An update on the recent news and cases in the field of transfer pricing in 15 countries
It is our pleasure to present to you the first edition of our WTS Global Transfer Pricing Newsletter for 2022.
In this latest edition of the WTS Transfer Pricing Newsletter, our colleagues from 15 countries have provided an update on recently introduced legislations and cases.
OECD
The OECD published the new version of its OECD Guidelines, which replaces the 2017 edition. The article outlines the main changes and provides context compared to the previous version.
Europe
Our Austrian colleagues explain new aspects of the Austrian TP Documentation Law regarding annual CbCR notifications.
The Czech contribution digs into recent case law from the Czech Supreme Administrative Court discussing the definition of related parties.
In France, our colleagues highlight the importance for taxpayers to have in-depth functional analyses to defend their transfer prices in the event of a tax audit, using the case of RKS in France.
In Germany, new case law on the determination of the arm’s length interest rates of intercompany loans has been published. The German contribution discusses the three cases in more detail.
Our colleagues in Ireland provide an overview of local TP compliance requirements concerning Master File, Local File and CbCR.
Italy introduces new rules on TP documentation for MNEs that taxpayers must comply with so as to benefit from penalty protection.
The Netherlands have implemented legislation to end its long-standing practice of allowing unilateral downward TP adjustments. The contribution compares previous and new legislations.
The contribution from Poland gives a brief view on the recent changes in TP legislation including law proposals made by the Ministry of Finance.
Portugal has seen changes made in view of local TP regulations, resulting in a further convergence of the Portuguese TP legal framework with the rules applicable in most OECD countries.
The UK contribution highlights the background and the outcome of the consultation on TP documentation. Among others, the largest MNEs based in the UK are required to maintain a Master File and Local File and supporting Summary Audit Trail.
In Ukraine, the Ministry of Finance sets out new regulations in business purposes. The article provides further details and an algorithm of control.
Rest of the world
Taxpayers in Brazil may be affected by several changes in the calculation of the benchmark for interests announced by the UK’s Financial Conduct Authority. The contribution from Brazil discusses this issue.
Our Chinese colleagues provide insights into the regulation of deducting interests charged by related parties. The arm’s length principle, thin capitalisation rule and liability-asset ratio are shown in more detail.
New Zealand’s Inland Revenue Department has introduced new BEPS disclosure requirements, which apply for both large New Zealand resident and non-New Zealand resident entities.
From 2023, the new CFC rule will be mandatory in Taiwan. Our colleagues present the decision of the Ministry of Finance, the background and the definition of the CFC rules under local tax law.