It is our pleasure to present to you the first edition of our WTS Transfer Pricing newsletter for 2021.
In this latest edition, our colleagues from 13 countries provided an update on recently introduced legislations and cases; in particular, the adoption of certain OECD guidelines. Additional developments in the field of transfer pricing, including the implementation of the BEPS into the laws of the various countries, are presented.
Europe
In France, to deduct the full amount of intergroup interests, a French company must prove that the paid interests are not excessive. Our French colleagues outline some of the principles
behind this regulation.
In Spain, the settlement of tax disputes in the European Union has been implemented into Spanish domestic law.
The Swedish Tax Agency has issued new guidance on financial guarantees. Swedish taxpayers can now rely on the OECD approach as suggested in Chapter X.
Our Ukraine colleagues explain Law 466-IX that has introduced comprehensive changes within the Ukrainian tax code, including the implementation of the BEPS three-tier reporting
standard.
Further Countries
In Argentina, the Argentine Revenue Service has added new transfer pricing documentation requirements for operations with intermediaries. More specifically, the requirements for transfer pricing documentations have been extended with a focus on imports and exports through international intermediaries.
Chile’s Internal Revenue Service published Resolution 101, which incorporates two new affidavits regarding transfer pricing compliance, which must be submitted by the taxpayer in certain cases.
Our colleagues in Costa Rica explain recent updates in local tax law affecting transfer pricing and provide three examples on how the tax administration has adjusted the mentioned decrees.
The Central Board of Direct Taxes in India has issued a detailed Guidance on MAPs for the process to be followed by Indian authorities, and also guidance on issues related to MAPs.
In China, the Administration of Taxation has released the 2019 APA report, which serves as a practical guidance and manual for the companies interested in an APA.
The contribution from Nigeria sheds light on the transfer pricing decision of the Nigerian tax appeals tribunal about compliance in connection with the arm’s length principle, APAs and
corresponding adjustments.
Senegal signed the Multilateral Convention to modify existing bilateral tax treaties so as to implement the BEPS measures and reduce the possibilities of tax avoidance.
The Taiwan Ministry of Finance announced draft amendments to the regulations governing the assessment of income tax on non-arm’s-length transfer pricing. The amendments refer
to the OECD Transfer Pricing Guidelines.
In Vietnam, the government has issued new decrees to introduce a change of the acceptable arm’s-length range and adjust the filing obligations of country-by-country reporting.
If you have any questions regarding any aspects of this newsletter, our Global Transfer Pricing experts will be happy to answer them.
