We are pleased to share the most important national and global developments in tax law that are (closely) related to the transfer pricing world.
Please feel free to contact us if you have any questions.
Quantera Global news, developments, and blogs
- 2023 Pillar 2 pilots: We started the first Pillar 2 pilots with our clients to determine their initial Pillar 2 position. Feel free to contact us for more information to be well prepared before 2024.
- On 6 February, we published our blog on key developments in the Dutch transfer pricing landscape. The blog can be found here
- On 16 February, we hosted our second Quantera Global 10-year anniversary webinar where we discussed key developments in the Brazilian transfer pricing landscape. Interested in the recording? Please e-mail qgacademy@quanteraglobal.com.
- On 2 March, we published a blog on comparability analysis, highlighting 2 steps that should not be forgotten. The blog can be found here
- On 21 March, we published a blog describing what transfer pricing entails and the fundamental aspects. It can be found here
- We are hiring! An overview of our vacancies can be found here.
Quantera Global specialties
In the past month, we completed several challenging and interesting projects worth mentioning, such as:
- We supported a Dutch multinational in establishing its most appropriate arm’s length prices by performing benchmark studies for the various functions it performs.
- We redesigned the transfer pricing policy of a stock exchange listed multinational.
- We filed an innovation box request for a Dutch multinational enterprise.
If you would like to know more about these topics, please feel free to contact us.
QG Academy Webinars
On Wednesday 5 April, we hosted our Quantera Global 10-year anniversary webinar on TP automation.
We discussed the following topics:
- Changes over the past 10 years in relation to TP compliance.
- Growing your business in TP compliance
- The advantages of Coperitas in streamlining TP automation
We have also scheduled the following webinars:
- 11 May – Quantera Global 10 years webinar series: Germany
- 15 June – Quantera Global 10 years webinar series: Poland
For more information or to register for any upcoming webinars, please visit our website https://www.quanteraglobal.com/group-sessions/
You can watch our previous webinars here.
News from around the world:
Angola
Angola has become a member of the Global Forum on Transparency and Exchange of Information for Tax Purposes. The Forum’s goal is to increase global transparency and exchange of information in the fight against tax evasion and avoidance.
Germany
The German Ministry of Finance published its discussion draft for the implementation of the EU Minimum Tax Directive on 20 March. The EU Minimum Tax Directive is generally in line with OECD’s Pillar Two proposal, except that it includes some provisions specific to the European economy.
India
The Bengaluru Bench of the Income-tax Appellate Tribunal ruled that transfer pricing regulations apply to a transaction with an unrelated entity if that entity becomes an associated enterprise in the same tax year.
Japan
The Japanese National Tax Agency published a ruling that appointing an external lawyer as a representative and obtaining a registration (as required under the Companies Act)does not constitute a permanent establishment in Japan.
The Netherlands
On 3 March, the Dutch Supreme Court (Hoge Raad) ruled that interest expenses on a loan from an associated company are deductible if those funds were rerouted through an active group financing company. The issue was whether article 10a of the Dutch Corporate Income Tax Act would deny interest deductibility as the loan was rerouted and who had the burden of proof.
Mexico
Mexico has deposited its instrument for implementing the Multilateral Tax Convention to implement tax treaty-related measures to prevent base erosion and profit shifting. The MLI will enter into force on 1 July 2023.
Montenegro
The Montenegrin Parliament enacted a set of amendments to its tax laws. One of the new provisions stipulates that transactions between a Montenegrin branch office and its headquarter in another jurisdiction have to be included in the local file.
OECD
The OECD held a virtual meeting on 16 March 2023. In the virtual meeting, stakeholders had the opportunity to to exchange views with the OECD on the input they had provided on the implementation of the Global Minimum Tax.
Peru
The Peruvian Tax Court ruled that a legal entity, established in Canada, was entitled to treaty benefits under the Peru – Canada Tax Treaty as the Peruvian Tax Authority could not prove the existence of an artificial structure.
Poland
The Polish Ministry of Finance held a public consultation on clarifications regarding transfer pricing regulations related to the cost-plus method.
Spain
On 7 March, the Spanish Ministry of Finance opened a public consultation on the implementation of the EU Minimum Tax Directive.
Sweden
The Swedish government has presented draft legislation to implement the EU Directive requiring qualifying multinationals operating in the EU to publicly disclose information on a country-by-country basis. The legislation is set to become effective on 22 June 2023.
Thailand
The Thai Cabinet has approved measures to implement the Global Minimum Tax. The Government is in the process of drafting legislation to implement the Global Minimum Tax in 2025. Through grants to qualifying investors, Thailand aims to remain competitive in light of international tax reforms.
United States
US President Joe Biden presented his budget for the fiscal year 2024. The budget includes measures to increase the tax on share buybacks from 1% to 4%, an increase in the corporate income tax rate from 21% to 28%, a raise in the tax rate for US companies’ foreign earnings from 10.5% to 21% and adopting the undertaxed profits rule as part of the implementation of the global minimum tax.
Uruguay
Uruguay’s Tax Office has issued a resolution providing further clarification on Uruguay’s corporate income tax substance requirements.
Vietnam
On 22 March, Vietnam signed the Convention on Multilateral Assistance in Tax Matters. The implementations aim to increase international cooperation for tax administrations and to prevent tax evasion and avoidance.