Global Transfer Pricing Newsletter #2/2021 now available

It is our pleasure to present to you the second edition of our WTS Global Transfer Pricing Newsletter for 2021.

In the latest edition of the WTS Global Transfer Pricing Newsletter, our colleagues from 16 countries provide an update on recently introduced legislations and cases, specifically the adoption of certain OECD Guidelines. Additionally, developments in the field of transfer pricing, including the implementation of the BEPS project into the laws of the various countries are presented.

Europe

In Austria, the draft of the revised Austrian Transfer Pricing Guidelines 2020 was published. Our Austrian colleagues outline the changes and consequences.

In France, after half a century, the status quo of the tax regime regarding intangible assets is changed. Our French colleagues outline some of the principles behind the newly established “Nexus” approach.

In Germany, the Federal Ministry of Finance has published the Administrative Principles 2020. These replace the version of 2005 to some extent, but there is a greater emphasis on procedural aspects.

Our colleagues in Hungary explain the current focus of the Hungarian tax authority at Hungarian subsidiaries of foreign companies under the aspect of transfer pricing following the COVID-19 crisis.

In Italy, new rules came into force regarding the structure, content and submission of the transfer pricing documentation. These changes apply to both the master file and the local file and have significant implications for the taxpayer.

In the Netherlands, the Dutch Ministry of Finance has published a draft proposal under which downward adjustments would be limited in order to address transfer pricing mismatches when applying the arm’s-length principle.

The Polish tax authority has issued guidance on new documentation requirements for transactions involving tax havens. The article explains to what extent this has a practical effect for taxpayers.

The UK government has opened a consultation process on changes regarding the transfer pricing documentation requirements valid in the UK. Our British colleagues explain the proposed changes.

Further Countries

Our colleagues from Argentina provide an overview of the new mandatory disclosure framework for domestic and international tax planning arrangements.

Brazil is known for not implementing the OECD Guidelines regarding transfer pricing. Now, new transfer pricing documentation requirements have been announced. This will require a significant effort, even though Brazil is already at a very high level in this respect.

Chile’s tax court has ruled against the Chilean Tax Administration in a decisive case that could bring profound changes to the local transfer pricing regulatory framework. This case and its impact on taxpayers is outlined by our Chilean colleagues.

In China, the State Administration of Taxation has published a consultation paper that shortens the APA process to just three steps, allowing for a significantly faster processing time in order to provide tax certainty.

The article from Ghana sheds light on the newly established transfer pricing regulations, capturing some of the BEPS Action Items.

Our colleagues in India provide information on the recently introduced regulatory changes concerning both procedural and tax compliance aspects of transfer pricing.

Senegal is currently implementing several BEPS action items into local tax laws. Our colleagues explain which actions have been implemented and how these changes will affect companies.

In Vietnam, the fiscal authorities have changed the process of APA conclusion in order to implement this instrument practically. The article outlines the key aspects of this development.

If you have any questions regarding any aspects of this newsletter, our Global Transfer Pricing experts will be happy to answer them.

Read the WTS Global Transfer Pricing Newsletter here.