KPMG’s Week in Tax: 14 - 18 August 2017 | KPMG | US

KPMG’s Week in Tax: 14 - 18 August 2017

KPMG’s Week in Tax: 14 - 18 August 2017

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

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BEPS and Transfer Pricing

  • Bulgaria: New rules regarding country-by-country (CbC) reporting were published in the official gazette and require certain multinational enterprise (MNE) groups to report data on the group entities and permanent establishments to the Bulgarian tax authorities.
  • Greece: A new law implements rules for CbC reporting, with the date for filing the first CbC report being 12 months of the last day of the reporting fiscal year (that is, for calendar year taxpayers, for 2016, the due date of the CbC report is 31 December 2017).
  • Nigeria: A representative of the government of Nigeria signed the OECD multilateral instrument (MLI) agreement (convention).
  • Latvia: CbC reports about the 2016 financial year (due by 31 December 2017) may require notice to the tax authorities before 31 August 2017 as to which entity will be the “CbC reporting entity.”

Read TaxNewsFlash-BEPS and TaxNewsFlash-Transfer Pricing

Europe

  • Luxembourg: The tax authorities released four tax circulars with respect to individual income tax, and that provide certain clarifications following enactment of the 2016 family allowance and the 2017 tax reform measures.
  • Bulgaria: New measures broaden the category of third parties that can be held liable for unpaid taxes of legal entities. Now, shareholders, managing directors, members of governing bodies, procurators, commercial representatives, and commercial agents may be liable for unpaid tax and social security obligations of legal entities.
  • UK: A reminder provides notice for multinational entities having a UK presence that there is a requirement to publish their UK tax strategy before the end of 2017. If a qualifying multinational entity does not publicly disclose information relating to its UK tax strategy, it may face penalties and reputational implications.

Read TaxNewsFlash-Europe

Africa

  • Nigeria: The federal government approved a national petroleum policy that articulates a new vision for the Nigerian petroleum industry.

Read TaxNewsFlash-Africa

Americas

  • Mexico: A new framework for taxation in the hydrocarbon sector has led to the publication of new regulations concerning the tax treatment of contracts for exploration and extraction of hydrocarbons. 
  • Brazil: Three provisional measures concern the mining sector, and include provisions affecting the treatment of income from a “royalty” on mining activates (CFEM) as shared by federal, state, and local governments.
  • Brazil: Changes were made to a tax amnesty program to allow taxpayers to resolve outstanding tax liabilities using a combination of cash and net operating losses (NOLs). The program was originally introduced by Provisional Measure 783/2017.
  • Chile: Under the value added tax (VAT) regime, beginning in August 2017, entities must participate in a registry that will automatically provide electronic documentation to the tax authority (SII).

Read TaxNewsFlash-Americas

Asia Pacific

  • Thailand: There is a proposal contained in draft legislation to allow companies to use a foreign functional currency for purposes of computing the corporate income tax.
  • UAE: It was announced that legislation implementing a value added tax (VAT) regime is expected to be released in the third quarter of 2017.

Read TaxNewsFlash-Asia Pacific

FATCA / IGA / CRS

  • British Virgin Islands: The common reporting standard (CRS) reporting deadline for 2017 has been extended to 1 September 2017 (from 18 August 2017).
  • Germany: The central tax office in Germany provided information on the delivery of transmission protocols and version 2.0 of the FATCA communication manual.
  • Nigeria: A representative of the government of Nigeria signed the multilateral competent authority agreement under the CRS.

Read TaxNewsFlash-FATCA / IGA / CRS

Trade & Customs

  • NAFTA: Representatives of the governments of the United States, Canada, and Mexico presented their opening positions in the first round of the North American Free Trade Agreement (NAFTA) re-negotiations. Initial impressions of these NAFTA re-negotiations are made in a KPMG report.
  • United States: An executive order continues, for an additional one-year period, the “national emergency” declared by an August 2001 executive order relating to the expiration of the Export Administration Act of 1979, as amended (50 U.S.C. 4601 et seq.). Because Congress has not renewed the Export Administration Act, the national emergency must continue beyond 17 August 2017, for one year. 
  • United States: A test program for submitting electronic foreign trade zone (FTZ) admission applications to via the Automated Broker Interface (ABI) has been extended.
  • United States: A revision to the Commerce Control List (CCL) and corresponding parts of the Export Administration Regulations (EAR) implements changes relating to dual-use goods and technologies.

Read TaxNewsFlash-Trade & Customs

United States

  • A New York State tax appeals tribunal held that a taxpayer was not entitled to deduct premiums paid to a captive insurance subsidiary in computing its entire New York net income for the tax years at issue. 
  • A New York State trial court remanded a refund proceeding to a state tribunal, in a case concerning claims for refunds of sales and use taxes erroneously collected on charges for internet access. 
  • The Texas Comptroller’s office announced a revised position—that applies for all open years—concerning the inclusion of net operating losses in the apportionment factor, thereby applying the holding of a decision of the Texas Supreme Court (taxpayer not required to include a net loss resulting from the sale of an investment in computing its apportionment factor).
  • A Washington State tax review officer concluded that the real estate excise tax owed on a 2015 transfer of a 50% interest in a limited liability company (LLC) that in turn owned real property was based on the property’s assessment value in 2014 (for which taxes were due in 2015), but that the transfer was subject to the full amount of the real estate excise tax.

Read TaxNewsFlash-United States

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