WTS Newsletter

• Hot topic: European Fund Tax Law Conference in Dublin on 23 June 2022
• Argentina: Summary of recent tax news relevant to the FS industry
• Belgium: Luxembourg treaty exemption for the Annual Tax on Securities Accounts at risk?
• Finland: CJEU dated 7 April 2022 (C-342/20): Finnish WHT exemption in conflict with free movement of capital &
• Finland: Finnish Tax Administration reveals malicious companies set up for tax evasion “as a service”
• France: Intra-group interest – improvement for taxpayers
• Germany: Final administrative decree on crypto assets & Decision in ECJ case C-641/17 – “CPP” & Federal Tax Court on cum-/ex-transactions
• Italy: Tax ruling on WHT exemption and foreign investment funds (dated 30 March 2022)
• Netherlands: Expected changes and developments in Dutch tax legislation impacting the FS sector & News on the refund of dividend WHT
• Poland: Two Supreme Administrative Court decisions on cryptocurrencies and interest on overpayment
• United Kingdom: Changes to Economic Crime Act 2022 & Plans of HMRCs Business Risk Review & Crypto asset developments & Changes to the US Qualified Intermediary Agreement

Hot topic: ECJ landmark decision in the case C-545/19 (AEVN) dated 17 March 2022
Hot topic: OECD Commentary on Pillar Two
Austria: Supreme Administrative Court on foreign Trusts
Belgium: New fund type – Belgian ELTIF
Belgium: WHT reclaim
China: Change in taxation of equity investments
Czech Republic: New Czech government & increase of interest rate
France: Tax measures on gains from the sale of digital assets
Germany: Economic ownership and securities lending & WHT on crypto fund units
Netherlands: Government proposal to curb dividend stripping
Poland: Supreme Administrative Court on beneficial ownership & Indirect transactions with tax havens
Sweden: WHT for pension funds & VAT treatment of interchange fees in Sweden
UK: HMRC on Implementation of Pillar Two, ISA compliance and Uncertain Tax Treatment & Review of UK funds regime

Recent EU developments with respect to WHT
Argentina: Tightening of the foreign exchange control framework, increase of Corporate Income Tax, taxation of crypto currencies, & Supreme Court decision on interest deduction
Austria: Draft bill on new Austrian tax regime for crypto currencies published  
Czech Republic: Act on Investment Companies and Investment Funds & Green Tax  
Finland: CJEU Advocate General Opinion (C-342/20) on tax exemption criteria designed for contractual funds & Changes to the interest deduction limitation rules 
France: VAT option for banking and financial services (draft bill) 
Germany: Impact of recent Coalition Agreement on the FS industry, Revised CFC rules & Introduction of check the box regime 
India: Taxation of Dividend income 
Ireland: The taxation of crypto currency in Ireland 
Netherlands: Court decisions on German real estate investment fund with Dutch real estate income & Dividend tax refund for UK pension fund 
Poland: Polish Deal – selected WHT issues (incl CIVs) 
Slovenia: Taxation of crypto currencies 
Sweden: Proposed tax on credit institutions & Postponement of new WHT Act 
Switzerland: Reform of Swiss WHT regime & New legal framework on implementation of international tax agreements 

Germany: Introduction of crypto fund units
Austria: New CJEU decision on VAT exemption
Belgium: Investment funds and the new annual tax on securities accounts
Denmark: Fidelity Funds and 24 June 2021 Supreme Court (Update) – Beneficial ownership – Tax Havens
Finland: Government Budget Proposal – Supreme Administrative Court on taxation of carried interest
Germany: Administrative guidance on securities lending transactions
Hungary: New taxation rules for crypto assets
Ireland: Share Schemes in the Irish Tax System
Italy: Tax exemption on interest from medium / long term loans paid to foreign investment funds – Tax regime of interests on loan granted to Italian tax resident persons by non-resident banks
Luxembourg: Refund of Luxembourg dividend WHT and proof of beneficial ownership
Poland: Polish Deal – WHT scheme, holding companies and VAT option
Switzerland: Substantial reform of Swiss WHT and Stamp Tax

EU Member-States

• The Netherlands: Broader interpretation of conditions for forming a VAT group
   

Further countries

• Chile: VAT changes for services  
• China: VAT measures to tackle business contraction  
• Gulf Cooperation Council countries: Update on VAT  
• Nigeria: VAT obligations of non-resident digital service providers  
• Vietnam: VAT rate reductions  

EU Member-States

Austria: Change in the VAT treatment of rental revenues of foreign property owners
Belgium: VAT registration with a fiscal representative, new rules on guarantees
France: Changes in sight
Germany/EU: Changes to Intrastat reporting
Hungary: VAT changes from 2022
Italy: E-invoicing via SDI extension
The Netherlands: Developments for investment funds and VAT fiscal unities
Poland: Voluntary e-invoice as of 1 January 2022
 

Further countries

China: Changes to indirect tax surcharges
Kingdom of Saudi Arabia: Changes to VAT, invoicing and customs charges
Singapore: Expanding the scope of application of GST
Ukraine: New VAT regulations taking effect in 2022

EU Member-States

Austria: Higher court confirms the granting of interest for overdue VAT credits
France: First flavour of the planned ambitious e-invoicing and e-reporting reform
Germany I: Sale of admission tickets for events, non-objection regulation
Germany II: Postponed: warranty commitments granted for remuneration as insurance transaction
Hungary: eVAT – What does the new draft eVAT return mean for taxpayers?
Poland: Further changes in the Polish VAT Act
Romania: Implementation of the Standard Audit File for Tax (SAF-T)

Further countries

Ukraine: Taxation of motivational fees

EU Member-States

Austria: Tax trap with Value Added Tax assessment
France: Facilitating the reporting obligations of foreign operators
Germany I: Warranty commitments granted for remuneration as insurance transaction
Germany II: Supervisory board members as taxable persons
Hungary: Online invoice reporting and self-billing
Italy: Input VAT refund via web portal
Poland: VAT group treatment

Further countries

Nigeria: Validity of the VAT Act
Ukraine: Taxation of digital services

Europe

• Austria: New Info from the Austrian Ministry of Finance – Mutual Agreement Procedure and Arbitration Procedure
• Denmark: Mandatory Submission of Transfer Pricing Documentation in Denmark during 2022
• France: The SAP Case: The Difficulty for Tax Courts when Handling Negative Interest Rates
• Hungary: TP Update
• Ireland: The Irish Position on the proposed ATAD3 Directive
• Italy: DAC6 Reporting: Year-End TP Adjustment
• United Kingdom: APAs, ATCAs and HM Revenue and Customs Statistics

Further Countries

• Argentina: Deemed Affiliation: Cross-Border Transactions with Low-Tax Jurisdictions
• Brazil: Plan for Brazil’s Accession to the OECD: Changes to Transfer Pricing Rules
• Chile: Practical Lessons learned from Transfer Pricing Audits in Chile
• China: First Chinese Customs and Tax Collaborative Transfer Pricing Management Mechanism
• India: The Indian Revenue’s Measures for effective Dispute Resolution
• Kenya: A Fundamental Shift in the Transfer Pricing Regime in Kenya
• Senegal: After joining the Multilateral Convention, a Step forward in the Fight against Tax Evasion & Avoidance
   

Europe
Austria: No annual CbCR notification required since 1 January 2022
Czech Republic: The Czech Supreme Administrative Court’s thoughts on related party definition
France: The RKS case: shades of nuance in TP by the French Supreme Administrative Court
Germany: New case law on the determination of arm’s length interest rates for intercompany loans
Ireland: TP Compliance requirements in Ireland
Italy: New rules on TP documentation
The Netherlands: Netherlands disallows unilateral downward TP adjustments
Poland: Polish regulations on “indirect” transactions with tax havens
Portugal: Amendments to Transfer Pricing legislation
United Kingdom: Outcome of the UK consultation on TP documentation  
Ukraine: Ukrainian Ministry of Finance clarifies new TP rules on business purpose

Further Countries
Brazil: Effects of extinction of LIBOR rate to Brazilian TP controls
China: Deduction of interest charged by related parties  
New Zealand: New BEPS disclosure guidance and preparation forms
Taiwan: Taiwan CFC rules will be implemented as of 2023 in response to the Global Minimum Tax

Europe
Austria: New Austrian Transfer Pricing Guidelines 2021
Belgium: Belgian Transfer Pricing court case: a rare occurrence
France: The Engie Case: an ambitious new approach by the French Tax Administration
Germany: German Federal Ministry of Finance: Administrative Principles 2021 on Transfer Pricing published
Germany: Recent changes on German Tax Law concerning Transfer Pricing
Ukraine: State Tax Service intensifies TP control

Further Countries
Argentina: Transfer Pricing developments in Argentina
Benin: Transfer Pricing Update Benin
Chile: Migration of the approach of the Chilean Revenue Service to segments with greater fiscal impact
China: Responses to practical questions on the Transfer Pricing implications of the COVID-19 impacts15
Nigeria: Transfer Pricing Update on Nigerian TP case
Senegal: Implementation of Action 12 of BEPS project: a strengthened internal tax system
Taiwan: Supreme Administrative Court decides on one-time Transfer Pricing adjustments
Thailand: TP legal framework and practical insights
United States: The US’ role in global adoption of Pillar 1 and Pillar 2 / ongoing conversations in the US on tax reform / a status update on US tax reform
Vietnam: Transfer Pricing Update Vietnam

Europe
Austria: New Austrian Transfer Pricing Guidelines 2020
France: Self-financing through intangible assets or how to generate significant tax savings
Germany: German Federal Ministry of Finance: Administrative Principles 2020 published
Hungary: Pandemic does not stop TP audits in Hungary
Italy: New Rules on the Transfer Pricing Documentation
The Netherlands: Proposed limitation to Dutch unilateral downward adjustments
Poland: New documentation requirements for transactions with tax havens as of 1 January 2021
UK: UK Consultation on Transfer Pricing Documentation

Further Countries
Argentina: Mandatory Disclosure Framework and Transfer Pricing
Brazil: New ‘Local File’ Requirements in Brazil
Chile: Recent cases on TP – Chile vs Avery Dennison Chile SA (FY 2012)
China: China releases public consultation paper on simplified unilateral APA procedures
Ghana: Ghana introduces new Transfer Pricing Regulations
India: Transfer Pricing Update India
Senegal: Latest Transfer Pricing tax reform implementing Action 12 of the OECD BEPS project
Vietnam: The regulations on the Advance Pricing Agreement (“APA”) and its modification