Background  Under Peruvian Income Tax provisions, non-residents are levied on Peruvian-source income identified based on an all-exhaustive list. Capital gains arising from an indirect disposal of shares issued by a company incorporated in Peru qualify as Peruvian-source income. According to...

This article discusses the effects generated by the agreement which avoids double taxation between Chile and the United States. After many years, this agreement came into force on December 19, 2023, when President Joe Biden signed it. The treaty applies...

In July of 2022, Chile announced a new tax reform seeking to improve tax justice, address tax evasion and encourage economic growth to finance other structural reforms that expand social rights and promote productive and regional development. President Gabriel Boric...

The Tax Administration Service (SAT) is an administrative authority in Mexico empowered to conduct audits of taxpayers with respect to their tax obligations. The primary objective of the SAT is to facilitate and encourage payment of the required taxes and...

The French administrative Supreme Court rendered an opinion on 18 April 2023 regarding the French tax treatment of trust income in the French-US context.  While this opinion clarifies an area of uncertainty, it certainly raises issues of double taxation which...

The "new" regime of Article 238 of the French Tax Code (FTC) applies to patents in the strict sense, to other industrial property titles such as utility certificates and supplementary protection certificates attached to a patent, but also to software....

Everything everywhere  The UK Chancellor delivered the 2023 Spring Budget on March 15. Focused on Enterprise, Employment, Education and Everywhere, the measures aim to encourage investment in the UK, increase labor market activity and foster innovation and creativity in the...

Background The legal qualification and taxation of US companies in Germany, such as Limited Liability Companies (LLCs) or Subchapter Corporations (S-Corps), can be challenging. One example showing the differences in qualification and taxation can be seen in the different criteria...

Following recommendations of the Base Erosion Profit Shifting (BEPS) report by the Organisation for Economic Co-operation and Development (OECD), Canada is introducing excessive interest and financing expenses limitation (EIFEL) rules. In general terms, EIFEL rules limit the amount of net...

Chile introduced a new tax reform bill on 7th July 2022. The “tax reform towards a fiscal pact for social development and justice” was presented by the Chilean President and is currently progressing through the National Congress. In line with...

On 8 July 2022, the US Treasury Department announced that it would unilaterally terminate its 1979 bilateral treaty with Hungary. The decision follows Hungary’s veto of an EU directive implementing a global minimum tax.

International business everywhere will have been affected by the devastating events in Ukraine, with a knock-on impact on energy, supply chains, consequent inflation and the impact of sanctions. This comes with significant developments in the international tax landscape, which also...

On 22 December 2021, the European Commission published a proposal for a Directive to prevent the misuse of shell entities for tax purposes (described as “Unshell Directive” or also referred to as ATAD III). The draft Directive aims at identifying...

The OECD two-pillar approach In October 2021, the OECD’s 137 Inclusive Framework members agreed to adopt a two-pillar approach to address the tax challenges of the digital economy. Pillar I provides for new profit allocation and nexus rules for MNEs...

This new solution is expected to reallocate more than $100bn of profit annually to market jurisdictions.  However, this raises the question, to what extent emerging economies, and more specifically, African countries, will be entitled to levy taxes on profits generated...

In June 2021 Hong Kong finalised legislation codifying the Inland Revenue Department’s tax assessment practice relating to corporate amalgamations.  For qualifying companies, it is possible to elect (within one month of the amalgamation) for special tax treatment for pre-amalgamation losses,...

As of 13 July, 132 of 139 jurisdictions (including Bermuda, Cayman Islands, BVI, Switzerland, and the Bahamas) agreed to the OECD Pillar 1 and 2 proposals as refined by the US initiative.  The seven that did not were: Ireland, Estonia,...

International taxation is based on residence as the point of connection of a subject with a given territory. However, today's world is characterized by open economies competing to attract many companies and governed by technology. Apart from the tax connection...

The finance ministers of the G7 have issued a news brief indicating their agreement on global tax reform that “….will mean the largest multinational tech giants will pay their fair share of tax in the countries in which they operate….”. ...

When the UK finally left the EU ended on 31 December 2020, the application of provisions that have been beneficial to cross-border payments within the EU ceased, or will cease to apply. The elimination of withholding taxes, formerly part of...

Decree of the Federal Ministry of Finance dated 11 February 2021 – Remuneration of the temporary transfer and the disposal of rights which are entered in a German public register.  Further information on German tax developments relating to intellectual property (IP) registered in Germany has been released by the German Authorities.  This helps to clarify...

The EU Anti-Tax Avoidance Directive (ATAD), contains five legally binding anti-abuse measures, which all EU member states are required to apply against common forms of aggressive tax planning. The Directive includes an exit tax, a general anti-abuse rule, controlled foreign company...

Covid-19 has brought unprecedented social and economic challenges that will durably impact the world economy. Specifically, the pandemic has surrounded the Multinational Enterprises (MNEs) with many issues to be managed such as: insufficient cash flows,unpredictable profitability, unreliable third-party data (which...

Covid-19 has brought unprecedented social and economic challenges that will durably impact the world economy. Specifically, the pandemic has surrounded the Multinational Enterprises (MNEs) with many issues to be managed such as: insufficient cash flows,unpredictable profitability, unreliable third-party data (which...

How do we develop a global tax system that takes into account business innovation and the digitalised economy, yet is fair to all stakeholders? It’s a debate world governments continue to grapple with as they consider radical reforms to adapt...

On 24 September 2020, the European Commission published Communication COM (2020) 590 (final) regarding the action plan in respect to the Capital Markets Union.   Action 10 of this plan envisages a EU legislative initiative by Q4 2022 to introduce a common, standardised, EU-wide system for withholding tax relief at...

Following the path of other developed countries (e.g., France, United Kingdom, Italy), Spain enacted last October a brand new “tax on certain digital services” that will come into effect on 16 January 2021. Background of a tax (not so new)...

Over the past few years, the digital economy has become a hot topic around the world. The international community has made substantial progress towards reaching a consensus-based and long-term solution to prevent tax challenges arising from the digitalisation of the...

The OECD released its guidance on the transfer pricing implications of the Covid-19 pandemic on 18 December 2020. This guidance was eagerly awaited by many MNEs whose statutory accounts will be closed by the end of the year, and which...

Following the UK’s spending review statement of 25 November, there is now greater clarity on how the UK economy will be taken forward into 2021 following the Covid-19 pandemic and exit from Brexit transition.  Despite incurring record UK government borrowing...

After the French government enacted a 3% digital services tax on gross income, it is now the French Administrative Supreme Court which rendered a landmark decision for international groups providing digital services in France by strongly extending the definition of...

BEPS 2.0 continues to call into question what indeed is a permanent establishment (PE).  We all know that ‘bricks and mortar’ is almost ‘a ghost of Christmas past’ and states are now focused more on activities that have the potential...

Generally speaking, year-end is that time of year when we clean up all open items in the current year and head into the new year with a fresh outlook and perspective.  This also applies to tax.  You cannot be blind to...

What is the issue? With Brexit talks still ongoing, employers should be planning for the impact of a hard Brexit on social security coverage and benefit provision for their employees who travel between the UK and EU (including EEA &...

The global economy is experiencing digital transformation at a blistering pace with the rise of e-commerce. The digital economy permeates all aspects of life including how we eat, sleep, breathe, and communicate.   It has immense impact on the world’s economic...

Governments damaged by the Covid-19 pandemic are likely to be taking a more aggressive approach in tax field audits on multinational enterprises (MNEs), at least until after their respective economy is on its way to recovering from the impacts of...

The current restrictions imposed by multiple countries to combat the Covid-19 pandemic have limited the possibilities for conducting external tax audits. However, the current pandemic and its consequences for the world economy highlight again that the number of internationally active...