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Current documentation and advance pricing agreements are two strategies that could overcome the differences between OECD, Dutch and US services regulations, believe KPMG Meijburg & Co

Malta seeks to transform itself for international business Source: Flickr The Maltese parliament is now debating legislation that it tabled earlier this month to bring the country's tax system into line with European Commission requirements.

On their bikes? Foreign firms expected to stay following reform Following years of speculation, China's National People's Congress (NPC), the country's parliament, looks set to pass a bill unifying the tax codes for foreign and domestic companies in 2007. A merged code could come into force at the beginning of next year.

Wal-Mart, the world's biggest retailer, has concluded the first advance pricing agreement (APA) with the State Administration of Taxation (SAT) in China and the US Internal Revenue Service (IRS).

Grant Thornton in the UK has lured the former group tax director from Scottish Power to its international tax team as it bids to strengthen its service to cross-border clients.

Stephen Nelson The long-awaited unified draft enterprise income tax bill was approved by the Standing Committee of the PRC National People's Congress on December 29 2006, and will be submitted to the National People's Congress this March. The tax bill is expected to come into effect from January 1 2008 if approved.

Bill increasing foreign tax credit On December 15 2006 the Chilean President sent to Parliament a Bill which aims, among other things, to increase the domestic foreign tax credit for certain inbound income from countries that have not subscribed to double tax conventions with Chile (hereinafter non-treaty countries). The Bill also extends the scope of income taxes that entitle a taxpayer to claim foreign tax credit in the cases of treaty countries; and eliminates formal requirements to be entitled to the aforementioned credit.

Nelio Weiss Philippe Jeffrey For a second consecutive year and with the objective to minimise the effect for exporting companies from the appreciation of the local currency in relation to foreign currencies (specifically the US dollar and the Euro) the Brazilian authorities issued on December 29 2006, Ordinance 425 and Normative Instruction 703. The directive amended the Brazilian transfer pricing legislation. As per the latter Ordinance and Normative Instruction, Brazilian exporting companies will be allowed to increase their export revenues for calendar year 2006 (for transfer pricing calculation purposes) using the ratio of 1.29. This exceptional measure will only apply for the fiscal year 2006. As mentioned, a similar measure was also adopted for fiscal year 2005, allowing the Brazilian exporting companies to increase their export revenues using then a ratio of 1.35.

Vispi Patel of RSM & Co describes the attitude of the Indian revenue authorities to transfer pricing audits and points out how international taxpayers could mitigate their risk

The OECD's Mary Bennett tells Sed Crest why double tax treaties should take more notice of arbitration