TAX ALERT NEW CIRCULAR N 56/1 56BIS/1 ON THE TAX TREATMENT OF COMPANIES ENGAGED IN INTRA-GROUP FINANCING TRANSACTIONS JANUARY

Size: px
Start display at page:

Download "TAX ALERT NEW CIRCULAR N 56/1 56BIS/1 ON THE TAX TREATMENT OF COMPANIES ENGAGED IN INTRA-GROUP FINANCING TRANSACTIONS JANUARY"

Transcription

1 TAX ALERT NEW CIRCULAR N 56/1 56BIS/1 ON THE TAX TREATMENT OF COMPANIES ENGAGED IN INTRA-GROUP FINANCING TRANSACTIONS JANUARY ã2017

2 I. INTRODUCTION On 27 December 2016, the Luxembourg tax authorities (Administration des contributions directes) issued a new circular, Circular L.I.R. n 56/1 56bis/1 addressing the tax treatment of companies engaged in intra-group financing transactions (the New Intra Group Financing Circular ), which replaces and supersedes the existing circulars L.I.R. n 164/2 of 28 January 2011 and L.I.R. n 164/2bis of 8 April 2011 (the 2011 Circulars ). The 2011 Circulars together with article 56 of the Luxembourg income tax law ( LITL or LIR ), stating the arm s length principle, were ruling intra-group financing transactions, implying the granting of loans between related entities. The 2011 Circulars provided for minimum substance requirements, capital at risk of 1% of the amounts lent (capped at EUR 2 million), and transfer pricing documentations to claim for advance pricing agreements from the Luxembourg tax authorities. The New Intra Group Financing Circular, effective as from 1 January 2017 without grand-fathering provisions, complies with the arm s length principles of the OECD transfer pricing guidelines, and gives further details on the comparability analysis method, to be used in order to apply the arm s length principle. The New Intra Group Financing Circular is not referring anymore to a fixed level of credit at risk (1% of the on lent amounts or EUR 2 million) and underlines the need to perform a functional analysis and of an adequate substance to determine the appropriate equity at risk level. II. THE NEW INTRA-GROUP FINANCING CIRCULAR 1. Scope The New Intra Group Financing Circular applies to any entity conducting intra-group financing transactions, meaning any activity consisting of the granting of loans or cash advances to related entities remunerated by interest and financed out of financial instruments like shareholder loans, banking loans, cash advances or public offering. In this respect the definition of related entities means any direct or indirect participation in the management, control or capital of another company. 2. Arm s length principle The New Intra Group Financing Circular expressly states that the arm s length principle provided by article 9 of the OECD Model Convention is the international standard for the determination of transfer pricing remuneration in cross-border transaction between affiliated enterprises or related entities. Under Luxembourg domestic tax rules, the arm s length principle which lies under article 56 LITL has been completed by the newly article 56bis LITL, introduced by the budget law of 23 December Article 56bis LITL gives legal ground for the application of the OECD Transfer Pricing Guidelines and more precisely Actions 8 to 10 of the OECD BEPS Report which deal with the methodology to apply the arm s length principle. According to these guidelines the comparative analysis is the cornerstone of the arm s length principle application. The New Intra Group Financing Circular aims at providing details on how the comparative analysis should be carried out. 2

3 3. The comparability analysis The comparability analysis implies: An identification of the commercial and financial relations between affiliated enterprises and determination of the significant economic circumstances of those relations to clearly define the scope of the controlled transaction; and A comparison of the conditions and the economically significant circumstances applicable between controlled entities with those applicable under comparable transactions entered into by non-related parties. 3.1 Commercial and financial relations The preliminary step of the comparative analysis, and hence of the determination of an arm s length remuneration, implies inter alia an analysis of the structure, the organisation of the group and the role played by each concerned group companies. As mentioned in the circular the arm s length principle is closely linked to the economic context in which the transaction takes place. It is worthwhile to note that the New Intra Group Financing Circular focuses on the activities effectively performed (substance over form principle) rather than the legal documentation. To this end the following analysis should be performed: (i) A functional analysis meaning the identification of the activities, liabilities, the significant economic functions, the assets used and risks assumed by each parties to the transaction with regard to the financing activities. (ii) A risk analysis to ensure that the financing company has a sufficient amount of equity in relation to its functions (in line with the risks assumed). The level of the appropriate equity at risk will, from now on, have to be determined on a case-by-case basis and documented by an appropriate transfer pricing report. In this respect, the New Intra Group Financing Circular states that a remuneration of the equity at risk of 10% after tax, should be considered as an arm s length remuneration (subject to further market evolutions) if the financing company has a comparable profile to entities submitted to the European Regulation (EU) N 567/2013 of 26 June 2013 on prudential requirements for credit institutions and investments firms and has an equity amount in line with the solvency criteria determined by this EU Regulation. In order to properly bear the risks of the financing activity, a genuine presence in Luxembourg is necessary. Such presence should be recognized subject to the following substance requirements: The majority of the board members having the power to bind the company should be Luxembourg resident. Non-Luxembourg resident board members are considered as compliant if they carry out a professional activity in Luxembourg and are liable to tax in Luxembourg on at least 50% of their professional revenue derived from these activities. A company acting as board member should have its statutory seat or central administration in Luxembourg. The Company must have appropriate resources to control the financing transaction performed. It is however provided that the Company may outsourced functions that do not have a significant incidence on the risk management. Key decisions should be taken in Luxembourg and at least one shareholder meeting per year should be held at the place indicated in the act of incorporation. When functions are outsourced the financing company should be able to demonstrate its capacities to monitor such outsourcing. 3

4 The Company should not be tax resident in another State. 3.2 A comparison of the intra-group transaction with comparable transactions When determining the arm s length remuneration, it is of importance to identify comparable transactions performed between third parties (non-related). Whilst adjustments to improve the quality of the comparability analysis are allowed by the New Intra Group Financing Circular provided that such adjustments should be compliant with International accepted standards. Should a comparability analysis conclude that a controlled transaction would not have been entered into by non-related parties under the same conditions, such controlled transaction should be disregarded to safeguard the arm s length principle. 4. Simplification measure Financing companies acting as pure intermediary and complying with the above-mentioned substance requirements should be considering as fulfilling the arm s length principle if they report a financing remuneration of 2% after tax (reviewed periodically by the Luxembourg tax authorities subject to further market evolutions). In order to benefit from this simplified regime, an application should be made by the concerned companies in their annual tax return. It is worthwhile to note that financing companies applying for this simplified regime (i) are subject to the exchange of information with foreign tax authorities under the current Luxembourg international exchange of information rules (spontaneous or upon demand), and (ii) may alter their beneficial ownership position. 5. Content of advance transfer pricing request The New Intra Group Financing Circular furthermore details the required information to be included in any request for an advance transfer pricing agreement ( APA ), which should contain among other things: - A precise description of the applicant; - A detailed description of all the intra group financing transactions; - A description of legal structure of the group and the name of the beneficial owner; - A transfer pricing report, in line with the OECD recommendations including for example: a description of the computation of the appropriate equity at risk necessary to carry out the activity and assume the risks; a complete list of the comparable used and comparable rejected (and related explanations); a general description of the market at the date of the transaction; a report of all the tax issues which may arise from the transaction; the comparability analysis on the basis of which the arm s length remuneration of the company has been determined; projected financial accounts for the fiscal years covered by the APA. 6. Entry into force and existing APA The New Intra Group Financing Circular should be of application as of 1 January 2017 so that any existing APA will cease to bind the Luxembourg tax authorities as from 2017 fiscal years onwards. As a result, companies carrying out intra-group financing activities 4

5 will have to comply with the New Intra Group Financing Circular rules, without delays and should file a new request with the competent tax authorities if they wish to obtain an APA. For further information feel free to contact the following persons: Gaëlle FELLY (gfelly@bonnschmitt.net) Patrick ANDERSSON (pandersson@bonnschmitt.net) Pierre-Luc WOLFF (pwolff@bonnschmitt.net) *** BONN & SCHMITT IS A FULL SERVICE COMMERCIAL LAW FIRM THAT PRACTICES ALL ASPECTS OF BUSINESS LAW, WITH SPECIAL EXPERTISE IN: CORPORATE CORPORATE LAW MERGERS AND ACQUISITIONS CORPORATE FINANCE RESTRUCTURING TAX CORPORATE AND INTERNATIONAL TAX ADVISORY INDIRECT TAXES AND VAT TAX LITIGATION ESTATE PLANNING BANKING, CAPITAL MARKETS AND REGULATION BANKING AND FINANCE FINANCIAL SERVICES AND REGULATION CAPITAL MARKETS AND SECURITIES LAWS STRUCTURED FINANCE AND DERIVATIVES INVESTMENT MANAGEMENT AND PRIVATE EQUITY ASSET MANAGEMENT AND SERVICES INVESTMENT FUNDS ALTERNATIVE INVESTMENT FUNDS PRIVATE EQUITY INSURANCE AND REINSURANCE REGULATION AND LICENSING INSURANCE POLICIES LINKED PRODUCTS PROFESSIONAL LIABILITY INSURANCE 5

6 DISPUTE RESOLUTION GENERAL AND COMMERCIAL LITIGATION IP AND TRADEMARK LITIGATION CORPORATE AND FINANCIAL LITIGATION MEDIATION AND ARBITRATION REAL ESTATE IP AND IT REAL ESTATE ACQUISITIONS REAL ESTATE INVESTMENT STRUCTURES PROJECT FINANCE ENVIRONMENTAL LAW AND REGULATION INTELLECTUAL PROPERTY AND TRADEMARKS E-COMMERCE E-MONEY DATA PROTECTION INSOLVENCY AND RESTRUCTURING LOCAL INSOLVENCY AND REORGANIZATION CROSS-BORDER PROCEEDINGS REALIZATION OF SECURITY AND COLLATERAL REFINANCING AND RESTRUCTURING OF DEBT EMPLOYMENT AND BENEFITS INDIVIDUAL EMPLOYMENT LAW COLLECTIVE EMPLOYMENT LAW PARTICIPATION AND INCENTIVE SCHEMES LITIGATION 148, AVENUE DE LA FAÏENCERIE L-1511 LUXEMBOURG B.P. 522 L-2015 LUXEMBOURG TEL: FAX: Visit us at *** 6

TAX ALERT NEW CIRCULAR N O 45/2 152/1 168/1 ON THE WITHHOLDING TAX OF DIRECTOR FEES FEBRUARY

TAX ALERT NEW CIRCULAR N O 45/2 152/1 168/1 ON THE WITHHOLDING TAX OF DIRECTOR FEES FEBRUARY TAX ALERT NEW CIRCULAR N O 45/2 152/1 168/1 ON THE WITHHOLDING TAX OF DIRECTOR FEES FEBRUARY - 2017 ã2017 I. INTRODUCTION On 14 February 2017 the Luxembourg direct tax authorities (Administration des contributions

More information

LEGAL ALERT LUXEMBOURG UPCOMING TAX CHANGES NOVEMBER

LEGAL ALERT LUXEMBOURG UPCOMING TAX CHANGES NOVEMBER LEGAL ALERT LUXEMBOURG UPCOMING TAX CHANGES NOVEMBER - 2017 ã2017 I. INTRODUCTION The major tax changes expected in Luxembourg in the coming months are introduced by five different sets of legislation.

More information

TAX ALERT RESTRICTION OF THE TERRITORIAL SCOPE OF THE RELIBI REGIME MARCH

TAX ALERT RESTRICTION OF THE TERRITORIAL SCOPE OF THE RELIBI REGIME MARCH TAX ALERT RESTRICTION OF THE TERRITORIAL SCOPE OF THE RELIBI REGIME MARCH - 2017 ã 2017 I. INTRODUCTION : THE RELIBI REGIME The RELIBI ( Retenue à la source libératoire ) law of 23 December 2005 introduced

More information

LEGAL ALERT LUXEMBOURG SOVEREIGN SUKUK

LEGAL ALERT LUXEMBOURG SOVEREIGN SUKUK LEGAL ALERT LUXEMBOURG SOVEREIGN SUKUK 18 JULY 2014 I. INTRODUCTION Islamic finance refers to transactions which are designed for the purpose to respect Islamic values. In a nutshell, the objective of

More information

TAX ALERT TAX MEASURES INTRODUCED BY THE BILLS OF LAW N OS 6720, 6721 AND 6722 IMPLEMENTING LUXEMBOURG S 2015 BUDGET

TAX ALERT TAX MEASURES INTRODUCED BY THE BILLS OF LAW N OS 6720, 6721 AND 6722 IMPLEMENTING LUXEMBOURG S 2015 BUDGET TAX ALERT TAX MEASURES INTRODUCED BY THE BILLS OF LAW N OS 6720, 6721 AND 6722 IMPLEMENTING LUXEMBOURG S 2015 BUDGET NOVEMBER 2014 2014 I. INTRODUCTION The framework for Luxembourg's budget from 2014 to

More information

Luxembourg strengthens its Transfer Pricing Rules

Luxembourg strengthens its Transfer Pricing Rules Newsflash - Tax December 2016 Luxembourg strengthens its Transfer Pricing Rules Luxembourg reinforces its domestic Transfer Pricing rules as of 1 January 2017 by the enactment of: (I) (II) General guidelines

More information

LEGAL ALERT (THE LAW ) JUNE

LEGAL ALERT (THE LAW ) JUNE * LEGAL ALERT LUXEMBOURG LAW DATED 10 MAY 2016 TRANSPOSING DIRECTIVE 2014/91/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL OF 23 JULY 2014 AMENDING DIRECTIVE 2009/65/EC ON THE COORDINATION OF LAWS,

More information

TAX ALERT CSSF CIRCULAR 15/609

TAX ALERT CSSF CIRCULAR 15/609 TAX ALERT CSSF CIRCULAR 15/609 DEVELOPMENTS IN THE AREAS OF AUTOMATIC EXCHANGE OF TAX INFORMATION AND OF SANCTIONS AGAINST MONEY LAUNDERING IN TAX MATTERS: THE LAST CALL APRIL 2015 2015 On 27 March 2015

More information

Cyprus Tax Authority issues guidance on revised transfer pricing framework for intra-group financing activities

Cyprus Tax Authority issues guidance on revised transfer pricing framework for intra-group financing activities 5 July 2017 Global Tax Alert News from Transfer Pricing Cyprus Tax Authority issues guidance on revised transfer pricing framework for intra-group financing activities EY Global Tax Alert Library Access

More information

Luxembourg transfer pricing legislation at a glance

Luxembourg transfer pricing legislation at a glance 2017 EY TAX Alert Luxembourg Luxembourg transfer pricing legislation at a glance Executive summary The law of 23 December 2016 on the budget for the year 2017 ( Budget Law ) has introduced a new article

More information

Cyprus Tax News New rules for taxation of intra-group financing arrangements

Cyprus Tax News New rules for taxation of intra-group financing arrangements Cyprus Tax & Legal Services 3 July 2017 Issue 14/2017 Cyprus Tax News New rules for taxation of intra-group financing arrangements On 30 June 2017, the Cyprus Tax Department ( CTD ) issued a Circular with

More information

Luxembourg issues new TP Circulaire for the fiscal treatment of intra-group financial transactions

Luxembourg issues new TP Circulaire for the fiscal treatment of intra-group financial transactions Luxembourg issues new TP Circulaire for the fiscal treatment of intra-group financial transactions Luxembourg: January 2017 In Brief On 27 December 2016 the Luxembourg Tax Authorities issued a new Circulaire

More information

LUXEMBOURG GLOBAL GUIDE TO M&A TAX: 2018 EDITION

LUXEMBOURG GLOBAL GUIDE TO M&A TAX: 2018 EDITION LUXEMBOURG 1 LUXEMBOURG INTERNATIONAL DEVELOPMENTS 1. WHAT ARE RECENT TAX DEVELOPMENTS IN YOUR COUNTRY WHICH ARE RELEVANT FOR M&A DEALS AND PRIVATE EQUITY? Corporate income tax ( CIT ) rate The CIT rate

More information

Global Transfer Pricing Review

Global Transfer Pricing Review GLOBAL TRANSFER PRICING SERVICES Global Transfer Pricing Review Luxembourg kpmg.com/gtps TAX 2 Global Transfer Pricing Review Luxembourg KPMG observation Transfer pricing is now a hot topic in Luxembourg.

More information

LEGAL ALERT BANKS ISSUING MORTGAGE BONDS

LEGAL ALERT BANKS ISSUING MORTGAGE BONDS LEGAL ALERT BANKS ISSUING MORTGAGE BONDS LAW OF 27 JUNE 2013 ON BANKS ISSUING MORTGAGE BONDS JULY - 2013 2013 I. INTRODUCTION The regulatory framework in respect of the issuing of mortgage bonds ( Mortgage

More information

Luxembourg tax newsletter

Luxembourg tax newsletter Luxembourg tax newsletter Luxembourg, January 2017 1. Introduction On 23 December 2016 the Luxembourg official gazette has published several laws 1 which introduce substantial changes to the Luxembourg

More information

TAX UPDATE JULY 2017 (Transfer pricing rules)

TAX UPDATE JULY 2017 (Transfer pricing rules) TAX UPDATE JULY 2017 (Transfer pricing rules) The Cyprus Tax Department (CTD) has informed the Institute of Certified Public Accountants in Cyprus (ICPAC) of their intention to abolish the practice of

More information

Table of Contents. Acknowledgements. Foreword. and Essential Legal and Accounting Knowledge 1

Table of Contents. Acknowledgements. Foreword. and Essential Legal and Accounting Knowledge 1 Acknowledgements Foreword v ix Chapter 1: An Introduction to Luxembourg and Essential Legal and Accounting Knowledge 1 1.1. An introduction to Luxembourg 1 1.1.1. General information 1 1.1.1.1. Geography

More information

I. INTRODUCTION. 1 Directive 2011/61/EU of 8 June 2011 on alternative investment fund managers.

I. INTRODUCTION. 1 Directive 2011/61/EU of 8 June 2011 on alternative investment fund managers. LEGAL ALERT AMENDMENTS TO THE LAW OF 10 AUGUST 1915 ON COMMERCIAL COMPANIES CONCERNING THE SOCIÉTÉS EN COMMANDITE SIMPLE AND THE SOCIÉTÉS EN COMMANDITE SPÉCIALE JULY - 2013 2013 I. INTRODUCTION The société

More information

New Luxembourg tax measures Luxembourg tax alert

New Luxembourg tax measures Luxembourg tax alert New Luxembourg tax measures Luxembourg tax alert The Luxembourg parliament approved recently a number of tax modifications for the fiscal years 2015 and 2016. The main direct tax measures affecting companies

More information

THE NETHERLANDS GLOBAL GUIDE TO M&A TAX: 2017 EDITION

THE NETHERLANDS GLOBAL GUIDE TO M&A TAX: 2017 EDITION THE NETHERLANDS 1 THE NETHERLANDS INTERNATIONAL DEVELOPMENTS 1. WHAT ARE RECENT TAX DEVELOPMENTS IN YOUR COUNTRY WHICH ARE RELEVANT FOR M&A DEALS AND PRIVATE EQUITY? There are various relevant developments

More information

ROMANIA TRANSFER PRICING COUNTRY PROFILE

ROMANIA TRANSFER PRICING COUNTRY PROFILE ROMANIA TRANSFER PRICING COUNTRY PROFILE 1. Reference to the Arm s Length Principle Latest update April 2018 The arm's length principle was introduced in the domestic tax law in 1994 and is applicable

More information

BELGIUM GLOBAL GUIDE TO M&A TAX: 2018 EDITION

BELGIUM GLOBAL GUIDE TO M&A TAX: 2018 EDITION BELGIUM 1 BELGIUM INTERNATIONAL DEVELOPMENTS 1. WHAT ARE RECENT TAX DEVELOPMENTS IN YOUR COUNTRY WHICH ARE RELEVANT FOR M&A DEALS AND PRIVATE EQUITY? A major corporate income tax reform has been published

More information

ROMANIA. minimum of 25% of the number/value of shares or voting rights in the two entities.

ROMANIA. minimum of 25% of the number/value of shares or voting rights in the two entities. ROMANIA TRANSFER PRICING COUNTRY PROFILE 1. Reference to the Arm s Length Principle The arm's length principle was introduced in the domestic tax law in 1994 and is applicable to all related party transactions,

More information

Alter Domus CYPRUS NEWSLETTER. November 2017 WE RE WHERE YOU NEED US.

Alter Domus CYPRUS NEWSLETTER. November 2017 WE RE WHERE YOU NEED US. Alter Domus NEWSLETTER November 2017 WE RE WHERE YOU NEED US. Alter Domus Alter Domus is a fully integrated Fund and Corporate services provider, dedicated to international private equity & infrastructure

More information

EU JOINT TRANSFER PRICING FORUM

EU JOINT TRANSFER PRICING FORUM EUROPEAN COMMISSION DIRECTORATE-GENERAL TAXATION AND CUSTOMS UNION Direct taxation, Tax Coordination, Economic Analysis and Evaluation Company Taxation Initiatives Brussels, June 2013 Taxud/D1/ DOC: JTPF/007/FINAL/2013/EN

More information

Intellectual property rights in Luxembourg (IPR): tax exemption

Intellectual property rights in Luxembourg (IPR): tax exemption Intellectual property rights in Luxembourg (IPR): tax exemption Miami, November 3, 2011 Me Beatriz Garcia The tax attractiveness of Luxembourg regarding the intellectual property has increased by the introduction

More information

Taxation of cross-border mergers and acquisitions

Taxation of cross-border mergers and acquisitions Taxation of cross-border mergers and acquisitions Romania kpmg.com/tax KPMG International Taxation of cross-border mergers and acquisitions a Romania Introduction This report addresses three fundamental

More information

Intra-Group Transactions and Exposures Principles

Intra-Group Transactions and Exposures Principles Intra-Group Transactions and Exposures Principles THE JOINT FORUM BASEL COMMITTEE ON BANKING SUPERVISION INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS INTERNATIONAL ASSOCIATION OF INSURANCE SUPERVISORS

More information

Luxembourg Tax authority and law. 2. Regulations and rulings

Luxembourg Tax authority and law. 2. Regulations and rulings 1 1. Tax authority and law The Luxembourg tax administration is the Administration des Contributions Directes (ACD). Luxembourg tax law does not provide for integrated transfer pricing legislation. Instead,

More information

SWEDEN GLOBAL GUIDE TO M&A TAX: 2017 EDITION

SWEDEN GLOBAL GUIDE TO M&A TAX: 2017 EDITION SWEDEN 1 SWEDEN INTERNATIONAL DEVELOPMENTS 1. WHAT ARE RECENT TAX DEVELOPMENTS IN YOUR COUNTRY WHICH ARE RELEVANT FOR M&A DEALS AND PRIVATE EQUITY? Effective as of 1 January 2016, dividend income is not

More information

CYPRUS GLOBAL GUIDE TO M&A TAX: 2017 EDITION

CYPRUS GLOBAL GUIDE TO M&A TAX: 2017 EDITION CYPRUS 1 CYPRUS INTERNATIONAL DEVELOPMENTS 1. WHAT ARE RECENT TAX DEVELOPMENTS IN YOUR COUNTRY WHICH ARE RELEVANT FOR M&A DEALS AND PRIVATE EQUITY? The most recent developments which are relevant to M&A

More information

Tax Flash CIT Reform Proposal

Tax Flash CIT Reform Proposal www.pwc.pt Tax Flash CIT Reform Proposal Cornerstones of this reform: simplification of tax compliance obligations, reduction of tax disputes, as well as a the intention to progressively reduce the corporate

More information

GERMANY GLOBAL GUIDE TO M&A TAX: 2017 EDITION

GERMANY GLOBAL GUIDE TO M&A TAX: 2017 EDITION GERMANY 1 GERMANY INTERNATIONAL DEVELOPMENTS 1. WHAT ARE RECENT TAX DEVELOPMENTS IN YOUR COUNTRY WHICH ARE RELEVANT FOR M&A DEALS AND PRIVATE EQUITY? Germany has recently seen some legislative developments

More information

Global Transfer Pricing Review

Global Transfer Pricing Review GLOBAL TRANSFER PRICING SERVICES Global Transfer Pricing Review Austria kpmg.com/gtps TAX 2 Global Transfer Pricing Review Austria KPMG observation On 28 October 2010, the Austrian Federal Ministry of

More information

BUSINESS IN THE UK A ROUTE MAP

BUSINESS IN THE UK A ROUTE MAP 1 BUSINESS IN THE UK A ROUTE MAP 18 chapter 02 Anyone wishing to set up business operations in the UK for the first time has a number of options for structuring those operations. There are a number of

More information

1. What are recent tax developments in your country which are relevant for M&A deals?

1. What are recent tax developments in your country which are relevant for M&A deals? Netherlands General Netherlands 1. What are recent tax developments in your country which are relevant for M&A deals? Most recent tax developments in the Netherlands are based on the OECD (BEPS) and EU

More information

- Simplification rule for pure intermediary companies : remuneration

- Simplification rule for pure intermediary companies : remuneration Theme Source of law Object / Date of application PAST CHANGES Impact / Comments 1. Transfer Pricing Article 56 of the Luxembourg Income Tax Law (LIR) and paragraph 171 Abgabenordnung Introduction of the

More information

Sponsored by: U.S. and Luxembourg Tax Update

Sponsored by: U.S. and Luxembourg Tax Update Sponsored by: U.S. and Luxembourg Tax Update AMCHAM Tax Seminar Luxembourg 22 September 2011 Presented by Philippe Neefs Tax Partner, KPMG 2 Agenda Why is transfer pricing a hot topic? Luxembourg recent

More information

EFFECTS ON TRADING AND AND SOLUTIONS

EFFECTS ON TRADING AND AND SOLUTIONS TRANSFER PRICING EFFECTS ON TRADING AND FINANCING CYPRUS COMPANIES AND SOLUTIONS By Marios Efthymiou Managing Director DEFINITIONS Base erosion and profit shifting (BEPS) refers to tax avoidance strategies

More information

Cyprus: (1) Citizenship (2) Permanent Residency (3) Real Estate (4) Tax Residency and Tax Incentives. Greece: In General & Investment Opportunities

Cyprus: (1) Citizenship (2) Permanent Residency (3) Real Estate (4) Tax Residency and Tax Incentives. Greece: In General & Investment Opportunities Cyprus: (1) Citizenship (2) Permanent Residency (3) Real Estate (4) Tax Residency and Tax Incentives Greece: In General & Investment Opportunities 1 Key Benefits: Free Movement of People: The Successful

More information

Global Transfer Pricing Review kpmg.com/gtps

Global Transfer Pricing Review kpmg.com/gtps Global Transfer Pricing Review Czech FinlandRepublic kpmg.com/gtps TAX 2 Global Transfer Pricing Review Finland KPMG observation The Finnish tax authority continues to pay attention to transfer pricing

More information

Quoted. March Edition 103. Dutch minimum substance requirements Relevant tax and corporate law aspects

Quoted. March Edition 103. Dutch minimum substance requirements Relevant tax and corporate law aspects Quoted March 2015 - Edition 103 Dutch minimum substance requirements Relevant tax and corporate law aspects In this edition Introduction Service Companies List of minimum substance requirements Analysis

More information

An Agreement dated [...] governing the conduct of Insurance Business between:

An Agreement dated [...] governing the conduct of Insurance Business between: An Agreement dated [...] governing the conduct of Insurance Business between: International Diving Assurance Limited (C36602) a Company registered and incorporated in Malta having its registered address

More information

Global Transfer Pricing Review kpmg.com/gtps

Global Transfer Pricing Review kpmg.com/gtps Global Transfer Pricing Review Czech EstoniaRepublic kpmg.com/gtps TAX 2 Global Transfer Pricing Review Estonia KPMG observation The Estonian tax authorities have paid more and more attention to transfer

More information

POLAND GLOBAL GUIDE TO M&A TAX: 2017 EDITION

POLAND GLOBAL GUIDE TO M&A TAX: 2017 EDITION POLAND 1 POLAND INTERNATIONAL DEVELOPMENTS 1. WHAT ARE RECENT TAX DEVELOPMENTS IN YOUR COUNTRY WHICH ARE RELEVANT FOR M&A DEALS AND PRIVATE EQUITY? GAAR regulations The most important changes with respect

More information

SOUTH AFRICA GLOBAL GUIDE TO M&A TAX: 2017 EDITION

SOUTH AFRICA GLOBAL GUIDE TO M&A TAX: 2017 EDITION SOUTH AFRICA 1 SOUTH AFRICA INTERNATIONAL DEVELOPMENTS 1. WHAT ARE RECENT TAX DEVELOPMENTS IN YOUR COUNTRY WHICH ARE RELEVANT FOR M&A DEALS AND PRIVATE EQUITY? In the 2016 Budget Review, tax avoidance

More information

Regulatory News Alert EBA/Op/2017/11

Regulatory News Alert EBA/Op/2017/11 Regulatory News Alert EBA/Op/2017/11 16 October 2017 Opinion of the European Banking Authority on a new prudential regime for investment firms On 29 September 2017, the European Banking Authority (EBA)

More information

Copyright 2017 Wildgen S.A.

Copyright 2017 Wildgen S.A. 1 P a g e 2 Copyright 2017 Wildgen S.A. SEPTEMBER 2017 www.wildgen.lu _WILDGEN INSIGHTS CODIFICATION OF THE EUROPEAN TRADEMARK REGULATION On 14 June 2017, the European Parliament and the Council of the

More information

Spain proposes to strengthen CFC rules

Spain proposes to strengthen CFC rules 5 November 2014 EY Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International- Tax/Tax-alert-library#date Spain

More information

FINLAND GLOBAL GUIDE TO M&A TAX: 2017 EDITION

FINLAND GLOBAL GUIDE TO M&A TAX: 2017 EDITION FINLAND 1 FINLAND INTERNATIONAL DEVELOPMENTS 1. WHAT ARE RECENT TAX DEVELOPMENTS IN YOUR COUNTRY WHICH ARE RELEVANT FOR M&A DEALS AND PRIVATE EQUITY? The most relevant recent developments in Finland relate

More information

Global Transfer Pricing Review kpmg.com/gtps

Global Transfer Pricing Review kpmg.com/gtps Global Transfer Pricing Review Czech BelgiumRepublic kpmg.com/gtps TAX 2 Global Transfer Pricing Review Belgium KPMG observation Multinational groups with subsidiaries or permanent establishments in Belgium

More information

Table of Contents. Preface. Abbreviations and Terms

Table of Contents. Preface. Abbreviations and Terms Preface Abbreviations and Terms v ix Chapter 1 Concepts and Basic Principles of EU Tax Law 1 1.1. Concepts 1 1.2. Relation to other legislation 3 1.2.1. Sovereignty and subsidiarity 3 1.2.2. Separateness

More information

EU Commission approves enhancements to Madeira International Business Center Tax Regime

EU Commission approves enhancements to Madeira International Business Center Tax Regime 3 September 2013 EU Commission approves enhancements to Madeira International Business Center Tax Regime Executive summary On 2 July 2013, the EU Commission issued a decision allowing Portugal to increase

More information

Cyprus Tax Update. Kyiv May 2018

Cyprus Tax Update. Kyiv May 2018 Cyprus Tax Update Kyiv May 2018 Today s agenda 1. Snapshot of Cyprus tax system 2. Developments affecting the Cyprus tax regime 3. Selected developments : a) ATAD b) TP 4. Selected structures 5. Expected

More information

Taxation of cross-border mergers and acquisitions

Taxation of cross-border mergers and acquisitions Taxation of cross-border mergers and acquisitions Sweden kpmg.com/tax KPMG International Taxation of cross-border mergers and acquisitions a Sweden Introduction The Swedish tax environment for mergers

More information

Global Transfer Pricing Review

Global Transfer Pricing Review GLOBAL TRANSFER PRICING SERVICES Global Transfer Pricing Review Hungary kpmg.com/gtps TAX 2 Global Transfer Pricing Review Hungary KPMG observation The tax authorities are paying special attention to transfer

More information

MALAYSIA GLOBAL GUIDE TO M&A TAX: 2017 EDITION

MALAYSIA GLOBAL GUIDE TO M&A TAX: 2017 EDITION MALAYSIA 1 MALAYSIA INTERNATIONAL DEVELOPMENTS 1. WHAT ARE RECENT TAX DEVELOPMENTS IN YOUR COUNTRY WHICH ARE RELEVANT FOR M&A DEALS AND PRIVATE EQUITY? Please see question 2 below. 2. WHAT IS THE GENERAL

More information

ROMANIA GLOBAL GUIDE TO M&A TAX: 2018 EDITION

ROMANIA GLOBAL GUIDE TO M&A TAX: 2018 EDITION ROMANIA 1 ROMANIA INTERNATIONAL DEVELOPMENTS 1. WHAT ARE RECENT TAX DEVELOPMENTS IN YOUR COUNTRY WHICH ARE RELEVANT FOR M&A DEALS AND PRIVATE EQUITY? The new Romanian Fiscal Code, in force starting 1 January

More information

IBFD Course Programme Transfer Pricing and Substance Masterclass

IBFD Course Programme Transfer Pricing and Substance Masterclass IBFD Course Programme Transfer Pricing and Substance Masterclass Overview and Learning Objectives The OECD BEPS project focuses on two items: substance and transparency. This is reflected in the reports

More information

Tax Planning International Review

Tax Planning International Review Tax Planning International Review Source: Tax Planning International Review: News Archive > 2018 > 04/30/2018 > Articles > Anti abuse legislation: The Importance of Substance in a Private Equity Fund Context

More information

Services and Capabilities. Financial Services Transfer Pricing

Services and Capabilities. Financial Services Transfer Pricing Services and Capabilities Financial Services Transfer Pricing Our team of experts offers an unmatched combination of economic credentials, industry expertise, and testifying experience. FINANCIAL SERVICES

More information

TPA Global. Top-10 Solutions. tpa-global.com

TPA Global. Top-10 Solutions. tpa-global.com TPA Global Top-10 Solutions 1 Top Ten TP Specific Solutions - Overview 2 1 Are you in control on tax/tp? TPA offers a solution to MNEs to be in control of their organizational and operational aspects of

More information

India revises Country Chapter comments in UN Practical Manual on Transfer Pricing Issues for Developing Countries

India revises Country Chapter comments in UN Practical Manual on Transfer Pricing Issues for Developing Countries 14 November 2016 Global Tax Alert News from Transfer Pricing India revises Country Chapter comments in UN Practical Manual on Transfer Pricing Issues for Developing Countries EY Global Tax Alert Library

More information

The treatment of transfer pricing adjustments for the purpose of customs valuation

The treatment of transfer pricing adjustments for the purpose of customs valuation The treatment of transfer pricing adjustments for the purpose of customs valuation By: MSc, M, Friedhoff, European customs law, 2017 1 Table of contents 1 Table of contents... 1 2 List of abbreviations...

More information

OECD DISCUSSION DRAFT ON TRANSFER PRICING COMPARABILITY AND DEVELOPING COUNTRIES

OECD DISCUSSION DRAFT ON TRANSFER PRICING COMPARABILITY AND DEVELOPING COUNTRIES Paris: 11 April 2014 OECD DISCUSSION DRAFT ON TRANSFER PRICING COMPARABILITY AND DEVELOPING COUNTRIES Submitted by email: TransferPricing@oecd.org Dear Joe, Please find below BIAC s comments on the OECD

More information

Recent and expected tax changes in Bulgaria and Greece important for cross-border operations

Recent and expected tax changes in Bulgaria and Greece important for cross-border operations Baker Tilly in South East Europe Cyprus, Bulgaria, Greece, Romania, Moldova Recent and expected tax changes in Bulgaria and Greece important for cross-border operations November 2016 Agenda Implementation

More information

Chinese Transfer Pricing Regulations and Their Implications

Chinese Transfer Pricing Regulations and Their Implications Chinese Transfer Pricing Regulations and Their Implications Pim Fris Special Consultant December 12, 2006 Shanghai Introduction Masterfile outline OECD documentation Typical OECD compliant transfer pricing

More information

Global Transfer Pricing Review kpmg.com/gtps

Global Transfer Pricing Review kpmg.com/gtps Global Transfer Pricing Review Czech Switzerland Republic kpmg.com/gtps TAX 2 Global Transfer Pricing Review Switzerland KPMG observation Switzerland is a member of the Organisation for Economic Co-operation

More information

International Fiscal Association 2017 Rio de Janeiro Congress. cahiers. de droit fiscal international. volume 102. B: The future of transfer pricing

International Fiscal Association 2017 Rio de Janeiro Congress. cahiers. de droit fiscal international. volume 102. B: The future of transfer pricing International Fiscal Association 2017 Rio de Janeiro Congress cahiers de droit fiscal international volume 102 B: The future of transfer pricing 1938-2017 Luxembourg Branch Reporters Nicolas Gillet* Antonio

More information

IRELAND GLOBAL GUIDE TO M&A TAX: 2017 EDITION

IRELAND GLOBAL GUIDE TO M&A TAX: 2017 EDITION IRELAND 1 IRELAND INTERNATIONAL DEVELOPMENTS 1. WHAT ARE RECENT TAX DEVELOPMENTS IN YOUR COUNTRY WHICH ARE RELEVANT FOR M&A DEALS AND PRIVATE EQUITY? A reduced rate of capital gains tax ( CGT ) of 20%

More information

International Tax Poland Highlights 2018

International Tax Poland Highlights 2018 International Tax Poland Highlights 2018 Investment basics: Currency Polish Zloty (PLN) Foreign exchange control None (generally) for transactions with EU, EEA, OECD and some other countries. Permission

More information

APPLYING OUR EXPERTISE TO THE SERVICE OF BUSINESS STRATEGIES

APPLYING OUR EXPERTISE TO THE SERVICE OF BUSINESS STRATEGIES CREATIVE SOLUTIONS AT ARCHERS, WE PROVIDE ASSISTANCE, ADVISORY SERVICES AND DEFEND THE INTERESTS OF OUR CLIENTS IN ALL OF THE MAIN AREAS OF BUSINESS, TAX, FINANCE, REAL ESTATE, LITIGATION, ARBITRATION

More information

E/C.18/2016/CRP.2 Attachment 9

E/C.18/2016/CRP.2 Attachment 9 Distr.: General * October 2016 Original: English Committee of Experts on International Cooperation in Tax Matters Twelfth Session Geneva, 11-14 October 2016 Agenda item 3 (b) (i) Update of the United Nations

More information

13 TH MEETING 2 MAY 2016

13 TH MEETING 2 MAY 2016 EUROPEAN COMMISSION DIRECTORATE-GENERAL TAXATION AND CUSTOMS UNION Indirect Taxation and Tax administration Value added tax VAT Expert Group 13 th meeting 2 May 2016 taxud.c.1(2016)3386352 VAT EXPERT GROUP

More information

Double Taxation Cases Outside the Transfer Pricing Area

Double Taxation Cases Outside the Transfer Pricing Area Double Taxation Cases Outside the Transfer Pricing Area December 0 BUSINESSEUROPE a.i.s.b.l AVENUE DE CORTENBERGH 68 BE 000 BRUSSELS BELGIUM TEL + (0) 7 65 FAX + (0) 4 45 E-MAIL MAIN@BUSINESSEUROPE.EU

More information

OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations

OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations 2009 Edition B 366258 TABLE OF CONTENTS - 5 Table of Contents Preface 11 Glossary 17 Chapter I The Arm's Length Principle

More information

CANADA GLOBAL GUIDE TO M&A TAX: 2018 EDITION

CANADA GLOBAL GUIDE TO M&A TAX: 2018 EDITION CANADA 1 CANADA INTERNATIONAL DEVELOPMENTS 1. WHAT ARE RECENT TAX DEVELOPMENTS IN YOUR COUNTRY WHICH ARE RELEVANT FOR M&A DEALS AND PRIVATE EQUITY? Legislative amendments in the past few years now strongly

More information

CYPRUS AS A GATEWAY FOR INDIAN CROSS BORDER TRANSACTIONS

CYPRUS AS A GATEWAY FOR INDIAN CROSS BORDER TRANSACTIONS CONTENT Introduction 3 Cyprus: tax benefits Cyprus-India double tax treaty Cyprus Holding Company Cyprus Holding In International Investments Back-to-Back financing structures Cyprus royalties company

More information

Global Transfer Pricing Review

Global Transfer Pricing Review GLOBAL TRANSFER PRICING SERVICES Global Transfer Pricing Review Czech FinlandRepublic kpmg.com/gtps TAX 2 Global Transfer Pricing Review Finland KPMG observation The Finnish tax authorities continue to

More information

MEMORANDUM. Authorisation and Organisation of Management Companies and Self-Managed SICAVs & UCI Promotership

MEMORANDUM. Authorisation and Organisation of Management Companies and Self-Managed SICAVs & UCI Promotership MEMORANDUM Authorisation and Organisation of Management Companies and Self-Managed SICAVs & UCI Promotership A. INTRODUCTION Within less than a week, the CSSF published (i) a circular regarding authorisation

More information

VODAFONE GROUP PLC TAX STRATEGY

VODAFONE GROUP PLC TAX STRATEGY VODAFONE GROUP PLC TAX STRATEGY In accordance with Para 16(2) Schedule 19 Finance Act 2016 this represents the Group s tax strategy in effect for the year ended 31 March 2018. 1 The areas below form the

More information

INVESTING THROUGH LUXEMBOURG

INVESTING THROUGH LUXEMBOURG INVESTING THROUGH LUXEMBOURG SUMMARY Introduction to Luxembourg 4 Unregulated investment vehicles 6 1. Holding companies (SOPARFI) 7 2. Intellectual property vehicles 10 3. Securitization vehicles 13

More information

Headquarter Jurisdictions Around the World: A Comparison

Headquarter Jurisdictions Around the World: A Comparison Headquarter Jurisdictions Around the World: A Comparison 2017 Austria Belgium Cyprus Dubai Hong Kong Ireland Luxembourg The Netherlands Portugal Singapore Spain Switzerland United Kingdom Headquarter jurisdictions

More information

2017 TAX GUIDELINE. Hungary.

2017 TAX GUIDELINE. Hungary. 2017 TAX GUIDELINE Hungary hungary@accace.com www.accace.com www.accace.hu Contents General information about Hungary 3 Legal forms of business 4 Personal income tax and social contributions 6 Corporate

More information

Transfer Pricing Country Summary Romania

Transfer Pricing Country Summary Romania Page 1 of 8 Transfer Pricing Country Summary Romania June 2018 Page 2 of 8 Legislation Existence of Transfer Pricing Laws/Guidelines Overview General Transfer Pricing rules have been implemented in Romanian

More information

CYPRUS ARMENIA: The gateway to Armenian business

CYPRUS ARMENIA: The gateway to Armenian business ARMENIA: 2013 CONTENTS Introduction 3 Cyprus: Tax Benefits 3 Cyprus Holding Company 5 Cyprus Holding Company In International 6 Investments Cyprus Back-to-back Financing 7 Cyprus Royalties Company 8 Capital

More information

Transfer Pricing and Business Restructurings

Transfer Pricing and Business Restructurings Transfer Pricing and Business Restructurings Streamlining all the way Edited by Anuschka Bakker IBFD Foreword Acknowledgements Abbreviations and Common References v ix xi Part A Setting the Scene Chapter

More information

Global Transfer Pricing Review

Global Transfer Pricing Review Global Transfer Pricing Review Czech FranceRepublic kpmg.com/gtps TAX 2 Global Transfer Pricing Review France KPMG observation In 2010, the French government introduced documentation requirements which

More information

Global FS view on BEPS latest developments for asset managers. Event Date: Thursday 22 October Event Time: 9am EDT/3pm CET

Global FS view on BEPS latest developments for asset managers. Event Date: Thursday 22 October Event Time: 9am EDT/3pm CET Global FS view on BEPS latest developments for asset managers Event Date: Thursday 22 October Event Time: 9am EDT/3pm CET Notice The following information is not intended to be written advice concerning

More information

TAX An overview of our practice

TAX An overview of our practice TAX An overview of our practice PwC Legal, SARL, Société d avocats indépendante inscrite au Barreau de Luxembourg - membre du réseau PwC. 2, rue Gerhard Mercator, L-2182 Luxembourg T: +352 26 48 42 1 -

More information

An Agreement dated 22/ governing the conduct of Insurance Business between:

An Agreement dated 22/ governing the conduct of Insurance Business between: Terms of Business Agreement (Non Risk Transfer) An Agreement dated 22/09 2009 governing the conduct of Insurance Business between: and Vectura Underwriting, a trading name of Aquila Underwriting LLP, transacting

More information

Mr. Joe Andrus Head of Transfer Pricing Unit Centre for Tax Policy and Administration OECD 2, rue Andre Pascal Paris France.

Mr. Joe Andrus Head of Transfer Pricing Unit Centre for Tax Policy and Administration OECD 2, rue Andre Pascal Paris France. PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft Mr. Joe Andrus Head of Transfer Pricing Unit Centre for Tax Policy and Administration OECD 2, rue Andre Pascal 75775 Paris France

More information

Proposal for a COUNCIL IMPLEMENTING REGULATION

Proposal for a COUNCIL IMPLEMENTING REGULATION EUROPEAN COMMISSION Brussels, 11.12.2018 COM(2018) 821 final 2018/0416 (NLE) Proposal for a COUNCIL IMPLEMENTING REGULATION amending Implementing Regulation (EU) No 282/2011 as regards supplies of goods

More information

15445/17 AS/AR/mpd 1 DG G 2B

15445/17 AS/AR/mpd 1 DG G 2B Council of the European Union Brussels, 5 December 2017 (OR. en) 15445/17 FISC 346 ECOFIN 1092 OUTCOME OF PROCEEDINGS From: General Secretariat of the Council To: Delegations No. prev. doc.: 15175/17 Subject:

More information

Austria. Clemens Philipp Schindler and Martina Gatterer. Schindler Attorneys

Austria. Clemens Philipp Schindler and Martina Gatterer. Schindler Attorneys AUSTRIA Austria Clemens Philipp Schindler and Martina Gatterer Acquisitions (from the buyer s perspective) 1 Tax treatment of different acquisitions What are the differences in tax treatment between an

More information

Taxation of cross-border mergers and acquisitions

Taxation of cross-border mergers and acquisitions Taxation of cross-border mergers and acquisitions Cyprus kpmg.com/tax KPMG International Cyprus Introduction The Income Tax Law No.118 (I) 2002 introduced major reforms of Cyprus s tax system at the time

More information

Proposal for a Directive on Reinsurance Supervision Frequently Asked Questions (see also IP/04/513)

Proposal for a Directive on Reinsurance Supervision Frequently Asked Questions (see also IP/04/513) MEMO/04/90 Brussels, 21 April 2004 Proposal for a Directive on Reinsurance Supervision Frequently Asked Questions (see also IP/04/513) What are the main objectives of the proposal? The proposed Directive

More information

Uruguay. Transfer Pricing Country Profile. Updated October The Arm s Length Principle

Uruguay. Transfer Pricing Country Profile. Updated October The Arm s Length Principle Uruguay Transfer Pricing Country Profile Updated October 2017 SUMMARY REFERENCE The Arm s Length Principle 1 Does your domestic legislation or regulation make reference to the Arm s Length Principle? 2

More information

Global Transfer Pricing Review

Global Transfer Pricing Review GLOBAL TRANSFER PRICING SERVICES Global Transfer Pricing Review Czech El Salvador Republic kpmg.com/gtps TAX 2 Global Transfer Pricing Review El Salvador KPMG observation In El Salvador, the Tax Code includes

More information