2022-02-15-KPMG_Global-E-News_from_KPMG_s_EU_Tax_Centre_12页_283kb

Key Points Summary of EU Tax Developments

The provided content from KPMG's February 15, 2022, E-News issue covers EU tax developments, including infringement proceedings, international organizations, local regulations, court cases, and KPMG insights. Here's a concise analysis:

1. EU Institutions:

• Infringement Procedures: The European Commission sent letters of formal notice to Bulgaria, Greece, and Spain for non-transposing Article 9a of the EU Anti-Tax Avoidance Directive 2017/952 (ATAD 2), regarding reverse hybrid mismatch provisions. Member States have two months to respond, potentially leading to reasoned opinions.
• Parliamentary Activities: The European Parliament's FISC sub-committee held meetings on energy taxation and EU dialogues with third countries. Key discussions included carbon pricing, global minimum tax rates, and the BEPS 2.0 proposals, with concerns about political inconsistencies in non-cooperative jurisdiction lists.

2. OECD and Other International Institutions:

• OECD Consultations: Public consultation on Model Rules for Nexus and Revenue Sourcing for Pillar One, aiming to reallocate profits to market jurisdictions. Draft rules focus on revenue sourcing and nexus tests, with comments due by February 18, 2022.
• Multilateral Instrument Updates: Lesotho, Thailand, and Viet Nam ratified the MLI to combat treaty abuse and hybrid mismatch arrangements, now covering 99 jurisdictions and 2,898 treaties.

3. Local Law and Regulations:

• Various EU countries announced tax law changes and court decisions. For example, Denmark proposed a 5% tax on streaming services and updated transfer pricing docs; Germany clarified royalty deduction limits and extended loss carry-back periods; Italy finalized hybrid mismatch guidance; and Kenya's court ruled on software license withholding tax, determining it isn't automatically taxable as royalties.

4. KPMG Insights:

• Upcoming Webinars: KPMG is hosting sessions on BEPS Pillar 2 implications for multinationals and restructuring tax considerations. New insights include tax transparency tools aligned with ESG and materials on the EU Green Deal.
• Additional Notes: General updates on tax defensive measures by EU states and warnings on permanent tax resident status in double taxation contexts based on recent court rulings.

This summary highlights key developments in tax policies, court decisions, and insights, focusing on transnational and domestic impacts. For more details, refer to the referenced sources or KPMG publications.