The Quantera Global team wishes everyone a happy new year! We look forward to 2023 with great anticipation. It will be a special year for us, as we will celebrate our 10th anniversary. For more information, keep an eye on our newsletter, website and our LinkedIn page.
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
- In December we hosted two webinars: 1) the top 10 critical TP-issues from an Indian and Dutch perspective; and 2) what to expect in 2023 from a transfer pricing perspective. The recordings of the webinars can be found here.
- 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 a multinational in implementing a new transfer pricing policy within their organisation.
- We assisted several multinationals in preparing and filing their CbCR-forms.
- We reviewed intercompany agreements of a multinational and reviewed whether the financial transactions policy was correctly implemented by the company.
If you would like to know more about these topics, please feel free to contact us.
QG Academy Events & Webinars
On Thursday 26 January, we will kick off our series of country-specific webinars to mark our 10th anniversary. We will start with the country where Quantera Global B.V. started in 2013, namely the Netherlands.
After a brief overview of the major developments over the past 10 years, we will discuss the main current Dutch TP legislation, as well as the developments that we expect for 2023 onwards.
During this webinar the following topics will be discussed:
- The main developments in Dutch TP over the past 10 years
- Main Dutch TP legislation
- The Dutch 2022 TP decree
- The impact of international developments on Dutch TP practice (MAPs, BAPAs, joint audits, Pillar 2)
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:
Brazil
On 29 December 2022, draft legislation was published that transforms the current transfer pricing rules into a set of rules consistent with the OECD-based rules. This also results in the adoption of the arm’s length principle in Brazil. If the draft legislation is approved, adoption will be optional in 2023 and mandatory from 2024 onward.
Canada
On 15 December 2022, the C-32 Bill was transposed into law by the Canadian Parliament. The C-32 bill entails several business and international income tax measures such as the general anti-avoidance rule (GAAR) and interest coupon stripping rules.
Croatia
The United States and Croatia signed their first income tax treaty and protocol on 7 December 2022. Among other things, the treaty enacts for a lower withholding tax on cross-border dividends and a number of anti-abuse rules.
European Union
On 12 December 2022, EU member states reached an agreement to implement the OECD’s minimum taxation, known as Pillar 2. The Pillar 2 directive must be transposed into the Member States’ national law by 31 December 2023.
Italy
The Italian parliament deliberates on introducing the 2023 budget bill that includes a provision with a PE exemption for foreign investment funds (if certain conditions are met).
Morocco
On 16 December, a temporary suspension of CbCR requirements was granted.
Serbia
The Ministry of Finance has published a Rulebook which entered into force on 24 December 2022. The published Rulebook can be used as a safe harbour to set interest rates on intercompany loans.
Slovakia
Slovakia has transposed the EU directive implementing the CbCR for public authorities. The EU directive will come into force for fiscal years starting on 22 June 2024 or later.
Spain
Spain has implemented the EU directive providing for public corporate governance. The EU directive will enter into force for accounting periods beginning 22 June 2024 or later.
Switzerland
On 16 December 2022, the Federal Council approved the introduction of the minimum tax rate through a constitutional amendment. A temporary law can ensure the enforcement of the minimum tax rate on 1 January 2024.
OECD
- On 15 December, the OECD/G20 Inclusive Framework approved the document providing guidance on safe harbours and penalty relief under the Pillar Two Global Anti-Base Erosion (GloBE) rules.
- The OECD has published several consultation documents seeking comments regarding:
- the progress made in defining what in-country baseline marketing and distribution arrangements are regarding Amount B of Pillar One;
- the withdrawal of digital service taxes and other relevant similar measures under Pillar One and an implementation package for Pillar Two; and
- tax certainty for Pillar Two GloBE rules.
Romania
Romania has implemented the EU Directive which enacts public CbCR. Romania implements public CbCR from financial years starting on or after 1 January 2023. The CbCR requirements apply to companies with subsidiaries in Romania which fulfill certain requirements.
The Netherlands
- On 29 November, the Dutch Ministry of Finance announced the launch of a new project to tackle ‘’remarkable tax arrangements’’. Part of the project is an internet consultation where everyone is invited to propose remarkable constructions.
- On 6 December, The Dutch State Secretary of Finance published a policy decree regarding Dutch Dividend Withholding Tax and Dutch Conditional Withholding Tax on Interest and Royalties.
The United Arab Emirates
The UAE Ministry of Finance has issued a new law which imposes UAE corporate tax on businesses. The new law enters into force from the beginning of the first financial year that starts on or after 1 June 2023.
The United Kingdom
HMRC has published draft regulations coming into force on or after 1 April 2023 for Corporation tax purposes. The draft regulation introduces master file and local file requirements in accordance with the OECD Transfer Pricing Guidelines (if the threshold is met) and provides HMRC the power to introduce the requirement for multinationals to produce a Summary Audit Trail (SAT).