In this Newsletter we would like to keep you up to date on relevant Transfer Pricing developments in an
We are pleased to keep you informed about 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.
You may 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:
- Transfer pricing documentation update: now is the right moment to act!
Most countries require companies to prepare transfer pricing documentation on a yearly basis. In our newest blog, we briefly explain why this is the right moment to update your transfer pricing documentation to 2019. Please take a look at our blog here.
- TP Risk Assessment Tool
Our new Transfer Pricing Risk Assessment Tool is now available. The tool consists of 15 questions and provides you automatically with a risk indication of your transfer pricing position and potential practical solutions for the identified risks. Interested? Please take a look at the tool at our website or send an e-mail to firstname.lastname@example.org.
We held webinars last month on Brazilian TP/Tax and OECD and Introduction to Transfer Pricing. We were proud to see that such a large audience participated. You can find the recordings here. Please find below the schedule for our upcoming free webinars:
- September 15: Transfer pricing developments India
- September 22: Transfer pricing & Mandatory Disclosure
- October 8: Financial Transactions
- October 22: Transfer pricing developments and year-end topics
- November: Transfer Pricing in the Middle East and North & Central Africa
- November 18: The good hope (our thoughts about current TP developments)
- December 3: What to expect for 2021
To register for one or more webinars, please send a short e-mail to QGAcademy@QuanteraGlobal.com indicating for which webinar you would like to register.
News around the world:
- The Australian Tax Office (ATO) confirmed that Australia’s transfer pricing rules should be interpreted consistently with the 2017 OECD transfer pricing guidelines.
- On August 12th, the ATO published guidance on financial transactions regarding the risk assessment of interest free loans and new thin capitalisation rules.
- On August 14th, the ATO released guidance outlining its concerns with “offshore gearing” structures.
In Belgium, the deadline for filing of the Local File (the 275LF Form) has been extended to October 29th, 2020.
On August 3rd, the Colombian Tax Office released a form that taxpayers have to use in order to register agreements related to transactions that involve commodities. Non-compliance can lead to a less favourable position during a tax audit but does not trigger any direct penalties.
- Czech Republic
On August 19th, the Czech Financial Administration has announced that for DAC-6 the deadline to report arrangements is deferred until February 28th, 2021. The 30-day deadline to report arrangements for the period between July 1st, and December 31st, 2020 begins on January 1st, 2021.
Ecuador’s tax authority has published technical standards for the implementation of their transfer pricing regime.
In August, the Egyptian parliament approved the implementation of the MLI.
Due to COVID-19, the French tax administration has extended the filing of the annual transfer pricing return for FY 2019 to December 31st, 2020 in line with the extension for filing the tax return.
- Hong Kong
The Hong Kong Inland Revenue Ordinance has updated its transfer pricing guidance to reflect new laws on taxation of royalties and other IP income.
- In the Samsung Heavy Industries case, the Indian Supreme Court has ruled in favour of Samsung. The central question was whether Samsung’s communication office was not qualified to perform the necessary technical activities, and only performed auxiliary services.
- On August 7th, guidance was published containing detailed information on the procedure for resolving cross-border tax disputes under MAP.
- In Italy, a court reaffirmed that cost paid for the purchase of goods are deductible for corporate income tax (CIT) purposes, even if the relating invoice is issued by a related entity, while another related party has in fact provided the products. Since there was a direct link between the party that provided the products and the party that sent the invoice, and there was no fraud committed, the deduction of costs cannot be prevented by the Italian tax authority.
- In addition, Italy has enacted DAC 6 into law and has simultaneously opted for the six-month deferral that is the result of COVID-19. The first reporting deadlines are therefore due starting 2021.
Kenya has deposited its instrument of ratification for the Multilateral Convention on Mutual Assistance in Tax Matters with the OECD.
Malta has published regulations regarding the implementation of EU anti-tax avoidance directives.
The Philippine Bureau of Internal Revenue has issued guidance on a new form that has to be filed by the taxpayer. The information in this file will be used by the tax authority to make a risk assessment.
- Portugal has published a law that will extend the original deadlines of the DAC 6 reporting obligations due to COVID-19. The first deadline is extended to December 1st, 2020. This affects the notification from the intermediaries to the relevant taxpayers.
- The second deadline is extended to – February 28th, 2021 and is relevant for the intermediaries and relevant taxpayers that should communicate the domestic or cross-border arrangements with tax relevance implemented between June 25, 2018 and June 30, 2020.
- Russia wants to update the tax treaty with the Netherlands, Luxembourg, Malta, and Cyprus in order to tax dividend and interest payments made from Russia to offshore entities at 15 percent. Since then, Malta and Cyprus have agreed to amend the tax treaty.
- The Russian tax authority has provided guidance on how to address intercompany group services. The guidance that is provided is a large step towards the OECD approach on taxation of intercompany group services.
- South Korea
South Korea announced the 2020 tax reform proposals that will become effective for the fiscal years beginning from January 1st, 2021. The proposals contains amongst others an extension of the rollback period for APAs, amendments to transfer pricing forms and documentation, and also an extension of loss compensation, a repeal of the foreign tax deduction method, as well as a reduction of the securities transaction tax.
On 18 August 2020, the Taiwan Ministry of Finance released draft amendments to certain provisions of the regulations governing transfer pricing assessments of non-arm’s length transactions by profit-seeking enterprises.
- United Kingdom
The United Kingdom has published a report on the likely profile of intermediaries affected by the DAC 6 disclosure.
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
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