News Europe
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.
Sale Of Stock Subject To French Transfer Pricing Rules
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February 12th, 2019
The French Council of State has upheld a transfer pricing adjustment to the sales price of a subsidiary’s shares, holding that the sale of a subsidiary’s stock for nominal consideration is an indirect transfer of profit.
Facts .
EU Code Of Conduct Group Not Satisfied With Changes On Certain Harmful Regimes
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February 7th, 2019
The EU Code of Conduct Group (Business Taxation) has sent letters to six jurisdictions in relation to the EU list of non-cooperative jurisdictions for tax purposes as their new preferential tax regimes will not be sufficient to keep their country off the 2017 EU blacklist. The letters emphasizing the EU dissatisfaction were sent to Barbados, Belize, Curaçao, Mauritius, Saint Lucia, and Seychelles.
Sweden Plans To Transpose The 2017 EU Hybrid Mismatches Rule Without Harming The Cross Border Investment
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February 5th, 2019
The Swedish government released a proposal to transpose the 2017 EU directive on hybrid mismatches without harming the cross border investment due to the excessive administrative burden.
The Details of the Proposal .
Danish Supreme Court Rules On Software Giant's Transfer Pricing Case
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February 5th, 2019
Denmark’s supreme court has affirmed a 2018 court decision in Microsoft’s favor regarding the company’s transfer pricing arrangements, holding that a Danish subsidiary maintained adequate documentation and used an appropriate revenue base for calculating its commission.
Facts .
Russia Clarifies The Conditions For Claiming Permanent Residence And Beneficial Ownership For Tax Treaty Purposes
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January 31st, 2019
Russia through its Guidance Letter 03-08-05/92537 and Order Number MMB-7-2/824 clarifies the conditions for claiming permanent residence and beneficial ownership for tax treaty purposes.
Details .
Austria Publishes Ordinance On New CFC Rules For Low-Taxed Entities
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January 31st, 2019
Austria published an ordinance in the Official Gazette on passive income of low-taxed entities. The ordinance introduced a comprehensive CFC regime in Austria for the first time to implement articles 7 and 8 of the Anti-Tax Avoidance Directive (ATAD).
San Marino Introduces Country-by-Country Reporting
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January 29th, 2019
On 25 January 2019, San Marino introduced gazette Delegate Decree No. 18/2019. The Delegate Decree, which has entered into force, reveals a country-by-country (CbC) reporting obligation starting from fiscal year 2019.
EU’s Low Effective Tax Rates Leads To Unhealthy Tax Competition
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January 24th, 2019
The Greens European Free Alliance released a report on " Effective Tax Rates for Multinational Companies in the EU ". The report suggests that tax competition among EU countries has allowed multinationals to pay tax at rates well below the statutory corporate rate, which in some member states is more than double the effective tax rate (ETR).
Belgium Issues Bill To Combat Tax Fraud And Tax Avoidance On Withholding Tax
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January 24th, 2019
A bill to combat tax fraud and tax avoidance regarding withholding tax was published in the Official Gazette of 22 January 2019. The bill focuses on combating withholding tax evasion and avoidance, and facilitating the recovery of withholding tax in the event of an unjustified exemption or refund.
Finnish Parliament Considering Bill To Transpose EU Directive On Dispute Resolution
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January 22nd, 2019
The Finnish Parliament is currently considering Bill HE 308/2018, which provides for the transposition of Council Directive (EU) 2017/1852. In addition the bill addresses certain other tax dispute resolution mechanisms related to the interpretation of tax treaties.
EU Proposes Change In Decision Making Process For Tax Issues
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January 18th, 2019
The European Commission announced the publication of communication on a roadmap for a progressive and targeted transition to qualified majority voting (QMV) under the ordinary legislative procedure in certain areas of shared EU taxation policy. The roadmap includes gradual, four-step progression towards decision-making based on QMV as described below.
Austria Officially Introduces Digital Tax In Its Tax Reform Plans
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January 18th, 2019
The Austrian Government has issued a release on its tax reform plans, including measures for the taxation of the digital economy, which include a 3% tax on revenue from online advertising and reporting obligations for online intermediary platforms.
Background .
EU Opens Investigation Into Dutch Tax Ruling Of US Sportswear Giant
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January 15th, 2019
The European Commission has opened an investigation into the tax treatment of US sportswear company Nike Inc in the Netherlands. The investigation aims to examine whether five tax rulings granted by the Dutch tax authorities to two Nike group companies based in the Netherlands (Nike European Operations Netherlands BV and Converse Netherlands BV) between 2006 and 2015 gave the company an unfair advantage over its competitors, potentially in breach of EU State aid rules.
Kazakhstan and The Netherlands Sign MOU On Exchange Of Information
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January 14th, 2019
The Netherlands has published the Memorandum of Understanding (MoU) signed with Kazakhstan on the automatic exchange of information under the Mutual Assistance Convention and the 1996 Dutch-Kazakhstan tax treaty. The MoU was signed by Kazakhstan and the Netherlands on 5 November 2018 and 9 December 2018, respectively, and sets out the scope of information on individuals and legal persons to be exchanged automatically, the timing of exchange, and other related matters.
Poland Releases Interest Safe Harbor Notice Following The Transfer Pricing Reforms
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January 8th, 2019
Following the government’s release on transfer pricing and mutual agreement procedure rules, the Polish government has issued a notice on the new intragroup interest rate safe harbor.
The Scope of Safe Harbor Application .
The Netherlands Publishes Own List Of Low-Tax Jurisdictions In Fight Against Tax Avoidance
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January 3rd, 2019
The Dutch Ministry of Finance has announced the publication of the list of Low-Tax jurisdictions. Transactions or structures involving the countries on the blacklist will be subject to new anti-tax-avoidance measures that take effect in 2019 and 2021.
Estonia Implements EU Anti-Tax Avoidance Directive Measures
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January 3rd, 2019
Estonia published the Income Tax Amendment Act in the Official Gazette. The main measures of the Act provide the implementation of the EU Anti-Tax Avoidance Directive (ATAD) as urged by the European Commission.
Austria To Implement Digital Service Tax Unilaterally
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January 3rd, 2019
In the waning days of its EU presidency, the Austrian government said it would introduce a domestic version of the digital services tax (DST). The unilateral plan is following France's new levy on the so-called GAFA companies: Google, Apple, Facebook, and Amazon.

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