We are pleased to share the most important national and global developments in tax law that are (closely) related to the transfer pricing world
Quantera Global news, developments, and blogs
- On 28 September we published a general blog about the published BEFIT proposal, TP Directive and the HOT Proposal. In this blog we briefly discuss the proposals, the objectives and the expected timeline. You can find the blog here.
- We also published more detailed blogs about the TP Directive (here) and the BEFIT proposal (here). In these blogs we highlighted some of the key elements of both Directives.
- On 21 September we hosted a webinar together with Steven Carey, managing director of Kroll Hong Kong. The webinar focused on transfer pricing and related topics from an Asian perspective.
Quantera Global specialties
In the past month, we have completed several challenging and interesting projects worth mentioning, such as:
- Setting up a new worldwide transfer pricing policy for a large commodity trader.
- Support and filing of BAPA-requests with the competent authorities.
- We prepared loan pricing grids for various intercompany loans with different currencies and tenors. A loan pricing grid is a pragmatic solution to determine interest rates for various intercompany loans with roughly similar terms and conditions.
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, on 12 October hosted a webinar in cooperation with Shiv Mahalingham, Partner of The Cragus Group. This webinar focused on transfer pricing and related topics from an UAE perspective. If you have any questions regarding this topic, or would like to receive a recording of the webinar, please reach out to qgacademy@quanteraglobal.com.
We have also scheduled the following webinars:
- 14 December on Scandinavia
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
Belgium
On 20 September the General Court of Justice of the European Union (CJEU) issued a judgement that the exemption of certain ‘’excess’’ profits of Belgian entities in a multinational group, should be considered as unlawful State aid.
European Commission
On 12 September the European Commission published several proposals. The published proposals are the following:
- The ‘Business in Europe: Framework for Income Taxation’ (BEFIT) proposal: this proposal introduces a common set of rules that is used to determine the tax base for groups of companies.
- Proposal for a TP Directive: this proposal aims to harmonize the transfer pricing principles and establish a common approach in the EU.
- Proposal for a Head Office Tax System for SMEs: this proposal makes it possible for SMEs with cross-border PEs to only communicate with the tax administration in the country of the Head Office.
All proposals aim to reduce compliance costs and create more tax certainty.
For more information, reference is made to our blogs:
Italy
On 11 September, the Italian Government published draft legislation to implement BEPS Pillar Two measures. This legislation has to be implemented in national legislation by 31 December 2023 and should be effective starting 1 January 2024.
Kenya
On 4 September draft TP legislation was published for consultation in Kenya. The draft TP rules are mostly in line with the international OECD TP Guidelines.
OECD
The OECD published the comments that were received on the public consultation regarding Pillar One Amount B. The consultation was part of the implementation of the Two-Pillar solution to Address the Tax Challenges Arising from the Digitalization of the Economy.
Poland
On 16 September, the amendments to the transfer pricing decrees became active, that were initially published on 5 December 2022. The amendments are relevant for years starting on or after 1 January 2022.
The Netherlands
- On 11 September the deputy Minister of Finance shared a memorandum in which he answered questions regarding the Minimum Taxation Directive.
The Dutch government had their Budget day on 19 September. The published budget proposals still need to pass through Parliament and are subject to changes.