KPMG’s Week in Tax: 6 - 10 November 2017 | KPMG | GLOBAL

KPMG’s Week in Tax: 6 - 10 November 2017

KPMG’s Week in Tax: 6 - 10 November 2017

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

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U.S. tax reform

  • The focus on tax reform continued in the tax-writing committees of the U.S. Congress, with the House Ways and Means Committee approving a tax reform bill, and with the Senate Finance Committee issuing documents outlining a plan for tax reform. The full House is expected to vote on the tax reform bill next week.

Read TaxNewsFlash-Tax Reform

Transfer Pricing and BEPS

  • United States: IRS “practice units” (guidance for IRS personnel) concern an advance pricing agreement (APA) for inbound and outbound transactions involving tangible goods. 
  • Costa Rica: A draft resolution on country-by-country (CbC) reporting was released for comments.
  • OECD: Updated versions of transfer pricing country profiles reflect the current transfer pricing rules and practices of 31 participating countries.

Read TaxNewsFlash-Transfer Pricing

Asia Pacific

  • GCC: Indirect tax updates are available for Gulf Cooperation Council (GCC) countries on topics such as value added tax (VAT) registration, VAT implementing regulations, tax procedures regulations, and excise tax.
  • Kuwait: There have been recent changes to the tax authority’s procedures for submitting tax appeal letters and tax payments, along with new guidelines for financial institutions related to the exchange of tax information.
  • Oman: There have been changes to the withholding tax in Oman and implementation of the GCC’s VAT framework.
  • Saudi Arabia: Income tax changes include measures affecting oil and hydrocarbon sector, effective 1 January 2017.
  • Egypt: The suspension on the tax rate on capital gains from trading in securities listed on the Egyptian exchange has been extended for three more years. The stamp tax now applies to the sale and purchase of shares in companies incorporated in Egypt (whether or not listed) and in companies incorporated outside Egypt whose shares are listed in Egypt.
  • Indonesia: New procedures and requirements for initiating tax audits of individual taxpayers in Indonesia are reflected in guidelines.

Read TaxNewsFlash-Asia Pacific

Europe

  • Czech Republic: Guidance sets out the criteria for a successful claim for the research and development (R&D) tax deduction.
  • Czech Republic: The tax authority sent notices to selected payers of VAT that set out “recommended measures” to address “potential risks.” These notices are the first releases by the tax administrator giving VAT payers some indications as to how to assess “risky transactions.”
  • Belgium: The European Commission announced an extension (“prolongation”) of Belgian tonnage tax regime through 2022. 
  • Netherlands: The government will proceed with its planned measures for the dividend withholding tax, with repeal anticipated by 2020, except in tax-abuse situations and with respect to dividend distributions made into “low tax” jurisdictions.

Read TaxNewsFlash-Europe

Americas

  • Canada: Interest rates and pension contributions for 2018 have been released by the Canada Revenue Agency and Quebec’s government.

Read TaxNewsFlash-Americas

FATCA / IGA / CRS

  • Hong Kong: There are updates to the automatic exchange of financial information (AEOI) in tax matters guidance for financial institutions.
  • Monaco: There is updated guidance on implementation of the AEOI under the common reporting standard (CRS) regime.
  • Singapore: There is an updated version of “frequently asked questions” (FAQs) under the CRS regime.
  • Channel Islands: There is an updated version of CRS guidance notes in Jersey. 

Read TaxNewsFlash-FATCA / IGA / CRS

Trade & Customs

  • United States: Guidance was issued concerning trade and economic transactions with Cuba.
  • WCO: The World Customs Organization (WCO) issued a case study that examines whether a company’s transfer pricing report is appropriate for customs purposes.

Read TaxNewsFlash-Trade & Customs

United States

  • An IRS notice provides guidance on employee leave-based donation programs, intended to provide relief and support to victims of the California wildfires.
  • The Ninth Circuit appeals court issued a decision that addresses the treatment of debt vs. equity, and the implications for the taxpayer's claims of foreign tax credits.
  • In Pennsylvania, new law contains tax changes that concern net operating loss (NOL) carryovers, remote sellers, sales tax, and assessment appeals.
  • Indiana’s tax court granted a use tax refund to an Indiana-based insurance company with respect to purchases of software used in its Indiana operations.
  • The Massachusetts Department of Revenue issued a letter ruling that concludes a parent corporation was not allowed a net worth subtraction for subsidiaries owned via passthrough entities. Thus, the taxpayer could not subtract from the book value of its total assets, its investments in subsidiaries owned through a limited liability corporation (LLC) taxed as a partnership.
  • New York’s Supreme Court, appellate division, upheld a decision of the New York City tax appeals tribunal that health maintenance organizations (HMOs) were subject to New York City’s general corporate tax.

Read TaxNewsFlash-United States

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