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
- On 20 January, we published a blog on price setting vs price testing mechanisms. The blog can be found here.
- On 26 January, we hosted the first Quantera Global 10-year anniversary webinar where we discussed the major developments in the Dutch transfer pricing landscape. This webinar kicked off of our 10th anniversary series of country specific webinars. Interested in the recording? Please send an e-mail to qgacademy@quanteraglobal.com.
- We are hiring! An overview of our vacancies can be found here.
If you would like to know more about these topics, please feel free to contact us.
Quantera Global specialties
In the past month, we completed several challenging and interesting projects that are worth mentioning, such as:
- We assisted MNE’s in the process of determining an arm’s length rate for royalty payments.
- We have held strategic sessions to discuss the client’s current transfer pricing policy, concerns, opportunities, risks and additional hurdles in a restructuring.
If you would like to know more about these topics, please feel free to contact us.
QG Academy Events & Webinars
On Thursday 16 February, we will host the second webinar of the Quantera Global 10-year anniversary webinar series which will focus on Brazil.
During this webinar, the following topics will be discussed:
- The introduction of Provisional Measure No. 1.152, which will implement the new Brazilian transfer pricing system;
- Legislative procedures to approve or reject the Provisional Measure;
- The effective date of the new legislation;
- Differences between the existing and new transfer pricing system;
- Documentation and comparability analysis
- The OECD perspective from a Dutch perspective
To register for the upcoming webinar, please visit our website https://www.quanteraglobal.com/group-sessions/.
We also have the following webinars scheduled:
- 23 March: The United Kingdom
- 20 April: How to grow your business utilizing TP automation
In 2023, we will host several country-specific webinars on a monthly basis. To register for one or more webinars, please visit our website https://www.quanteraglobal.com/group-sessions/.
You can watch our previous webinars here.
News from around the world:
Argentina
The Argentine Tax Authority has published a resolution introducing an obligation to report certain international transactions. The resolution enters into force during the fiscal year of the reporting entity that closes on or after 1 August 2022.
Brazil
The Provisional Measure 1,152/2022, introducing new Transfer Pricing rules in Brazil has yet to be approved by the Brazilian Congress. The Measure must be approved within 60 calendar days of publication, which can be extended to another 60 calendar days.
If you would like to know more about the new rules on transfer pricing in Brazil, please contact your trusted Quantera Global advisor and we will share a presentation with you on this topic, prepared by our alliance office in Brazil.
Costa Rica
On 12 January 2023, the Costa Rican tax authorities published a resolution with criteria for the use of information in the Transparency and Beneficial Ownership Register. The resolution includes cases such as foreign companies not filing the register return or when shareholders of a legal entity are domiciled in a non-cooperative jurisdiction. The new resolution is in force as of 1 January 2023.
Denmark
The Danish Supreme Court has issued a ruling in two beneficial ownership cases. The respective cases were previously submitted to the Court of Justice of the European Union (CJEU) in a preliminary ruling. These cases follow the CJEU decisions and therefore have consequences for the Danish dividend withholding taxes.
European Parliament
The European Parliament has approved the European Commission’s Anti-Tax Avoidance Directive 3 (ATAD 3) as amended by the Committee on Economic and Monetary Affairs. The amendments made entail the scope, reporting requirements and enforcement and consequences of non-compliance.
Hungary
The Minister of Finance issued a Transfer pricing decree which introduced a new transfer pricing reporting obligation that includes information to be provided in the corporate tax return. The new reporting obligation applies to corporate income tax returns filed after December 2022.
Italy
The Italian Parliament has approved a new law, including rules on reducing costs related to blacklisted jurisdictions and the transition of tax on undistributed profits from low-tax subsidiaries.
Korea
Korea adopts new global minimum tax rules which align with OECD’s Pillar Two plan. The new set of rules will become effective for fiscal years beginning on or after 1 January 2024.
OECD
- On 5 January, the OECD Forum on Harmful Tax Practices (FHTP) published the results indicating the progress of the implementation of jurisdictions addressing harmful tax practices.
- The OECD reached consensus on a new assessment methodology for the peer review process. Amongst others the new process entails a simplified peer review process for jurisdictions that do not have a significant MAP process in place.
- The OECD has published new FAQs on the Model Reporting Rules for Digital platforms (MRDP). The FAQ answers questions from businesses and governments.
- The OECD has updated the FAQ on the Disclosure Rules for Addressing CRS Avoidance Arrangement and Opaque Offshore Structures. The update aims to clarify the scope, application and administration of the rules.
Peru
- The Supreme Decree 326-2022 came into force on 1 January 2023. The Decree amends the former rules determining the fair market value of securities.
- In January 2023, a new law came into force that provides for a temporary increase in the deduction rates for R&D expenses until 31 December 2025.
Poland
The Minister of Finance has published a notice on the simplification of the safe harbour for loan, credit, or bond (debt) transactions between related parties in 2022, effective per 1 January 2023.
South Africa
The South African tax authorities have issued an interpretation note on the treatment of intra-group loans, providing guidance on the consequences if the amount of debt, the cost of debt or both do not comply with the arm’s length principle.
Spain
The Ministry of Finance has published a draft list of Non-Cooperative jurisdictions for tax purposes. The list does not only include jurisdictions but also preferential tax regimes.
The Netherlands
Clarification on the scope of article 8bd CITA 1969 has been published. Article 8bd may not be applicable in specific cases where a taxpayer acquires an asset from an affiliated entity not subjected to a profit tax, with a capital contribution as described in article 8bd.
The United States
The Internal Revenue Service (IRS) has issued guidance on the application of the new 15% Corporate Alternative Minimum Tax (CAMT). The IRS clarifies for which companies the CAMT applies and sets out guidance regarding the calculation.