2022-11-02-KPMG_Global-E-News_from_the_EU_Tax_Centre_14页_442kb

EU Institutions Updates

CJEU

• Parent-Subsidiary Directive Exemption in Merger Context: EU law permits national legislation limiting dividends received deduction (DRD) surpluses carried over in mergers, as seen in the Belgian case upheld by the CJEU.
• German Court Rulings: Confirmed that dual resident companies can be treated as foreign entities for trade tax purposes if their effective management is in Germany, reducing trade tax on dividends.

EU Institutions Actions

• European Commission Work Program: Prioritized a new own resources proposal and discussed windfall taxes on energy companies. Debates on energy taxes highlighted the need for solidarity packages to offset price shocks.
• BEPS 2.0 Developments: Debated ongoing restructuring of tax rules, including unshell and DEBRA proposals, with KPMG Insights offering perspectives on Pillar One and Pillar Two negotiations.
• Pillar Two Implementation: EESC cautious on interest deduction limitations, proposing a modification.

OECD and International Institutions

• UN Tax Committee: Key discussions included updates to international tax conventions, digitalized economy taxation, transfer pricing, crypto-assets, and dispute mechanisms.

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Local Law and Regulations

Country-Specific Updates

• Cabo Verde: New R&D tax incentives and profit tax exemption for specific tech companies were introduced in the 2023 draft budget.
• Czech Republic: Revised list of non-cooperative jurisdictions under its CFC rules, aligned with the EU list.
• Finland: Draft bill to transpose DAC7 for platform operators, and plans to expand hidden profit distribution taxation to 100%.
• France: The 2023 Finance Bill introduced a temporary solidarity tax on fossil sector profits (33%) and progressively reduced regional economic contributions.
• Germany: Draft bill for Public CbCR implementation, alongside withdrawal of tax haven documentation requirements for indirect transactions.
• Hungary: Draft bill on Public CbCR implementation imposes disclosure rules without deferral flexibility.
• Ireland: Key corporate tax amendments include the Knowledge Development Box (KDB) relief extension with a new effective rate, while confirming the surrender of capital allowances.
• Malta: Budget 2023 maintains temporary tax relief for excess capital allowances, adjusted withholding tax rates, and support for start-ups.
• Netherlands: Launch of public consultation on Pillar Two implementation under OECD rules aiming for a 2024 effective date.
• Poland: Parliament approved amendments to the "Polish Deal", postponing minimum tax measures and repealing specific tax havens rules.
• Portugal: Proposed budget measures include a new tax regime for crypto assets and changes to micro-enterprise tax thresholds.

Country Court Cases

• Germany: Supreme Court decision on triangulation cases and revised trade tax treatment for dual resident dividends.
• Netherlands: Supreme Court upheld its view on dynamic interpretation of tax treaties.
• Spain: Supreme Court ruled on the classification of payments as royalties under the Spanish-German double tax treaty.

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KPMG Insights

• KPMG Events: Two upcoming webinars discussing BEPS 2.0 implementation impacts, EU Financial Services Tax perspective, Renewable Energy & Energy Efficiency Directives, and perspectives on CFCs and non-cooperative jurisdictions.