KPMG’s Week in Tax: 25-29 January 2016

KPMG’s Week in Tax: 25-29 January 2016

The European Commission launched a program to counter tax avoidance by multinational corporations. The EC proposals in certain aspects follow the base erosion and profit shifting (BEPS) project of the OECD. Also this week, representatives of 31 countries signed an agreement—the Multilateral Competent Authority Agreement (MCAA)—for the automatic exchange of country-by-country reports. The MCAA is intended to allow for consistent and swift implementation of new transfer pricing reporting standards developed under Action 13 of the BEPS project, and to allow tax administrations to understand how multinational enterprises structure their operations and to protect confidential information.

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Read more at TaxNewsFlash-BEPS

Asia Pacific

  • Singapore: New guidance was released as an update and expansion of all transfer pricing-related guidance.
  • India: A proposed transfer of shares of an Indian company by a Mauritius based company to a Singapore based company, under a group reorganisation, is not taxable under the India-Mauritius income tax treaty.
  • Thailand: The income tax treaty between Thailand and India has been renegotiated, and a new treaty was agreed to on 1 December 2015.
  • Thailand: A new voluntary audit program was launched that allows a company to approach the customs authorities and voluntarily disclose any import duty that was paid incorrectly in the past.
  • China: Opinions issued by a local tax bureau concern the individual income tax treatment relating to shares and options granted to employees of unlisted companies.
  • Vietnam: If a company directly pays tuition and fees for children of employees, these payments are considered to be deductible expenses for corporate income tax calculation purposes, subject to a cap.


  • Ireland: The “knowledge development box” tax incentive, as unveiled in the budget 2016, may benefit small and medium size enterprises and is narrower in scope than originally proposed last year.
  • United Kingdom: Employers need to remit any composite payments for 2014/15 by 31 January.


  • Canada: Non-Canadian resident employers that have non-resident employees working in Canada now have until 1 March 2016 to request that a new exception from the withholding tax rules applies to them retroactively as of 1 January 2016. Previously, the deadline for these applications was 1 February 2016.
  • Canada: Many employers that offer taxable benefits to their employees will have to remit amounts of GST / HST and QST related to these benefits by 31 March 2016.
  • Canada: Taxpayers owning or leasing commercial or industrial properties in Ontario may be able to reduce their property tax costs by claiming available property tax rebates; applications for the 2015 tax year are due 29 February 2016.
  • Canada: A review of registered charities' political activities has found substantial compliance with the rules regarding charities' involvement in political activities.


  • Netherlands: The FATCA reporting deadline of 31 January applies for financial institutions that have already provided information to the Dutch tax authority under the EU Savings Directive. For other financial institutions, FATCA reports for 2015 must be filed before 1 August 2016.
  • British Virgin Islands: The International Tax Authority (ITA) is moving forward in implementing the OECD common reporting standard (CRS).

United States

  • Form 3115, Application for Change in Accounting Method, has been revised. A report examines the revised procedures for requesting accounting method changes.
  • The Treasury Department released a quarterly list of countries that require (or may require) participation in, or cooperation with, an international boycott.
  • The Securities and Exchange Commission (SEC) has proposed rules that would require resource extraction issuers to disclose certain payments made to the U.S. federal government or foreign governments for the commercial development of oil, natural gas, or minerals.
Read these and other items reported this week at the TaxNewsFlash United States and Global websites

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