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Quantera Global Newsletter – January 2020

In this Newsletter we would like to keep you up to date on relevant Transfer Pricing developments in an accessible manner.

We are pleased to keep you informed about 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.
You may send an e-mail to marketing@quanteraglobal.com or call us at +31 88 221 5800 and we will introduce you to the relevant professional.


Developments and blogs:

  • Country-by-Country Reporting:
    • The OECD has released additional interpretative guidance regarding local filing and published a summary of notification requirements.
    • A proposal of the EU Competitiveness council to make CbC-reporting public was not supported by a majority of EU member states.
  • Digital Economy:
    • Turkey enacts 7.5% digital service tax as of 1 April 2020. Read our blog on this topic here.
    • The “unified approach to pillar one” has several practical issues which were addressed during the OECD’s consultation in Paris.
  • New Transfer Pricing legislation in Poland will apply regarding the resolution of disputes and APAs. Read our blog on this topic here.
  • State Aid: European Commission decides not to appeal Starbucks judgement.

 


News around the world:

  • Benin, Bosnia and Herzegovina, Cabo Verde, Mongolia and Oman: signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.
  • Brazil: is considering two options to bring its transfer pricing rules in line with OECD guidelines, both of which lead to full compliance with the arm’s length principle.
  • Denmark: all companies with controlled transactions are required to disclose information on such transactions in the tax return; previously a threshold applied.
  • Georgia: updated its transfer pricing rules; if an issue is not described in legislation, the 2017 OECD transfer pricing guidelines apply.
  • Germany: a draft law was published on 10 December with several TP related changes. These relate amongst others to financial transactions, intangibles, the Master File threshold and filing, APA program and transfer of function law (stricter).
  • Honduras and Montenegro: join the Inclusive Framework on BEPS.
  • Hong Kong: the filing deadline for local filing of some country-by-country tax reports is extended.
  • Jordan, Kenya & Oman: signed the Multilateral Convention that deals with the implementation of measures related to BEPS in the case of tax treaties.
  • Luxembourg: an EU directive regarding dispute resolution was implemented in domestic tax legislation (signed 20 December 2019).
  • Malaysia: new TP audit framework.
  • Netherlands:
    • Changes are made to the blacklist.
    • New legislation has been implemented:
      • Corporate income tax rate to 16.5% for profits up to €200,000.
      • ATAD 2 is implemented, targeting hybrid structures as the CV-BV structure.
      • Conditional withholding tax in line with “Danish Cases” (effective as of 01-01-2021).
  • New Zealand: tax authorities are now also focusing on foreign distributors in the context of Base Erosion and Profit Shifting.
  • Poland: new TP legislation (as noted above).
  • Serbia: legislation regarding Country-by-Country reporting has been implemented.
  • Sri Lanka:
    • Companies that carry out controlled transactions with affiliated companies are required to submit an annual transfer pricing disclosure form each year.
    • Certification of the arm’s length character of intercompany transactions by an Approved Accountant is no longer required.
    • TP Documentation requirements have been revised; OECD conform and new thresholds and penalties.
  • South Africa: newly introduced definition of ‘associated enterprise’ (which meets global standards). This impacts the number of taxpayers that need to comply with TP compliance requirements and may lead to double taxation as the current definition also remains.
  • Thailand: new guidance on the TP disclosure form.
  • Turkey: new digital tax will be applicable as of 1 April 2020 (as noted above).
  • United States of America: published proposed and final regulations on BEAT.
  • Zimbabwe: Minister of Finance brings some clarity to the proposed 5% e-commerce tax.

 


Quantera Global Academy:

  • The curriculum of the Quantera Global Academy for January till May is available. For more information: www.quanteraglobal.com/qg-acadamy/. Private sessions are offered as well.
  • Due to the success of the first session, Quantera Global will organise its second edition of the ‘Quantera Global Academy’ – Transfer Pricing basics on 22 January 2020.