| Zambia: | Compliance-Corporate residence: On 29 September 2017, the Budget for 2018 was presented to the National Assembly by the Minister of Finance. The Minister proposes to revise the definition of residence for corporate tax purposes by replacing the reference to “central management and control” by “place of effective management”. Under this, a company or similar corporate entity is tax resident if it is incorporated in Zambia or it has its place of effective management in Zambia See the story in Regfollower |
| Dominican Republic: | Tax returns must be filed:Â On 1 September 2017, the tax authorities of the Dominican Republic published the sixth version of the transfer pricing information return via their virtual platform. All taxpayers within the framework of the transfer pricing regulations must submit DIOR annually within the first 180 days after the end of the financial year. See the story in Regfollower |
| Czech Republic: | CbC reporting requirement-General rule: Pursuant to Law No. 305/2017 published on September 20 2017, the CbC reporting requirements for multinational corporations will apply to Czech parent companies whose consolidated revenues for the previous year are € 750 million or more. The CbC report will be due within 12 months following the end of the fiscal year at issue. See the story in Regfollower |
| Finland: | Intra-group services-Low-value adding services: According to a bulletin published on 6 October 2017, the Finnish tax administration will accept a minor mark-up that does not exceed 3% for low-value adding intra-group services and will only apply if the services mainly cover the provision of administrative services or similar coordination services including harmonization of the group’s operations. See the story in Regfollower |
| Poland: | Documentation-Format: On 18 September, the Minister for Economic Development and Finance issued a decree setting out the information to be included in the transfer pricing documentation. Specific information that the taxpayer must include in their transfer pricing documentation includes information about the local file, the benchmarking study and the master file. The regulation entered into force on 3 October 2017. See the story in Regfollower Intra-group services-General:Â Under the draft bill issued by the Government in July, tax deductibility of various intercompany charges would be significantly limited. Under the bill adopted by the lower house of Parliament on 24 October 2017, restrictions will not apply to transactions for which the taxpayer receives APA from the Polish Ministry of Finance. |
| Netherlands: | Main corporate income tax rate: On October 10, 2017, the new Dutch government published its policy paper. The paper outlines the government’s plan to cut down the corporate tax rate over the next three years starting from 2019. The new government proposes to reduce the current standard corporation tax rate from 25% to 24% by 2019, to 22.5% in 2020 and 21% from 2021. See the story in Regfollower |
| South Africa: | BEPS related compliance-CbC reporting requirement-Timing: According to the final Public Notice released on 13 October 2017, a reporting Entity (other than a Surrogate Parent Entity) that is a resident of South Africa must submit a CbC Report, master file and local file within 12 months from the last day of the reporting fiscal year commencing on or after 1 January 2016. See the story in Regfollower |
| Switzerland: | CbC reporting requirement-General rule: On September 29, 2017, the Federal Council passed a regulation that provides more clarity and detail in the implementation of CbCR in Switzerland. The regulation will enter into force on 1 December 2017. Under the new law, CbC reporting obligations shall apply to Swiss headquartered multinational groups with annual consolidated group revenue of at least €750m, which equals CHF 900m for the fiscal years (FYs) starting on or after 1 January 2018. See the story in Regfollower |
| India: | Master file-Information: According to the Draft Rules published on 6 October 2017, all taxpayers that are a constituent entity of an international group resident in India would have to keep the required information and documents as part of the annual compliance regarding master file if they meet specific thresholds. Master file-Reporting structure: The Master file information required to be submitted in India is broadly in line with OECD BEPS-13 requirements. Taxpayers are required to include information on operating entities, supply chain, overall strategy for Intercompany Pricing Solution, description on group financing. CbC reporting requirement-General rule: According to the Draft Rules published on 6 October 2017, multinational groups where the ultimate parent company is a resident in India would be required to submit country-by country reports if the consolidated turnover exceeds INR 55,000 which is consistent with the OECD recommendation of €750 million. Penalty in case of non-compliance: As per the draft rules published on 6 October 2017, failure to comply with the CbC report by the due date of submission of income tax return, compensation is INR5000 to INR50000 per day depending on the circumstances. See the story in Regfollower |
| Turkey: | Main corporate tax rate: On 13 October 2017, a resolution is adopted by the parliament to increase the corporate tax rate from 20% to 22% that will apply to all companies for the years 2018-2020. See the story in Regfollower Availability of APA: According to draft General Communiqué No. 3 published on 24 October 2017, definitions of advance pricing arrangement (APA), unilateral, bilateral and multilateral APAs will be added to section 6-Advance Pricing Agreements of General Communiqué No. 1. An assessment and analysis will be finalized within 6 months for unilateral APA applications. See the story in Regfollower |
| Cyprus: | CbC reporting notification: On 09 October 2017, the Cyprus Tax Department informed that the submission of notification for country by country reporting for the year 2016 has started. The reporting deadline for submission of notification of CbC reporting for the year 2016 is extended from 20 October 2017 to 20 November 2017. See the story in Regfollower |
| Norway: | Main corporate tax rate: The government proposed reducing the corporate income tax rate from 24% to 23% of its budget proposal for 2018 presented on 12 October 2017. However, for companies in the financial sector the rate will remain 25%. Corporate residence: On 16 March 2017, the Ministry of Finance proposed a change in Norwegian national law which states that a company incorporated in Norway is considered to be a resident of Norway. In addition, it was proposed that companies with “place of effective management” in Norway should also be considered to be resident in Norway. See the story in Regfollower |
| Singapore: | Documentation-Requirement: According to the adopted Income Tax (Amendment) Bill 2017, a mandatory transfer pricing documentation requirement is effective from the year of assessment 2019. Documentation-Deadlines: According to the adopted Income Tax (Amendment) Bill 2017, the transfer pricing documentation must be prepared no later than the due date for filing the tax return and must contain the details required in the rules. A relevant business must prepare and keep the transfer pricing documentation for at least 5 years from the end of the basis period in which the transaction took place. See the story in Regfollower |
| Hungary: | CbC reporting requirement-General rule: The Hungarian tax authority has published on its website a form (Form 16CBC) that can be used by taxpayers to comply with the reporting requirements for country-by-country (CbC) from 31 May 2017. Under a general rule, the ultimate parent company is to file the CbC report, but a group member other than the parent company can be assigned to serve as the CbC reporting entity. For this purpose, taxpayers are required to use a notification form 17T201T. See the story in Regfollower |
| Angola: | Requirements-rule: On September 25, 2017, the Ministry of Finance issued the order no. 678/17 establishing the Transfer Pricing Unit (TPU) to ensure and control compliance with the requirement to submit transfer pricing documents. See the story in Regfollower |
| France: | Main corporate income tax rate: On 27 September 2017, the French Government presented the main tax provisions of the Finance bill for 2018 to the French Parliament. The corporate tax rate, currently at 33.33%, will be reduced to 31% in 2019, 28% in 2020, 26.5% in 2021 and 25% in 2022. See the story in Regfollower |
| U.S.: | CbC exchange agreement: According to an IRS announcement on its website, it has signed separate agreements with the Czech Republic, Finland, Greece, Italy, and Sweden to exchange country-by-country reports on multinationals. The Competent Authorities intend to exchange the CbC Reports automatically through a common schema in Extensible Markup Language (XML). See the story in Regfollower |
| Ecuador: | Main corporate income tax rate: On October 11, 2017, a corporation tax increase from 22% to 25% was announced in a press release. Newly registered small and micro enterprises are exempt from income tax for the first 2 years of operation. The proposal will be presented for approval to the Congress. See the story in Regfollower |
Transfer Pricing Brief: October 2017
05 November, 2017
Share This
