KCG Partners’ Post

[#TaxNews] The EU Council has reached an agreement on new rules aimed at expediting withholding tax procedures within the EU, known as the FASTER initiative. This move underscores the EU's commitment in enhancing tax compliance, combatting tax evasion, and fostering a fair and transparent tax environment across member states. 👇 Read our article to learn more #BDOMalta #Tax #InternationalTax #EU

United Nations General Assembly votes overwhelmingly to begin historic, global tax overhaul A historic vote at the UN General Assembly today saw countries decide overwhelmingly to begin the formal negotiation of a UN framework convention on international tax cooperation. Over the next two and a half years, delegates will work together to set new rules and standards relating to both corporate and individual taxation, and to design a new framework body that will house future ‘Conferences of the Parties’ in order to address new tax challenges as they arise in future. #TaxJustice #GlobalTaxReform #UnitedNations #FairEconomy #SustainableDevelopment

Canada’s Pillar Two legislation, the Global Minimum Tax Act, is introduced in Parliament. In their Update, Patrick Marley, Oleg Chayka, Ilana Ludwin and Kaitlin Gray provide their analysis of changes to this legislation. https://ow.ly/nQC250RvccJ #GMTA #globalminimumtax #GMT #PillarTwo

Out now: BDO’s Corporate Tax News 💡 Learn more about the latest developments, inlcuding the continued implementation of the Pillar Two global minimum tax rules, Belgium’s changes to its CFC rules, the German Federal Fiscal Court’s ruling on the fiscal integration requirement under its tax group rules and the detailed guidance on the tax group rules issued by the UAE tax authorities. 👇👀💻Read more via the link below and be sure to check out the corporate tax rate changes for 2024 and explore BDO’s Pillar Two implementation tracker. 👉 Follow #BDOLuxembourg #CorporateTax #PillarTwo #Tax

🚨Tax Alert! Following the introduction of the EU Minimum Tax Directive [Council Directive EU2022/2523] that implements the GloBE Rules across the EU, Malta has elected to delay implementation of this directive for up to 6 years. However entities that fall within scope of the Directive still face transitory obligations. Click below to read more. Need guidance? Contact the ARQ Group for a quick consultation to better understand the impact of these rules on your business. #TaxUpdate #EURegulations

International Tax Newsletter - April 2024 #GTBrazil #BrazilianTaxReform #WomeninTax

📣 𝗡𝗲𝘄 𝗦𝘁𝗮𝘁𝗲 𝗔𝗶𝗱 𝗕𝗹𝗼𝗴 𝗯𝘆 𝗣𝗵𝗲𝗱𝗼𝗻 𝗡𝗶𝗰𝗼𝗹𝗮𝗶𝗱𝗲𝘀 𝗶𝘀 𝗢𝗨𝗧 𝗡𝗢𝗪! -The Territorial Tax Systems May also Tax Profits Diverted Abroad- 🔍 This article dissects a recent judgment by the Court of Justice of the EU (CJEU) concerning tax exemptions in the UK’s corporate tax system and whether they constitute selective State aid. The judgment overturned a previous ruling and Commission decision on the UK’s Controlled Foreign Companies (CFC) regime. 1️⃣ Introduction: Taxes typically do not qualify as State aid. However, exemptions or reductions can be deemed State aid if they are selective and unjustified. The article unpacks how tax exemptions in the UK’s CFC rules were assessed and ultimately found not to constitute State aid. 2️⃣ The Situation: The UK’s corporate tax system is territorial, taxing profits generated within the UK. The CFC rules aim to prevent UK companies from shifting profits abroad. The European Commission ruled that exemptions from the CFC charge amounted to selective State aid, which the General Court upheld. However, the CJEU disagreed, stating that the exemptions were part of the UK’s general tax system. 3️⃣ Assessing the Presence of State Aid: The selectivity of a tax measure hinges on the correct definition of the reference system. The CJEU found that the UK’s general tax system, not the CFC rules alone, was the proper reference framework. The exemptions at issue were deemed part of the overall tax system, not a deviation from it. 4️⃣ Compatibility with EU Law: The CJEU emphasized that the UK’s interpretation of its tax laws was correct and that the CFC exemptions did not confer a selective advantage, as they were aligned with the general tax structure. As a result, the previous decision was annulled. 5️⃣ Conclusions: This case demonstrates the importance of defining the reference tax system when assessing selectivity in State aid cases. It shows that exemptions, when properly integrated into the broader tax system, may not constitute State aid. 🔗 Dive deeper into the CJEU’s ruling and its implications, read the full article here: https://loom.ly/B4m2Zkw #StateAid #TaxExemptions #CJEU #CorporateTax #UK #ControlledForeignCompanies #TerritorialTax

🆕 On 2 May, the Belgian parliament adopted a new Pillar II law. This law, replaces the previous version adopted on 19 December 2023, which introduced a minimum tax for multinational companies and large domestic groups. The new law includes provisions from the OECD/G20 Inclusive Framework on BEPS issued in 2023 and corrects errors in the original Pillar II law. Furthermore, the law modifies the Belgian innovation income deduction regime (IID) to maintain its effectiveness for groups subject to the Pillar II legislation in Belgium. Without these changes, the IID’s benefits would have been partially lost due to a top-up tax payable by groups with a GloBE tax rate in Belgium lower than 15%. 📆 The qualified domestic minimum top-up tax (QDMTT) and income inclusion rule (IIR) entered into force from 1 January 2024, and the undertaxed payments rule (UTPR) will come into effect from 1 January 2025. 🔎 On 21 May 2024, the Belgian tax authorities provided practical guidance regarding a Pillar II notification obligation for concerned groups, i.e. those with consolidated annual revenues exceeding EUR 750 million in two of the four previous tax years. ➡ Read our article to learn more about the mandatory notification procedure: https://lnkd.in/dfdkgnAe ❓ For any questions, get in touch with our experts, Olivier Querinjean, Arnout Vaninbroukx and Lancelot Decaesstecker. #pillar2 #taxlaw #tax #multinationals #domesticgroups

Dutch Tax Plans for 2025 were published, with many measures to support a strong business climate in the Netherlands ! And also some interesting developments in my favourite area, withholding taxes, with the introduction of a new concept of cooperating group that should resolve withholding tax uncertainty for many hybrid entities !

🚀💬 The Ministry of Finance has finished consultations with stakeholders on the implementation of the global minimum tax in Poland 🔄 The aim of the global minimum income tax is to ensure that the largest multinational enterprises pay at least 15% of their income on tax. This will apply to groups with over 750 million EUR of consolidated annual revenue. There will be three different ways of ensuring this level of taxation: ⬇ ✅ Income Inclusion Rule (IIR): the global minimum tax paid by the parent entity in its home country in case of undertaxed subsidiaries,  ✅ Qualified minimum domestic top-up tax (QMDTT): tax paid by undertaxed subsidiaries in their home country; this amount will reduce the global minimum tax of the parent entity. This form of taxation is optional, however Poland plans to implement it to its own tax system,  ✅ Undertaxed payment rule: paid by subsidiaries if the parent entity’s jurisdiction does not follow the income inclusion rule.  Simultaneously to the regulations on global minimum tax, the Ministry of Finance assesses the current tax incentives for investment and innovation. The declared objective is to guarantee their conformity with global minimum tax requirements and to remain a jurisdiction attractive for foreign investors. 📊 The Ministry of Finance estimates, that some 2 100 capital groups and 7 000 members of them will be subject to the new rules. Taxpayers will be entitled to request tax rulings regarding the minimum tax, however it won’t be within the standard tax ruling procedure. In order to receive an official interpretation, taxpayers will be obliged to pay 25 000 PLN of stamp duty and later up to 75 000 PLN, depending on the complexity of the subject matter. The tax administration will issue interpretations within 6 months from receiving the second stamp duty.  #PillarII #BEFIT #GlobalMinimumTax