Topical Analyses Highlights
VAT & Sales TaxCzech RepublicAuthor: Milan Tomíček> Quick fix related to call-off stock approved.
> Quick fix relating to chain transactions approved.
> Quick fix relating to zero-rating intra-Community supplies of goods approved.(Reviewed up to 1 September 2020)SingaporeAuthor: Li Ming Tan> Electronic customs clearance becomes default for the Hand-Carried Exports Scheme.
> Special measures for filing VAT returns with regard to the COVID-19 pandemic.(Reviewed up to 1 September 2020)South AfricaAuthor: Marlene Botes> Proposed amendment relating to cross-border leases.
> Proposed amendment relating to offences.
> Amendments relating to COVID-19 relief measures.(Reviewed up to 1 September 2020)FranceAuthor: Frédéric Kauffmann> VAT rate on Intra-Community deliveries and purchases of masks and protective clothing adapted to the fight against the spread of COVID-19 made between 24 March 2020 and 31 December 2021.(Reviewed up to 1 July 2020)HungaryAuthor: Zsolt Szatmari(Reviewed up to 1 July 2020)
Corporate / Private Investment IncomeEstoniaGreeceAuthors: Maria Zoupa, Diana Tsourapa> Treaty with Singapore signed.
> Interest limitation rules in line with ATAD Directive introduced.
> Exemption from income tax on capital gains.
> Reduction of the corporate income tax rate.
> Reduction of the dividend withholding tax rate.
> Restatement of the CFC rules.(Reviewed up to 27 April 2020)AustriaIndiaAuthor: Kamesh Susarla> Amendments to incentives related to concessional corporate tax rate.
> Decrease of the minimum alternative tax rate.
> Amendments in dividends taxation.
> Changes to interest withholding tax rates.
> Dividend withholding tax rate of 20% introduced.
> Changes in residence status rules.
> Changes in dividends taxation.
> Changes in income tax rates.
> Withholding tax provision on self-withdrawal in cash introduced.(Reviewed up to 1 April 2020)United KingdomAuthor: Belema Obuoforibo> Protocol with Cyprus effective.
> Protocol with Switzerland effective.
> Protocol with Ukraine effective.
> Decrease of tax on capital gains.
> Protocol with Cyprus effective.
> Protocol with Switzerland effective.
> Protocol with Ukraine effective.(Reviewed up to 1 March 2020)
Transfer PricingPortugalAuthors: Glória Teixeira, Rita Tavares de Pina> Impact of COVID-19 of filing deadlines.
> DAC 6 directive transposed into domestic law.
> Impact of the new OECD guidance on financial transactions in Portugal.(Reviewed up to 15 August 2020)Korea (Rep.)Authors: Stefan L. Moller, T.Y. Nam, S.H. Lee, B.K. Cho> Guidance on low-value-adding intra-group services.
> Change to penalties for non-timely, incomplete or incorrect filing of TP documentation.
> Application of substance-over-form rules to circumventive transactions.(Reviewed up to 22 April 2020)BelgiumAuthors: Isabel Verlinden, Bram Markey, Mathieu Detemmerman> Final circular letter on transfer pricing.
> Amended interest deduction limitation rules.
> Updated guidance on CbC reporting correction procedures.
> Entry into force of the MLI.
> Implementation into local legislation of the EU directives on mandatory disclosure rules.(Reviewed up to 26 February 2020)
Transfer Pricing & Business RestructuringItalyAuthor: Giammarco Cottani> Implementation of Council Directive (EU) 822/2018 (DAC6).
> Consequences of the COVID-19 health crisis.(Reviewed up to 29 July 2020)AustraliaAuthors: Mark Friezer, Louisa Wu> Statement released by the ATO regarding the effects of the COVID-19 pandemic on taxpayer’s businesses.
> Taxpayer Alert (TA 2020/1) on intangible assets released by the ATO.(Reviewed up to 3 July 2020)
Transfer Pricing & Customs ValuationBrazilAuthors: Simone Dias Musa, Clarissa Machado, Alessandra Machado Villas Bôas, Thiago Del Bel(Reviewed up to 15 April 2019)South AfricaAuthors: Billy Joubert, Wian de Bruyn, Ansa du Preez(Reviewed up to 1 April 2019)
Transfer Pricing & Dispute ResolutionBrazilAuthors: Marcelo Natale, Carlos Nicacio> Effects of COVID-19 pandemic on transfer pricing litigation in Brazil.
> The OECD and the RFB launched a joint survey on transfer pricing safe harbours.
> The OECD released the Stage 1 MAP Peer Review Report for Brazil.(Reviewed up to 10 August 2020)United KingdomAuthors: Sarah Bond, Simon Murray> The availability of the EU Arbitration Convention after the United Kingdom’s departure from the European Union.
> The implementation of Council Directive (EU) 2017/1852 of 10 October 2017 on tax dispute resolution mechanisms in the European Union.
> Clarification on recent case law.(Reviewed up to 7 August 2020)AustraliaAuthor: Stewart Grieve(Reviewed up to 31 May 2020)
Transfer Pricing & Intra-group FinanceJapanAuthor: Jun Nakagami> Amended earnings stripping rules introduced in the 2019 tax reform, sec.
> Tokyo district court ruling on existence of economic rationale for intercompany funding, sec.(Reviewed up to 30 November 2019)IrelandAuthor: Joe Duffy> Department of Finance published draft legislation proposing to reform and update the Transfer Pricing Rules.(Reviewed up to 1 October 2019)CanadaUnited KingdomAuthor: Chloe Fletcher> Legislation on hybrid capital instruments introduced.
> Finance Act 2019 introduced legislation on leases.(Reviewed up to 1 September 2019)Netherlands
Permanent EstablishmentsDenmarkAuthor: Anders Endicott Pedersen> OECD Multilateral Convention (MLI) effective.
> Treaty with Armenia and protocol with Brazil effective.
> Protocol to the Nordic Convention effective.(Reviewed up to 31 May 2020)SwitzerlandAuthor: Markus Mühlemann(Reviewed up to 15 May 2020)United StatesAuthor: Diane Ring> COVID-19 relief.
> COVID-19 relief for US trade or business status.
> COVID-19 relief for US permanent establishment status.
> COVID-19 relief for NOL carry-backs.
> COVID-19 relief for NOL carry-backs.
> COVID-19 relief for interest deduction limitation.
> COVID-19 relief for filing tax returns.(Reviewed up to 24 April 2020)NorwayAuthor: Anders Kristian Myhr Ekern> OECD Multilateral Convention (MLI) effective.
> Protocol to the Nordic Convention effective.
> New general anti-avoidance rule (GAAR) introduced.(Reviewed up to 15 March 2020)
Mergers & AcquisitionsFranceAuthors: Benoît Roucher, Florence Olivier, Marie-Pierre Hôo(Reviewed up to 30 July 2020)DenmarkAuthors: Arne Møllin Ottosen, Jonas Lynghøj Madsen(Reviewed up to 1 July 2020)PolandAuthors: Cezary Żelaźnicki, Łukasz Łyczko, Mariusz Kamiński, S. Krempa> Specific anti-avoidance rule on notional interest deduction introduced.
> ATAD II provisions on hybrid mismatches transposed.
> New withholding tax on interest postponed.(Reviewed up to 1 July 2020)NorwayAuthors: Joachim Bjerke, Camilla Jøtun> EU Prospectus Regulation implemented.
> Legislation regarding financial assistance from target companies amended.
> Regulations on the offer price in mandatory offers adopted.
> Temporary carry back of tax losses introduced.
> Statutory general anti-avoidance rule enacted.
> United Kingdom treated as EEA country until year-end 2020.
> Proposal to introduce withholding tax on interest and royalties published.(Reviewed up to 29 June 2020)
Holding CompaniesSwitzerlandAuthors: Xavier Oberson, Jérôme Meyer, Stefan Eberhard(Reviewed up to 1 September 2020)LuxembourgAuthors: Thierry Lesage, Alain Goebel(Reviewed up to 31 August 2020)United KingdomAuthor: Matthew Herrington(Reviewed up to 18 May 2020)AustriaAuthor: Niklas Schmidt> Hybrid mismatch rules and notification obligation regarding reportable cross-border arrangements introduced.(Reviewed up to 1 May 2020)
Investment Funds & Private EquitySpainAuthors: Miguel Lorán Meler, Esther Villa, Ignasi Bruguer> On 3 February 2020, the CNMV approved a Technical Guide on the procedures for the selection of mediating companies for CIIs management companies.(Reviewed up to 24 February 2020)
Tax Risk ManagementCanadaAuthors: Susanna Cooke, Renee Iori, Paula Trossman, Sharvari Kale(Reviewed up to 31 October 2019)United KingdomAuthors: Mark Kennedy, Ian Morgan> The new BRR+ framework was adopted in October 2019.
> On 11 July 2019, HM Treasury released draft legislation and guidance for the introduction of a Digital Services Tax (DST).(Reviewed up to 31 October 2019)FranceAuthor: Clarisse Amadieu-Le Claire> Handbook trust-based relationship with tax administration has been published.
> The implementation into French law of the DAC6 EU Directive is expected very soon.(Reviewed up to 6 October 2019)