KPMG’s Week in Tax: 12 - 16 February 2018 | KPMG | LU
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KPMG’s Week in Tax: 12 - 16 February 2018

KPMG’s Week in Tax: 12 - 16 February 2018

Tax developments or tax-related items reported this week include the following.

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Transfer Pricing and BEPS

  • Costa Rica: Details about filing country-by-country (CbC) reports are provided.
  • Norway: The Ministry of Finance published mutual agreement procedure (MAP) guidelines that apply under Norway’s network of income tax treaties, and that are specifically relevant for cases with transfer pricing issues.
  • Poland: Information about the requirements for transfer pricing documentation is updated.

Read TaxNewsFlash-Transfer Pricing

Europe

  • Austria: A court decision clarifies a company’s ability to carry forward tax losses when there is a change in the status of certain directors.
  • Netherlands: Dutch government officials announced a delay to an “employment relationships deregulation” law that would require changes to the Dutch labor law, tax law, and social security legislation.
  • OECD: The Organisation for Economic Cooperation and Development (OECD) issued a report on energy taxation and efforts to address greenhouse gas emissions and air pollution.

Read TaxNewsFlash-Europe

Africa

  • South Africa: The 2018 budget is unlikely to offer incentives or relief for corporate taxpayers, according to tax professionals. There may be a focus on specific anti-avoidance provisions and technical amendments aimed at closing loopholes.

Read TaxNewsFlash-Africa

Americas

  • Canada: The federal budget is to be tabled 22 February 2018 and is expected to include the Finance Minister’s economic plan and tax provisions.
  • Canada: Goods and services tax / harmonized sales tax (GST/HST) and Quebec sales tax (QST) that relate to taxable employee benefits must be remitted by 31 March 2018.

Read TaxNewsFlash-Americas

Asia Pacific

  • Singapore: The upcoming 2018 budget may include tax and revenue raising provisions.
  • China: A “tariff adjustment plan” adjusts the tariffs on certain commodities and IT imports.
  • China: The customs administration issued guidance about a customs advance ruling program (effective 1 February 2018).

Read TaxNewsFlash-Asia Pacific

FATCA / IGA / CRS

  • Singapore: The Inland Revenue Authority of Singapore launched a new automatic exchange of information (AEOI) electronic services system concerning common reporting standard (CRS) returns.
  • Netherlands: While the new CRS country list is not included in the application form (IBB 2017.2), there is a process by which users can import the CRS country list in their filings.
  • Vietnam: A Vietnamese language translation of an IRS notice reflects the U.S. guidance regarding the collection and reporting of taxpayer identification numbers (TINs) and dates of birth.

Read TaxNewsFlash-FATCA / IGA / CRS

United States

  • Rev. Proc. 2018-17 addresses when the IRS will grant approval of certain requests by “specified foreign corporations” for changes in annual accounting periods. The revenue procedure concerns new Code section 965 that was added to the tax law by the legislation (Pub. L. No. 115-97) enacted in December 2017.
  • The “oil spill” excise tax applies for the period 1 March 2018 through 31 December 2018. The tax had expired at the end of 2017, but the Bipartisan Budget Act of 2018 includes a provision that extends or reinstates this excise tax.
  • Proposed regulations would (1) remove 298 regulations that are found to be no longer necessary because they do not have any current or future applicability under the Code; and (2) amend 79 regulations to reflect the proposed removal of these 298 regulations.
  • An office of the U.S. Treasury Department announced the awarding of $3.5 billion in New Market Tax Credit (NMTC) allocations.
  • Connecticut’s governor recommended FY 2019 budget adjustments that include a proposed reduction in the rate of corporate surtax and other proposed business tax changes, and a “decoupling” of certain state tax provisions from federal tax law in light of federal tax law changes enacted in late 2017.
  • Legislation in Idaho (House Bill 355) would update Idaho’s tax law conformity to the Internal Revenue Code, in light of the federal tax legislation enacted in late 2017.
  • The Wisconsin Department of Revenue issued a private letter ruling concluding that subscription fees paid for access to a number of online legal tools (bundled transactions) were subject to Wisconsin sales and use tax.

Read TaxNewsFlash-United States

 

  • The Trump Administration’s FY 2019 budget recommendations would significantly increase defense spending, make cuts to certain mandatory spending programs, and boost federal spending on infrastructure by $199 billion. However, there are no significant tax proposals in the budget.
  • The White House released its plan for infrastructure rehabilitation and improvement—an outline of regulatory, federal funding, and tax proposals costing $200 billion and said to stimulate at least $1.5 trillion in new investment in infrastructure over 10 years.

Read TaxNewsFlash-Legislative Updates

Trade & Customs

  • The U.S. House of Representatives passed a bill (H.R. 4979) that would extend the Generalized System of Preferences (GSP) program and make technical changes to the competitive need limitations (CNLs) provision of the program.
  • The U.S. Court of International Trade addressed the appropriate tariff classification of imported cloth pet carriers, and focused on the purpose of the items—i.e., to carry pets and not items. The difference of the tariff classification was a 17.6% customs duty rate versus a 7% customs duty rate.

Read TaxNewsFlash-Trade & Customs

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