Quantera Global news, developments, and blogs
- The Quantera Global team wishes everyone a happy new year! We are excited about what 2024 has in store and we are eager to connect with you throughout the year.
- We are delighted to announce that Emile Monfils has accepted our invitation to join us as Managing Director from 1 January. Emile has been part of the Quantera Global team since 2014 and over the years has held increasingly responsible positions and shown leadership qualities in various roles.
- Quantera Global webinars
- On 5 December, we hosted a webinar together with Cintli Chacon, an international Tax Expert and Business advisor based in Panama. The webinar focused on both European and Latin American Transfer Pricing topics.
- On 14 December, we hosted a webinar on transfer pricing topics in Scandinavia in cooperation with Censio Tax partners.
- You can watch our previous webinars here.
- As we step into 2024, we are gearing up for new webinars. To stay informed about our upcoming schedule, please check our website for the latest updates.
If you would like to know more about these topics, please feel free to contact us.
Quantera Global specialties
In the past month, we have completed several challenging and interesting projects worth mentioning, such as:
- We assisted several multinationals meet their FY 2022 country-by-country reporting obligations
- We assisted a mid-sized multinational optimise their transfer pricing policy in Western Europe
- We assisted a multinational analyse and document the applicability of Pillar 2 safe harbours. Want to know more? Please click here for more information.
If you would like to know more about these topics, please feel free to contact us.
Pillar Two Update
EU
On 23 December, the European Commission released a set of “frequently asked questions” addressing the interpretation and/or transposition of the EU minimum tax directive.
OECD
On 18 December, the OECD published further administrative guidance on the Pillar Two rules.
Local implementation updates:
5 Dec – Hungary: The Pillar Two global minimum tax act passes into Hungarian law.
7 Dec – Denmark: The final bill of the Minimum Tax Act is agreed upon and finalised.
8 Dec – Slovakia: Parliament approves the Law on minimum Slovak top-up tax for multinational enterprise groups and large-scale domestic groups.
11 Dec – Finland: The Parliament approves the proposal for the Pillar Two legislation in Finland.
12 Dec – Bulgaria: Amendments are made to the Corporate Income Tax Act allowing the country to incorporate the directive into national law.
13 Dec – Malaysia: The Finance Bill 2023 is approved, introducing Pillar Two rules with effect from 1 January 2025.
14 Dec – Austria: The final bill is approved by the first chamber of Austrian Parliament.
14 Dec – Belgium: Parliament adopts Pillar Two global minimum tax rules and endorsed the final law.
14 Dec – Slovenia: After amendments the final law is approved.
14 Dec – Sweden: The Parliament votes for the implementation of Pillar Two legislation.
15 Dec – Czech Republic: the President signs the law implementing Pillar Two global minimum tax and the new legislation became effective on 31 December 2023.
15 Dec – Germany: The German lower house approves the law allowing Germany to implement the Pillar Two global minimum tax.
18 Dec – Ireland: Legislation for Pillar Two signs into law.
19 Dec – Gibraltar: An update is given through a press release. Draft legislation is expected early in 2024.
19 Dec – Netherlands: Enactment of the 2024 Tax Plan package and law for Pillar Two global minimum tax.
20 Dec – Luxembourg: Enactment of law implementing Pillar Two global minimum tax.
21 Dec – Hong Kong: Release of a consultation paper on the implementation of Pillar Two global minimum tax.
22 Dec – Switzerland: The Swiss Federal Council makes the decision to implement the QDMTT, effective as of 1 January 2024, as part of the Pillar Two rules. The decision for the introduction of other elements from the Pillar Two rules will be made later.
28 Dec – Italy: Publication of the Legislative Decree implementing Pillar Two.
News from around the world:
China
On 26 December, the State Taxation Administration released the 2022 APA Annual Report, showing an upward trend in the signing of advance pricing arrangements (APAs) in China.
Ecuador
A new version of the Technical Sheet for the Standardization of Transfer Pricing Analysis has been published by the Ecuador Tax Authority. The Technical Sheet is applicable as of FY2023 and has been amended regarding filing procedures and the content of the Local File, among other things.
Luxembourg
- On 5 December, the CJEU overturned the General Court’s 2018 findings of unlawful State aid to ENGIE companies through Luxembourg tax rulings, emphasising misinterpretations of Luxembourg law. This judgment reinforces limitations on the Commission’s use of State aid rules in challenging tax rulings, emphasising the importance of accurate local legal interpretation and consideration of administrative practices.
- On December 14, the CJEU upheld Amazon and Luxembourg’s victory, dismissing the European Commission’s appeal against a 2021 General Court judgment which found Amazon did not receive unlawful state aid from Luxembourg. The case revolved around the arm’s length nature of a royalty paid by a Luxembourg operating company to a tax-transparent entity, with the CJEU emphasizing the inapplicability of OECD transfer pricing guidelines in Luxembourg law.
Netherlands
- On 5 December, the Dutch Senate approved legislation to implement the EU Public Country-by-Country Reporting Directive. The legislation closely aligns with the Directive, allowing in-scope groups a safeguard clause for temporary omission under justified reasons, while requiring publication on the company’s website, with the rules set to apply for financial years starting on or after 22 June 2024.
- On 15 December, a Dutch company, part of a global tobacco group, faced tax corrections and penalties for the years 2013-2016. The dispute related to a business restructuring, financial transactions and royalty payments. The court upheld the appeal, annulling the 2013 assessment and reducing assessments for 2014-2016. Notably, penalties related to factoring fees were imposed, while fines for other matters were not imposed due to insufficient evidence of intent. This case underscores the importance of transfer pricing documentation.
- On 19 December, the new Dutch ruling decree was published, updating the 2019 version and including, amongst others, sections on the global minimum taxation law and triangular BAPA/MAPA cases.
United States
The IRS published its view on the effect of group membership in determining the arm’s length rate of the interest charged for intragroup loans, by releasing a legal advice memorandum.