In this edition of the newsletter, you will find the most important national and global developments in tax law that are (closely) related to the world transfer pricing.
Please feel free to contact us if you have any questions.
Quantera Global news, developments, and blogs
- On 11 September, we published a blog on transfer pricing topics in Asia that summarises one of our recent webinars hosted on this topic. You can find the blog here.
- Maikel Verhoeven, Managing Director at Quantera Global, attended the ITR transfer pricing forum in Amsterdam on 11 and 12 September. You can find a summary of the event on his personal LinkedIn.
- On 18 September, we published a blog about transfer pricing compliance. The blog highlights the importance of updating your transfer pricing documentation. You can read the blog post here.
Quantera Global specialties
In the past month, several challenging and noteworthy projects have been successfully completed, including:
- A pre-filing meeting with the Dutch tax authorities for an APA.
- A feasibility analysis for an innovation box ruling.
- Financial modelling to show the effects of a change in the transfer pricing policy.
If you would like to know more about these topics, please feel free to contact us.
News from around the world:
Bahrain
Bahrain introduces a Domestic Minimum Top-Up Tax that is part of its implementation of Pillar Two. The legislation was published on 1 September by Bahrain’s National Bureau for Revenue and will be effective for fiscal years starting on or after 1 January 2025.
Belgium
As announced by the Belgian tax authorities, the prepayment system for the Domestic Minimum Top-up Tax and Income Inclusion Rule top-up tax became operational on 2 September. A group using the prepayments must be registered for Pillar Two in Belgium.
European Commission
On 10 September, the European Court of Justice gave its final judgement in the case vs Apple and Ireland and ruled against Ireland. The European Commission was correct to decide that Ireland granted unlawful state aid to Apple. Apple now has to pay back more than €13 billion in taxes to Ireland after receiving the unlawful aid.
Italy
The Italian government published its Public Country-by-Country Reporting legislation on 12 September. The Legislative Decree is effective for financial years beginning on or after 22 June 2024. Large MNEs need to publicly share tax related information for each Member State and for jurisdictions included on the EU list for noncooperative jurisdictions. Including information for other jurisdictions is optional.
Netherlands
The Netherlands had its annual Budget Day on 17 September. Regarding Pillar Two, some clarifications were made to the subject-to-tax tests and additional guidance on the Minimum Tax Act 2024 has been provided. Furthermore, the EBITDA cap was increased from 20% to 25% regarding the earnings stripping rules and additionally these rules are tightened for specific real estate investment companies.
OECD
The OECD published several items in September:
- On 16 September, the outcome of the annual peer review of the minimum standard under BEPS Action 13 was published. This showed that more than 115 jurisdictions have implemented a CbCR obligation in the local legislation for MNE groups with a consolidated group revenue of €750 million.
- On 16 September, the first simplified peer review of the minimum standard under BEPS Action 14 was published. This process helps jurisdictions with no or limited MAP experience to support them in setting up a MAP program.
- On 19 September there was a signing ceremony for the Subject to Tax Rule (STTR) MLI. The STTR MLI is part of the Pillar Two global minimum tax rules and 9 jurisdictions signed the STTR MLI, that will only be effective if both parties of the tax treaty agree to apply the STTR.
Peru
- The import and export of commodities is subject to transfer pricing and an Informative Affidavit needs to be submitted on the day of arrival or shipment. On 6 September, Peru’s tax administration published a report in which questions regarding this Informative Affidavit are addressed.
- On 24 September, amendments to the income tax law were published. These make it possible for a BAPA to be applied for the years prior to the agreement being concluded and introduce new valuation methods. Both amendments will be effective from 1 January 2025.
Poland
The Polish Ministry of Finance published the TPR Guide on 4 September. The Guide contains an updated Q&A regarding the TP reporting obligations and is released to facilitate compliance, simplify the reporting process and ensure data consistency.
Switzerland
The Income Inclusion Rule will be effective from 1 January 2025 in Switzerland. This was announced by the Swiss Federal Council on 4 September. The Undertaxed Profits Rule will not yet be implemented for an indefinite time.
United Kingdom
- On 10 September, HMRC issued guidelines for managing transfer pricing risks. The guidelines focus on improving compliance and increasing transparency around HMRC’s expectations. This helps companies align with UK tax requirements in their transfer pricing practices.
- On 12 September, HMRC opened a consultation on the draft guidance for the Pillar Two global minimum tax rules in the UK. The guidance is published regarding the multinational top-up tax and the domestic top-up tax. Comments are due by 23 October 2024.
Final words
Thank you for taking the time to read this edition of our newsletter. I hope you found the insights and updates valuable. If you have any questions or would like further information on any of the topics covered, please don’t hesitate to reach out to us.
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Best regards,
Adriaan van der Heijden
Director at Quantera Global
