It is our pleasure to present to you the first edition of our WTS Global Transfer Pricing Newsletter 2023.
In this latest edition of the WTS Transfer Pricing Newsletter, our colleagues from 13 countries share valuable insights on recently enacted legislations and significant cases, ensuring you stay up to date with the latest developments in the field of Transfer Pricing.
General Transfer Pricing topic
The Transfer Pricing Digital Team in Germany explores the opportunities of utilising data analytics tools like Alteryx and visualisation platforms such as PowerBI to enhance Transfer Pricing documentation projects.
Country-specific Transfer Pricing topics
The Argentine Supreme Court’s landmark ruling invalidates the presidential decree on Transfer Pricing, providing crucial tax relief to the commodity exporting sector.
In Australia, the proposed legislation would lead to the first unrestricted worldwide mandated public reporting of all CbCR data combined with additional Information by jurisdiction. More details about which companies are concerned and the new disclosures required can be found in the article.
Costa Rica‘s government has submitted a tax reform proposal to the Legislative Assembly, aiming to introduce significant changes to the country’s income tax system. The proposed reform includes a shift to a mixed tax system for residents, consolidation of individual income tax, a general 15% tax rate for non-residents and expanded powers for the Tax Administration.
France launches a comprehensive anti-fraud plan, aiming to target the “ultra-rich” and multinational companies, strengthen Transfer Pricing obligations and enhance tax transparency measures, showcasing its determination to tackle tax evasion effectively.
In Germany, new legislation has been adopted to tighten Transfer Pricing documentation rules, allowing tax authorities to demand records at any time, reducing submission deadlines and imposing stricter penalties for non-compliance.
India‘s recent rulings and regulatory updates in Transfer Pricing cases have underscored the importance of robust comparability parameters and international guidelines for determining arm’s-length prices, shaping the landscape of tax regulations.
Recently, Malta has introduced Transfer Pricing rules which will take effect from the financial year 2024. The rules require companies to include the arm’s-length principle of cross-border arrangements with associated enterprises in determining their total taxable income, with additional guidelines expected to be issued to determine the methodologies for establishing the arm’s-length principle.
The Netherlands has implemented anti-Transfer Pricing mismatch rules to counter double non-taxation, and a recent decree provides clarification that these rules do not apply to entities exempt from or not subject to profit tax, reducing uncertainties for pension funds and other exempt entities.
Our colleagues in Poland dealt with the conflicting approach of Polish tax authorities regarding the tax treatment of Transfer Pricing adjustments.
In Saudi Arabia requirements for the master file and local file, with compliance varying based on the value of transactions with related parties, were introduced. The Senegalese tax authorities prioritise local comparables over quoted prices for Transfer Pricing, emphasising their accuracy in reflecting company profitability, but the specific conditions for applying the arm’s-length principle remain undefined.
The UAE has implemented new Transfer Pricing regulations aligned with OECD guidelines, requiring businesses to maintain documentation and adhere to the arm’s-length principle. The article provides a roadmap for taxpayers to evaluate the impact of new TP rules.
Our team in UK focused on examining the latest statistics and developments provided by the HMRC regarding the usage of APAs, ATCAs and MAPs