Quantera Global Newsletter – August 2026

In this edition of the newsletter, you will find 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.

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Quantera Global news, developments, and blogs

• On 3 July, we published a blog post explaining why transfer pricing policies can fail in practice and how clear responsibilities, standardisation and ongoing monitoring can support effective implementation. Read the blog here. 
    
• On 17 July, Rudolf Sinx joined the NOB’s PoortPraat Special on Transfer Pricing, discussing current transfer pricing developments, international guidelines and documentation requirements. The podcast is available in Dutch. Listen here. 
     
• On 13 August, we published a blog on Romania’s new and strict transfer pricing documentation requirements, prepared with input from our network partner TPS Romania. The blog covers the revised thresholds, mandatory SPV filing for large taxpayers, expanded file content requirements and new benchmarking rules. You can read the blog here. 
     
• Do you want to know more about our international alliance network? Please visit our website here, which also includes recently published testimonials of our network partners. 

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Quantera Global Specialties

In the past month, we successfully completed several challenging and noteworthy projects, including: 

• Credit ratings, debt capacity and interest rate analyses for several significant intercompany loan transactions.
     
• Supported a to-be set-up joint venture with their transfer pricing model and how to deal fairly towards the underlying partners.
     
• Prepared a template local file and underlying reports in a way that creates consistency and an efficient roll-out towards multiple jurisdictions and future years.

If you would like to know more about these topics, please feel free to contact us. 

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News from around the world

Argentina

On 3 July, ARCA published a General Resolution, creating a unified contract registration regime for commodity exports. The rules replace two previous regimes and provide an important control framework for transfer pricing compliance by validating export prices involving quoted goods and entities in non-cooperative or low-tax jurisdictions. The regime applies to operations registered from 1 August and requires exporters to register definitive export contracts before shipment. 

Australia 

• On 1 July, the Taxation Amendment Rules 2026 entered into force. The rules amend Australia’s 2024 global and domestic minimum tax rules to incorporate elements of the OECD Pillar Two administrative guidance from December 2023, June 2024 and January 2026. The amendments cover blended CFC allocation keys, the substitute loss carry-forward DTA, flow-through entities and administration and safe harbour rules, including a 12-month extension of the transitional CbCR safe harbour. 

• On 9 July, the ATO updated the guidelines on global and domestic minimum tax filing obligations. The update reflects the OECD common understanding on central GIR filing and exchange for the 2024 fiscal year. It confirms that Australia will provide relief where the GIR has been centrally filed in a listed jurisdiction by the relevant deadline and the GIR notification has been filed locally on time. In these cases, the ATO will waive penalties that may otherwise apply to local GIR filing obligations and will not enforce local GIR filing before the relevant GIR exchange deadline. 

Belgium 

• On 1 July, the Belgian tax authorities opened the portal for submitting domestic top-up tax and IIR returns, as well as notifications of the general representative. The deadline for submitting the DTT and IIR return is 30 September 2026. 

• On 13 July, the Belgian tax authorities published guidance on the notification of the GIR filing entity and opened the MyMinfin portal for submitting these notifications. The guidance confirms that a single Belgian entity may be designated to file one GIR notification on behalf of all Belgian constituent entities. The notification must be submitted electronically in XML format and is separate from the notification of the general representative and the registration notification requirements. 

Brazil 

The following updates have been provided by our network partner, Castro Barros. 

• “Brazilian Federal Revenue Service Updates Guidance on Brazil’s Pillar Two Domestic Minimum Tax 

On 19 June, the Brazilian Federal Revenue Service (RFB) issued new guidance updating the rules applicable to Brazil’s CSLL Additional, the domestic top-up tax mechanism adopted in connection with Pillar Two of the OECD/G20 BEPS project. 

The CSLL Additional is Brazil’s domestic minimum top-up tax mechanism designed to operate as a qualified domestic minimum top-up tax (QDMTT) under the Global Anti-Base Erosion (GloBE) Rules. Its purpose is to preserve Brazil’s taxing rights over low-taxed profits of Brazilian Constituent Entities of multinational groups that fall within the scope of the global minimum tax rules. 

The new regulation operationalizes the option to allocate and centralize payment of the CSLL Additional in a single Brazilian Constituent Entity of the multinational group. In practice, the election is made through payment using the specific Brazilian federal tax collection code applicable to centralized payment. 

The regulation also addresses cases in which the fiscal year used for the Country-by-Country Report (CbCR) differs from the fiscal year of the relevant jurisdiction for purposes of applying the Transitional CbCR Safe Harbour. In those cases, multinational groups may elect to use CbCR information for the fiscal year that either ends within, or begins within, the jurisdictional fiscal year. The election is irrevocable and applies to all fiscal years covered by the transitional rule. 

In addition, Constituent Entities will be required to submit the information necessary to determine the CSLL Additional, including relevant allocations and elections, through an ancillary reporting obligation to be further regulated by the RFB. 

• Brazil Promulgates Amending Protocols to Double Taxation Treaties with Sweden and Singapore 

On 9 June, Brazil promulgated protocols amending its double taxation treaties with Sweden and Singapore, bringing both instruments into full domestic effect. The changes are relevant for multinational groups with Brazilian inbound or outbound payments involving technical services, royalties, dividends and interest. 

• Brazil–Sweden 

The protocol amending the Brazil–Sweden double tax treaty introduces several material changes to the treatment of cross-border payments. 

One of the most relevant changes is that payments for technical services and technical assistance are treated, for treaty purposes, under the royalties article. As a result, such payments may be subject to withholding tax in the source State, generally at a maximum rate of 10%. A 15% rate applies to royalties arising from the use of, or the right to use, trademarks. 

The protocol also revises the maximum withholding tax rates applicable to dividends and interest. For dividends, the withholding tax rate is limited to 10% where the beneficial owner directly holds at least 10% of the capital of the company paying the dividends for an uninterrupted 365-day period, and to 15% in all other cases. For interest, the protocol provides a general maximum withholding tax rate of 15%, reduced to 10% for certain qualifying long-term bank financing arrangements. 

The protocol further clarifies that Brazilian interest on net equity (juros sobre capital próprio, or JCP) is treated as interest for treaty purposes. It also introduces a most-favoured-nation clause covering future concessions granted by Brazil to OECD member States outside Latin America with respect to dividends, interest and royalties, as well as updated anti-abuse and exchange-of-information provisions. 

Although the decree was promulgated in Brazil on 9 June 2026, the protocol had already entered into force at the international level on 13 June 2025. Its withholding tax provisions generally apply to payments made or credited on or after 1 January 2026. 

• Brazil–Singapore 

The protocol amending the Brazil–Singapore double tax treaty is narrower in scope. Its main tax amendment concerns the treatment of interest. 

Under the revised rule, interest arising in one Contracting State and beneficially owned by the Government of the other Contracting State, one of its political subdivisions, or an agency wholly owned by that Government or political subdivision, including a financial institution, is taxable only in that other State. 

The protocol also makes a technical amendment to the treaty protocol regarding annuities. It forms an integral part of the Brazil–Singapore treaty and produces effects in accordance with the effective-date provisions of the original treaty.” 

Canada 

On 3 July, the Federal Court considered a dispute over the Canada Revenue Agency (“CRA”)’s partial denial of interest relief in connection with a bilateral APA involving Canada and South Korea. LG Electronics Canada sought interest and penalty relief on the grounds that delays in the APA programme and a processing error relating to its advance payments were beyond its control. The Court set aside CRA’s decision and remitted the matter to a different CRA delegate, meaning LG Electronics Canada was successful in having the decision overturned. However, the Court declined to direct specific factual findings or impose a redetermination deadline, as the CRA remains responsible for deciding the merits and the case did not justify closer judicial control. 

Chile 

On 20 July, the Chilean Tax Administration issued a ruling clarifying that the comparability factors used to determine the normal market value of intangibles are illustrative rather than exhaustive. The ruling confirms that, in principle, a DEMPE analysis may be used to assess the normal market value of intangibles. Its suitability must be assessed in each specific case, considering the circumstances of the transaction. 

Colombia 

On 2 July, the Supreme Administrative Court considered the interest rate applied to a USD loan between related parties. The Colombian tax authority argued that the rate was below market value and applied a domestic treasury bond rate, while also challenging the debtor’s BB+ rating and the treatment of passive association. The Court ruled in favour of the taxpayer and held that a domestic Colombian interest rate could not be applied to a foreign-currency loan with a foreign related-party debtor. The Court found that Colombian peso and USD debt markets are not comparable without adjustments and confirmed that passive association is different from an explicit guarantee and does not require separate remuneration. 

European Union 

On 8 July, the European Commission sent reasoned opinions to Belgium, Bulgaria and Cyprus for failing to fully transpose DAC9. DAC9 introduces the EU framework for standardised collection and automatic exchange of top-up tax information returns under Pillar Two. The three Member States have two months to respond and take the necessary measures. 

France 

On 9 July, a ministerial order implementing the public CbCR reporting template was published in the French Official Journal. The order was dated 3 July and sets out the required electronic filing format. It aligns the French reporting format with the EU standard template and electronic reporting rules. As a transitional measure, reports may be prepared in a free electronic format for financial years beginning between 1 January 2025 and 31 December 2026. 

Greece 

• On 1 July, the Greek Independent Authority for Public Revenue issued guidance on the submission and exchange of GloBE Information Returns (GIRs). The guidance covers the filing procedure and XML requirements. 
   

• On 9 July, the Greek tax authorities extended the deadline for filing top-up tax returns to 30 November for groups whose reporting fiscal year ends on or before 31 March 2025. The GIR filing platform was also made available. 

Hungary 

On 10 July, the Hungarian tax authorities published guidance on transfer pricing documentation and reporting. The guidance explains the requirements under the new decree that applies as of 24 January, including master file and local file obligations, simplified local documentation, low value-added services, aggregation, data sources and reporting. It also reflects the tax authorities’ expectations on documentation strategy and the use of accounting data for transfer pricing purposes. 

India 

On 24 July, the Central Board of Direct Taxes released its annual APA report for FY 2025-26. The report shows a record year for India’s APA programme, with 220 APAs signed, including 84 bilateral APAs. It also highlights India’s first bilateral APAs with France, Indonesia, Ireland and Sweden, improved resolution timelines and administrative changes linked to the Income-tax Act 2025 and Income-tax Rules 2026. 

Japan 

On 22 July, the National Tax Agency released guidance on the Japanese GIR system for GloBE Information Return filings. The guidance explains the registration process for users, the preparation and submission of GIR XML files and related correction procedures. It also confirms practical points for electronic filing through Japan’s e-Tax system. 

Luxembourg 

• On 17 July, Bill 8795 was filed with the Luxembourg Parliament to incorporate the OECD side-by-side package into Luxembourg’s Pillar Two law. The draft legislation would amend the rules on minimum taxation for MNE groups and large-scale domestic groups, following the OECD. It also confirms the treatment of Cyprus as having a qualified Pillar Two IIR for relevant purposes. 
   

• On 22 July, the Luxembourg Administrative Court considered whether a partial interest waiver on an intra-group loan to a financially distressed affiliate and the deduction of related bond interest were in line with the arm’s length principle. The Court ruled in favour of the taxpayer and rejected the tax authorities’ treatment of the waived interest as a hidden contribution. It concluded that the restructuring had to be assessed based on the economic circumstances and realistic options available at that time. An independent lender could reasonably accept an interest waiver to avoid a worse default or liquidation scenario, especially where unrelated parties were involved and additional guarantees were obtained. 

Malaysia 

On 30 July, the Inland Revenue Board issued transfer pricing guidelines on controlled financial transactions, focusing on intra-group loans. The guidelines address the accurate delineation of financial transactions, including whether a transaction should be treated as debt or equity. They also provide guidance on creditworthiness, implicit group support, the use of CUPs and the cost of funds method, as well as documentation requirements and the simplified method for eligible taxpayers. 

Mauritius 

On 13 July, the Mauritius Revenue Authority issued a communiqué extending the deadline for submitting DMT Tax returns and paying DMT Tax. The deadline is extended to one month after the regulations implementing the DMT Tax are promulgated. The DMT Tax applies from the year of assessment commencing on 1 July 2025 and applies to resident companies forming part of in-scope MNE groups with fiscal years ending on or after 1 January 2025. 

OECD 

• On 15 July, the OECD released a working paper on MNE responses to the Global Minimum Tax. The paper provides an early empirical assessment of whether the rules have affected effective tax rates, investment and employment, using 2024 financial and ownership data. The OECD also released its 2026 economic impact assessment, which estimates higher effective tax rates and reduced profit shifting, while finding no statistically significant evidence of reduced investment or employment in the first year of implementation. 
   

• On 21 July, the OECD published its report “Corporate Tax Statistics 2026”. The report provides updated data on corporate tax revenues, statutory and effective tax rates, R&D tax incentives and BEPS-related indicators. It also includes anonymised and aggregated CbCR data on almost 9,400 MNEs headquartered in more than 60 jurisdictions.  

Panama 

On 1 July, Resolution 201-4247 of 16 June was published in the Official Gazette and entered into force. The Resolution updates the Transfer Pricing Informative Report Form 930 V 3.0 for fiscal year 2026 and subsequent years. It also amends the related annexes on financial information, fixed assets and related parties. The form must be filed within six months after the end of the fiscal year through the DGI’s e-Tax 2.0 platform.

Poland 

The following updates have been provided by our network partner, BTTP. 

• Strict requirements for the loan safe harbour regime 
   

The safe harbour regime for related-party loans remains an area of particular relevance for transfer pricing purposes. In its judgment of 28 April 2026, case no. II FSK 1605/24, the Supreme Administrative Court confirmed that the interest rate must be determined using the relevant base rate and margin specified in the Minister of Finance’s announcement applicable on the date the loan agreement is concluded. Consequently, an interest calculation mechanism based on an averaged WIBOR 3M rate derived from several selected quotations does not qualify for safe harbour protection, even if it is intended to reflect market practice. Importantly, the judgment does not establish that an averaged WIBOR rate is inherently non-arm’s length. Rather, where the statutory calculation method is not followed, the taxpayer must demonstrate the arm’s-length nature of the interest rate under the general transfer pricing rules, for example by means of a benchmarking analysis (link here). 

• Intra-group guarantees under transfer pricing scrutiny 

Pricing intra-group financial guarantees requires a detailed assessment of their actual economic and legal effects. In its judgment of 8 June 2026, case no. I SA/Gl 1405/25, the Provincial Administrative Court in Gliwice reviewed a case in which the tax authorities reduced a guarantee fee paid to a Swedish parent company from 1% to 0.134%, treating the guarantee as largely formal and attributing only limited functions, assets and risks to the guarantor. The Court set aside the tax decision, finding that the authorities had not sufficiently analysed the actual transaction, including the guarantor’s legal exposure and risk, the binding legal consequences of the guarantee and the fact that it was a necessary condition for obtaining external bank financing. The judgment is particularly relevant for taxpayers using intra-group guarantees, as it indicates that a legally binding guarantee cannot be reduced to implicit group support or a mere formality without proper transaction delineation and a comprehensive FAR, benefit and comparability analysis (link here). 

• No transfer pricing rules where redemption price is set by law 

The redemption of investment certificates by a closed-end investment fund may fall outside the Polish transfer pricing regime where the redemption price is determined directly by law. In a recent individual tax ruling, the Director of KIS confirmed that the repurchase of investment certificates from related fund participants for the purpose of their cancellation is covered by the exclusion under Article 11b(1) of the CIT Act. The ruling concerned a transaction in which the redemption price was equal to the fund’s net asset value attributable to one investment certificate, calculated on the basis of the asset valuation as at the redemption date, as required by the Polish Investment Funds Act. As the parties had no discretion to negotiate or otherwise influence the pricing mechanism, the transaction was not subject to the Polish transfer pricing regime (link here). 

• Advance invoices count towards transfer pricing thresholds 

In Poland, advance invoices should be taken into account when determining the value of a controlled transaction for transfer pricing purposes, even if the advance has not yet been recognised as taxable revenue. This approach was confirmed in a recent individual tax ruling issued by the Director of KIS concerning an intra-group service transaction for which a PLN 2 million advance invoice was issued in 2025 and partially settled through a subsequent invoice. The ruling indicated that the full amount of the advance invoice should be included in the transaction value for that year, while the settlement invoice should not be counted again, as this would result in double counting. Since the value of the transaction was exactly PLN 2 million and the documentation threshold is triggered only once that amount is exceeded, no transfer pricing documentation or reporting obligations arose for 2025. The taxpayer’s position was nevertheless formally regarded as incorrect because it relied on recognised revenue and the settlement invoice rather than on the advance invoice (link here). 

• Share redemptions without remuneration may fall within TP rules 

A voluntary redemption of shares without remuneration may be subject to transfer pricing rules even if it does not generate taxable income for the company redeeming its own shares. This approach was confirmed in an individual tax ruling issued by the Director of KIS after the case returned from the administrative courts. The ruling concerned the planned redemption, without remuneration, of shares held by a related foreign investment fund. Although the Director of KIS confirmed that the redemption would not result in taxable income for the company, it held that the transaction may constitute a controlled transaction because its terms, including the absence of remuneration, may be influenced by the relationship between the parties. Consequently, the tax authorities may examine whether independent parties would have agreed to the redemption on the same terms and, if the absence of remuneration lacks an arm’s length justification, determine the company’s taxable income under Article 11c of the CIT Act (link here). 

Romania

• On 2 July, Order No. 827/2026 was published in the Official Gazette, amending the procedures for issuing and amending APAs. The order confirms that an APA cannot be requested solely for a prior period and introduces a standardised annex for presenting intra-group transactions covered by the APA application. 
   

• On 2 July, Order No. 828/2026 was published in the Official Gazette, with, amongst other things, a significant update on Romania’s transfer pricing documentation requirements. You can read our blog on this topic here. 

Singapore 

On 21 July, IRAS updated the list of jurisdictions with which Singapore exchanges CbC reports under the CbCR MCAA. Greenland was added to the list for financial years beginning from 1 May 2024. 

Spain 

On 1 July, the High Court of Justice of Madrid considered the valuation of advertising and communication services invoiced through a company wholly owned by the individual who had previously provided similar services personally. The tax authorities argued that the services were performed by the shareholder and that the company added only limited ancillary value. The Court dismissed the taxpayer’s appeal and ruled in favour of the tax authorities. It upheld a cost-plus method with a 5% mark-up for low value-added services, noting that the company had limited resources, the shareholder’s involvement was indispensable, and the taxpayer had not proposed an alternative valuation method. 

Turkey 

On 11 July, Presidential Decision No. 11511 was issued, identifying jurisdictions that qualify for the QDMTT safe harbour and jurisdictions that apply a QDMTT or IIR under the Pillar Two rules. The decision contains separate lists for the QDMTT safe harbour, QDMTT implementation and IIR application. It became effective on 11 July, with retroactive effect for accounting periods beginning on or after 1 January 2024. 

United Arab Emirates 

On 15 July, the Federal Tax Authority issued a Public Clarification on downward transfer pricing adjustments in corporate tax returns. It confirms that prior approval is not required to make such adjustments, although they may be reviewed during a tax audit. The clarification also sets out mandatory disclosure and documentation requirements, including the rationale for the adjustment, an arm’s length analysis, reconciliation with the tax return and evidence of corresponding adjustments by related parties. It applies only to adjustments required under article 34(1) of the Corporate Tax Law. 

United Kingdom 

On 13 July, the UK government published draft legislation for Finance Bill 2026-27, including amendments to the UK Pillar Two rules. The draft legislation implements the OECD side-by-side package published in January 2026 and includes further technical updates to the multinational top-up tax and domestic top-up tax rules. The side-by-side package is expected to apply for accounting periods beginning on or after 1 January 2026. 

Vietnam 

On 1 July, Decree 255/2026/ND-CP took effect and applies from the 2026 CIT period onwards. The decree replaces the previous related-party transaction rules and keeps the core transfer pricing principles largely unchanged, while introducing several updates. These include a higher revenue threshold for transfer pricing documentation exemptions, a priority order for comparable data sources, amended CbCR rules based on the EUR 750 million threshold and new notification requirements for Vietnamese entities within MNE groups. 

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Final words 

Thank you for taking the time to read this edition of our newsletter. I hope you found the insights and updates valuable. Do you have any questions or need further information? Contact us today to get expert advice on worldwide transfer pricing matters and developments. 

If you have not already done so, subscribe to our Quantera Global newsletter here and join over 2,000 finance and tax leaders in receiving our newsletter, webinar invitations, latest trends, and sneak peeks into the world of transfer pricing in your inbox every month.  

Best regards, 

Adriaan van der Heijden
Partner at Quantera Global

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