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
- Last month, we celebrated our 10th anniversary memorably at a party at Henkenshage Castle in St. Oederode. It was a joyous occasion with friends, colleagues, partners, and clients. We would like to express our thanks to everyone who attended and made the event truly special. Thank you for your presence and for the wonderful memories we created together.
- We are delighted to share the news that Simone Vos has been promoted to Manager as of 1 July. Simone has been a valuable member of the Quantera Global team since 2021 and has consistently demonstrated confidence, expertise, and dedication.
Quantera Global specialties
In the past month, we have completed several challenging and interesting projects worth mentioning, such as:
- Setting up a financial transactions policy for an Inhouse Bank function within a multinational;
- Performing benchmark analyses for various functions;
- Assisting a multinational in meeting its transfer pricing documentation requirements.
If you would like to know more about these topics, please feel free to contact us.
QG Academy Webinars
As part of the 10th anniversary series of country-specific webinars, we are hosting a webinar on 13 July in cooperation with WTP Advisors’ Guy Sanschagrin and Michael Bredahl. This webinar will focus on US transfer pricing developments over the past decade.
During this webinar, the following topics will be discussed:
- Summary of key developments in transfer pricing in the U.S.;
- The various types of intangible assets and the need to understand their context within a multinational enterprise;
- The Tax Cut and Jobs Act including GILTI, FDII and BEAT;
- Proposed U.S. Treasury rules regarding transfers of IP;
- OECD Pillar II, the global minimum tax, and potential for double taxation in the U.S.; and
- Controversies and risks including the new guidelines for review and acceptance of APAs and recent tax cases.
For more information or to register for any upcoming webinars, please visit our website https://www.quanteraglobal.com/group-sessions/
You can watch our previous webinars here.
News from around the world:
Brazil
The Brazilian president has signed a law introducing substantial modifications to Brazil’s transfer pricing system, moving from the traditional formula-based rules to an arm’s length standard aligned with the OECD Guidelines.
Czech Republic
The Ministry of Finance has published a bill proposing the introduction of a top-up tax, based on the difference between a calculated effective tax rate and 15%. The measure is applicable to corporations and permanent establishments in groups with turnover over €750 million.
Denmark
The Danish Tax Agency postpones the deadline for submitting the annual tax return by 8 weeks. This means that the deadline will be moved from 30 June to Friday 25 August2023. The specific deadline to be moved concerns companies with financial years following the calendar year, i.e. ending on 31 December. The deadline for submitting Transfer Pricing documentation according to Section 39, subsection of the Tax Control Act. 3, is correspondingly extended by eight weeks.
On 1 June 2023, the Danish parliament approved legislation that transposes the EU Directive 2021/2101, mandating the adoption of public country-by-country reporting for specific companies and branches operating in Denmark, with the bill largely conforming to the directive’s provisions and implementation timeline.
Germany
The German Federal Ministry of Finance issued updated Administrative Principles for Transfer Pricing, providing guidance on the interpretation of the arm’s-length principle, including updated rules on cross-border transfer of functions and intercompany financing transactions.
Israel
An Israeli district court ruled that a US company that acquired an Israeli company, and subsequently implemented royalty arrangements and R&D services, resulted in a deemed taxable transfer of functions assets and risks. The factors considered were retroactive agreements, lack of standalone economic interests, insufficient separation of IP, transfer of patents, declining value, and the difficulty of establishing a control premium.
Luxembourg
The Advocate General of the Court of Justice of the European Union has expressed the view that the European Commission made a mistake in its assessment of Luxembourg granting illegal State aid to Amazon, as the Commission wrongly used the OECD Transfer Pricing Guidelines rather than Luxembourg’s domestic law as a benchmark to determine whether there was a selective advantage.
Netherlands
A bill was submitted transposing the EU Pillar Two Directive into national legislation, after amendments were made to the bill and explanatory notes following responses and discussions during the internet consultation launched in October 2022.
Switzerland
Switzerland has approved a constitutional amendment to introduce Pillar One and Pillar Two, allowing the transitional implementation of Pillar Two rules by ordinance until a permanent tax bill is passed. The bill is expected to be effective from 1 January 2024, while no specific plans have yet been made for the implementation of Pillar One.
Thailand
The Board of Investment of Thailand has introduced a measure for existing and new applicants with significant revenue, requiring them to assess the impact of Pillar Two on their effective tax rate in Thailand and consider converting to or applying for the new corporate income tax reduction regime to maintain the country’s appeal as an investment destination for multinational enterprises.