hay, Ravi Ahlawat or your usual PwC advisor for further information.
International Tax
November 5th 2019 07:58 AM
On 31 October 2019, a legislative proposal (Government Proposal 69/2019) implementing the EU directive on the mandatory disclosure and exchange of cross-border tax arrangements, also known as DAC 6, has been submitted to the Finnish Parliament.
Next, the proposal will go through the Finnish legislative process and may still be subject to changes before the final enactment. The related laws are expected to enter into force on 1 January 2020.
International Tax
November 1st 2019 11:40 AM
Two weeks to 31 October 2019
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
November 1st 2019 10:37 AM
On 17 October 2019, the Irish Minister for Finance published draft legislation as part of Finance Bill 2019 to implement mandatory disclosure rules pursuant to Council Directive (EU) 2018/822 (“DAC6”).
The draft legislation is expected to be enacted by 31 December 2019 and guidance notes are expected to issue in early 2020.
International Tax
November 1st 2019 12:53 PM
On 31 October 2019, US Treasury and the IRS removed final regulations setting forth minimum documentation requirements that ordinarily must be satisfied in order for certain related-party interests in a corporation to be treated as indebtedness for Federal tax purposes. Treasury and IRS also filed an advanced notice of proposed rulemaking on the treatment of certain interests in corporations as stock or indebtedness. Both documents are scheduled to be published in the Federal Register on November 4.
International Tax
October 31st 2019 12:20 PM
Mexico’s Congress approved modifications to the following laws on October 30: The Income Tax Law (MITL), the Value Added Tax Law (VATL), the Excise Tax Law (IEPS) and the Federal License Law (LFD), and the Federal Fiscal Code (FFC) (together, ‘the 2020 Mexican Tax Reform’). Enactment of the 2020 Mexican Tax Reform will occur on its date of publication in the Official Federal Gazette. The 2020 Mexican Tax Reform will enter into effect January 1, 2020, unless an article expressly states a different effective date.
In general, the 2020 Mexican Tax Reform is meant to incorporate fundamentals of the OECD Base Erosion and Profit Shifting (BEPS) initiative. The economic context in which the 2020 Mexican Tax Reform was legislated assumes GDP growth of between 1.5% and 2.5%, and an increase in tax collection without the creation of new taxes. Modifications to the Mexican Tax Law most relevant for inbound investment into Mexico are summarized below.
International Tax
October 30th 2019 08:12 AM
The French government on October 21, adopted Ministerial Order #2019-1068 (‘the Order’) transposing into French law the EU Council Directive 2018/822/EU on cross-border tax arrangements (‘DAC6’ or ‘EU MDR’). DAC6 has been in force since June 25, 2018.
The Order was published in the French Legal Gazette on October 22, 2019.
The Order’s provisions take effect July 1, 2020, with specific transitional measures applicable to arrangements implemented between June 25, 2018 and June 30, 2020.
International Tax
October 10th 2019 12:53 PM
On 9 October, the Secretariat of the Organisation for Economic Co-operation and Development (OECD) published Secretariat Proposal for a “Unified Approach” under Pillar One that, if ultimately agreed, would fundamentally alter the international tax regime.
The Pillar 1 Unified Approach represents an effort by the OECD to bring together three proposals for consideration by the 134 countries of the OECD Inclusive Framework under the OECD/G20 “tax challenges of the digitalisation of the economy” project. The proposal does not ringfence the so-called “digital economy” and instead seeks to allocate a greater share of taxing rights to the countries where consumers are
located - regardless of a business’ physical presence there.
Tax & The Digital Economy
October 9th 2019 05:05 PM
A collection of the brief insights throughout August 2019 of the type provided on an ad hoc basis in our Latest digital tax byte update.
International Tax
October 8th 2019 12:07 PM
The proposed Mexican tax reform for 2020 would deny, under a broad set of circumstances, the deductibility of payments made by Mexican residents to foreign-related parties subject to a preferred tax regime, regardless of whether the payment is made on an arm's length basis.
Tax & The Digital Economy
7 days ago
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of digitalisation of business.
International Tax
September 27th 2019 12:35 PM
On 26 September 2019, the German Ministry of Finance published a draft proposal regarding the implementation of mandatory disclosure rules pursuant to the European Union Directive 2018/822/EU (DAC6).
Taxpayers should be aware of this new disclosure obligation. As there are many
open questions, more clarity might be provided by the German tax authorities in a circular letter in the future.
International Tax
September 27th 2019 12:53 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
September 26th 2019 01:54 PM
On 24 September 2019, the General Court of the European Union (GC) rendered its judgment (T-755/15 and T-759/15) regarding the action brought by Fiat Chrysler Finance Europe, formerly Fiat Finance and Trade Ltd (FFT) and Luxembourg for the annulment of the final State aid decision of the European Commission (EC) of 21 October 2015 on Fiat (SA.38375). The GC dismissed the actions and confirmed the validity of the EC’s decision.
International Tax
September 26th 2019 01:47 PM
The General Court of the European Union (GC) recently rendered its judgment regarding the action brought by Starbucks Corp. and Starbucks Manufacturing EMEA BV and the Netherlands for the annulment of the final State aid decision of the European Commission (EC) of 21 October 2015 on Starbucks. The GC annulled the EC’s decision because the EC did not demonstrate the existence of an economic advantage within the meaning of EU State aid rules.
Transfer Pricing
September 26th 2019 05:17 PM
In this podcast Paige Hill (PwC’s US Transfer Pricing Leader), Chris Desmond (PwC’s G2M Global Trade Services Leader and Value Chain Transformation practice co-leader), Jozef Kavuliak, (Partner, PwC National Transfer Pricing practice), and Lili Kazemi (Director, PwC National Transfer Pricing practice) discuss key developments affecting US transfer pricing, including the APMA FCD model, tax reform, tariffs, US controversy and digitisation.
Transfer Pricing
September 26th 2019 05:11 PM
In this podcast Isabel Verlinden (PwC’s Global Transfer Pricing Leader), Andrea Lee (Head of Controlling and Transfer Pricing, Erste Group), and Gaby Bes, (Transfer Pricing Partner and ITS Leader, Amsterdam) discuss the issues impacting transfer pricing, including geopolitical developments, controversy, country-by-country reporting and digitalisation.
Transfer Pricing
September 25th 2019 06:56 AM
Changing market trends in the Energy, Utilities and Resources industry have led to business transformation in the sector, with increasing transfer pricing and international tax considerations. Particularly in the light of continued development of international tax regulations, it is key to explore and highlight some of the tax touchpoints covered in this upcoming series of articles.
Portugal amends transfer pricing legislation
September 24th 2019 09:14 AM
On September 18, 2019, a new bill – Bill 119/2019 – was published in Portugal that introduces changes to various tax codes, including significant amendments to current transfer pricing legislation. Among other aspects, the changes impact the use of transfer pricing methods, documentation requirements, and Advance Pricing Agreements.
International Tax
September 13th 2019 12:41 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
September 11th 2019 10:29 AM
On 3 September 2019, the Federal Court (Davies J) handed down its decision in Glencore Investment Pty Ltd v Commissioner of Taxation of the Commonwealth of Australia [2019] FCA 1432 (Glencore case) in favour of the taxpayer. This judgment is important because it provides clarity in relation to Australia’s transfer pricing rules and, in particular, aspects of the Full Federal Court’s 2017 decision in the Chevron
case.
Transfer Pricing
August 30th 2019 08:54 AM
The U.S. Court of Appeals for the Ninth Circuit on August 16, 2019, affirmed the U.S. Tax Court's decision in Amazon.com, Inc. v. Commissioner, concerning the definition of intangible property in the transfer pricing regulations, as applied to determine the compensable value of a cost sharing buy-in.
Transfer Pricing
August 28th 2019 08:17 AM
On December 10, 2018, the Puerto Rican Government enacted important amendments to the Puerto Rico Internal Revenue Code of 2011 (PRIRC), amended as Act No. 257-2018. For detailed coverage of the provisions introduced and amended by Act No. 257-2018, see our Tax Insight 'Puerto Rico adopts significant amendments to its income tax code' published on January 17, 2019. In particular, the new law requires taxpayers to submit a transfer pricing study with their Puerto Rico income tax returns to avoid the 51 % disallowance on expenses or fees accrued or paid to non-PR resident related parties not engaged in trade or business in Puerto Rico (the 51 % cross-border intercompany expense disallowance).
International Tax
August 22nd 2019 11:31 AM
On 18 July 2019, the Estonian Ministry of Finance published draft legislation to implement EU MDR (also known as DAC6) which requires service providers (or, in certain circumstances, taxpayers) to report on cross-border tax planning arrangements that meet certain hallmarks. This draft bill must now follow Estonian legislative procedures and may be amended before final enactment, but the rules are expected to enter into effect in Estonia on 1 July 2020 (in line with the EU Directive) with arrangements implemented between 25 June 2018 and 30 June 2020 required to be reported by 31 August 2020. Our specialists analyse the proposals.
Transfer Pricing
August 15th 2019 11:12 AM
The UK Tax Tribunal (the first judicial level in the UK) has recently looked at the procedure in relation to domestic litigation when an application for a Mutual Agreement Procedure has also been made by a taxpayer. In this case, Glencore International AG (& others) v HMRC, the Tribunal found for the taxpayer and has allowed a stay of the domestic appeals in order for the MAP to proceed. While this decision is not binding on other cases, it provides useful insight as at how the UK Tribunal views coterminous MAP and domestic litigation.
Tax Dispute Resolution
August 12th 2019 08:57 AM
HMRC has published its annual report and accounts for the year together with a number of additional reports regarding stakeholder and customer engagement. The accounts show an increase in total revenues to £627.9bn up £22.1bn (3.6%) compared to 2017/18.
Transfer Pricing
August 15th 2019 08:51 AM
The Advance Pricing Arrangement (APA) program of the Canada Revenue Agency (CRA) is administered through the CRA's Competent Authority Services Division (CASD) in Ottawa. The CRA offers the APA program to crossborder related-party transactions.
The CASD recently released its annual report on Canada's APA program covering the year ending 31 December 2018 (the report).
Transfer Pricing
August 13th 2019 04:56 PM
Increasingly, businesses are discovering that transfer pricing enquiries are more likely to be part of a much wider investigation by HMRC into ‘profit diversion’. This type of investigation may start following a Diverted Profits Tax notification, but can be very wide-ranging covering a range of cross-border issues from company residence to hybrids, but will usually be resolved through an adjustment to the transfer pricing. Another feature of these investigations is that they are highly forensic in nature and large amounts of evidence will be requested from interviews of senior people to reviews of emails.
International Tax
August 8th 2019 11:33 AM
On 1 July 2019, the European Commission (EC) made publicly available the non-confidential version of its opening decision of 10 January 2019 in the formal State aid investigation into the Netherlands’ tax treatment of Nike. The EC explains the reasons for the initiation of its formal investigation and requests additional information from the Netherlands or any other Nike group company, to reach a final conclusion. This decision represents therefore the opening, not yet the outcome, of the EC’s formal investigation into this matter.
International Tax
August 2nd 2019 07:22 AM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
August 6th 2019 09:13 AM
In recent years, the Italian tax authorities (ITA) and public prosecutor offices have been conducting tax investigations on e-commerce and e-gaming operators, resulting in various challenges from both VAT and income tax perspectives. Such actions reflect increasing enforcement efforts by European tax authorities, including VAT investigations in e-commerce areas.
International Tax
July 31st 2019 08:25 AM
Recently, the ATO has released two Tax Determinations (TDs) that deal with aspects of cross-border financing. Some of the changes made to finalise these determinations arguably give rise to additional uncertainty. The one absolute certainty demonstrated by the release of the two finalised determinations is that the ATO will continue to have an intense focus on cross-border financing.
Transfer Pricing
July 31st 2019 10:44 AM
The comprehensive federal tax reform legislation enacted in late 2017 (the Act) and subsequently issued guidance significantly affect the ability of taxpayers to claim foreign tax credits (FTCs). The ability to claim FTCs is closely tied to how certain expenses — including selling, general, and administrative (SG&A) and stewardship — are allocated and apportioned among different categories of income. Similar rules may also affect foreign-derived intangible income (FDII) benefits. PwC on July 24 hosted a webcast featuring specialists who discussed these issues. This Insight highlights those discussions.
Transfer Pricing
July 31st 2019 10:34 AM
The French Parliament on July 11 passed a tax on digital services by large internet and technology providers and partially postponed the corporate income tax rate reduction initially intended to apply as of January 1, 2019. Publication of the law in the Official French legal Gazette occurred on July 25, 2019.
The new 3% digital tax applies to companies providing certain digital services in France with global annual revenue in excess of EUR 750M and revenue in France exceeding EUR 25M. The tax is based on the amount, excluding VAT, that the taxpayer collects as consideration for taxable services provided in France as of January 1, 2019.
Transfer Pricing
July 30th 2019 08:33 AM
The Inland Revenue Department (IRD) issued Departmental Interpretation and Practice Notes No. 58 (DIPN 58) on July 19, 2019 setting out its clarifications on the application of transfer pricing (TP) documentation rules stipulated in the Inland Revenue (Amendment) (No. 6) Ordinance 2018 (the BEPS and TP Ordinance). The TP documentation requirements set out in the BEPS and TP Ordinance are consistent with the Organisation for Economic Co-operation and Development's (OECD's) three-tiered standardized approach which includes the Master File, Local File and Country-by-country (CbC) Report. The DIPN 58 specifies the IRD's views and practices on the above-mentioned three-tiered TP documentation in Hong Kong such as examples on applicability of exemption thresholds, administrative procedures, required content, etc.
Transfer Pricing
July 26th 2019 10:03 AM
In this podcast, Edwin Baghdasarayan, Sarah Steven, and Karim Raphaël from PwC Australia discuss the latest Practical Compliance Guideline (PCG) on inbound distribution arrangements released by the Australian Taxation Office, including what the ATO is aiming to achieve. Edwin, Sarah and Karim also discuss the response from taxpayers to date as well as the main options taxpayers will have in addressing the implications of the PCG.
International Tax
July 24th 2019 09:43 AM
The draft UK regulations follow DAC6 closely, and require disclosure to HMRC of cross border arrangements entered into by taxpayers which fall within certain hallmarks . These hallmarks are very broadly defined and many commercial transactions will be within the scope of the rules . The disclosures will be shared between the tax authorities of all EU Member States quarterly.
The consultation document sets out the approach HMRC intends to take in interpreting DAC6 and elaborates on how the rules will operate in practice. HMRC will provide further guidance alongside the finalised regulations.
Transfer Pricing
July 23rd 2019 03:59 PM
On 7 May 2019, the Danish Tax Agency published its binding ruling regarding the tax residence and permanent establishment (PE) status of a UK company in Denmark in relation to a home office used by its Danish General Manager. The ruling concluded that even though the UK company should not be considered a Danish tax resident, the General Manager’s home office in Denmark creates a fixed place of business PE for the UK company.
Tax & The Digital Economy
July 19th 2019 09:45 AM
The UK tax authorities on July 11 published draft legislation and draft guidance for a digital services tax (DST) to become effective April 1, 2020. These are available for public consultation until September 5, 2019.
The DST is expected to apply by default at 2% of deemed UK revenues derived in excess of £25m, where the group's total global revenues from in-scope activities exceed £500m. Revenues are considered from in-scope activities if derived in connection with providing users with search engine, online marketplace, or social media services, and include revenues from associated advertising businesses. Thus, UK revenues in scope are those linked to UK users but may not be derived from UK sources, and businesses conducting in-scope activities may need to perform complex allocations.
International Tax
July 19th 2019 11:09 AM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
July 23rd 2019 09:27 AM
Welcome to our EUDTG bimonthly newsletter, featuring summaries of all the relevant ECJ and national court cases and decisions, and EU policy initiatives related to EU direct tax law and state aid.
Tax & The Digital Economy
July 19th 2019 09:45 AM
On 11 July 2019, the UK tax authorities published draft legislation and draft guidance for a digital services tax (DST) to begin from 1 April 2020. These are available for public consultation until 5 September 2019.
The DST is expected to apply by default at 2% of deemed UK revenues derived in excess of £25m, where the group's total global revenues from in-scope activities exceed £500m. In-scope activities are those that are derived in connection with providing users with search engine, online marketplace, or social media services, and includes revenues from associated advertising businesses. Thus UK revenues in scope are those linked to UK users but may not be derived from UK sources, and complex allocations may need to be performed by businesses conducting in-scope activities. A safe-harbour exists and lowers the 2% rate where applicable.
International Tax
July 5th 2019 07:22 AM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Tax & The Digital Economy
7 days ago
The latest addition to our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of digital business.
Transfer Pricing
July 17th 2019 08:17 AM
Luxembourg’s Parliament voted to approve Bill n° 7390 on July 2, thereby ratifying four tax treaties or protocols amending treaties. This package includes an entirely new tax treaty (’treaty’) and accompanying protocol (‘protocol’) between Luxembourg and France, which had been signed in March 2018.
International Tax
July 16th 2019 09:47 AM
The Indian Finance Minister presented the initial Union Budget 2019 (Budget 2019) of the Modi Government 2.0 on July 5. Budget 2019 provides the blueprint for helping India reach a USD five trillion economy by 2024.
Budget 2019 reflects a vision for the next three to five years to make India an investment-driven economy. The budget encompasses some key focus areas – it aims to strengthen India’s infrastructure, uplift the rural economy (with a focus on agriculture), create a world-class education system, support micro, small, and medium enterprises (MSMEs), foster gender inclusiveness by empowering women, and revive the banking and non-banking financial company (NBFC) sectors. It also emphasizes the importance of partnering with industry, striving for an all-round development.
Corporate Tax (CT)
June 28th 2019 03:38 PM
In our session on digitalisation, our team of tax policy and transfer pricing experts discussed the challenges that groups are facing because of the OECD’s recently released work-plan addressing the tax challenges of the digitalisation of the economy. The focus was on challenges for the financial services sector, for which the digital tax was not initially intended, and practical aspects of what is believed to be the biggest change to the international tax system in the last 80 years.
Transfer Pricing
July 2nd 2019 05:16 PM
Welcome to our latest round-up on recent international transfer pricing developments.
Transfer Pricing
June 28th 2019 10:39 AM
In this podcast, Benjamin Koch (Swiss Transfer Pricing Leader), Armin Marti (Swiss Tax Policy Leader), and Flora Marin (Swiss Transfer Pricing Senior Manager) discuss the new tax measures that will be put in place to implement Swiss tax reform, including the transition measures, patent box, and the R&D incentive. Benjamin and Armin also share their recommendations on what companies should be doing before the end of 2019 in anticipation of the new law taking effect.
Tax & The Digital Economy
June 11th 2019 03:48 PM
The OECD released on 31 May 2019 the Programme of Work to Develop a Consensus Solution to the Tax Challenges Arising from the Digitalisation of the Economy, agreed by the OECD/G20 Inclusive Framework (IF). The aims are broadly to have a political agreement on a unified approach by the end of 2019 and to be prepared to implement that solution by the end of 2020. Stakeholders at the US Council for International Business (USCIB) 2019 OECD International Tax Conference on 3-4 June had a first opportunity to react, amid presentations from OECD and members of the IF involved in agreeing the programme.
Transfer Pricing
June 20th 2019 11:45 AM
The Ninth Circuit Court of Appeals in Altera Corp. v. Commissioner, in a 2-1 decision, has reversed the US Tax Court and has upheld the validity of the Treasury regulation (Reg. sec. 1.482-7A(d)(2)) requiring stock-based compensation costs to be included in the costs shared in a cost-sharing agreement (CSA). This Tax Insight provides more details.
International Tax
June 24th 2019 11:29 AM
Join our tax and legal specialists to discuss the latest developments in this case and what you should be doing to prepare for the recovery process that HMRC will be starting very soon. In particular, we'll be discussing the approach to an SPF analysis and the annulment application process. There'll be a Q&A session for those joining the live session and a recording will be made available after the event.
Tax & The Digital Economy
October 22nd 2018 09:34 AM
The Chancellor and Financial Secretary to the Treasury have increasingly raised the prospect of a UK Digital Services Tax (DST) in the past few months. The Chancellor is reported to have told officials that “nothing is off the table” and his conference speech noted that “the time for talking is coming to an end and the stalling has to stop … if we cannot reach [multilateral] agreement the UK will go it alone with a digital services tax of its own.”
Transfer Pricing
June 14th 2019 12:34 PM
The United Kingdom published new legislation on October 29, 2018 that seeks to subject UK-derived income with respect to intangible property (IP) to UK income tax at 20% on the gross receipts, where the IP is held offshore in a ‘low-tax’ jurisdiction. This law became effective on April 6, 2019.
International Tax
June 5th 2019 04:49 PM
he OECD and EU Commission are currently developing frameworks with the aim of enabling jurisdictions to tax the digital economy more effectively globally and across EU member states. In the meantime, various jurisdictions have been discussing and introducing unilateral digital tax measures.
In this webcast, our experts will give an overview of the international digital tax landscape, and will explain the implications of the Digital Services Taxes being introduced in the UK and France, including practical examples of how the new rules may impact businesses.
Transfer Pricing
June 14th 2019 11:54 AM
Today, the Ninth Circuit issued its opinion in Altera v. Commissioner. In a 2-1 decision, the court upheld the validity of the cost-sharing regulation requiring stock-based compensation be treated as a cost-shared cost, reversing the Tax Court (reaching the same conclusion as the 9th Circuit's previously withdrawn opinion). One of the judges on the three-judge panel dissented. The full opinion can be found here. Because Altera is entitled to seek reconsideration or reconsideration en banc (or possibly seek review by the Supreme Court), the Ninth Circuit's decision is not yet final. We will issue a more detailed Tax Insight on the Altera opinion shortly.
Transfer Pricing
June 7th 2019 07:59 AM
On May 27, General Resolution 4496 (GR 4496) was published. Through this Resolution, the Federal Administration of Public Revenue (AFIP) modified certain aspects of General Resolution 1122 (GR 1122), which governs transfer pricing documentation requirements and related obligations. Some of the amendments aim to partially regulate the modifications introduced to the Income Tax Law and its Regulatory Decree regarding transfer pricing, as a result of the latest tax reform, which applies to fiscal years starting from January 1, 2018.
Transfer Pricing
June 6th 2019 04:13 PM
The State Taxation Administration (STA) of China in April published the China Advance Pricing Arrangement Annual Report (2018) (2018 Annual Report) in Chinese and English versions. The 2018 Annual Report describes the regulations, procedures, latest statistics, and implementation status of the advance pricing arrangement (APA) program in China, and provides references for enterprises and competent tax authorities in other countries and regions.
Transfer Pricing
May 31st 2019 08:06 AM
PwC provide insights into the tax and transfer pricing risks of intra-group services in Japan and Vietnam, including practical strategies to effectively manage these challenges.
International Tax
May 21st 2019 07:44 AM
Swiss voters approved tax reform in a public vote on 19 May 2019, enabling the new legislation to become effective on 1 January 2020. The legal process to implement the new federal tax law into the cantonal tax laws has already been completed in five cantons (e.g. Basel-Stadt, Geneva, Glarus, Neuchâtel, and St.Gallen). The remaining cantons are expected to implement or, if a public vote is required, to vote about the implementation in the cantonal tax laws later this year.
Transfer Pricing
May 21st 2019 08:00 AM
According to the German Supreme Tax Court in its ruling of 27 February 2019, published on 15 May 2019, and contrary to its previous case law, Article 9 (1) of the OECD Model Tax Convention, does not prohibit an income adjustment under domestic transfer pricing rules, where the write-off of an unsecured group loan is not recognised as a deduction from taxable profits.
International Tax
May 16th 2019 11:18 AM
Two weeks to 16 May 2019
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
May 14th 2019 02:32 PM
The global tax controversy environment has been changing rapidly in recent years, with a substantial impact on multinational companies (MNCs). There also is a growing trend, both globally and in the United States, to focus on transfer pricing, which puts pressure on MNCs to be proactive and prepare for controversy on issues regarding profit allocation and intangibles. While disputes are on the rise, there are limited options for efficient and effective resolution.
Transfer Pricing
May 10th 2019 02:33 PM
Intangibles and substance requirements are at the heart of the BEPS project. It is easy to predict that the new OECD guidelines will put suppliers under increased scrutiny by tax authorities. In the past many tax authorities have challenged the business models of suppliers if the income of group companies do not commensurate with their substance. The new guidelines will provide strong support for this view.
Attribution of profits to permanent establishments in India
May 10th 2019 12:09 PM
The Indian Government has recently issued a public consultation report in relation to profit attribution to Permanent Establishment in India, inviting comments from stakeholders by the mid of this month. This report suggests a three-factor apportionment approach, by assigning an equal weight to sales, manpower (i.e. employees and wages) and assets. As per the Report, this represents a combination of both demand and supply related factors, thereby allocating profits derived from India, partly to the jurisdiction where sales take place (driven by consumers and market), and partly where factors of production are located or where supply related activities are conducted.
Transfer Pricing
May 9th 2019 08:08 AM
The European Commission (EC) on May 3 published the non-confidential version of its opening decision in its State aid investigation into certain tax rulings granted by the Luxembourg tax authorities. These rulings related to that country’s treatment of interest-free loans granted by an Irish group company to a Luxembourg group company.
Transfer Pricing
May 8th 2019 08:29 AM
The Italian Revenue Agency (IRA) issued, on April 16, 2019, the implementing regulation that addresses the self-disclosure procedure of a permanent establishment in Italy for foreign enterprises. This was endorsed in Article 1-bis of Law Decree No. 50 of (April 4, 2017), converted by Law No. 96 of June 21, 2017 (the ‘self-disclosure procedure’).
Transfer Pricing
May 1st 2019 10:02 AM
Welcome to our latest round-up on recent international transfer pricing developments.
Transfer Pricing
April 25th 2019 10:00 AM
Loic Webb-Martin (Transfer Pricing Partner), Susan Edwards (Transfer Pricing Director), and Steven Brown (Transfer Pricing Senior Manager) provide insights on BREXIT from a transfer pricing perspective. Among other topics, they discuss long-term TP consequences of BREXIT restructuring, VAT considerations, and possible controversy solutions.
Transfer Pricing
April 24th 2019 02:03 PM
The Commissioner of the IRS Large Business and International Division (LB&I) on February 19 issued a memorandum for employees of LB&I, entitled "Interim Guidance on Mandatory Issue Team Consultations with APMA for Examination of Transfer Pricing Issues Involving Treaty Countries." The memorandum requires LB&I Issue Teams that examine transfer pricing issues that could generate adjustments involving a treaty partner to consult with the Advance Pricing and Mutual Agreement (APMA) office.
Transfer Pricing
April 24th 2019 01:47 PM
In March 2017, the FASB released Accounting Standards Update No. 2017-17 ("ASU 2017-17") to provide final guidance on the presentation of net periodic pension cost and net periodic postretirement benefit cost in the financial statements. In this guidance, the FASB explained certain amendments made to Topic 715 (Compensation—Retirement Benefits) of the FASB Accounting Standard Codification that are effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods.
Transfer Pricing
April 17th 2019 11:57 AM
On 2 April 2019, the European Commission (EC) issued a press release announcing its conclusion that the UK Finance Company Partial Exemption Rules (the FCPE rules) is partly justified for the period from 2013 to 2018 (for more detail read our news report).
The UK government is now required to initiate recovery of the alleged State aid irrespective of any appeal against the decision. It seems most likely, at this stage, that recovery will be based on the extent to which the UK has significant people functions. This means that the taxpayers who benefitted from the FCPE rules will need to assess the profit allocable to UK significant people functions (SPFs) in order to determine whether, in light of the Commission decision, they have benefited from State aid which must be recovered for the historic periods.
International Tax
April 16th 2019 04:00 PM
In this video, Jonathan Hare and Juliet Trent from PwC's EU Direct Tax Group discuss what businesses should be thinking about following the European Commission's press release that an aspect of the UK's CFC regime constitutes State aid. The detailed final decision is expected to be released in the next couple of weeks.
International Tax
April 17th 2019 11:42 AM
The Hong Kong Inland Revenue Department (“IRD”) has released a one-time extension for filing the Country-by-Country Reporting (“CbCR”) Notification for Hong Kong taxpayers with an Ultimate Parent Entity (“UPE”) where its fiscal year begins on 1 January 2018. Specifically, such Hong Kong taxpayers will have until 15 May 2019 to file their CbCR Notifications.
Transfer Pricing
April 18th 2019 09:09 AM
The London lnterbank Offered Rate (LIBOR) serves as the benchmark for an estimated US$370 trillion in financial transactions worldwide. The discontinuance of LIBOR at the end of 2021 will require alternative base rates to be used by market participants. Emerging alternative rates differ by region, currency, tenor, and basis.
This pending change has transfer pricing implications for multinational enterprises (MNEs) across all industries that have intercompany financing arrangements tied to LIBOR. MNEs should evaluate the impact on existing transactions and policies and prepare a transition plan that addresses the anticipated impact from LIBOR's discontinuation.
Transfer Pricing
April 11th 2019 08:37 AM
The European Commission announced in an April 2 press release that the Group Financing Exemption (GFE) within the UK Controlled Foreign Company rules is ‘partly justified.’ The UK CFC rules broadly allow the United Kingdom to tax the income of overseas subsidiaries controlled by a UK corporate parent where that income is regarded as artificially diverted from the United Kingdom.
Transfer Pricing
April 10th 2019 09:43 AM
The Federal Court of Appeal (FCA) on April 3 released its decision in the Minister of National Revenue vs. Cameco Corporation. The matter before the FCA was the Federal Court (FC) decision not to issue a compliance order pursuant to subsection 231.7(1) of Canada's Income Tax Act (the Act) compelling Cameco Corporation (Cameco) to comply with the Minister of National Revenue's (the Minister's) request that employees attend interviews and provide oral answers to questions posed by Canada Revenue Agency (CRA) auditors pursuant to paragraph 231.1(1)(a) of the Act.
Corporate Tax (CT)
January 16th 2018 01:51 PM
On 29 December 2017, a draft bill to implement key actions arising from the OECD BEPS agenda was published. The draft bill includes significant changes to codify transfer pricing, introduce country-by-country (CbC) reporting and Master File and Local File transfer pricing documentation, expand the Advance Pricing Agreement (APA) regime and introduce a stringent penalty regime with potential civil and criminal sanctions. The draft bill is more complex than expected, goes beyond the BEPS minimum standards and introduces a strict approach to determining "the" arm's length price.
Transfer Pricing
April 5th 2018 08:26 AM
On March 30, 2018, the IRS Advance Pricing and Mutual Agreement Program (APMA) issued its 19th Annual Statutory Report (the Report) concerning Advance Pricing Agreements (APAs). The Report states that APA applications for 2017 increased to 101 filed requests, up from 98 in 2016. These numbers indicate that APAs continue to be an attractive option for companies seeking to manage their tax risks and achieve certainty around their intercompany pricing issues.
Transfer Pricing
April 4th 2019 03:31 PM
On 2 April 2019 the European Commission (EC) issued a press release that they have concluded that UK Finance Company Partial Exemption Rules (the FCPE rules) constitute partial state aid for the period from 2013 to 2018.
International Tax
April 4th 2019 04:00 PM
On 2 April 2019, the European Commission (EC) announced in a press release that it has found that the Group Financing Exemption (GFE) within the UK Controlled Foreign Company (CFC) rules is “partly justified”.
Transfer Pricing
April 4th 2019 04:07 PM
The Danish parliament (Folketinget) adopted an important amendment and tightening of the Tax Control Act (L 13 Forslag til Skattekontrollov) of October 4, 2017 that is in force from January 1, 2019 with regard to transfer pricing documentation.
International Tax
March 28th 2019 11:50 AM
Two weeks to 28 March 2019
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
March 28th 2019 07:58 AM
The Polish Ministry of Finance has announced its intention to introduce a simplified APA procedure for intra-group transactions which are subject to the tax deductibility limit.
Apart from the simplified APA procedure, the draft bill also covers changes to other procedures such as mutual agreement procedure (MAP), the currently binding APA provisions (for core transactions) as well as changes aimed at unification and simplification of the current terms and procedures.
International Tax
March 26th 2019 07:38 AM
The EU, via the Economic and Financial Affairs Council (Ecofin), has updated its so-called 'blacklist' of non-cooperative tax jurisdictions to encompass 15 countries, including Bermuda, Barbados and the United Arab Emirates (UAE).
A number of jurisdictions have been added to the blacklist for failing to satisfy, by 31 December 2018, what the EU bodies considered adequate in-country substance requirements in order for entities to qualify for their beneficial tax systems.
Transfer Pricing
March 27th 2019 11:16 AM
The Country-by-Country (CbC) report corresponding to the fiscal year ending between December 31, 2017 and November 30, 2018 (of the ultimate controlling entity) must be filed in Uruguay within 15 months after the closing date of the ultimate controlling entity. The first deadline is March 31, 2019.
Transfer Pricing
March 21st 2019 05:01 PM
In this podcast, Chris Desmond and Aaron Junge discuss the purpose and benefits of SG&A analysis.
Transfer Pricing
March 21st 2019 05:22 PM
In this podcast Carolyn Fanaroff, Dale Bond, and Emre Furtun provide insights regarding the success of a recently completed APA for a liquified natural gas company. They discuss why this APA is important and provide best practices.
Transfer Pricing
March 21st 2019 05:16 PM
In this podcast NTS partners Alex Voloshko, Greg Ossi, and Joseph Kavuliak, provide planning ideas for companies that are operating or plan to operate through maquiladoras in Mexico. The discussion covers business rationale and application.
Transfer Pricing
March 21st 2019 05:05 PM
Pat Brown, PwC’s US International Tax Policy Leader continues the conversation regarding the OECD’s project on the digitalization of the economy, providing his insights and takeaways on the recently released OECD Consultation Document.
Transfer Pricing
March 21st 2019 04:30 PM
This article looks at the Mutual Agreement Procedure Statistics for 2017, which have recently been published by the OECD, and provides some insights to latest developments in cross-border dispute resolution.
International Tax
March 14th 2019 02:42 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
March 20th 2019 02:27 PM
The UK Finance Act 2019, which became law on February 12, includes the legislation required to update UK domestic law to align with the UK’s position on the changes to the Permanent Establishment (PE) definition arising from the OECD’s Base Erosion and Profit Shifting (BEPS) project and included within the Multilateral Instrument (MLI). This effectively expands the definition of PE in the UK which - together with forthcoming changes to many double tax treaties - is likely to result in more PEs arising.
International Tax
March 8th 2019 12:04 PM
On 7 March 2019, the European Commission (EC) issued a press release announcing the opening of a State aid investigation into tax rulings granted by the Luxembourg tax authorities to a Luxembourg subsidiary of the Huhtamäki group in relation to the treatment of interest-free loans granted by another Irish subsidiary of the group to the Luxembourg company.
International Tax
March 11th 2019 01:17 PM
On 6 March the French government launched the legislative process to introduce a tax on digital sales realised by large internet and technology companies and to partially postpone the corporate income tax rate reduction initially intended to apply as of 1 January 2019.
The proposed 3% digital tax would apply to companies providing certain digital services in France with global annual revenue in excess of EUR 750M and revenue in France exceeding EUR 25M. The proposed tax would apply to digital gross sales realised as of 1 January 2019.
Corporate Tax (CT)
March 7th 2019 11:15 AM
Despite the long history of the Permanent Establishment (“PE”) concept, the practical application to the offshore oil and gas industry continues to raise a number of issues and disputes between taxpayers and tax authorities. In this article, Szymon Wlazlowski considers the key PE risks created by common activities performed under each of the four phases of the asset life cycle.
Transfer Pricing
March 7th 2019 04:36 PM
Welcome to our latest round-up on recent international transfer pricing developments.
Transfer Pricing
March 1st 2019 11:26 AM
Luxembourg tax authorities issued a circular on February 22 that clarifies recently added paragraph 5 to § 16 StAnpG of October 16, 1934. This is designed to resolve conflicts of interpretation on the existence of a PE resulting from the interaction between domestic law and relevant tax treaty provisions.
International Tax
February 28th 2019 02:06 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
February 28th 2019 11:49 AM
The IRS's Advance Pricing and Mutual Agreement (APMA) programme, announced the release of a Functional Cost Diagnostic Model (FCD Model) developed in connection with several prior and pending Bilateral Advance Pricing Agreements (APAs) and Competent Authority/Mutual Agreement Procedure (MAP) cases.
Tax Dispute Resolution
February 25th 2019 09:42 AM
In view of the need for urgent action or consideration following the launch of HMRC's Profit Diversion Compliance Facility, and to assist anyone likely to be in receipt of a letter from HMRC, HMRC participated in a webinar on Wednesday 20 February 2019.
Transfer Pricing
February 22nd 2019 10:26 AM
This special edition podcast features highlights from PwC’s 2018 Global Transfer Pricing Conference in Tokyo, Japan, covering how digital solutions, transfer pricing and ERP systems come to together.
Transfer Pricing
February 22nd 2019 10:37 AM
This podcast features highlights from PwC’s 2018 Global Transfer Pricing Conference in Tokyo, Japan, covering the current state of transfer pricing documentation and country-by-country reporting.
Transfer Pricing
February 22nd 2019 10:45 AM
In this podcast, PwC Middle East partners discuss the details of the new Draft Transfer Pricing By-Laws and the impact the new by-laws will have on global multinational groups operating in the Kingdom of Saudi Arabia.
Transfer Pricing
February 20th 2019 02:59 PM
A CbCR Notification should be distinguished from a Country by-Country (CbC) Report. The CbC Report is to be exchanged automatically between tax administrations under relevant exchange arrangements. As of January 29, 2019 Hong Kong has exchange arrangements with 11 jurisdictions. These are France, Guernsey, Ireland, Japan, Jersey, Korea, Malta, Netherlands, New Zealand, South Africa, and the United Kingdom.
Tax & The Digital Economy
February 20th 2019 09:28 AM
The OECD released a detailed consultation document on 13 February 2019, commencing a 17 day window for stakeholders to submit comments before a public consultation in March on proposals to address the tax challenges arising from the digitalisation of the economy. A 19 February OECD announcement extended the deadline to require responses by 6 March, providing a full three week consideration period, as originally announced.
Tax & The Digital Economy
February 13th 2019 04:06 PM
On 13 February 2019, the OECD released a public consultation document on "Addressing the tax challenges of the digitalisation of the economy". The consultation will run until 1 March 2019, and a public meeting will then be held in Paris on 13 and 14 March 2019. If agreed at the Inclusive Framework, any of the proposals could have a significant impact on all international businesses.
International Tax
February 14th 2019 04:13 PM
The Brazilian Federal Revenue Department (RFB) published on 29 January 29 2019, Normative instruction (NI) 1870/2019 amending NI 1312/12 on some aspects of transfer pricing rules, mainly related to import transactions and commodities.
International Tax
February 7th 2019 08:12 AM
In this podcast, PwC professionals discuss the interface between tax and trade policy and what issues this poses for countries and multinationals from a transfer pricing perspective.
Transfer Pricing
February 6th 2019 03:34 PM
Historically, smaller international businesses may not have been subject to the level of scrutiny that larger inbounds or listed companies have, and therefore, could have concluded that central material prepared by their HQ was sufficient to support their UK TP position without further localisation. Whilst the above may still hold true for some, the OECD BEPS project has raised the profile of TP and undoubtedly changed the international tax landscape.
Transfer Pricing
February 6th 2019 01:50 PM
The IRS has published six new tables presenting data from Form 8975, Country-by-Country Report and Form 8975, Schedule A, Tax Jurisdiction and Constituent Entity Information on its Statistics of Income Tax Stats Web page.
International Tax
February 1st 2019 10:43 AM
The Australian Taxation Office (ATO) has updated its simplified transfer pricing record keeping guidance in Practical Compliance Guideline (PCG) 2017/2 to provide relief from preparing full transfer pricing documentation for small taxpayers and/or low risk transfer pricing arrangements.
Tax Dispute Resolution
January 30th 2019 10:48 AM
HMRC’s introduction of a settlement Facility aimed at businesses with a risk of “profit diversion” confirms observations that we have made in our recent blogs. This blog provides further detail as to how business should respond.
International Tax
January 21st 2019 04:05 PM
On 10 January 2019, the European Commission (EC) announced in a press release that it has opened a formal State investigation into the tax treatment in the Netherlands of two Dutch affiliates of Nike.
Transfer Pricing
January 21st 2019 10:02 AM
The OECD recommended country-by-country reporting (CbCR) requirements to address base erosion and profit shifting and it is now fully entrenched around the world. There are over 70 countries having implemented and/or committed to implement CbCR rules and around 1800 exchange arrangements in place for tax authorities to share the submitted CbC reports such that we are reaching the point where CbCR is the new norm.
International Tax
January 24th 2019 02:24 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
International Tax
January 21st 2019 04:28 PM
The Annual Report describes the regulations, procedures, latest statistics, and implementation status of the APA program in China, and provides references for enterprises and competent tax authorities in other countries and regions. These statistics show that China had concluded a total of 147 APAs by the end of 2017, and a number of other APAs (yet to be concluded) were in the application process at that time.
International Tax
January 22nd 2019 03:57 PM
The General Authority of Zakat and Tax (GAZT) in the Kingdom of Saudi Arabia (KSA) published its draft Transfer Pricing By-Laws. This is the first time that transfer pricing regulations of any kind have been published by the GAZT and demonstrates the KSA’s commitment to introducing transfer pricing rules and implementing the OECD's BEPS recommendations on transfer pricing.
Transfer Pricing
January 18th 2019 10:11 AM
On 27 December 2018, the Argentine Government adopted new transfer pricing rules, effective for fiscal years starting from 1 January 2018. The legislation includes new transfer pricing documentation requirements, which are broadly consistent with the BEPS Action 13 initiative.
Transfer Pricing
January 17th 2019 10:39 AM
The EU Joint TP Forum (JTPF) has recently issued the draft paper on the “Application of the Profit Split Method within the EU”. The main purpose of this document is to address two issues: (1) when it is appropriate to apply the Profit Split Method (PSM), and (2) the use of profit splitting factors. This paper is an attempt to address these issues with the aim to explore how the application of the PSM could be simplified.
Transfer Pricing
January 11th 2019 10:40 AM
In this podcast, PwC Transfer Pricing professionals Paige Hill, Jozef Kavuliak, and Chris Desmond discuss how US tax reform and other global issues such as trade have affected how companies approach their transfer pricing policies, and what possible uncertainties there are for clients next year given some of the underlying policy issues.
Tax Dispute Resolution
January 10th 2019 05:17 PM
HMRC has today announced the introduction of a Facility aimed at Multinational Enterprises (‘MNEs’) with a risk of HMRC challenge in relation to what is described as "profit diversion". The new Facility is designed to encourage companies potentially impacted to review both the design and implementation of their tax policies, change them as appropriate and use the Facility to put forward a report with proposals to pay any additional tax, interest or penalties due.
Tax Dispute Resolution
January 9th 2019 09:30 AM
In this article, we summarise the main updates to the Diverted Profits Tax guidance that was published on 31 December 2018. These updates may affect companies that are already discussing their arrangements with HMRC or who could potentially be within the scope of DPT. This remains an area of HMRC focus as demonstrated by the launch of the Profit Diversion Compliance Facility on 10 January.
International Tax
January 3rd 2019 11:23 AM
The OECD Inclusive Framework (IF), in follow-up work related to BEPS Action 5, has released new global standards that apply to ‘no or only nominal tax’ jurisdictions and that require ‘substantial activities’ in order for the tax regime not to be considered a ‘harmful tax practice.’
Tax Dispute Resolution
November 13th 2018 08:10 AM
In this article, we summarise the amendments to the Diverted Profits Tax legislation that were published in the Finance (No. 3) Bill published on 7 November 2018. The amendments will have effect from 29 October 2018 and affect companies that are already discussing their arrangements with HMRC or who could potentially be within the scope of DPT.
Transfer Pricing
December 18th 2018 02:04 PM
Welcome to our latest round-up on recent international transfer pricing developments.
Transfer Pricing
December 18th 2018 01:47 PM
Since the BEPS project, HMRC is now much more prepared to set quite challenging expectations of potential additional tax yield from TP or DPT enquiries, often well ahead of fully evaluated and developed technical positions.
Transfer Pricing
December 14th 2018 03:20 PM
As part of continuing efforts to improve tax transparency, the Inclusive Framework on BEPS has now assessed 92 individual jurisdictions' progress in spontaneously exchanging information on tax rulings, in accordance with Action 5 of the OECD/G20 BEPS package.
International Tax
December 13th 2018 04:40 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Tax Dispute Resolution
December 11th 2018 04:05 PM
HMRC has made tackling the diversion of profits from the UK their number one corporate tax priority and continue to increase the resources allocated to this area of risk.
International Tax
December 11th 2018 03:11 PM
The Australian Taxation Office (ATO) has released a draft Taxation Determination which outlines the Commissioner’s view that the debt and equity tax rules do not limit the operation of Australia’s transfer pricing rules.
Tax & The Digital Economy
February 13th 2019 04:06 PM
On 13 February 2019, the OECD released a public consultation document on "Addressing the tax challenges of the digitalisation of the economy". The consultation will run until 1 March 2019, and a public meeting will then be held in Paris on 13 and 14 March 2019. If agreed at the Inclusive Framework, any of the proposals could have a significant impact on all international businesses.
Transfer Pricing
December 7th 2018 10:35 AM
The Revenue Code Amendment Act to introduce specific transfer pricing provisions into the income tax law (No. 47) was published in the Royal Gazette on November 21, 2018, and therefore has become law.
Specific transfer pricing provisions will apply to accounting periods starting on or after January 1, 2019. Once in effect, Thailand's income tax law will contain a definition of the arm's-length principle and introduce penalties for failure to comply with the transfer pricing disclosure requirement, in addition to the penalties for failure to comply with Thailand transfer pricing rules.
Transfer Pricing
December 7th 2018 10:29 AM
The Australian Taxation Office (ATO) has released a draft Practical Compliance Guideline (PCG), 2018/DB, which sets out its profit expectations for Australian distributors. Guidance is provided for specific industry segments -pharmaceutical and life sciences, information and communications technology (ICT), and automotive -as well as a general distribution category for distributors in all other industry segments.
Tax Dispute Resolution
December 5th 2018 09:09 AM
With the resolution of some major transfer pricing enquiries by HMRC since the introduction of Diverted Profits Tax, together with the introduction of further far-reaching legislation in the recent Budget, it’s a good time to look the changing landscape for transfer pricing disputes in the UK and what might come next. In this series of articles we will share experience gained on how best to prepare for, and successfully navigate a way through, the new type of TP enquiry in the UK.
International Tax
November 30th 2018 07:51 AM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
November 29th 2018 10:50 AM
On 1 November 2o18 the Israeli Tax Authority (ITA) published a circular providing its view regarding business restructuring of an Israeli entity that is part of a multinational group. The circular sets out the ITA's position on the identification and characterization of a business restructuring and, in the event that a business restructuring has occurred, the circular sets out the methods for performing a valuation of the functions, risks and/or assets (FAR) that have been terminated or transferred outside of Israel
Transfer Pricing
November 22nd 2018 02:28 PM
The Tax Court of Canada (the TCC or the Court) published on September 26 its decision in Cameco Corporation (2018 TCC 195), resolving a long-running dispute between Cameco Corporation (Cameco, the Appellant) and the Minister of National Revenue (the Minister or the Crown) involving reassessments to Cameco's 2003, 2005, and 2006 taxation years.
The adjustments made in the reassessments related to the prices used in the purchase and sale of uranium contracts involving Cameco, Cameco Europe (CESA, a Swiss branch of Cameco's Luxembourg subsidiary) and, later, its Swiss subsidiary (CEL), as well as its US-based subsidiary (Cameco US) and third parties. The Minister's reassessments were based on arguments that Cameco's structure, specifically the reorganization that took place in 1999, was a sham. The Minister further argued that CESA/CEL performed few if any valuable functions during the years under consideration and, accordingly, reassessments were warranted pursuant to either paragraphs 247(2)(b) and (d) or paragraphs 247(2)(a) and (c) of the Income Tax Act (the Act), the latter being the transfer pricing provisions more typically employed (and referred to by the TCC as the traditional transfer pricing rules).
Transfer Pricing
November 22nd 2018 09:33 AM
At PwC’s global TP conference in Tokyo in October an informal survey was conducted of what individual tax authorities are doing with the CbC data that has started to arrive. An interesting picture emerges of several dozen varieties of ‘not much…yet’; and four where visible action or specific plans provide insight into what many, if not most countries, are likely to do.
International Tax
November 16th 2018 11:04 AM
Unilateral advances on digital taxes and digital PE concepts will challenge international tax harmony and cause serious challenges - are we ready?
The past year has seen our tax world manage to slowly gain ground in post-BEPS territory, but also it’s been a year in which we have witnessed the rise of revolutionary concepts attempting to lead ‘old’ taxation frameworks into the digital era.
Transfer Pricing
June 28th 2019 10:39 AM
In this podcast, Benjamin Koch (Swiss Transfer Pricing Leader), Armin Marti (Swiss Tax Policy Leader), and Flora Marin (Swiss Transfer Pricing Senior Manager) discuss the new tax measures that will be put in place to implement Swiss tax reform, including the transition measures, patent box, and the R&D incentive. Benjamin and Armin also share their recommendations on what companies should be doing before the end of 2019 in anticipation of the new law taking effect.
Transfer Pricing
November 16th 2018 10:57 AM
In a world where transfer pricing and tax professionals are adapting not only to the OECD's BEPS Action Items, but also to US tax reform and expanding global trade wars, it has become increasingly important to integrate careful value chain analysis into tax planning, compliance, and controversy activities.
Transfer Pricing
November 16th 2018 10:49 AM
Tax authorities around the world are increasingly seeking additional tools to use in their attempts to tax business profits locally which they consider to be diverted from their jurisdictions. In addition to the implementation of the Organisation for Economic Co-operation and Development (OECD)’s anti Base Erosion and Profit Shifting (BEPS) recommendations, some countries are going further and introducing or proposing additional domestic legislation which is separate from, but interacts closely with, transfer pricing legislation. Fundamentally, these rules mean that if the legal arrangements are not considered to reflect the economic reality or the pricing is not arm’s length, tax authorities can essentially rewrite how the transaction should look and levy tax accordingly.
The impact of this on businesses is that they are having to reach a clear, evidence-based view in respect of these complex and often subjective rules, and in many cases are having to respond to ever more detailed and far-reaching information requests from local tax authorities, looking at the activities and motivation for the business operating model.
Transfer Pricing
November 16th 2018 10:41 AM
At the heart of the BEPS project are payments for intangibles and substance requirements. To be sure, the OECD guidelines put suppliers under increased scrutiny by tax authorities. In the past, many tax authorities challenged the business models of suppliers if the income of an entity in a group was not commensurate with their substance. In this article, we examine how the OECD guidelines provide strong support for this view.
Transfer Pricing
November 16th 2018 10:18 AM
In October 2018, the EU Joint Transfer Pricing forum agreed the Report on a coordinated approach to transfer pricing controls within the EU (the “Report”). The report establishes best practices by issuing various recommendations for both taxpayers and tax administrations, and encourages closer cooperation in the field of transfer pricing controls.
The report is aimed at ensuring that tax administrations use the possibilities provided for under the Directive on Administrative Cooperation in the Field of Taxation (Directive 2011/16/EU) on a real time basis for the purpose of achieving a high degree of coordination, smooth communication and exchange of information during a transfer pricing control.
It is increasingly common to see tax administrations across the EU working together where there are cross-border arrangements in which they have a shared interest. The UK is making increasingly use of these collaborative approaches, either by international exchange of information or multilateral controls within the EU.
Transfer Pricing
November 16th 2018 10:34 AM
In July 2017, the OECD released an updated version of the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations ("OECD Guidelines"), which incorporates new transfer pricing approaches agreed to by OECD and G20 countries in the 2015 base erosion profit shifting (BEPS) plan final reports. The OECD Guidelines address the issues of returns to IP development by focusing on people function and risk control. In this article, we consider returns to an IP Company with varying degree of economic substance in four different scenarios. Through this analysis, we highlight economic considerations that need to be taken in account when applying the OECD approach to determining IP returns.
International Tax
November 14th 2018 01:29 PM
On 26 September, the Tax Court of Canada published its decision in Cameco Corporation (2018 TCC 195), resolving a long-running dispute between Cameco Corporation and the Minister of National Revenue involving reassessments to Cameco’s 2003, 2005, and 2006 taxation years. This Tax Insight focuses on the Court’s findings in respect of the sham argument.
Transfer Pricing
November 12th 2018 11:37 AM
The UK finance bill, which was published on 7 November 2018, includes the legislation required to update UK domestic law to align with the UK’s position on the changes to the Permanent Establishment (“PE”) definition arising from the OECD’s Base Erosion and Profit Shifting (“BEPS”) project and included within the Multi-Lateral Instrument (“MLI”). This effectively expands the definition of PE in the UK which, together with forthcoming changes to many Double Tax Treaties, is likely to result in more PEs arising.
Transfer Pricing
November 1st 2018 04:26 PM
The Large Enterprises Division of the Belgian tax administration (LE Division) has announced its launch of a two-year pilot project on cooperative tax compliance (Cooperative Tax Compliance Program - 'CTCP).The program seeks to transform the traditional approach of ex-post tax investigations into a system of proactive, real-time, and constructive dialogue on the tax affairs of corporations. Reducing tax uncertainty, enhancing compliance, and fostering mutual understanding are main goals of the initiative.
Transfer Pricing
October 30th 2018 02:14 PM
In early July, as follow up work in relation to the BEPS project, the OECD issued a new public discussion draft paper (the “Draft Paper”) regarding the transfer pricing aspects of financial transactions.
The Draft Paper seeks to clarify principles previously included in the 2017 OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (the “OECD Transfer Pricing Guidelines”) in relation to four areas. Further detail on each of these topics and the implications for Financial Services groups appears below.
Transfer Pricing
October 19th 2018 11:18 AM
With a number of important recent and upcoming developments in the OECD's international tax work, the OECD's Centre for Tax Policy and Administration (CTPA) gave the latest tax update. Topics included:
Transfer Pricing
October 18th 2018 03:58 PM
If you are an MNE Group with a December year end, irrespective of whether you are headquartered in the UK or a subsidiary in the UK, the 31 December 2018 deadline for filing your FY17 Country by Country (“CbC”) Report and/or your FY18 UK CbC notification is fast approaching.
Getting the CbC Report and notification filed on time is just the start of the process.
Transfer Pricing
October 18th 2018 02:51 PM
In this podcast, PwC transfer pricing professionals Jeff Rogers and Daniel Pybus discuss the Guarantees section of the OECD draft financial transactions paper (with some specific insights on the GE Capital case a number of years ago).
This podcast forms part of a 5 part series which will cover Delineation, Captives, Interest rate pricing, Guarantees and Cash pooling.
Transfer Pricing
October 11th 2018 10:15 AM
In this podcast, PwC transfer pricing professionals Michel van der Breggen, David Ledure and Daniel Pybus discuss the Cash Pooling section of the OECD discussion draft providing insights from a European perspective and also the crossover with recent case law in this area.
This podcast forms part of a 5 part series which will cover Delineation, Captives, Interest rate pricing, Guarantees and Cash pooling.
Transfer Pricing
October 11th 2018 10:23 AM
In this podcast, PwC transfer pricing professionals Krishnan Chandrasekhar and Daniel Pybus discuss the Delineation section of the OECD draft financial transactions paper.
This podcast forms part of a 5 part series which will cover Delineation, Captives, Interest rate pricing, Guarantees and Cash pooling.
Transfer Pricing
October 11th 2018 10:29 AM
In this podcast, PwC transfer pricing professionals Nick Houseman and Daniel Pybus discuss the Interest Rate Pricing section of the OECD draft financial transactions paper (with some specific insights on the crossover between the OECD paper and the Chevron case).
This podcast forms part of a 5 part series which will cover Delineation, Captives, Interest rate pricing, Guarantees and Cash pooling.
Transfer Pricing
October 11th 2018 03:14 PM
In this podcast, PwC transfer pricing professionals Loic Webb-Martin and Daniel Pybus discuss the Captives section of the OECD draft financial transactions paper focussing on the key takeaways, short term actions, and the longer term direction of the OECD / implications of the paper.
This podcast forms part of a 5 part series which will cover Delineation, Captives, Interest rate pricing, Guarantees and Cash pooling.
Transfer Pricing
September 28th 2022 11:29 AM
In recent years there has been substantial increase in the number and size of transfer pricing (TP) disputes with tax authorities worldwide. Alongside an increasing importance for taxpayers to be able to sufficiently demonstrate that they have taken reasonable care in managing their TP, tax authorities are expanding their lines of enquiry to include assessing how they implement, execute and monitor the application of their TP policies.
This article provides an insight into how tax authorities are interrogating TP implementation along with the nature of evidence that authorities typically expect a taxpayer to retain in order to demonstrate they are taking reasonable care in ensuring their TP policies are properly implemented and operationally effective.
International Tax
October 9th 2018 04:18 PM
This article takes a closer look at the recent HMRC transfer pricing and diverted profits tax (DPT) statistics for 2017/18 and what they mean.
Overall, tackling transfer pricing remains a priority area for HMRC, with the 2017/18 TP yield high at £1.7b (in line with the previous year) and an increasing number of HMRC staff dealing with TP issues.
The key takeaways from the recent statistics are:
1. Transfer pricing yield remains high
2. DPT is bringing in tax revenues
3. HMRC settles TP enquiries faster
4. HMRC is focused on MAP, limiting resources to deal with APAs.
International Tax
October 5th 2018 10:54 AM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
October 5th 2018 11:49 AM
Transfer Pricing (“TP”), the area of international tax concerned with the pricing of intercompany transactions used to be the focus of PLC boardrooms rather than Private Business, but no longer. The OECD’s Base Erosion and Profit Shifting (“BEPS”) project has raised the profile of TP on tax authorities radars for UK inbounds and UK PLCs as well as privately owned and private equity backed business. As a consequence, we have seen a significant increase in the number of TP audits and challenges on Due Diligence, which can give rise to price chips, TP adjustments, penalties, interest, and reputational risk.
International Tax
October 4th 2018 05:02 PM
Companies face a potentially increased withholding tax (WHT) burden on payments, etc between the UK and Australia, France, Japan, Lithuania and the Slovak Republic from 1 January 2019. These five territories deposited their ratification instruments and final positions in September for the multi-lateral instrument (MLI) to effect BEPS modifications to existing tax treaties. Israel did similarly, but the current UK-Israel tax treaty is not a covered tax agreement for the MLI on the basis that a new agreement or Protocol is being negotiated. There is, of course, a wider impact of these territories’ ratifications for other counterparties and in relation to other taxes. These six join the earlier nine ratification territories so that, where a bilateral treaty is covered (with one proviso) the new year date is also applicable if the treaty involves any two of the current fifteen ratification territories.
Transfer Pricing
October 4th 2018 11:34 AM
The Israeli Tax Authority (ITA) on 5 September 2018 published two circulars setting out its approach to classification and transfer pricing methods that are appropriate for use in connection with certain intercompany transactions between an Israeli entity and related parties abroad that are part of a multinational group.
The circulars set out the ITA's view on the appropriate way to distinguish between entities performing marketing activities and those performing sales activities, as well as how to choose the most appropriate transfer pricing method for use with intercompany transactions involving such entities. Finally, the circulars include indicative benchmark ranges for some transactions that could be used as a form of safe harbor (providing an exemption from certain transfer pricing documentation requirements) where certain requirements are met.
Transfer Pricing
October 4th 2018 10:39 AM
The Tax Court of Canada has recently published its decision in the long-running dispute between Cameco and the Canada Revenue Agency (CRA) relating to transfer pricing adjustments made by the CRA to Cameco's 2003, 2005, and 2006 taxation years.
The adjustments related to the prices used for purchase and sale of uranium contracts involving Cameco, its Swiss and US-based foreign subsidiaries, and third parties.
International Tax
September 14th 2018 08:26 AM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Tax Dispute Resolution
September 24th 2018 08:17 AM
In this article, we suggest a constructive approach to HMRC engagement as a key deadline for the issue of preliminary and final charging notices for 2016 approaches. For a business with a December year end which had notified HMRC of potential chargeability to DPT, HMRC has until 31 December 2018 to issue a preliminary notice for the year ended 31 December 2016. This will be particularly relevant for companies that received a notice into 2015 and there remain unresolved issues, or where HMRC have started challenging or querying their 2016 arrangements.
International Tax
September 20th 2018 03:12 PM
The European Commission (“EC”) has issued a press release concerning its final decision in the State aid investigation into tax rulings granted by the Luxembourg tax authorities to a Luxembourg subsidiary of the McDonald’s group in relation to the treatment of a branch established in the United States of America (“US”).
Future Tax - Paying For Tomorrow
September 21st 2018 11:30 AM
On 13 September 2018, the OECD released additional guidance on the implementation of country-by-country reporting (CBCR) developed under Action 13 of the OECD BEPS action plan.
The new guidance provides additional clarifications with respect to a number of areas, including the treatment of dividends, the use of shortened numbers in Table 1, the treatment of major shareholdings and the reporting consequences of mergers and acquisitions. In some cases, MNE Groups will have filed CBCRs inconsistently with the additional guidance and will have to determine whether to amend CBCRs for prior and future reporting periods.
International Tax
September 21st 2018 11:06 AM
On 14 September 2018, the OECD published the public comments received on the discussion draft on transfer pricing aspects of financial transactions, which deals with follow-up work in relation to Actions 8-10 (“Assure that transfer pricing outcomes are in line with value creation”) of the BEPS Action Plan.
Part 3 of the public comments (page 115) include the PwC response to the discussion draft. Read the PwC response here.
Transfer Pricing
September 13th 2018 09:44 AM
India's Central Board of Direct Taxes (CBDT) have released the Second Annual Report on the Indian Advance Pricing Agreement Programme. The APA Report highlights the progress made in financial year 2017-18. The APA statistics continue to be encouraging, as the total number of concluded APAs has reached 219 (of which 67, including 9 bilateral APAs, were signed in FY 2017-18).
A noteworthy development is the shift in focus from Unilateral APAs to Bilateral APAs. There was a slight increase in time taken to conclude APAs in FY 2017-18 over the average of prior periods.
International Tax
September 11th 2018 03:41 PM
Hong Kong is honouring its commitment to meet the international standards on exchange of information for tax purposes. With the additional disclosure and increased tax transparency, business groups and individuals should carefully assess whether the changes made will have any potential impact on their tax exposure in their jurisdiction of residence and any other jurisdictions where they have business operations or investment activities.
Transfer Pricing
August 31st 2018 09:59 AM
On August 15, PwC hosted a webcast featuring PwC specialists who discussed how globally mobile workforces are evolving and the resulting compliance challenges; why US tax reform is further confounding the analysis; and what actions they should consider. This Insight highlights some of those discussions.
Transfer Pricing
August 29th 2018 12:00 PM
The entry into force of decree n°2018-554 and the publication of the related implementation circular published in the French Public Finance Official Bulletin (BOFIP - BOI-80-10-40-20180718), confirm the ‘French singularity’ in terms of transfer pricing documentation.
Transfer Pricing
August 29th 2018 03:41 PM
On August 16, the US Court of Appeals for the Eighth Circuit vacated and remanded the Tax Court’s June 2016 memorandum opinion in Medtronic, Inc. v. Commissioner, which had found substantially in favor of medical device manufacturer Medtronic in its transfer pricing dispute with the IRS...
Transfer Pricing
August 21st 2018 09:16 AM
Managing Permanent Establishment (“PE”) risks have always been a challenge for tax departments of large Multinational Corporations (“MNCs”). The risks are often largely dependent on the activities and travel patterns of many hundreds or thousands of staff, and keeping track of individuals’ movements and activities is often very difficult.
Transfer Pricing
August 9th 2018 11:17 AM
On 21 June, the OECD published revised guidance on application of the profit split method. This follows a mandate in Action 10 of the BEPS Action Plan, seeking clarification on application of the profit split method in light of global value chains, and represents a full revision of the current guidance on the use of profit splits in Chapter II of the OECD's Transfer Pricing Guidelines for Multinational Enterprises, as well as the associated Annex II.
Transfer Pricing
August 9th 2018 11:01 AM
Hong Kong formally introduces a transfer pricing (TP) regulatory regime and documentation requirement into Hong Kong tax law. As a member of the Inclusive Framework, Hong Kong has begun to fulfill its pledge to put in place the OECD BEPS Initiatives with this enactment. This is the first piece of legislation to explicitly address TP matters in Hong Kong.
Transfer Pricing
August 1st 2018 06:29 PM
HMRC has just released its latest statistics on transfer pricing and Diverted Profits Tax (DPT). In the 6 years to 2017/18, HMRC recorded some £6.5 billion of additional tax by challenging transfer pricing arrangements, with the yield in 2017/18 approaching £1.7 billion. DPT, now in its third year, produced a separate yield of £388 million and the number of DPT notifications has risen to 220.
The other significant change is the dramatic fall in Advance Pricing Agreement (APA) applications, which fell to 16 in 2017/18, half the previous year, coupled with an increase in the number of requests for the Mutual Assistance Procedure (MAP) which have more than doubled over the last 6 years. While the average time taken to resolve MAP cases has remained fairly constant at around 2 years, the average time taken to complete APAs has increased substantially and is now over 3 years.
Transfer Pricing
August 1st 2018 10:21 AM
A draft law significantly changing the Polish transfer pricing regulations was published on 16 July 2018. The draft law grants the tax authorities new tools for auditing and challenging related-party transactions, and changes the obligations imposed on taxpayers conducting such transactions.
Transfer Pricing
February 9th 2018 03:57 PM
Beginning in February of 2018, the Belgian tax authorities will initiate a new wave of transfer pricing (TP) audits. The central transfer pricing investigation team (TP Unit) is investing in additional manpower and changing investigation approaches to increase the effectiveness of audits. Taxpayers should also expect more scrutiny on TP matters from other tax departments, such as the Large Companies Department and the Special Tax Inspectorate (BBI/ISI), given specific training was recently conducted to educate these field inspectors on new international tax developments and given the enhanced collaboration protocols those tax departments now have with the TP Unit. Taxpayers may also be increasingly faced with joint/multilateral audits and the international exchange of information through such audits. The TP Unit is teaming with foreign tax authorities more frequently to conduct investigations and check consistency of taxpayer information.
Transfer Pricing
July 25th 2018 05:27 PM
On 29th June 2018, the Peruvian Tax Administration (SUNAT) published the Superintendence Resolution. The resolution establishes the scope and deadlines for the presentation of the Master File (MF) and the Country-by-Country Report Informative Returns (CbC Report). With this guidance, multinational groups having operations in Peru that have not yet prepared these Informative Returns for Fiscal Year 2017 should do so as soon as possible.
International Tax
July 19th 2018 04:50 PM
On 11 July 2018, the Mexican Tax Authority (SAT) published amendments to the rules for transfer pricing adjustments. The rules provide the definition of transfer pricing adjustments, the types of adjustment, and additional requirements to be met for adjustments to income and deductions. The new rules should provide greater clarity and certainty to taxpayers in Mexico but require more supporting documentation.
Corporate Tax (CT)
July 18th 2018 03:35 PM
The new anti-avoidance rules on profit fragmentation apply from April 2019. They are designed to target abusive arrangements but the draft legislation is much wider. We believe that many normal businesses may need to notify HMRC of arrangements involving overseas entities under the new rules, even if it is clear that no extra tax will ultimately be due. We have brought this to HMRC’s attention but it is unlikely that any industry specific exemptions will be introduced.
International Tax
July 18th 2018 03:22 PM
On 11 July, PwC hosted a webcast featuring PwC specialists who discussed the current state of transfer
pricing strategy for MNEs. This Insight highlights some of those discussions. Watch the webcast replay below and register for future webcasts in PwC’s Tax Reform Readiness series, which addresses other areas affected by tax reform.
Transfer Pricing
July 10th 2018 11:16 AM
The Legislative Council passed the base erosion and profit shifting (BEPS) and transfer pricing (TP) Bill on 4 July 2018.
Transfer Pricing
July 5th 2018 10:11 AM
One of the last missing pieces of the OECD BEPS project, is the development of transfer pricing guidance on financial transactions. While the OECD had pushed back the publication several times, on 3 July it published a first discussion draft (the Draft).
The complexity of the topics and disparate regional approaches has led to the publication of a non-consensus document, within which there are many areas where the OECD is seeking input from commentators. The Draft sets outs various approaches that may be appropriate for the covered topics, without giving explicit guidance. This Tax Insight provides a brief summary of the Draft, while more detailed observations will follow shortly in a Tax Insight and Tax Policy Bulletin
Transfer Pricing
July 4th 2018 11:49 AM
On 3 July 2018, the OECD released their BEPS discussion draft on the transfer pricing aspects of financial transactions. The paper focuses on the accurate delineation of financial transactions under Chapter I of the OECD Guidelines.
Transfer Pricing
June 28th 2018 12:35 PM
The Israeli Supreme Court has upheld two recent District Court decisions requiring a US-parented Israeli subsidiary that provided R&D services to the US parent company to include in its costs in determining its revenue, under a cost-plus formula, option expenses relating to US parent company options granted to the Israeli company's employees.
Transfer Pricing
March 7th 2018 03:26 PM
Forbes determines the Best Countries for Business by rating 153 nations on 15 different factors including property rights, innovation, taxes, technology, corruption, freedom (personal, trade and monetary), red tape and investor protection, weighting each category equally. The UK has risen from last year’s fifth place to first place in 2018.
Transfer Pricing
June 14th 2018 05:14 PM
This article analyses and comments on a recent decree published by the Italian Ministry of Finance (MEF). This is an important step in aligning Italian transfer pricing rules with international standards following BEPS, and the 2017 revisions of the OECD Transfer Pricing Guidelines.
International Tax
June 5th 2018 12:06 PM
The new EU mandatory disclosure rules will come into force on 25 June 2018. Make sure you understand what these rules mean for you.
Transfer Pricing
May 24th 2018 03:30 PM
On 14 May, the IRS's Advance Pricing and Mutual Agreement Program (APMA) released a new template that taxpayers must use when requesting an advance pricing agreement (APA) in the US. The new template updates a proposed draft template that the IRS made available for public discussion in September 2017. An announcement explaining the new template and the IRS response to public comments preceded its release.
Transfer Pricing
May 22nd 2018 04:05 PM
The Decree provides further guidance on application of the arm's length principle and aims to incorporate recent changes following the OECD BEPS project and related changes in the 2017 OECD Transfer Pricing Guidelines. The Decree emphasises the importance of conduct over contract and functions to control risks, as well as explicitly calling attention to penalties.
Transfer Pricing
May 21st 2018 11:17 AM
Many listed and some unlisted companies, whether UK or inbound, will meet the conditions to claim a statutory UK Corporate Tax deduction in relation to their employee share plans. There are a number of conditions to be met to claim this deduction, with one of the most important being that the employee actually acquires shares. Many companies now net settle their awards i.e. the share award is settled partly in shares and partly in cash, with the cash being used to fund the taxes due. This can restrict the statutory deduction the company can claim as employees acquire less shares. Companies should consider the impact of net settlement on their current and historic corporate tax deductions in the UK and how these share awards should be reported on their ERS annual returns.
Transfer Pricing
May 17th 2018 12:17 PM
A consultation draft (practice note) to help policymakers and tax authorities of developing countries address potential profit shifting from mining activities through excessive interest deductions was published on 18 April 2018 by the OECD and the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF). Notwithstanding the limited scope of this report, it offers a glimpse of the OECD's evolving stance on the transfer pricing aspects around interest limitation rules.
Transfer Pricing
May 10th 2018 06:47 PM
The OECD is considering starting two new projects to revise the guidance in Chapter IV (administrative approaches) and Chapter VII (intra-group services) of the Transfer Pricing Guidelines. Interested parties are invited to send their comments on later than 20 June 2018.
Transfer Pricing
May 9th 2018 04:36 PM
In relation to the Australian Country by Country (CbC) reporting rules, the Australian Taxation Office (ATO) has released the timeframes for filing the Australian Local Files for the year ended 31 December 2017 ("Year 2" Australian Local Files) or later. Taxpayers that wish to lodge "Part A" of their Local File instead of completing certain questions on the International Dealings Schedule (IDS) will have until 14 September 2018 to lodge Part A.
Transfer Pricing
April 17th 2018 02:25 PM
On 22 March, the OECD released a final report containing additional guidance on attribution of profits to permanent establishments (the Report). The Report sets forth high-level principles for attributing profits to permanent establishments (PEs), following the two discussion drafts published in July 2016 and June 2017 and public discussions held in November 2016 and November 2017. The Report provides further guidance on the Final Reports on Base Erosion and Profit Shifting (BEPS) published in October 2015.
International Tax
April 5th 2018 01:36 PM
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
Transfer Pricing
April 3rd 2018 04:21 PM
The IRS intends to amend the Regs.Sec.1.6038-4 country by country (CbC) reporting obligations for US multinational enterprise (MNE) groups that qualify as a "specified national security contractor".
Transfer Pricing
April 5th 2018 08:26 AM
On March 30, 2018, the IRS Advance Pricing and Mutual Agreement Program (APMA) issued its 19th Annual Statutory Report (the Report) concerning Advance Pricing Agreements (APAs).
Transfer Pricing
March 28th 2018 09:38 AM
This is the first BAPA between both countries, and is also one of the very few Competent Authority cases (including Mutual Agreement Procedures) between an EU jurisdiction and the Government of the Indonesian Republic. The BAPA concerns the arm's length remuneration for the use and exploitation of intangibles by an Indonesian operational company, and licensed by a Belgian company.
Transfer Pricing
April 3rd 2018 10:52 AM
New transfer pricing legislation and guidelines came into force in Singapore on 23 February 2018. These codify transfer pricing (TP) requirements for the preparation of TP documentation, provide guidance on how these rules are to be applied and introduce new penalties and fines for non-compliance.
International Tax
March 12th 2018 11:00 AM
On 24 February 2017, the Vietnamese government released transfer pricing decree No. 20/2017/ND-CP: “Providing the tax administration applicable to enterprises having controlled transactions” (Decree 20). Decree 20, which is effective from 1 May 2017, is understood to apply to taxpayers with a year end after this date.
Transfer Pricing
March 8th 2018 03:11 PM
UK Transfer Pricing legislation provides that it is to be interpreted “in such manner as best secures consistency" with a specific version of the OECD Guidelines. Until now this was the 2010 version as amended by the OECD’s final Base Erosion and Profit-Shifting (BEPS) Report of October 2015.
Tax Dispute Resolution
March 13th 2018 09:59 AM
HMRC has published a new Statement of Practice about the use of MAP - the process by which a tax resident from one country can ask their tax authority to enter into discussions with their counterpart if they believe they are not being taxed in accordance with the relevant double tax treaty.
Transfer Pricing
February 15th 2018 04:07 PM
As a result of a modification to article 32-H of the Federal Tax Code (FTC), the due date has been amended for filing simplified informative returns on tax situation (ISSIF per its Spanish acronym).
International Tax
February 20th 2018 11:14 AM
The 2017 tax reform reconciliation act (the Act) - the largest overhaul of the US tax code in 31 years - is already having a substantial impact on US taxpayers, including on operating models and business strategy decisions.
Transfer Pricing
February 9th 2018 03:57 PM
Although the selection, approach, and criteria used to conduct an audit will remain largely unchanged for 2018, it is expected that the process will change starting next year, when the Belgian tax authorities will have access to country-by-country reporting data, the Master File and the Local File/specific Belgian Local Form.
International Tax
February 1st 2018 01:14 PM
On 27 December 2017, the Argentine Congress passed comprehensive tax reform, which became effective as of 1 January 2018. It contains a number of important changes related to transfer pricing...
Transfer Pricing
January 24th 2018 02:22 PM
On 13 November 2017, the Taiwan Ministry of Finance (MOF) announced amendments to the Rules Governing Assessment of Profit-seeking Enterprise Income Tax on Non-Arm's Length Transfer Pricing (TP Assessment Rules). Subsequently, on 13 December 2017, the thresholds for the Master File and the Country-by-Country Report (CbC Report) were announced. A three-tiered approach, including the existing Local File and newly introduced Master File and CbC Report, will apply starting from fiscal year 2017.
Transfer Pricing
January 23rd 2018 01:57 PM
On 21 January 2018, the IRS Large business and International (LB&I) Division on issued five memoranda providing administrative guidance to examiners on several key transfer pricing related examination issues. The memoranda also highlight certain technical transfer pricing issues that remain priorities for LB&I. In general, the memoranda reflect the IRS's broader intent to deploy effectively its limited examination resources and to be selective and strategic in the types of transfer pricing issues it decides to pursue.
Transfer Pricing
January 16th 2018 01:26 PM
The Canada Revenue Agency (CRA) recently confirmed that a Canadian taxpayer must file a 2016 country-by-country (CbC) report as a constituent entity (CE) in Canada - even if a CbC report is filed by the group's ultimate parent entity (UPE) or surrogate parent entity (SPE) in another jurisdiction - in all cases where (1) Canada does not have an activated exchange agreement with the jurisdiction of the UPE or SPE by 31 December 2017 or (2) has an activated agreement but it is not in effect for fiscal years beginning 1 January 2016.
Transfer Pricing
April 17th 2018 02:25 PM
On 22 March, the OECD released a final report containing additional guidance on attribution of profits to permanent establishments (the Report). The Report sets forth high-level principles for attributing profits to permanent establishments (PEs). The new additional guidance indicates that the high-level principles should apply regardless of whether the countries involved have adopted the principles of the Authorised OECD Approach (AOA) to attributing profits to PEs. It addresses issues surrounding commissionaire structures and the anti-fragmentation rules covered in the report on BEPS Action 7 issued on 5 October 2015 and under the Multilateral Instrument (MLI). In general, while offering some helpful and welcome views, the Report is limited to providing high-level guidance.
International Tax
December 12th 2017 09:27 AM
There have been dramatic improvements in tax transparency over the past decade. However, challenges still remain. High profile leaks, such as the release of the 'Panama' and the 'Paradise' papers by the International Consortium of Investigative Journalists (ICIJ), underscore the widespread use of offshore structures to hide beneficial ownership of assets and income.
Tax
October 17th 2017 09:44 AM
The OECD recently issued a new handbook outlining 19 Transfer Pricing and BEPS risks and risk assessment options available to Tax Authorities to determine if multi national enterprises (MNEs) groups are exhibiting those risk.
Country by Country Reporting - are you prepared for XML conversion
November 15th 2017 12:00 PM
UK headquartered groups caught by Country by Country Reporting (CbCR) rules with December year ends, the deadline for their first submission is 31 December 2017. The report must be made in the form of an XML document. You cannot submit a pdf or alternative file format. PwC's service takes your excel or word CbC report and with limited additional effort from you converts the information into an XML format ready for submission.
Transfer Pricing
November 7th 2018 04:17 PM
The revised OECD Transfer Pricing Guidelines (2017) include a detailed risk analysis framework to guide taxpayers and tax authorities on the allocation and assumption of risk under the arm's length
principle. The purpose of this article is to review the current stance of tax authorities globally as to how they are intending to use this risk analysis framework in practice.
Transfer Pricing
October 6th 2017 05:37 PM
This article looks at some of the transfer pricing views China and India have been asserting, the influence they have had on the BEPS programme and what might be expected in the future.
Transfer Pricing
October 6th 2017 05:40 PM
Before BEPS asking a TP practitioner what does DEMPE mean? might have elicited a strange response, but BEPS has changed all that. This article discusses DEMPE functions, what are they, which are important and what do they mean for a transfer pricing analysis.
Transfer Pricing
October 6th 2017 03:48 PM
This article discusses what the future holds for Advance Pricing Agreements (APAs) and, potentially, other traditional dispute avoidance tools such as the Mutual Agreement Procedure (MAP).
Transfer Pricing
October 6th 2017 03:54 PM
The rules governing customs duties and transfer pricing often don't align. Managing these inherent disconnections is complex, time consuming and challenging for businesses.
This article discusses how to effectively manage these tensions and gain additional cross tax efficiencies and reduce risk/administrative burden.
Transfer Pricing
October 6th 2017 03:48 PM
The future for multinational group includes increased disclosure, complexity and controversy therefore APAs are increasingly attractive, but the global tax environment is changing and has implications for taxpayers and tax authorities.
Transfer Pricing
September 20th 2017 09:22 AM
PwC's submitted response to the OECD for PricewaterhouseCoopers International Limited on behalf of its network of member firms welcoming the opportunity to comment on the OECD’s second Public Discussion Draft on Additional Guidance on the Attribution of Profits to Permanent Establishments and requesting a chance to speak at the subsequent public consultation.
Corporate Tax (CT)
December 11th 2017 04:06 PM
Changes to the global transfer pricing environment post-BEPS have required taxpayers and practitioners alike to reconsider transfer pricing policies for intra-group operational transactions.
Tax
October 3rd 2017 04:00 PM
This Tax Insight, from Transfer Pricing, analyses some of the potential benefits for multinationals operating in the Middle East of preparing and maintaining a TP Masterfile and TP local files on a selective basis.
Transfer Pricing
October 3rd 2017 03:00 PM
HMRC recently released its 2016/17 statistics in relation to transfer pricing and diverted profits tax. In the years from 2011/12 to 2016/17, HMRC secured £5.914 billion of additional tax by challenging the transfer pricing arrangements of multinationals. DPT was first applied in 15/16.
Transfer Pricing
September 20th 2017 09:16 AM
The PwC response to the OECD discussion draft on profit splits released in June 2016
Transfer Pricing
May 6th 2020 10:04 AM
The current crisis has caused significant business disruption for almost every industry, but with particular impact on certain industries. Many real estate investment trusts (REITs) face difficulties as their tenants struggle to meet lease obligations, their real estate assets decline in value, and the ability of their employees to work remotely is challenged. Like many other businesses, REITs must adjust their operations to deal with business disruption arising from the current environment.