2021-11-23-KPMG_Global-E-News_from_KPMG_s_EU_Tax_Centre_13页_305kb

Infringement Procedures and CJEU Referrals

• Spain: European Commission sent a formal notice requiring Spain to allow deduction of directly related expenses from the tax base for withholding taxes on royalty payments.
• Cyprus: European Commission closed infringement proceedings for failure to transpose DAC6 rules into domestic law.
• Denmark: European Commission closed infringement proceedings for failure to transpose controlled foreign company (CFC) rules into domestic law.

EU Institutions News

• European Parliament: Formally adopted the EU public Country-by-Country (CbCR) Reporting Directive, which will enter into force in December 2021, with 18 months for Member States to implement and from June 2024 onwards application.
• European Parliament Subcommittee on Tax Matters: Debated the impact of crypto and blockchain technologies on taxation, focusing on crypto assets, tax avoidance opportunities, and potential regulatory frameworks.

OECD and Other International Institutions News

• OECD (Global Forum): Held its 2021 plenary meeting, welcoming new members (Algeria, Belarus, Maldives, Papua New Guinea, Rwanda), discussing multilateral co-operation on transparency and exchange of information (EOI), capacity building (noting over 71 jurisdictions benefited and 21,000 tax officials trained since 2011), and introducing the "Asia initiative". Peer reviews for AEOI effectiveness will be published in 2022.

Local Law and Regulations Updates

• Austria: Draft bill proposes tax reform including a reduction in corporate tax rate (25% → 24% effective 2023; 23% effective 2024), a carbon tax increase until 2025, and a specific tax rate for cryptocurrencies.
• Belgium: New rules effective 2020/2021 regarding foreign losses: Non-EEA foreign losses may be used to offset tax previously reduced by double taxation agreements (DTAs); technical clarifications on losses, carry-forward, and anti-abuse provisions. Existing expatriate tax concessions are set to be replaced by stricter rules (details pending official texts).
• Cyprus: Published updated DAC6 guidance: Existing cross-border arrangements (Jun 25, 2018 - Jun 30, 2020) must be reported by Nov 30, 2021; reporting deadlines for new arrangements are 30 days from trigger date; clarifications on due diligence and intermediary obligations.
• Finland: Guidelines published for public tax information for the 2020 tax year, covering individuals (tax years 2009-2020) and legal entities (2010-2020) including names, addresses, income, taxes, and payments/refunds.
• Turkey: Tax reform package increases the notional interest deduction rate for foreign capital increases from 50% to 75% (effective Jan 1, 2022) and tightens mutual assistance procedure deadlines (3 years unless treaty specifies otherwise).
• Other Countries:
  • Czech Republic: Digital Services Tax bill not approved.
  • Germany: Guidance issued on taxing commercial partnerships as corporations.
  • Ireland: Public consultation launched on outbound payment taxation.
  • Malta: Annual notification form for non-disclosing intermediaries published.
  • Netherlands: Tax plan measures adopted for hybrid/mismatch/transfer pricing and for beneficial ownership register; top corporate tax rate set to increase to 25.8%. Beneficial ownership register implemented.
  • Norway: Proposed budget changes include deduction for foreign subsidiary contributions, increased wealth tax rate/basic allowance, carbon tax increase, and planned 15% WHT on interest/royalty payments to low-tax related entities (effective July/Oct 2021).
  • Poland: "Polish Deal" tax reform passed, effective Jan 1, 2022, including higher holding company regime, CFC rules, anti-shifting measures, and reduced distribution relief.
  • Slovenia: Amendments introduce anti-hybrid rules, expanded non-cooperative jurisdictions list, defensive CFC rules, and a green/digital investment incentive.
  • Switzerland: New circular effective Jan 1, 2021 (grace period) issued for tax rules on financial institutions, impacting value adjustments and dividends.

Local Court Cases

• France: Administrative Court of Appeal upheld tax authority's decision denying double tax treaty benefits for a French subsidiary paying royalties to a Dutch BV, finding the Dutch BV was not the beneficial owner due to its obligation to remit >90% of received amounts to its parent company.

KPMG Insights and Links

• Webcasts and Events: Upcoming webcasts on EU tax perspectives, BEPS Pillar 1/2 implementation timeline, KPMG Great Tax Climate Debate playback, BEPS 2.0 impact in Middle East, and country-by-country reporting.
• Materials: Guides on tax transparency, ESG (Navigating Tax Transparency), EU Green Deal, and benefits/losses.

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