תמונת מצב עדכנית ומבט ישראלי - BEPS

Transcription

1 תמונת מצב עדכנית ומבט ישראלי - BEPS משה בינה, מנהל בכיר, מחלקת מיסוי בינלאומי, Deloitte

2 Agenda BEPS Background Treaty Related Action Plans Harmful Tax Practices Transfer Pricing Others Next Steps 2017 Brightman Almagor Zohar & Co. For information, contact Deloitte Touche Tohmatsu Limited. 2

3 Background BEPS 3

4 What is the debate all about? Cross Border Income Shift Intercompany Loans, Licensing, Provision of Services, Production and Sale of Products. High Taxed Countries Interest Low Taxed Countries Belgium France Germany Royalties Ireland Malta Luxembourg Spain Japan Brazil Products Cayman Islands Singapore Hong Kong Italy Mexico Colombia Services Argentina Is Each Country Engaged in these Transactions Receiving Their Fair Share of Revenue? Switzerland Bermuda

5 BEPS s Agenda 1. Digital economy 2. Neutralising hybrids 3. Strengthen CFC rules 4. Limit interest / finance deductions 5. Counter harmful tax practices substance 6. Prevent treaty abuse 7. Prevent PE avoidance 8. Value creation intangibles 9. Value creation risk & capital 10. Value creation high-risk transactions Establishing international coherence of corporate income taxation Restoring the full effects and benefits of international standards 11. Data collection / analysis 12. Disclosure (aggressive tax planning) 13. Transfer pricing documentation 14. Dispute resolution Ensuring transparency while promoting increased certainty and predictability 15. Multilateral instrument From agreed policies to tax rules: the need for a swift implementation of the measures

6 BEPS history and timeline G20 leaders met European council meeting G8 Summit November 2012 Feb 2013 May 2013 June 2013 July 2013 OECD released Addressing Base Erosion and Profit Shifting Forum of Tax Administration meeting OECD s Committee on Fiscal Affairs to agree action plan OECD s action plan delivered to G20 Finance Ministers September 2014 September 2015 December 2015 Delivery of: Report on digital environment Changes to model tax convention Recommendations for domestic rules Review of member country tax regimes Changes to Transfer Pricing Guidelines Report on international law and multilateral instrument Delivery of: Further recommendations for domestic rules Strategy to expand participation to non-oecd members Further changes to the model tax convention Changes to the transfer pricing guidelines Recommendations regarding data to be collected Delivery of: Further changes to the transfer pricing guidelines (re: interest deductions) Revision of existing criteria regarding harmful tax regimes A multilateral instrument

7 BEPS output for legislation Three distinct groups Minimum Standard Permanent establishment Treaty abuse Transfer pricing Country-by-country reporting Dispute resolution Harmful tax practices Best Practice Interest restrictions Hybrid mismatches Transfer pricing documentation VAT on business to customers digital services Recommendations CFC rules Disclosure rules Multilateral Instrument to speed implementation during 2017

8 BEPS Timetable Sept 8 Oct Nov Committee on Fiscal Affairs approves Actions G20 Finance Ministers G20 Leaders Release of updated OECD model treaty Countries implement agreed actions ? Countries sign Multilateral Convention Review of country-bycountry reporting Review of digital economy

9 Treaty Related Action Plans Actions:1, 2, 6, 7, 14, & 15 3

10 Treaty Related Action Plans Multi-Lateral Convention Domestic legislation Follow up work

11 The Multilateral Convention 18

12 BEPS Action 15: The Multilateral Convention (MLC) Multilateral implementation of specific BEPS recommendations # Title Article Rule type I Scope and interpretation of terms 1 and 2 II III IV Hybrid mismatches Transparent entities Dual resident entities Elimination of double taxation Treaty abuse Purpose of tax treaties* Prevention of treaty abuse* Dividend transfer transactions Capital gains on interests in land rich entities Third country PEs Taxation of own residents Avoidance of PE status Commissionaires & similar arrangements Specific activity exemptions Splitting-up of contracts 3 to 5 6 to to 15 V Improving dispute resolution* 16 and 17 VI Arbitration 18 to 26 Substantive BEPS changes + Specific implementation rules to modify existing treaties VII Final provisions 27 to 36 General implementation rules * BEPS minimum standards

13 Multilateral Convention General structure of main operative provisions Substantive rule Compatibility clause Reservations Notifications

14 Multilateral Convention Next steps Key issues for governments o Sign? o Decide which treaties to cover o Determine positions on options and reservations, make notifications, and determine position regarding binding arbitration o Domestic law ratification processes OECD to act as Depositary Speed dating event held March 2017 Planned signing from June 2017

15 Domestic Legislation

16 Domestic Legislation Action 7 United Kingdome DPT Australia MAAL DPT France MAAL & DPT DPT Ruled unconstitutional New Zealand DPT + Israel Digital Economy Circular + VAT 17

17 Domestic Legislation DPT / MAAL Situation Non-resident Related party Non-resident Related party Sales promotion Sales / services Sales promotion Sales / services Customer Third party channel provider Sales / services Customer

18 Follow Up Work

19 Action 7 Discussion draft: Attribution of profits to PEs Disagreement as to the status of the authorized OECD Approach to the Attribution of Profits (AOA) Increase of PE situations however, no increase in the scope of Pes The key lessons from the examples in the discussion draft are Profits attributable to the dependent agency PE might fall (even to zero) Profit attribution to a warehouse might be relatively small Was it worthwhile?

20 Other discussion drafts BEPS Action 2 Hybrid mismatches 4 Interest deductions 6 Treaty abuse Updates Discussion draft on branch mismatches (August 2016) Addresses D/NI and DD outcomes that can result from differences in treatment between branch and head office countries Discussion drafts (July 2016) o o Design and operation of group ratio rule (option that can override fixed ratio) Banking and insurance sector-specific issues Updated Action 4 Report released in December 2016 to include guidance from these discussion drafts Discussion draft (January 2017) on entitlement to treaty benefits for non-civ funds, comprising three examples of when PPT should be met o o o Regional investment platform (established by a third country fund) Securitisation company (established by a third country bank, entitled to equivalent treaty benefits) Real estate fund (whose investors are entitled to equivalent treaty benefits)

21 Harmful Tax Practices

22 Action 5 Harmful Tax Practices Change of Rules Worldwide Nexus Approach Stay Attractive

23 Transfer Pricing 27

24 Transfer Pricing Action 13 Actions 8-10

25 Action 8 10 Substantive Rules New OECD guidance Slow adoption

26 Harmonization with OECD 3 Standards Action 13: Transfer Pricing Documentation Country by Country Report Master File / Local File Broadly accepted Parent company country filing and information exchange and less so on direct filing notification requirements gap year CbC Multilateral Competent Authority Agreement (MCAA) High UK Japan Medium Korea India China Low U.S. Taiwan Malaysia Singapore Australia Low Medium High Documentation reforms

27 Others

28 Others Hybrids Local / MLC EU ATAD Interest Limitation Local / MLC EU ATAD CFC Local / MLC EU ATAD

29 BEPS - Next Steps

30 BEPS Next Steps Understand Prepare Consider Implement Monitor 30

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