News Europe
UK Issues Tax Guidance On No-Deal Brexit Scenario For Interest, Royalty, And Dividend
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March 21st, 2019
The EU Interest and Royalties Directive (IRD) and Parents Subsidiary Directive (PSD) allow EU companies to make certain interest and royalties payments to associated companies and permanent establishments within the EU without needing to deduct tax from them. However, if the UK leaves the EU without a deal on 29 March 2019, these directives will no longer apply to the UK.
EU Report: The Implementation Of CCCTB Might Reduce The Effective Tax Burden
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March 19th, 2019
The European Commission published Taxation Paper No. 75 related to Common Consolidated Corporate Tax Base (CCCTB), which aims at evaluating the impact of the CCTB on the effective corporate tax burdens in the 28 EU Member States and assessing the relative importance of single elements of the harmonized tax base.
EU Joint Transfer Pricing Forum To Continue Profit-Split Work
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March 19th, 2019
In light of the profit-split method’s potentially expanded role under a new regime for taxing the digital economy, the EU Joint Transfer Pricing Forum (JTPF) will explore ways to improve the method’s clarity and simplicity. As complementary to the OECD guidance, the report highlights two important parts, justification in applying Profit Split Method) PSM and the key allocation that can be used to split the profit.
EU Economic And Financial Affairs Council Decides To Add Ten Additional Jurisdictions To Non-Cooperative List
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March 14th, 2019
The EU Economic and Financial Affairs Council has issued a release on the main results from its 12 March 2019 meeting, including that it has adopted a revised list of non-cooperative jurisdictions for tax purposes. In addition to the five jurisdictions that were already listed, American Samoa, Guam, Samoa, Trinidad and Tobago and the U.
Dutch Government Issues Draft Decree On Transitional Tax Rules In The Case Of No-Deal Brexit
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March 14th, 2019
The Dutch State Secretary for Finance sent a draft decree containing a temporary transitional regime applying in the event of a "no-deal" Brexit to the lower house of the Parliament.
Background .
The Netherlands Updates Decree On Application Of Participation Exemption
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March 12th, 2019
The Dutch government updated Decree on the application of the participation exemption (the Decree) with effect from 9 March 2019, having retroactive effect to 13 February 2019. The clarification and amendments of the Decree relates to the application of option rights and simplification of dissolution procedure to the extent the subsidiary has been declared bankrupt or the decision to liquidate the holding has been taken, yet the liquidation has not been completed.
European Commission Warns Spain And Finland To Amend Their Discriminative Tax Policies
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March 12th, 2019
The European Commission published its Infringement Package for March 2019, which includes the infringement in the taxation area. In response to that, the European Commission sent a letter to Spain to eliminate discrimination on capital gains taxation and to Finland to bring its rules on tax deductibility of group contributions in line with EU law.
Spain And The UK Sign Tax Agreement On Gibraltar To Combat Tax Fraud And Money Laundering
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March 7th, 2019
Spain's Ministry of Foreign Affairs, the European Union, and Cooperation has announced the signing of a tax agreement with the UK concerning Gibraltar. The agreement is designed to combat tax fraud and money laundering in Gibraltar once the UK leaves the European Union and includes new rules on tax residency for both individuals and companies.
Luxembourg To Reduce Corporate Tax Rate And Amend Interest Limitation
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March 7th, 2019
The Ministry of Finance in Luxembourg presented the Budget 2019 to the parliament. Citing the need to remain competitive, the government of Luxembourg has proposed a 1 percent point reduction in the corporate tax rate and a more flexible interest expense limitation for consolidated corporate groups (fiscal unity).
Ireland Issues Research And Development (R&D) Tax Credit Guidance
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March 7th, 2019
The Irish Revenue has issued tax and duty manual revisions regarding changes to research and development tax credit guidelines.
Qualifying Recipient
France Releases A More Detailed Proposal For GAFA (Google, Apple, Facebook, Amazon) Tax
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March 5th, 2019
The French Minister of Economy on March 3 released more details on the proposed 3% digital tax, the so-called GAFA (Google, Apple, Facebook, and Amazon) tax on turnover. The bill is scheduled to be approved by the Cabinet on March 6 and then submitted to parliament.
EU Parliament TAX3 Special Committee Adopts Report On Fairer And More Effective Taxation And Tackling Financial Crimes
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March 5th, 2019
The European Parliament has announced that the special committee on financial crimes, tax evasion and tax avoidance (TAX3) has adopted a report on fairer and more effective taxation and tackling financial crimes.
Measures Initiated by TAX3 .
USA Supports A Push By France For A Minimum Corporate Taxation On Corporations
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March 1st, 2019
The United States supports France to implement minimum corporate taxation and hopes for an OECD solution to taxing the digital economy before the end of 2019. The supports were conveyed by Treasury Secretary Steven Mnuchin during a joint press conference with French Finance Minister Bruno Le Maire in Paris.
Germany To Grant Tax Breaks Worth 1.5 Billion Euros For R&D
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March 1st, 2019
The German government is reportedly working to finalize plans for the introduction of new tax incentives for research and development (R&D). The government first included support for the introduction of new incentives for SMEs and start-ups as part of plans agreed to at the beginning of 2018.
EU Court Decision: EU Law Sufficient To Deny Tax Benefit In Abusive Case Even In The Absence Of Anti Abuse Provision In The Domestic Law
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March 1st, 2019
The EU court has issued landmark decisions on Member State power to deny tax benefits. Based on the decisions, Member States should deny tax relief provided in directives that companies exploit to advance abusive or fraudulent agendas, even in the absence of domestic law combating such abuse, according to the EU’s highest court.
Luxembourg Publishes Circular On New Permanent Establishment Definition
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February 26th, 2019
The tax administration in Luxembourg issued tax circular No. 19 clarifying the new Permanent Establishment (PE) definition as set forth in article 16(5) of the Tax Adaptation Law (StAnpG).
French Court Fines UBS EUR 4.5 Billion For Aiding Tax Evasion
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February 21st, 2019
A Paris criminal court has held that UBS Group AG engaged in aggravated money laundering and tax fraud when it illegally worked to establish hidden Swiss bank accounts for its French customers to aid them avoid tax in France.
Background .
EU Commission: Scheme of Belgium Excess Profit Does Not Constitute State Aid
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February 20th, 2019
The General Court of the European Union issued a judgment that annuls a January 2016 State aid decision of the European Commission concerning Belgium's excess profit rulings.
Background .
The Dutch House of Representatives Approves Multilateral Instrument (MLI)
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February 14th, 2019
The House of Representatives of the Netherlands of the Dutch Parliament approved the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). The ratification bill is yet to be approved by the Upper House (Eerste Kamer).
Belgium Publishes Circular Letter On Transfer Pricing Reporting Penalties
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February 14th, 2019
The Belgian Federal Public Service (SPF) Finance published Circular Letter No. 2019/C/14, which clarifies the application of penalties for failing to fulfill transfer pricing reporting obligations.

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