Argentina | Transfer pricing information return: On 5 June 2020, the Federal Administration of Public Revenue (AFIP) Officially published a General Resolution No. 4733 of 4 June 2020 to file affidavits under transfer pricing rules and postpones the previous starting due dates of June declared in General Resolution 4717/2020 of 14 May 2020. See the story in Regfollower |
Australia | Local File-General rule: The Australian Taxation Office (ATO) updated the instructions for local file. These instructions apply to the local file for 2020. This relates to reporting periods starting on or after 1 January 2019. See the story in Regfollower Documentation: On 19 June 2020 the Australian Taxation Office (ATO) posted to its website guidance entitled COVID-19 economic impacts on transfer pricing arrangements. This sets out guidance for taxpayers affected by COVID-19 who are preparing transfer pricing documentation. See the story in Regfollower Adjustments-MAP: The Australian Taxation Office (ATO) has updated the guidelines for the mutual agreement procedure (MAP) and arbitration arrangements. MAP provides a bilateral mechanism for the Australian competent authority (CA) to engage with the CA of another jurisdiction. See the story in Regfollower |
Belgium | Scope of transfer pricing rules: On 26 June 2020, the Belgian tax authorities published a circular on the EU directive on mandatory disclosure of cross-border arrangements (DAC6) with effective from 1 July 2020. See the story in Regfollower |
Cyprus | Scope of transfer pricing rules: On 19 June 2020, the Cyprus Parliament adopted the law to implement the provisions EU Anti-Tax Avoidance Directive (ATAD I) with respect to exit taxation rules. Accordingly, Cyprus will have the right to tax any unrealised gain created in Cyprus at the time of the exit subject to the provisions of the Cypriot Income Tax Law (CITL). Special rules for hybrid instruments or entities: Cyprus Parliament also amended Directive (ATAD II) with respect to hybrid mismatch rules, where taxpayers will not be entitled to include in the tax-deductible costs a payment resulting in double deduction (same deduction in two jurisdictions) or deduction with no inclusion (deduction of the income in one jurisdiction without inclusion in the tax base of the other). See the story in Regfollower |
Czech Republic | Scope of transfer pricing rules: On 17 June 2020, the Financial Administration announced to delay in transposing the DAC6 cross-border arrangement reporting requirements into Czech law. The deadline of the first step to cross-border arrangements, which was implemented in the period from 25 June 2018 to 30 June 2020 (inclusive), would be 28 February 2021. See the story in Regfollower |
Denmark | Application to intangibles: On 25 June 2020, the Supreme Court made a decision on a case in favor of Danish company, Adecco, and its Swiss parent company in a dispute involving the deductibility of royalties and the sufficiency of transfer pricing documentation. See the story in Regfollower |
Dominican Republic | Compliance-Filing deadlines: On 21 June 2020, the Directorate General of Internal Revenue (DGII) announced to extend the submission deadlines of tax return of both legal entities and individuals until 29 July 2020 for the fiscal year closed 31 December 2019. See the story in Regfollower |
France | Transfer pricing information return: The French tax authority has extended the deadline for the annual transfer pricing return for companies whose fiscal year closes on 31 December 2019 is extended from 31 October 2020 to 31 December 2020. See the story in Regfollower |
Greece | Compliance-Filing deadlines: On 18 June 2020, the Ministry of Finance announced that the deadline of income tax return 2019 is to be extended until 29 July 2020 for legal entities. See the story in Regfollower |
Ireland | Scope of transfer pricing rules: On 26 June 2020, the Irish Revenue published an eBrief No. 127/20 regarding the delay of DAC6 filing deadlines. Previously, the DAC6 reporting timelines was scheduled to enter into force on 1 July 2020. According to the e-brief, the Revenue extended the DAC6 reporting deadlines by six months. See the story in Regfollower |
Israel | Audits-Burden of proof: On 2 June 2020, the Israeli Tax Authority (ITA) published tax circular 1/2020 addressing the situations in which a transfer pricing (TP) study that is filed by a taxpayer will be considered as meeting the Israeli TP standards in accordance with Section 85A of the Income Tax Ordinance (ITO) and its Regulations. See the story in Regfollower |
Italy | Dispute resolution: On 10 June 2020, the Italian Government published Legislative Decree n. 49 enacting EU Directive No. 2017/1852 regarding tax dispute resolution mechanisms and in particular disputes arising from the interpretation and application of tax treaties. See the story in Regfollower |
Kazakhstan | Compliance with BEPS standards: On 24 June 2020, Kazakhstan deposited its ratification instrument on BEPS MLI. The MLI will generally enter into force for the Kazakhstan on 1 October 2020. See the story in Regfollower |
Luxembourg | Scope of transfer pricing rules: On 4 June 2020, the Luxembourg Ministry of Finance (MOF) has published a statement extending the reporting deadline of EU directive on reporting requirements for certain cross-border transactions (DAC6) amid COVID-19 pandemic. See the story in Regfollower |
Malaysia | APAs-General rules: On 16 June 2020, the Malaysian Inland Revenue Board posted online FAQs on advance pricing arrangement (APA) procedures for businesses due to the coronavirus pandemic. The questionnaire covers the filing of new APA applications; the treatment of ongoing and concluded APA applications; and the renewal process of expiring APAs. See the story in Regfollower |
Netherlands | APAs-General rules: On 22 June 2020, the Ministry of Finance issued a decree updating the mutual agreement procedures (MAP). The decree was updated to reflect recent developments in the field of MAP, i.e. Action 14 of OECD’s BEPS project, Council Directive (EU) 2017/1852 and the Multilateral Instrument (MLI). See the story in Regfollower Scope of transfer pricing rules: The Dutch Tax Authority has published an English-language version of its general guidance on Mandatory Disclosure Rules/DAC6. Due to COVID-19 it has been decided that mandatory disclosure in the Netherlands will start on 1 January 2021 instead of 1 July 2020. See the story in Regfollower |
Norway | TP Case-Tax treatment for CCA: On 28 May 2020, the Norwegian Supreme Court issued a ruling in a transfer pricing case between the Shell group’s Norway subsidiary, A/S Norske Shell, and the Norwegian oil taxation office. The Supreme Court ruled in favor of A/S Norske Shell. See the story in Regfollower |
Philippines | Digital economy transactions-General: On 19 May 2020, House Bill (HB) No. 6765 was filed in Congress regarding an establishment of fiscal regime for the digital economy. The Bill describes that services rendered electronically in the course of trade or business are subject to value-added tax (VAT). See the story in Regfollower |
Poland | Transfer pricing information return: On 24 June 2020, the Polish Ministry of Finance extends the local transfer pricing documentation preparation deadline as follows (a) until 31 December 2020 for taxpayers for whom the deadline was scheduled to expire between 31 March 2020 and 30 September 2020. (b) by three months for periods ending between 1 October 2020 and 31 January 2021. See the story in Regfollower Scope of transfer pricing rules: On 18 June 2020, the higher chamber of the parliament passed a bill implementing the rules related to hybrid mismatches with third countries (ATAD II) and completing the transposition of the DAC 6 rules in its domestic legislation. See the story in Regfollower |
Saudi Arabia | Adjustments-MAP: On 9 June 2020, the General Authority of Zakat and Tax (GAZT) of Saudi Arabia has published MAP Guidance (Request for Mutual Agreement Procedure –Taxpayer guidance). MAP is designed to relieve double taxation, typically arising from transfer pricing cases; resolve treaty-related tax disputes, and issues in interpreting or applying a tax treaty. See the story in Regfollower |
Sri Lanka | Transfer pricing information return: On 29 May 2020, according to notice PN/Tax Return/2020-3, the Sri Lankan Inland Revenue Department has again extended the deadline for the transfer pricing disclosure form for Year of Assessment 2018/2019 to 30 June 2020. See the story in Regfollower |
Sweden | Scope of transfer pricing rules: On 4 June 2020, the Swedish parliament has approved Law implementing the Council Directive (EU) 2018/822 (commonly known as DAC6) which introduces disclosure obligations for intermediaries and taxpayers of certain reportable cross-border arrangements. See the story in Regfollower Scope of transfer pricing rules: On 24 June 2020, the Swedish Ministry of Finance published a statement announcing its intension to extend the reporting deadline of EU directive on reporting requirements for certain cross-border transactions (DAC6) due to the outbreak of the COVID-19 pandemic. See the story in Regfollower |
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