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  • E-commerce: The global shift in taxation

    Distance-selling regimes that impose a sales tax on digital goods and services are spreading across the globe. Joe Stanley-Smith looks at how these changes are being shepherded by the OECD.


Features

  • Investors and BEPS: A precarious balance

    The OECD BEPS Actions will result in a higher effective tax rate (ETR) and cash tax liability for most multinationals, whereas investors will continue to strive for lower ETRs and cash tax liabilities in the companies they consider for investment. Keith Brockman looks at where the balance should be in this equation, and who should be the master negotiator.

  • Modernising MAP – BEPS Action 14 to improve dispute resolution

    Following approval by all members of the BEPS inclusive framework, the OECD has publicly released the substance and process for the peer review of BEPS Action 14.

  • Q&A: Brazil’s troubled retail sector

    Brazil’s retail sector is shrinking, but governments want more revenue, so where does that leave businesses? The tax chief at international fashion retail company C&A talks to Amelia Schwanke about the changes taking place in the notoriously complicated tax jurisdiction.

  • Build, buy or outsource: Withholding tax reclamation

    Some investors and advisers still believe that the global withholding tax reclamation process is so complex and labour-intensive that it outweighs the advantages, but this is simply not true. Bill Salva, global business development manager at Goal Group looks at the options for reclaiming withholding tax.

  • Nigeria’s insurance industry: An unfair tax burden

    The insurance industry in Nigeria is fighting to reduce an unfair and overburdening tax liability. Adebayo-Begun Oluwatomisin, senior adviser at KPMG Nigeria highlights the big issues affecting the sector, from what is being done to address these challenges, to which other countries provide good structures that support their businesses.

  • International updates - November 2016

    The latest international updates from our correspondents around the world.

  • Global Tax 50 2016

    Now in its sixth year, International Tax Review’s Global Tax 50 provides a rundown of the most influential individuals, organisations and geopolitical events in the tax world. Anjana Haines introduces the top 10 positions of the Global Tax 50 2016 ahead of the full list, which will be released on December 14.


News Analysis

  • Deals of the month

  • A new era for tax litigation in Brazil after Carf courts reform

    Advisers and taxpayers are feeling the effects on an overhaul of Brazil's administrative tax courts (the Carf courts) as they struggle to win tax cases.

  • Taiwan to introduce VAT for online foreign retailers

    Taiwan is to become the latest country to levy a VAT on online foreign retailers, following similar OECD-inspired laws introduced by the EU and countries including Japan, Russia, South Korea, Australia and New Zealand.

  • Ireland’s corporate tax code can only get better, says finance minister

    Irish Finance Minister Michael Noonan has promised that the country's corporate tax system will remain reliable over the coming year, attracting more foreign investment. However, some changes will be made.

  • US regulations crack down on earnings stripping

    The US Treasury and Internal Revenue Service have finalised earnings stripping regulations that reduce the benefit of corporate inversions and limit the ability of companies to lower tax bills through transactions involving debt that does not support new US investment. The regulations also require large companies claiming interest deductions to document loans to and from affiliates.

  • Businesses rush to prepare for UAE VAT

    The United Arab Emirates is on target to implement its VAT regime on January 1 2018, but with the final VAT Law yet to be published, businesses face a tight deadline to make sure they have the tools to comply with the new system.

  • Santander state aid case may prove crucial to Apple’s appeal

    Apple's €13 billion ($14.8 billion) tax battle could hinge on a little-known Spanish case involving Santander bank and Autogrill España restaurants that has been knocking around the European Commission and courts for a decade. A final decision is expected within months.

  • Modernising MAP – BEPS Action 14 to improve dispute resolution

    Following approval by all members of the BEPS inclusive framework, the OECD has publicly released the substance and process for the peer review of BEPS Action 14.

  • Global Tax 50 2016

    Now in its sixth year, International Tax Review’s Global Tax 50 provides a rundown of the most influential individuals, organisations and geopolitical events in the tax world. Anjana Haines introduces the top 10 positions of the Global Tax 50 2016 ahead of the full list, which will be released on December 14.


Editorial


Tax Relief


International Correspondents

  • Albania: Albanian transfer pricing regulations

    Transfer pricing (TP) rules have been present for more than a decade in the Albanian Corporate Income Tax (CIT) Law, but specific and detailed regulations on the application of these rules were only published in the Official Journal No. 70, dated May 20 2014. These changes have totally transformed Article 36 of the Law on Income Tax (No. 8438, dated December 28 1998) by adding seven more provisions on specific rules and actions.

  • Australia: Australia increases focus on MNE tax avoidance and BEPS initiatives

    Recent announcements by the Australian Taxation Office (ATO), including statements by two senior ATO officers, confirm the significant focus on multinational tax avoidance and BEPS-related initiatives by the ATO and more broadly by the Australian government.

  • Brazil: Brazil updates tax haven and privileged tax regime lists

    Brazilian tax authorities (RFB) issued Normative Instruction 1,658/2016 (NI 1,658) that includes Ireland in the list of tax havens (the black list) and also adds the regime applicable to Austrian holding companies to the list of privileged tax regimes (the grey list).

  • Bulgaria: Bulgarian transfer pricing regulations

    Bulgaria fully applies the OECD Transfer Pricing (TP) Guidelines and has had robust TP rules for several years.

  • Canada: Canada introduces draft legislation to broaden back-to-back rules to character substitution transactions

    The 2016 Canadian federal budget proposed to significantly broaden certain rules aimed at preventing the use of back-to-back (BTB) loans to circumvent Canadian tax rules governing the withholding tax treatment of interest payments made in relation to certain transactions involving intermediaries and non-arm's length non-residents.

  • Chile: Tax treatment for cloud computing services provided without a license

    In June 2016, the Chilean tax authority (IRS) issued a private ruling for the first time regarding payments for the provision of cloud computing services that are not offered by granting a license.

  • China: China’s recent measures to comply with BEPS, CRS and the New Silk Road

    Recent months have seen a range of significant new pieces of Chinese tax guidance issued by the State Administration of Taxation (SAT) as well as new international agreements entered into by China. Collectively, these are indicative of some of the key policy trends in Chinese taxation.

  • Croatia: Croatian transfer pricing regulations

    Although Croatia is not an OECD member country, the provisions of the relevant Croatian tax legislation are generally based on the OECD Transfer Pricing (TP) Guidelines.

  • Curaçao: Tax rules for businesses to change as budget law is approved by parliament

    The Curaçao tax budget was approved by parliament on July 23 2016 and published in PB 2016 No. 37. The changes will come into force by a separate state decree (Landsbesluit). At the time of writing, only the provisions to stimulate pension savings have come into force.

  • Cyprus: Cyprus and Latvia sign DTA

    The details of the first agreement for the avoidance of double taxation (DTA) between Cyprus and Latvia became available in August 2016, providing information on the various applicable tax rates.

  • Germany: CJEU asked to rule on German anti-treaty shopping rule

    The Tax Court of Cologne (Case ref. 2 K 2995/12) has referred the German anti-treaty shopping rule to the Court of Justice of the European Union (CJEU) to determine whether it complies with the fundamental freedoms of the EU and the Parent-Subsidiary Directive.

  • Greece: Uncertain application of Greece’s network of double tax treaties

    The history of Greek tax laws, as well as precedents established by tax disputes, have impacted the country's underlying financial crisis. Adding to the issues, the tax administration has once again begun imposing a special solidarity tax (mentioned in the relevant special tax law as a "contribution") on the foreign income of Greek tax resident individuals (initially, via Law 3986/2011). Under perhaps different names, the same may also be true for other countries, such as Cyprus.

  • Hong Kong: New guidance for corporate treasury centres in Hong Kong

    The Hong Kong government gazetted the Inland Revenue (Amendment) (No. 2) Ordinance 2016 (the Ordinance) on June 3 2016, bringing into law a concessionary profits tax rate for qualifying corporate treasury centres (QCTCs). The new rules deem certain interest income and other gains as sourced and taxable in Hong Kong. Amendments to the earlier interest deduction provisions were also made to allow deductions for interest incurred on certain intra-group lending transactions.

  • India: Tax amortisation of goodwill

    In India, intangibles that qualify for depreciation under the Income-tax Act, 1961 (Act) are defined to include "know-how, patents, copyrights, trademarks, licenses, franchises and any other business or commercial rights of similar nature". Since "goodwill" does not expressly find a mention in the list of intangible assets that qualify for depreciation, claims of depreciation on goodwill have been a matter of debate for a considerable time with decisions on both sides of the spectrum.

  • Indonesia: Google in Indonesia

    The Indonesian tax authority has spent the past few months conducting an investigation into Google's tax affairs through the company's office in Indonesia. However, Google's parent company, Alphabet, is arguing that Google does not have a permanent establishment (PE) in Indonesia and is not required to establish a PE under the applicable laws and regulations.

  • Ireland: Ireland updates its international tax strategy

    Ireland's annual budget statement was announced by the Minister of Finance on October 11 2016. The minister confirmed Ireland's commitment to the 12.5% corporation tax rate (a statement which has become a staple in recent budgets) and also confirmed that "nobody is asking for it to be changed".

  • Real estate funds: VAT exemption for fund management services

    The Court of Justice of the European Union (CJEU) issued a decision, confirming that real estate investment funds are capable of receiving VAT-exempt management services and that "property management" services cannot be VAT exempt. Although the decision is positive in some aspects, it has resulted in conflicting application by the EU member states.

  • Malta: Release of the 2017 budget

    The main theme of the Malta's 2017 budget, from a commercial perspective, is to incentivise the markets, boost business creation and attract foreign direct investment. At the core of the budget document are a number of tax measures and incentives.

  • Mexico: Mexican Supreme Court of Justice rules against taxpayers on deduction limits and electronic accounting

    By a majority vote, the Second Chamber of Mexico's Supreme Court of Justice ruled on the constitutional trials filed against the Income Tax Law that only allow employers to deduct certain payments.

  • New Zealand: New Zealand Inland Revenue expands monitoring of large taxpayers

    The New Zealand Inland Revenue has announced that it will be increasing the number of large taxpayers that it monitors as part of its Basic Compliance Package (BCP). Inland Revenue's announcement comes at a time of increased media and political attention on the tax affairs of foreign-owned multinational groups.

  • Norway: Corporate tax cut and new financial activities tax announced in Norway’s 2017 state budget

    Two measures that may be of special relevance for corporate foreign investors were announced in Norway's state budget proposals for fiscal year 2017.

  • Poland planning significant VAT changes in 2017

    Serious amendments to Poland's VAT Law are likely to be implemented on January 1 2017. The modifications are mostly aimed at preventing tax fraud and increasing tax collection.

  • Romania: Romanian individual tax residency position

    The enactment of the Romanian Fiscal Code in January 2016 brought significant changes to an individual's tax residency position. For the first ever time, the Romanian legal framework provides for a 'split year' residency.

  • Serbia: Kazakhstan Senate approves DTA with Serbia

    The agreement for the avoidance of double taxation (DTA) between Serbia and Kazakhstan was signed on August 28 2015 in Astana, and has since been approved through diplomatic channels by both parties.

  • South Korea: Another taxpayer win at the Supreme Court on a beneficial ownership case

    The Supreme Court recently held that a UK holding company was the beneficial owner of dividends it received from a Korean taxpayer for purposes of the Korea-UK income tax treaty (the treaty). The court reached its decision despite the existence of certain facts that put the taxpayer at a disadvantage when looking at earlier beneficial ownership decisions that applied the substance-over-form doctrine in a treaty context.

  • Spain: Potential recovery of Spanish energy taxes

    Taxpayers may be able to recover several years of paid energy taxes under a long-awaited opinion from the Supreme Court on whether certain taxes are constitutional.

  • Switzerland: UK’s hybrid mismatch rules to impact Swiss entities

    The UK's new legislation to tackle hybrid mismatches, which enters into force on January 1 2017, may impact certain Swiss principal structures that are benefitting from a so-called Circular No. 8 regime.

  • US Inbound: US Treasury issues final regulations on tax treatment of corporate debt

    The US Treasury and the IRS have released final regulations under Internal Revenue Code, section 385. They are an improvement over the regulations proposed in April 2016, but still contain many developments that should be noted by inbound organisations.


International Tax Review Profile

RT @HelpRaph: whistleblower of #Luxleaks #raphaelhalet is #6 of the #GlobalTax50 #TaxJustice most influential people in the tax world ! ht…

Dec 7 2016 03:30 ·  reply ·  retweet ·  favourite
International Tax Review Profile

Have you signed in or taken a free trial to see the top 10 of the #GlobalTax50 2016? Read it here: https://t.co/m0QQJHgC8i

Dec 7 2016 02:18 ·  reply ·  retweet ·  favourite
International Tax Review Profile

Our #ArticleOfTheWeek is now up on the Facebook page. Read it here for free: https://t.co/xP1LRF5bN2https://t.co/cRuzVuAfMP

Dec 7 2016 12:04 ·  reply ·  retweet ·  favourite
International Tax Review Profile

RT @nanchisworld: The whistleblowers of the #Luxleaks #antoinedeltour and #raphaelhalet #6 of the #GlobalTax50 #TaxJustice https://t.co/sYt

Dec 6 2016 10:00 ·  reply ·  retweet ·  favourite
International Tax Review Profile

@nanchisworld on the 14th December the full list will be out!

Dec 6 2016 10:00 ·  reply ·  retweet ·  favourite
International Correspondents