International community strikes a ground-breaking tax deal
Pillar One Pillar One, in general, offers a new taxing right for market jurisdictions focusing on the demand side (where customers are based) over a share of residual profit (Amount A) and a fixed return for (standardized) routine marketing and distribution activities (Amount B). It is expected that large online sales and technology companies making […]
Digital Services Tax Emerging in Africa
Under Action 1 of the BEPS Project, titled “Addressing the Tax Challenges of the Digital Economy”, the OECD has set out to establish a set of international standards to address BEPS in the digital economy. However, given that the work of the OECD/G20 Inclusive Framework is on-going, some countries have already undertaken unilateral tax measures […]
Existing benchmark studies are based on past data that do not capture new COVID-19 market conditions
The assumption that limited-risk companies should earn guaranteed returns might be questioned as a result of the COVID-19 outbreak. It is uncertain whether independent companies performing similar functions, assets and risks to limited-risk companies will report operating losses. Independent comparable companies may be compensated with different margins or even losses in 2020. Therefore, by relying […]
OECD/G20 Inclusive Framework on BEPS endorsed the Two-Pillar Approach on the Digitalisation of the Economy
Profit allocation systemThe Outline adopted a three-pronged approach/mechanism on taxable profits, designated as Amount A, Amount B and Amount C, that may be allocated to a market jurisdiction; Amount A (a new taxing right) – As per this mechanism a share of residual profit will be allocated to market jurisdictions using a formula based approach […]
Dutch government shares its view on CJEU Danish cases
The questions mainly concern the interaction between the landmark CJEU judgements in six cases which deal with the application of the EC Parent-Subsidiary Directive and the EC Interest and Royalty Directive (see also our Blog on this subject) and the substance requirements according to Dutch legislative. The current substance requirements are (in short) that the […]
EU revises list of non-cooperative jurisdictions
Currently, 12 jurisdictions remain on the EU list of non-cooperative jurisdictions: American Samoa, Belize, Dominica, Fiji, Guam, Marshall Islands, Oman, Samoa, Trinidad and Tobago, United Arab Emirates, US Virgin Islands and Vanuatu. The Netherlands has significantly more jurisdictions placed on its blacklist. An overview of the jurisdictions (as well as their CIT tarif) of both […]
Russia challenges beneficial ownership Cypriot holding company
In order to answer this question the court had to consider the role of the Cypriot parent company and in particular whether it is perceived as the beneficial owner of the shares in the Russian company as well as the corresponding dividends. In determining the beneficial ownership of the Cypriot parent company the court set […]
Draft Decree on new ruling practice (the Netherlands)
Procedure According to the draft Decree the International Fiscal Certainty Team (the IFZ Team) will act as the first point of consultation for obtaining the majority of international tax rulings. This team will monitor and ensure unity in quality of/and adherence to the ruling practice and ruling policy. With respect to bilateral and multilateral APAs, […]
German Ministry of Finance publishes draft bill on fiscal promotion of research and development
Draft bill research allowance The draft bill offers a tax allowance for taxpayers, regardless of their actual size and business activity provided that they carry on qualifying research activities (see hereafter). The amount of the allowance depends on the expenses of the research personnel using a maximum amount of EUR 2.000.000. The total expenses will […]
CJEU rules in Danish cases on beneficial ownership and treaty abuse
The joined cases (two dividend cases and four interest cases) revolve around Danish companies owned by a parent company in another EU Member State (Luxembourg, Cyprus and Sweden). Subsequently, these EU parent companies were all owned by companies resident outside the EU (such as Bermuda and the Cayman Islands) or by funds with investors in […]
