| Australia | Financial transactions-Restriction on interest deduction: On 12 August 2020, the Australian Taxation Office (ATO) released its finalized practical guidance dealing with the application of the arm’s length debt test (ALDT) which applies as one of the options for determining deductibility of interest and other debt costs under Australia’s thin capitalization rules. See the story in Regfollower |
| Brazil | Digital economy transactions-General: On 18 August 2020, the draft Bill 218/2020 was submitted to the Parliament which provides another (separate from a draft bill submitted in May 2020) bill aiming to enact a digital service tax. See the story in Regfollower |
| Bulgaria | Requirements-Scope of transfer pricing rules: On 4 August 2020, the National Assembly Officially published a Law to extend the due date of cross border arrangements (DAC6). According to the Law, the deadline to report arrangements, which was implemented between 25 June 2018 and 30 June 2020, is deferred until 28 February 2021. See the story in Regfollower |
| Czech Republic | Requirements-Scope of transfer pricing rules: On 19 August 2020, the Financial Administration published an announcement providing six months deferral of DAC6 reporting. The standard 30-day deadline to report arrangements for the period between 1 July and 31 December 2020 begins on 1 January 2021. See the story in Regfollower |
| Ecuador | Digital economy transactions-General: The VAT law or Organic Law for Tax Simplicity and Progressiveness was officially published on 31st December 2019. On 28 July 2020, the President approved the rules for administering the VAT measures on digital services. The new VAT comes into effect on 16 September 2020. See the story in Regfollower |
| France | Transfer pricing information return: On 14 August 2020, the tax administration announced that the deadline of annual transfer pricing return is extended until 31 January 2021 with financial year ended on 31 March 2020. See the story in Regfollower Requirements-Scope of transfer pricing rules: On 31 July 2020, the Government Officially published Law No. 2020-935 which includes the six month deferment of DAC6 reporting obligations. See the story in Regfollower |
| Greece | APAs-General rules: On 31 July 2020 and on 29 July 2020, the Greek Parliament Officially published two Laws, L. 4714/2020 and L. 4712/2020 respectively regarding various sections of transfer pricing. The Law L.4714/2020 declares about the chance of retroactive effect in case of application for bilateral advance pricing agreement (Bilateral APA) or multilateral (Multilateral APA) pre-approval. Transfer pricing information return: The Law L.4712/2020 extends the deadline to submit annual corporate income tax returns up to 28 August 2020 for tax year 2019. Special rules for hybrid instruments or entities: The Law L.4712/2020 introduced the transposition of the provisions of the Directive 2016/1164/ΕU, as amended by Directive 2017/952/ΕU, regarding exit taxation and hybrid mismatches into the Greek Income Tax Code. See the story in Regfollower |
| Hungary | Requirements-Scope of transfer pricing rules: On 14 July 2020, the Hungarian Government issued a new regulation, deferring the reporting deadlines by six months. The standard 30-day period for reporting begins on 1 January 2021 instead of 1 July 2020, including for reportable arrangements between 1 July and 31 December 2020. See the story in Regfollower Requirements-Scope of transfer pricing rules: On July 20, 2020, the Hungarian National Tax and Customs Administration published guidelines on the new reporting obligation for DAC6. The guidelines provide an overview of the reporting legislation, the entities required to report on the agreements, the reporting deadlines and the penalties for non-reporting. See the story in Regfollower |
| India | Adjustment-MAP: On 7 August 2020, the Central Board of Direct Taxes (CBDT) has published new Mutual Agreement Procedure (MAP) Guidance. The guidance follows the amendments made in May 2020 which contains the Income-tax (8th Amendment) Rules, 2020 to amend rule 44G of the Income-tax Rules, 1962 on MAP. See the story in Regfollower |
| Indonesia | Compliance with BEPS standards: On 22 July 2020, OECD has published the updated position of MLI signatories’ countries. Accordingly, MLI entered into force for Indonesia on 1 August 2020. See the story in Regfollower |
| Italy | Requirements-Scope of transfer pricing rules: On 30 July, Italy has published Legislative Decree No. 100 in the Official Gazette as approved by the Council of Ministers for the implementation of cross-border reporting arrangements as per Council Directive (EU) 2018/822 (DAC6). The Legislative Decree enters into force on 26 August 2020. See the story in Regfollower |
| Kenya | Compliance with BEPS standards: On 22 July 2020, Kenya deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) with the OECD. See the story in Regfollower Digital economy transactions-General: On 7 August 2020, the Kenya Revenue Authority published the proposed Income Tax (Digital Service Tax) Regulations, 2020 for consultation. Digital service tax (DST) is introduced by the Finance Act 2020, which was enacted on 30 June 2020, including a DST rate of 1.5% on the gross transaction value of services provided in Kenya through a digital marketplace. See the story in Regfollower |
| Lithuania | Requirements-Scope of transfer pricing rules: On 30 July 2020, the Lithuanian State Tax Inspectorate released amendments to the Mandatory Disclosure Regime (MDR) rules to introduce a six-month postponement of the European Union (EU) Directive on Mandatory Disclosure and Exchange of Cross-Border Tax Arrangements. See the story in Regfollower |
| Malaysia | Digital economy transactions-General: On 1 August 2020, the Royal Malaysian Customs Department issued an updated guide on digital services by Foreign Service Providers. The Updated Guide replaced the earlier version dated 20 August 2019. See the story in Regfollower Compliance with BEPS standards: On 4 August 2020, Malaysia published the Official Gazette PU (A) 224/2020 of 13 July 2020 providing ratification announcement of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). See the story in Regfollower |
| Malta | Requirements-Scope of transfer pricing rules: On 31 July 2020, Malta published Legal Notice 315 of 2020, which postpones reporting on EU cross-border agreements (DAC6) by six months due to a COVID-19 pandemic. See the story in Regfollower |
| New Zealand | Requirements-Scope of transfer pricing rules: Recently the Inland Revenue (IR) department of New Zealand published provided initial guidance on transfer pricing in the context of COVID-19. It recognises that transfer pricing issues arising are wide-ranging and vary considerably between businesses and across jurisdictions. See the story in Regfollower |
| Philippines | Transfer pricing information return: On 29 July 2020, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular No. 76-2020 addressing the frequently asked questions (FAQs) in relation to submission of Related Party Transaction (BIR Form No. 1709, or RPT) Form, and its attachments pursuant to Revenue Regulations No. 19-2020. See the story in Regfollower |
| Spain | Digital economy transactions-General: On 30 July 2020, the Spanish Lower House of Parliament approved draft laws for a tax on digital services (DST) and a financial transaction tax (FTT). Accordingly, 3% tax to be levied on digital services including online advertising, online intermediation services, and the sale of user data generated through a digital interface. See the story in Regfollower |
| Taiwan | Requirements-Scope of transfer pricing rules: On 18 August 2020, Taiwan’s Ministry of Finance (MOF) has announced draft amendments to certain transfer pricing provisions based on chapter 6 of the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. See the story in Regfollower |
| USA | Requirements-Scope of transfer pricing rules: On 30 July 2020, the North Carolina Department of Revenue announced that it is implementing a voluntary initiative to expedite the resolution of corporate intercompany pricing issues. See the story in Regfollower |
Transfer Pricing Brief: September 2020
September 04, 2020
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