CMS Belgium’s Post

PwC Albania has published the latest Tax Alert, consisting of the most relevant changes in the tax legislation for the first half of the year 2024, as follows: ●The entry into force of the Double Tax Treaty (DTT) between Albania and Slovakia on 1 April 2024 ●The ratification entry into force on 1 May 2024 of the agreement between the Republic of Albania and the Republic of Croatia on social protection, as well as the ratification of the agreement between the Republic of Albania and the Republic of Italy in the field of social insurance ●Changes in the Labor Code regarding annual holidays ●Some changes and additions to the law no. 61/2012, "On excise duties in the Republic of Albania" ●The decision of the Constitutional Court of the Republic of Albania, on the request for repeal of some articles of Law No. 29/2023  ●The procedures and detailed information concerning the country-by-country reporting (CbC reporting) regarding Multinational Entities (MNE) ●Changes in the application and approval procedure for the implementation of agreements for the avoidance of double taxation (DTT), with Instruction No.11 ✅For a detailed overview, please see below or click: https://lnkd.in/dGZBCTBB 👉Reach our team of experts at PwC Albania for more at: al_pwc_albania@pwc.com  #pwc #pwcalbania #tax #updates

So simple! The judgment of the Supreme Administrative Court of Portugal, in case No. 0766/11.2BEAVR on 12.05.2021, is a significant milestone. It outlined the conditions for applying the transfer pricing regime in Portugal, based on Article 58 of the Corporate Income Tax Code (now Article 63). These conditions are: (i) The existence of special relations between the taxpayer and another person; (ii) Establishment of different conditions between them than those normally agreed between independent persons; (iii) The special relations being the cause of the said conditions; (iv) The conditions leading to a different profit calculation than would have been the case in their absence. Notably, these conditions align with those outlined in the OECD Model Tax Convention, the UN Model Tax Convention, and the transfer pricing laws of various countries, including Portugal. #transferpricing #oecdtpguidelines #untpguidelines #oecdtax #untax #tiwb #undp #ataf #pronorthmacedonia

#prass #incometax #international Mauritius and India has signed an amendment to the existing tax treaty: 1. On 13 March 2024, officials from India and Mauritius signed an amending protocol to the 1982 income and capital tax treaty between the two countries. The protocol is the second to amend the treaty and will enter into force after the ratification instruments are exchanged. 2. Under this new framework, countries are required to include both a limitation-on-benefits (LOB) rule and a principal-purpose test (PPT) rule in their treaties, supplemented by mechanisms to tackle tax avoidance arrangements, such as a restricted PPT rule for conduit financing arrangements. 3. Mauritius had signed the Multilateral Convention to implement the Tax Treaty Related Measures to prevent Base Erosion and Profit Shifting (MLI) on July 5, 2017. However, the MLI only applies to tax treaties that are CTA. Treaty between India and Mauritius was not listed as a CTA until the above amendment. 4. The new protocol to the India-Mauritius DTA is therefore designed to raise it to the status of a Covered Tax Agreements (CTA) under the MLI. 5. The earlier protocol of May 2016 included Article 27A Limitation of Benefits which applied only to capital gains. The March 2024 tax treaty protocol has inserted a new article 27B after Article 27A that applies to any type of income and is not restricted to capital gains. 6. By adhering to the new protocol, treaty benefits can be denied if the business arrangement is done purely for the purpose of avoidance of tax. For eg: Under the Mauritius-India DTAA, the WHT rate on dividend is 5% if the shareholder holds directly at least 10% of the capital of the Indian company paying dividend. An abuse of these provisions can result into denial of benefits.

Some insights of the Competent Authority (CA) work.   As a starting point one should think that any transfer pricing adjustment made by a tax authority is within their own statute of limitations.   Sometimes we see cases where the statute of limitations is agreed in the double tax treaty (DTT).   From the Danish side we have such limitations in the Canadien and Argentine DTT’s.   In these treaties the limit is, that an adjustment only can be made within 6 years after the income year.   Due to domestic law in the countries, it can happen, that the final adjustment is going back more than 6 years, meaning that some of the years would be too old.   Only the years within the 6 years period could go into MAP.   Companies and advisors are often worried that it would mean double taxation for the old years.   However, as it is a DTT agreement, the country would have to withdraw such old years.   Therefore, it is always good to investigate the DTT’s applied in the case to see whether there is any special treatment regarding statute of limitations or other things.   It is also good practice to investigate the rules of statute of limitation in the country who made the adjustment. To see whether the rules were applied correctly.

Never forget your TRC - whether Individual or corporate - Time and again Tax authorities have questioned the validity as well as legality of Tax Residency Certificate, in this regard the recent landmark judgement of Tiger Global International - [Delhi High Court], the court has held that Tax Residency Certificate ('TRC') is sufficient proof of tax-residency in the counter-party Contracting State. The court has clearly laid down that revenue authorities cannot disregard a valid TRC or overlook the Limitation of Benefits (L-O-B) clause based on arbitrary grounds. To overcome the presumption of a valid TRC, the authorities must present compelling evidence that the transaction is a sham, a colorable device, or imputed with illegality. In the facts of the case, TRC was upheld to be "sufficient proof" of taxpayer's entitlement to claim treaty benefits under India-Mauritius DTAA. This ruling is significant as it affirms the legitimacy of TRCs issued by jurisdictions like Mauritius, stating that they should be considered sacrosanct unless proven otherwise through substantial evidence of tax fraud or illegality.

India and Mauritius signed a protocol to amend the India-Mauritius Double Tax Avoidance Agreement (DTAA), focusing on preventing tax evasion and avoidance. A key change includes introducing the Principal Purpose Test (PPT), which aims to restrict tax benefits if transactions are primarily designed to exploit the DTAA. Read more on this update penned by Sambhram Shetty: https://lnkd.in/gUcAqRiC #IndiaMauritiusDTAA #TaxAmendment #TaxEvasionPrevention #DoubleTaxation #FDI #OECD #InternationalTax #GlobalTaxStandards #KSK

While it was a chilly 🥶start today, the July issue of Tax Alert is 🔥🔥🔥 Robyn Walker outlines the latest draft Inland Revenue guidance on close company current accounts 💡 Troy Andrews and Vinay Mahant explore the 39% trustee rate impact on PIEs 🥧 Robyn Walker answers your FAQs on FBT and the bike exemption 🚲 Robyn Walker, Viola Trnski and Sam Hornbrook take a look at the often confused FBT work related vehicle 🚚🚗 Sam Hornbrook and Mirei Yahagi, CA give an updated on the finalised Inland Revenue GST on subdivisions guidance 🏘 Bart de Gouw, Riaan Britz and Tayla Wheeler give us the highlights from the Inland Revenue 2023 International Questionnaire results 🌎 Annamaria Maclean and Young Jin Kim explain the how the OECD Pillar Two GloBE rules have been enacted in NZ 💱 David Watkins, Liam O'Brien, Bart de Gouw and Melanie Meyer digest the Australian PepsiCo intangibles case and what it means for NZ groups with Australian subsidiaries https://lnkd.in/gSZtRZUf https://lnkd.in/gR9FSxVi #deloittetaxalert #deloittetax #tax

📢 Key Update: IIR to come into force in Switzerland from January 2025 Today, the Swiss Federal Council approved amendments to the Minimum Taxation Ordinance to implement the Income Inclusion Rule (IIR), effective from 1 January 2025. This step enhances Switzerland's compliance with the OECD's global minimum taxation framework by supplementing the QDMTT, in effect since January 2024. The goal? To ensure Switzerland retains its share of global tax revenues while safeguarding MNEs from double taxation risks abroad. The decision on the QDMTT last year was a nail-biter, finalized only in the closing days of 2023. By implementing IIR sooner rather than later, the country is taking a proactive step to enhance certainty for large MNEs. As for the QDMTT— the final piece of the Pillar 2 puzzle — the Federal Council has opted for a measured “wait-and-watch” approach to its implementation. Have questions? Lets connect. Source: https://lnkd.in/e3ne-RbV #Pillartwo #GlobalTaxation #TransferPricing #BDOSchweiz

Tax residence certificate ('TRC') - Is it sufficient evidence for treaty entitlement? Many jurisdictions accept a TRC issued by the tax authorities of the Residence State as adequate evidence for claiming tax treaty entitlements. However, there have been cases, especially concerning entities from jurisdictions like Mauritius, where Indian tax authorities argue that a TRC alone may not be considered sufficient proof for claiming treaty entitlements. The Income Tax Appellate Tribunal ('ITAT') held that the taxpayer (a Mauritius company) was entitled to apply the India-Mauritius tax treaty as the TRC issued by the Mauritian tax authorities is valid.  For more insightful content, connect with us at - https://lnkd.in/gybcTB9V / pro@truverse.in 📩 Also, check out our portfolio - https://truverse.in/ 🌐 #taxtreaty #dtaa #TRC #TaxResidenceCertificate #TreatyEntitlements #Mauritius #India #TaxExemption #CapitalGains #IndianCompanies #ResidenceState #TaxAuthorities #TaxCompliance #CrossBorderTransactions

IMPORTANT NEWS Belgium requires groups in-scope for BEPS 2.0 Pillar Two to be registered with the Crossroads Bank for Enterprises (CBE), using a notification form available on https://lnkd.in/gcZ735M7. FYI, Pillar Two extends beyond MNE Groups to purely domestic groups in EU. Registration must be made no later than 30 days after the START of the tax year for which the group falls within the scope of Pillar Two. “However, in order to give those who have already started or will soon be starting their first tax year enough time to collect the information requested, the notification period will in any case be granted till 45 days after the publication of the Royal Decree of 15 May 2024 in the Belgian Official Journal.” On 29 May 2024, the Royal Decree of 15 May 2024 was published in the Belgian Official Gazette. In other words, the deadline is 13 July 2024. By the time you read this post, you will have 43 days or less to comply. The mandate (for the constituent entity designated as the authorised representative) must be given on a form (https://lnkd.in/grFAPDQs). This form is to be digitally signed and submitted at the same time as the notification form (with all necessary information). Read the EY tax alert (https://lnkd.in/gW9gSH_g) on the information required. Act immediately if you have Belgium entities and have consolidated revenue of at least €750m in two out of four FYs during FYE 2020-2023. James Choo Ying Yeo Ying Quan Teo (Dody) Hwee Leng Aw Jasmine Chu Wai Ling Low Clement Lim Wai Fook Chai #pillar2 #BEPS #taxregistration #taxnotification #taxcompliance https://lnkd.in/gzg3AGrG