Quantera Global Newsletter – March 2021

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.

Send an e-mail to TPnews@quanteraglobal.com or call us at +31 88 221 5800 and we will introduce you to the relevant professional.

Quantera Global news, developments, and blogs:

• Quantera Global new office announcement

Quantera Global has opened a new office in Amsterdam, located at the Apollolaan 151. By opening our new Amsterdam office, we can intensify our support to our constantly growing client base in this region. Furthermore, it enables us to further strengthen the cooperation with our partners in the financial district (Zuidas).

If you would like to drink a (virtual) cup of coffee with us in our new office, please do not hesitate to contact us.

• Quantera Global team update

We are happy to announce that as of February, Bas Gemmink has joined the Dutch Quantera Global team. Bas is 22 years old and just finished his bachelor’s degree in Tax Economics at the Tilburg University. Welcome to Quantera Global Bas!

• Quantera Global winner of the Corporate INTL Global Awards 2021

Quantera Global has been chosen as the winner of the 2021 Corporate INTL Magazine Global Award ‘International Transfer Pricing Advisory Firm of the Year in the Netherlands – 2021’. Corporate INTL’s annual awards mark excellence for the world’s leading advisers and financiers in an array of countries and continents around the globe. We feel proud to be part of this group.

• Quantera Global specialties

In the past month, we performed several challenging and interesting projects worth mentioning, such as:

• We were the first Transfer Pricing advisory firm to contact the Dutch APA team in a specific case regarding the influence of COVID 19 on the APA. We had a positive consultation with the authorities.
• We performed transfer pricing tests for the substantiation of NOW rules (Dutch COVID-19 support measure).
• We performed Purchase Price Allocations (PPAs) via transfer pricing and contribution analyses. In these analyses, we have determined an allocation key for the entities included in the transaction, given their relative contribution in the company’s value chain.

If you would like to know more about these topics, please feel free to contact us.

• Webinars

In 2020 we started hosting free-of-charge webinars on a variety of Transfer Pricing topics. This became an instant success. Therefore, we will continue these webinars in 2021. We currently have the following webinars scheduled:

• 4 March: The Good Hope
• 25 March: Transfer Pricing Risk Management: compliance & organization
• 22 April: Transfer pricing developments Africa
• 20 May: Transfer Pricing Controversy
• 26 May: Transfer Pricing developments in the United States
• 17 June: Transfer Pricing Risk Management: APAs & MAPs

To register for one or more webinars, please visit our website https://www.quanteraglobal.com/group-sessions/ and select the webinar you would like to register for.

You can watch previous webinars by clicking on this link.

News around the world:

• Australia

The Australian Taxation office (“ATO”) updated their guidance on permanent establishments due to travel restrictions emerged because of COVID-19. The update will cease to apply on 1 July 2021.

• Canada

Taxpayers will no longer have to provide a cost-recovery charge when requesting an APA. The change of regulations was published on February 5, 2021.

• Croatia

As of January 1, 2021, the maximum tax deductible interest rate on loans received by a taxpayer from a foreign related-party has fallen to 3% per year. Likewise, the minimum taxable interest rate on loans provided by a taxpayer to a foreign related-party has also fallen to 3% per year.

• Denmark

The Danish Parliament has adopted amendments that further tighten its comprehensive transfer pricing documentation regulations. The amendments introduce a mandatory submission requirement of the Master file and Local files (of all Danish entities) to the Danish Tax Authority within 60 days after the income tax return due date. The new rules are effective for income years starting from January 1, 2021.

• Dominican Republic

The Dominican Republic tax authority increased their transfer pricing documentation thresholds as well as their tax haven list for 2021.

• EU
• Public CbCR gets go-ahead in the EU as the EU ministers in the Competitiveness Council (COMPET) agreed on February 25 that public CbCR should be introduced.
• Some updates have been made to the EU list of non-cooperative jurisdictions. Dominica has been added to the non-cooperative blacklist by the European Council and Barbados has been placed on the “grey list”. Namibia, Morocco, and Santa Lucia were removed from the document, having fulfilled all their commitments.

• Guernsey

The online reporting system of Guernsey has been changed which has an impact on future reporting obligations of financial institutions. From February 1, a different CRS XML scheme must be used. The changes are also applicable for CbCR filings.

• Maldives

The Maldives Inland Revenue Authority provided an English translation of the country-by-country reporting regulations.

• Malaysia
• As of January 1, 2021, taxpayers have 14 days instead of 30 days to submit transfer pricing documentation when requested by the Malaysian tax authority.
• The Guide on Digital Services of August 1^st, 2020 is withdrawn and replaced with the Guide on Digital Services by Foreign Service Provider, as of February 1^st, 2021. Effective January 1^st, 2020 the service tax shall be levied on any digital service provided by a foreign registered person (FSP) to any consumer in Malaysia. The rate is 6%. FSP is mandatory to be registered when the total value of digital services provided to a consumer in Malaysia exceeds RM 500,000 (approx. €102,500) per year.

• Netherlands
  • The Netherlands has concluded a tax treaty with Chile that meets the BEPS standard.
  • The State Secretary for Finance has set up a committee which will be looking into flow-through companies. Amongst others, the committee is asked how much tax these companies pay in the Netherlands and how this relates to their contribution to the real economy.

• OECD
• The assessment on the resolution of cross border tax disputes in the remaining final 13 countries has been published. In phase two, the OECD will review if the recommendations have been correctly adopted.
• The OECD Forum on Tax Administration has released a new handbook on International Compliance Assurance Programme (ICAP). On March 12, the OECD will publish a list of tax administrations taking part in ICAP.

• South Africa
• The Court in South Africa upheld a transfer pricing adjustment for a taxpayer, that failed to support the arm’s length nature of an intercompany transaction with transfer pricing documentation.
• South Africa has extended its deadlines for country-by-country reporting.

• Taiwan

Offshore e-commerce suppliers that sell cross-border electronic services to individuals in Taiwan and have annual sales exceeding NT $480,000 (approx. € 14,275) must apply for tax registration and must file tax returns in Taiwan.

• Thailand

For accounting periods commencing on or after January 1^st, 2020, Thailand requires transfer pricing disclosures to be filed online. Only companies with Baht 200 million (approx. € 5.5 million) or more in revenues in an accounting period must file the disclosure form with the Thailand revenue department.

• United States of America

From now on, CbC reports will exchange automatically between the USA and Argentina. Entities no longer need to file reports in both countries.

This information is intended only as a general update for interested persons and should not be used as a basis for decision-making. For further details please contact Quantera Global, Eindhovenseweg 128, 5582 HW Waalre,
the Netherlands, phone: +31 88 221 58 00, e-mail: TPnews@quanteraglobal.com