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Taxand's Take
Your regular update on the latest issues affecting multinationals
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March 2013
Welcome to the latest edition of Taxand's Take - your regular update on the topical tax issues affecting multinationals. Accessible online this newsletter is sent to you every two months. Taxand's Take provides you with informed opinion on the latest tax changes and how they affect you.

Stay up to date with Taxand and our news from around the world. Visit www.taxand.com/news.

In this issue you will discover: 

...country updates, key resources and much, much more....
TP & BUSINESS RESTRUCTURING TP_Feature
Base Erosion and Profit Shifting (BEPS) - is TP the Problem or the Solution?

MNCs engaged in tax planning have come under significant scrutiny in the last 12-18 months, despite the fact that this planning is acceptable under tax law. Transfer pricing has been raised as a key issue with companies shifting functions and risks to low tax locations. The OECD tax policy division stepped into the debate in February 2013 to try to identify the sorts of transactions that are seen as aggressive or unacceptable. Taxand's Global TP & Business Restructuring team investigate this issue further, and look at the ways in which transfer pricing is incorporated into the OECD paper. 

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COMPENSATION TAXCompensation
Fiscal Treatment of Tablets Provided to Employees

We are now seeing more and more employers providing their employees with tablets. The fiscal treatment of tablets (eg Ipads) provided by employers to their employees differs from country to country. In some countries, tablets may be provided tax free (under certain conditions), in others tablets qualify as taxable wage. Therefore, it is important for multinationals to know the fiscal consequences before providing the tablets. Taxand's Global Compensation Tax team provides a review of the fiscal treatment of providing tablets to employees in countries across western Europe and the US.

 US / SPAIN Spain_US
Could New US / Spain DTT Make Spain Hub for LATAM & European Investment?

On 14 January 2013, a new Protocol was signed, amending the income tax treaty between Spain and the US (that had been in force since 1990). On signing the new Protocol, the two governments also agreed to the provisions of a Memorandum of Understanding to the treaty that incorporates some important modifications and definitions. Taxand Spain and Taxand US summarise some of the key provisions of the new Protocol, and what companies should be thinking about in light of this new development.  

MALTA / MEXICO Malta_Mexico
Malta & Mexico Conclude DTT Impacting Multinationals

On 17 December 2012 the Maltese and Mexican governments signed a Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (the "Convention"). The Convention will enter into force once the legal formalities of each country take place, as well as the corresponding exchange of notes. The Convention assigns taxing rights to each country depending on the type of income, for example business profits, interest, royalties and capital gains. Likewise, the Convention provides the mechanism by which double taxation will be avoided and an exchange of information provision. Taxand Malta and Taxand Mexico investigate the main features of this Convention and its likely impact on businesses worldwide. 

ITALY italy
Tobin Tax Hits Italy

Recent provisions have been introduced to implement a tax on transfers of shares, the so-called "Tobin Tax". Starting from 1 March 2013, the Tobin Tax will be applied to the transfers of shares issued by Italian companies. This tax will also be applied on transfers of securities that are representative of shares or financial instruments independently by the residence of the issuer. Taxand Italy details the changes, and the impact that the Tobin Tax could have on businesses operating within the jurisdiction.

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GERMANYgermany
Are DTTs Impacting the 'Arm's Length' Principle?
The German Federal Tax Court (Bundesfinanzhof) has recently decided that under specific circumstances, the dealing at arm's length principles that are usually included in the German tax treaties are overruling German national rules for hidden profit distributions. Under German tax law, hidden profit distributions occur when a corporation grants a benefit to its shareholders or related persons which it would usually not grant to unrelated third parties. Taxand Germany reviews the impact of this ruling on affiliated companies being resident in different countries.
INDIA india
Important Ruling on Taxation of Offshore Transfer of Shares

Vodafone's controversy with the Indian Revenue is well known. To recap, the Indian Revenue had sought to tax the gains derived from an offshore Hutch entity on the sale of shares of a Cayman company that was indirectly holding a substantial stake in an Indian telecom operating business. Taxand India discusses the matter and how this could affect similar cases moving forward.

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DENMARK denmark
New Anti-Abuse Bill Imposes Beneficial Ownership Requirements

On 14 December 2012, a new anti-abuse bill with the purpose of tightening the Danish tax legislation was adopted. The bill introduces Danish withholding tax on certain intra-group sale of shares and effectively imposes a beneficial ownership requirement on other countries. The bill was made effective as of 20 December 2012.Taxand Denmark investigates the withholding tax rules and their impact on PE funds and multinationals with Danish holding companies.  

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COUNTRIES COUNTRIES
Here's your global overview of Taxand country updates. Select the country of choice to read the latest news:


Australia

Austria

Cyprus

Denmark

Malta

Mexico
  
  

 


  
 



  

 RESOURCESResources

2013 is the Year of Intangibles - Why?

 

Global research undertaken by Taxand reveals that 72% multinationals are concerned about brand damage over intangible asset treatment, and 

63% of respondents are anticipating an increased focus by tax authorities on intangible assetsfrom tax authorities on the back of new OECD guidelines.  

 
Discover more & download your Taxand Global Intangibles Survey report

Taxand Responses to OECD & EC Public Consultations and Discussion Drafts

Our tax specialists worldwide regularly provide responses to the OECD and EC to influence policy change and benefit multinationals.

Tax Treaty Issues Related to Emission Permits/Credits

Coming Soon

Taxand's response to the four new draft elements of the OECD International VAT/GST Guidelines

Read all EC & OECD responses  
Publications

Taxand Americas Guide to Transfer Pricing 2013 
Download your essential desktop 'ready reference' to understand the transfer pricing rules impacting to the Americas - Taxand Americas Guide to Transfer Pricing 2013.

Access our key findings & request your copy of the guide

 

Coming Soon
  

Taxand Global Energy Thought Leadership Report  

 

Discover all of our Taxand global publications

Latest Media Commentary

CFO Innovation Asia
Prolonged Tax Debate Creates Uncertainty for MNCs

 

CFO Insight
EU Tobin Tax Could be Disruptive
 

International Tax Review

EU Member States Given Green Light for FTT

How to Better Integrate Financial Systems & Transfer Pricing

 

Taxand 

  

 

Accountancy Age
Uncertainty Looms for UK as Europe Moves on Tobin Tax
 

AFP, APP, Business Spectator, Channel News Asia, Economia, GT News, Le Devoir, MSN News, Romandie.com, The Economic Voice
Cameron Urges Discussion on Effective Tax Planning at G8

La Bourse et la Vie
The International Taxation of Multinationals

The Business Standard
Budget with a Balance

Are Multinationals Being Treated Unfairly?

Economic Voice, Economie Matin, Economia
G20 Must Strike Careful Balance for International Tax Planning

Davos: the Tax Planning Debate Continues 

 

Discover all latest media commentary  

Read Taxand's Take January 2013 Issue

Your regular update on the latest issues affecting multinationals

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ABOUT TAXAND

Taxand provides high quality, integrated tax advice worldwide. Our tax professionals, more than 400 tax partners and over 2,000 tax advisors in nearly 50 countries - grasp both the fine points of tax and the broader strategic implications, helping you mitigate risk, manage your tax burden and drive the performance of your business.

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The information contained in this document is intended only to be a guide. It must not be relied on in, or applied to, specific situations without previously seeking proper professional advice. Even though all reasonable care has been taken in its preparation, Taxand and all of its firms do not accept any liability for any errors that it may contain or lack of update before going to press, whether caused by negligence or otherwise, or for any losses, however caused, or sustained by any person. Descriptions of, or references or access to, other publications within this publication do not imply endorsement of them. As provided in the US Treasury Department Circular 230, this tax newsletter is not intended, or written by any Taxand firm, to be used, and cannot be used, by a client or any other person or entity for the purpose of avoiding tax penalties that may be imposed on any taxpayer.

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� Taxand Economic Interest Grouping 2013