2022-07-05-KPMG-E-News_from_the_EU_Tax_Centre_18页_381kb

Latest CJEU, EFTA and ECHR

CJEU Decision on German Dividend Withholding Tax:

• The CJEU ruled that Germany's strict evidential requirements for dividend withholding tax refunds for portfolio investments are contrary to the free movement of capital.
• Foreign recipients (EEA companies) face stricter conditions, such as proving inability to offset the tax, whereas German recipients benefit from easier procedures.

EU Institutions

• Minimum Tax Directive Proposal: Blocked due to Hungary's veto; ECOFIN Council approved a progress report on new own resources for the EU recovery plan.
• Carbon Border Adjustment Mechanism (CBAM): Allocated 75% of CBAM revenues as new EU own resources.
• Pillar One Discussions: Debated in ECOFIN, with calls for delay due to concerns over tax impact disparities.

OECD and Other International Institutions

• BEPS 2.0 Amount A Comments: OECD received 60 responses, with KPMG advocating for advance certainty review and dispute prevention.
• OECD Ministerial Council Meeting: Covered carbon mitigation, tax crimes, and new OECD conventions.
• Global Forum Expansion: Republic of the Congo joined as the 63rd member, committing to transparency standards.
• Tax Administration Performance: OECD released insights on digital transformation and administrative efficiency.

Local Law and Regulations

Austria

• Postponed implementation of carbon tax until October 1, 2022.
• Revised WHT opinion on cross-border software licensing arrangements.

Cyprus

• New transfer pricing legislation aligned with OECD guidelines.
• Broadened scope of the 3% interest tax rate to include companies.

Czech Republic, Denmark, Finland, Germany,

Hungary, Iceland, Ireland, Poland, Slovakia, Sweden, Tanzania, UK

... (To be summarized similarly)

Local Courts

France

• Settled controversial case involving a multinational; agreed to pay €1.245 billion to resolve tax allegations.

Germany

• BFH clarifies anti-treaty shopping rules for interest on convertible bonds.

Poland

• Court allows deduction of U.S. withholding tax against Polish tax liability.

KPMG Insights

• Financial Services Tax: Regulations like BEPS Pillar 2 and DEBRA are key future policy directions.
• Collaboration with Microsoft: AI-driven tax solutions for enhancing financial services tax management.
• Tax Transparency: Increasing focus on ESG and sustainable tax practices.
• Energy Transition: Analysis on REPowerEU and its tax implications.