KPMG’s Week in Tax: 4-8 January 2016

KPMG’s Week in Tax: 4-8 January 2016

New tax law in the United States, enacted December 18, 2015, includes tax-related provisions and significant policy changes.

Related content

Read KPMG's analysis [PDF 648 KB] that summarizes and includes observations about key new tax law provisions.

United States

  • Puerto Rico issued guidance items concerning the new monthly sales and use tax return and concerning the introduction and implementation of a VAT system. 
  • The first edition of the Internal Revenue Bulletin for 2016 includes the “annual revenue procedures.”
  • The California Supreme Court held taxpayers could not elect to apportion their income to California using the allocation and apportionment provisions contained in the Multistate Tax Compact, in lieu of the apportionment formula mandated under state law.
  • The U.S. Court of Appeals for the Federal Circuit affirmed a lower court, denying an importer’s claims for refunds of customs duty paid on automotive parts imported into the United States and for which the importer sought duty-free entry under the North America Free Trade Agreement (NAFTA).

Transfer pricing

  • Brazil: Dutch holding companies are again included on the Brazilian government’s list of “privileged tax regimes.”
  • Argentina: The tax authorities posted an updated “white list” of countries, jurisdictions, and territories—that is, countries and jurisdictions that are identified as cooperative for tax transparency purposes. 
  • Norway: The Ministry of Finance published a proposal suggesting that multinational groups—when the ultimate parent company is a resident in Norway—would be required to submit country-by-country reports.
  • Netherlands: Legislation amending the rules governing transfer pricing documentation—to include country-by-country reporting, as well as master file and local file provisions—was enacted with an effective date of 1 January 2016.
  • Korea: Rules would require all Korean domestic corporations and all foreign corporations with a domestic place of business in Korea that are engaged in certain cross-border related-party transactions to file both master file and local file reports. The filing dates for the master and local files are related to the date for filing tax returns (i.e., for fiscal or tax years ending 31 December, the deadline would be 31 March of the following year).

Europe

  • Belgium: The Belgian income tax law has been changed to comply with a judgment of the Court of Justice of the European Union (CJEU) concerning the different treatment allowing resident companies to claim a dividends-received deduction (DRD) and to credit the withholding tax on dividends but not allowing the same for non-resident companies.
  • Italy: The budget law for 2016 introduces significant changes relating to Italy’s corporate income tax.

FATCA / CRS

  • Luxembourg: A law implementing the common reporting standard (CRS) has been enacted.
  • Argentina: Guidance implements new information reporting for banks and financial institutions pursuant to the OECD’s CRS regime, effective January 2016.
  • Portugal: The FATCA reporting deadline for financial institutions in Portugal has been extended again, this time to 31 March 2016.
 
Read these and other items reported this week on the TaxNewsFlash United States and Global websites

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