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Edward Tanenbaum Tola Ozim Enacted on March 18, 2010, as part of the HIRE Act, the Foreign Account Tax Compliance Act (FATCA) provisions require reporting of US persons who hold accounts in foreign financial institutions or who own certain interests in foreign entities.

The second in a series of 10 articles on tax-effective intellectual property (IP) management, Hendrik Fügemann, Philip de Homont, and Alexander Voegele of NERA Frankfurt present a case study on corporate charges.

Vicente Bootello In December the Spanish Government approved certain measures on tax, labour, social security and deregulation to foster investment and job creation. This legislation was enacted with a view to continuing and bolstering the policy for the growth of the Spanish economy and increasing its competitive position through measures to support business activity. The measures will govern tax periods beginning January 1 2011.

Chinapat Visuttipat In Thailand, an annual personal income tax return is required to be filed together with any tax due by the end of March of the following year. Additional tax payable may be required by the Thai Revenue Department (TRD) while over tax withheld may be replaced with refundable tax in some situations. One situation is when the employer hires foreign staff in Thailand and that employer is a subsidiary company of its offshore parent company. In this situation, the offshore parent company assigns its staff to work under employment of its Thai subsidiary while retaining its offshore employment status. This is a dual employment contract between local employment and offshore employment with a different employer entity. The rationale of a dual contract is to retain the employment contract originated with the offshore parent company for employee's benefits, for example, social security, pension fund and employment period. The dual contract concept is not a new transaction for Thailand but the tax collector is considering heavily scrutinising proper tax compliance of, in particular, multinational companies with its subsidiary in Thailand.

Slobodan Mihajlovic Although transfer pricing rules have existed in the Serbian Corporate Profit Tax Law since the 1992 tax reform, the concept of transfer pricing was without importance in the Serbian legislation, or in the practice of the Serbian tax authorities. However, with all the changes Serbia as well as taxpayers and tax authorities went through and especially since the financial crisis and the government's all-out attempts to locate new earning sources, it is time for transfer pricing to become an important issue for all.

Tax compliance has never been a topic that could compete in popularity with technical tax issues as far as tax practitioners were concerned. That may change in the near future. Pressure of some accounting scandals and the need of cash, pursued by the economic downturn and cost cutting operations, put the concept of tax compliance in the spotlight.

David Cuéllar José Antonio González On February 23 2010 the Republic of Panama and Mexico signed an income tax treaty. It is the first comprehensive tax treaty signed by Panama. This treaty entered into force on December 30 2010 and its general provisions should be effective as from January 1 2011. Other specific provisions, such as exchange of information, should be retroactively effective from January 2007.

Elena Kostovska Withholding tax is tax paid on corporate income that non-resident entities realise in FYR Macedonia. The payment of withholding tax is the liability of domestic companies and individuals as well as non-resident companies and individuals with a permanent establishment in FYR Macedonia. These entities and individuals are obliged to withhold the tax when paying the non-resident entity. Companies with a permanent establishment in the republic are taxed on their income through the taxation of the local permanent establishment which is subject to profit tax.

Rajendra Nayak Ganesh Pai The Delhi Tribunal in the case of eFunds Corporation and eFunds Solutions [2010-TII-165-ITAT-DEL-INTL], adjudicated on the issue of whether their Indian subsidiary performing certain outsourcing functions, results in a permanent establishment (PE) for the taxpayers. The taxpayers are residents of the US and are service providers to financial institutions, electronic fund transfer networks, government agencies, etc, under the following business segments: ATM management services, electronic payment services, decision support and risk management services and professional services. In India, the subsidiary carried on outsourced services for the taxpayers by way of call centre services, financial shared services, data entry and software development services. The issue before the tribunal was whether the activities of the subsidiary created a PE for the taxpayers in India under the India-US tax treaty.

Simeon Grigorov At the end of 2010, the Bulgarian Parliament adopted a number of changes in the Corporate Income Tax Act (CITA), some of which will have a significant beneficial effect on cross-border transactions.