KPMG’s Week in Tax: 23 - 27 January 2017

KPMG’s Week in Tax: 23 - 27 January 2017

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

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Transfer Pricing and BEPS

  • Indonesia: New measures implement BEPS recommendations for country-by-country (CbC) reporting and Master file and Local file requirements.
  • OECD: A toolkit is being designed to help developing countries address the lack of comparables for transfer pricing analyses.
  • Belgium: The transfer pricing documentation structure proposed by the OECD has been adopted.
  • Nigeria: A revised transfer pricing declaration form and a revised disclosure form are released for use by taxpayers beginning from January 2017.

Read TaxNewsFlash-Transfer Pricing and TaxNewsFlash-BEPS

United States

  • The U.S. House of Representatives approved a bill to deny certain tax benefits under the Affordable Care Act with respect to health plans that cover abortion services.
  • The Joint Committee on Taxation (JCT) released a presentation that describes the process and economic methodologies behind revenue estimates prepared by the JCT staff.

Read TaxNewsFlash-Legislative Updates

 

  • A report prepared by KPMG LLP provides comparisons of tax reform proposals from the Trump campaign proposals, the House Republican blueprint, and the Camp proposal that may affect the insurance sector.
  • Some tax proposals being considered could (if enacted) affect how a real estate investment trust (REIT) is perceived based on its tax treatment and how REITs conduct their business operations going forward.

Read TaxNewsFlash-Tax Reform

Africa

  • Nigeria: A notice from the tax authority requests taxpayers validate their corporate/official email addresses, in order to allow taxpayers to receive electronic tax collector’s receipts from the authority.

Read TaxNewsFlash-Africa

Asia Pacific

  • Hong Kong: The government plans to introduce a new set of tax rules for offshore aircraft leasing to the legislative council in April 2017.
  • China: Qualified foreign graduates with no working experience may be allowed work permits in China.
  • India: A writ petition challenging the initiation of reassessment proceedings is maintainable before the High Court.
  • India: Guiding principles were issued for determining the “place of effective management” as to whether a company is a resident in India.
  • India: The Supreme Court of India granted immunity from prosecution to the taxpayer when the sum specified in the settlement order was paid but beyond the time granted by the settlement commission but before filing the special leave application with the Supreme Court.
  • India: A tribunal held that expenditures incurred in holding seminars, sponsoring lectures, sponsoring travel and accommodation for conferences, small gifts with logo and brand names and cost of samples given to medical practitioners are in the nature of sales promotion expenditure incurred for the business of the taxpayer. 
  • India: The cabinet has approved tax-related amendments that are intended to boost electronics systems design and manufacturing in India.
  • India: A circular clarifies certain tax and investment guidance in the form of “frequently asked questions” (FAQs).
  • India: A tribunal held that the mere fact of participation by one enterprise in the management or control or capital of the other enterprise, or the participation of one or more persons in the management or control or capital of both the enterprises, does not make them associated enterprises.
  • India: The goods and services tax (GST) deadline has been deferred to 1 July 2017.
  • India: A tribunal held that the amount of export commission paid to non-resident commission agents is not taxable in India, since there is no specific fees for technical services article in respective tax treaties. 

Read TaxNewsFlash-Asia Pacific

Europe

  • Czech Republic: The government approved another amendment to the Act on International Cooperation in Tax Administration to introduce a new requirement to share information about financial results, activities performed, staff numbers, and many other indicators. The new amendment aims to introduce the automatic exchange of information by countries (country-by-country reporting).
  • Italy: The Court of Justice of the European Union (CJEU) found that rules for calculating turnover under Italian law is not contrary to the EU VAT Directive. Accordingly, the provision may be applied to value added tax (VAT) on all costs incurred by the company, and not only with respect to VAT on “mixed costs.”

Read TaxNewsFlash-Europe

FATCA / IGA / CRS

  • United States: A report provides analysis and observations about regulations under chapter 4 of the Internal Revenue Code and updates to the foreign financial institution (FFI) agreement under Rev. Proc. 2017-16.
  • United States: Rev. Proc. 2017-21 contains the final withholding foreign partnership agreement (WP agreement) and withholding foreign trust agreement (WT agreement).
  • Luxembourg: The tax authority announced changes reflecting the Luxembourg reporting schema that financial institutions will use in filing information returns, in accordance with the FATCA XML schema v2.0 adopted by the IRS.

Read TaxNewsFlash-FATCA / IGA / CRS

Trade & Customs

  • Serbia: Changes to the customs law, approved by the Serbian parliament in late 2016, are scheduled to be effective in early February 2017.
  • United States: The new administration has withdrawn the United States from the Trans-Pacific Partnership negotiations and agreement.

Read TaxNewsFlash-Trade & Customs

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