Malaysia: | Penalty for non-compliance of CbC reporting: The fiscal Budget for 2016 has proposed a penalty between MYR 20,000–100,000 or imprisonment of not more than 6 months, or both, for an incorrect return or failure to comply with CbC reporting within the stipulated timeline. See the story in Regfollower |
UK: | Rules for Advance Pricing Agreements (APAs): HMRC updated Statement of Practice 2 (2010) (SP2/10) on 8 November 2016 with a view to provide guidance about how HMRC interprets the Advance Pricing Agreement (APA) legislation and applies it in practice. See the story in Regfollower |
Singapore: | Reporting of related party transactions: The Inland Revenue Authority of Singapore (IRAS) updated the transfer pricing administration information on the reporting of related-party transactions (RPTs). A company must complete the form for reporting RPTs from the year of assessment 2018 and will submit it together with Form C if the value of the RPTs disclosed in the audited accounts for the financial year exceeds SGD 15 million. See the story in Regfollower |
Croatia: | Main corporate tax rate: As per the proposed amendments to the Corporate Income Tax Law, the corporate income tax rate will be reduced to 18% from 20%. Once approved by the parliament, the amendments will apply as of 1 January 2017. Advance Pricing Agreements (APAs): As per the proposed amendments to the Corporate Income Tax Law, in addition to advance tax rulings, taxpayers may request advance transfer pricing agreements. Once approved by the parliament, the amendments will apply as of 1 January 2017. See the story in Regfollower |
Israel | Main corporate tax rate: As per the draft Budget Plan for 2017/2018, the corporate income tax rate will be reduced to 24% in 2017 and 23% in 2018. See the story in Regfollower |
Vietnam: | Transfer pricing rule: The draft transfer pricing (TP) decree released on 3 October 2016 by the Ministry of Finance, following Resolution No. 19-2016/NQ-CP dated 28 April 2016 to replace the existing TP regulations, Circular 66/2010/TT-BTC and to respond to the OECD’s base erosion and profit shifting (BEPS) developments. Definition of control: As per the draft transfer pricing (TP) decree, two enterprises are considered associated parties if one party directly or indirectly holds at least 25% of the ownership of investment capital of another company or the transactions between two companies are more than 60% of the transaction volume. Exemptions from documentation requirement: As per the draft transfer pricing (TP) decree released on 3 October 2016 by the Ministry of Finance, taxpayers with annual total revenue below VND 50 billion (approximately USD 2.2 million) and total related-party transaction values below VND 30 billion (approximately USD 1.3 million) are exempted from preparing TP documentation, subject to certain conditions. See the story in Regfollower |
Mexico: | BEPS related compliance Master file information: In the case of the consolidated financial statements of the MNE, the proposed regulations regarding the “additional information” that could be requested as part of the new transfer pricing obligations, would not provide flexible deadlines, if the book year closing of the foreign head office differs from the calendar year. As mentioned, the proposed regulations would require very detailed information to be included in the master file. Local file information: The proposed regulations regarding the “additional information” that could be requested as part of the new transfer pricing obligations, would require more detailed information (than established in Chapter V of the OECD TP Guidelines) for purposes of the local file. For instance, the proposed regulations would require taxpayers to submit copies of all legal agreements concluded between related parties, while the OECD TP Guidelines only call for the “material” agreements. See the story in Regfollower |
Panama: | Transfer pricing rule: Decree 390 was published in the Official Gazette on 25 October 2016 to regulates the arm’s length principle established in the Fiscal Code and establishes transfer pricing documentation requirements. The Decree will enter into force on 1 January 2017. See the story in Regfollower |
Colombia: | Master file information: Under the proposed draft legislation, taxpayers with either a gross equity of at least 100,000 Taxable Units (TU; one TU is approximately US $10) or gross revenues of at least 61,000 TU that have transactions with related parties must prepare and submit a Master File as of 2016. The Master File contains relevant global information of the multinational group and a Local File information on the intercompany transactions. Local file information: Under the proposed draft legislation, taxpayers with either a gross equity of at least 100,000 Taxable Units (TU; one TU is approximately US $10) or gross revenues of at least 61,000 TU that have transactions with related parties must prepare and submit a Local File as of 2017. A Local File will contain information on the intercompany transactions. CbC reporting requirement: Draft legislation has been proposed and that will introduce CbCR as of 2016. See the story in Regfollower |
South Africa: | Documentation requirements: The South African Revenue Service on 28 October 2016 published a final notice regarding additional transfer pricing documentation requirements for companies with cross-border related-party transactions exceeding R100 million. Once the R100 million threshold is met, the additional record keeping requirements apply to all transactions exceeding R5 million. The new requirements apply for years of assessment beginning on or after 1 October 2016. See the story in Regfollower |
Netherlands: | BEPS related compliance General rule for CbC reporting requirement: The deadline for filing the notification for the first CbC report has been extended to 1 September 2017. If the reporting fiscal year ends after 31 August 2017, the general notification rule will apply and the notification should be submitted by the last day of the reporting fiscal year. See the story in Regfollower |
Slovak Republic: | BEPS related compliance General rule for CbC reporting requirement: Slovak Republic introduced Bill on Country-by-Country Reporting (CbCR) based on the recommendations of the OECD. As per the proposed bill, all multinationals with consolidated annual revenues of at least EUR 750 million will be obliged to file a CbC report. The CbC report shall be submitted in the jurisdiction where the group’s ultimate parent company is tax resident and shall be exchanged with the jurisdictions where the group operates. If adopted, the bill will become effective on 1 March 2017. See the story in Regfollower |
France: | Documentation threshold: The threshold as codified at Article 223 quinquies B of the French general tax code is reduced from €400 million to €50 million of turnover or gross assets, effective for accounting periods closing on or after 31 December 2016 as per the New law in France, enacted on 8 November 2016. See the story in Regfollower |
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World Tax Brief: November 2016
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