International updates - March 2015

Australia: Recent court case roundup; Structural reform delayed

Brazil: Increase of PIS and COFINS rates on the importation of goods

Canada: Heads I win, tails you lose: Canada Revenue Agency refuses to refund overpaid tax after statutory limitation periods expire

Chile: Tax credit regarding Chilean sourced income subject to withholding tax in a foreign jurisdiction

China: New regulations to encourage corporate restructuring and investment with non-monetary assets

EU: Update on patent boxes and the EU Code of Conduct Group (Business Taxation)

Germany: Deduction of foreign partner’s interest expense

India: Creation of service PE by activities of employees deputed to India

Ireland: ICAV – Ireland’s new corporate funds vehicle

Italy: New decree extends Patent Box regime to commercial trademarks and introduces tax measures for “indirect lending”

Luxembourg: Luxembourg tax authorities clarify the tax treatment of limited partnerships

Malta: Changes to VAT rules – Telecommunications, broadcasting and electronic services

Mexico: Mexican taxpayers’ advocacy institution issues recommendation on Mexican tax authorities’ requests for notarisation of private documents

Poland: Changes to the Polish corporate income tax law

South Africa: Base erosion and profit shifting – Debt:equity

South Korea: Korean courts narrowly interpret mitigating circumstances for non-compliance with FTA requirements

Spain: Invest not just into, but also from, the Canary Islands

Sweden: US investment funds exempt from Swedish dividend withholding tax under EU law – Swedish Tax Agency decides to not appeal ruling

Switzerland: How Swiss companies should apply the income tests for FATCA classification purposes

US Inbound: Obama releases FY 2016 Budget