2023-05-04-KPMG-E-News_from_the_EU_Tax_Centre_15页_478kb

KPMG EU Tax Centre Newsletter Summary

EU Institutions Updates

• CJEU Decision (April 27, 2023): Strasbourg Court ruled German tax rules for non-resident closed-end real estate funds violate EU law regarding free movement of capital by taxing such funds differently from their domestic counterparts.
• Belgium Referral (April 19, 2023): European Commission referred Belgium to CJEU for failure to correctly transpose ATAD CFC rules.
• Council of the EU (April 25, 2023): EU Carbon Border Adjustment Mechanism (CBAM) and EU ETS reforms formally adopted.
• European Parliament:
  • Budget Committee to vote on new EU revenue sources (BEFIT, FTT, levy on supply chains, crypto tax, green taxes, national contributions) by May 9, 2023.
  • FISC Subcommittee held hearing on national tax authorities' resources, cooperation, and digitalization.

OECD and International Institutions

• OECD (April 20, 2023): Published working papers on research and development (R&D) tax incentives, highlighting increased use, influence of BEPS Action 5, and varying support levels across OECD countries.

Local Law and Regulations

• Windfall Profits Tax (Czech Republic, March 10, 2023): Guidance issued for windfall tax (2023-2025) scope, calculation, group allocation, and filing requirements.
• Denmark:
  • Proposed temporary solidarity contribution (33% rate) on fossil sector (oil, gas, coal, refining) excess profits for 2023.
  • Draft revised non-cooperative jurisdictions list released (excluding Russia due to tax treaty); proposal to terminate tax treaty with Russia effective Jan 1, 2024.
• Finland: Clarifications on DAC7 reporting obligations published.
• Germany:
  • New guidance (April 19, 2023) allows dynamic use of OECD Model Tax Convention Commentary for interpreting DTTS, subject to German official interpretations taking precedence.
• Hungary (April 1, 2023): New windfall tax introduced on petroleum product producers (2.8% rate) with increased reliefs and higher tax rates (up to 13%) for banks.
• Luxembourg: Proposed amendments to transfer pricing rules (APAs, MAP) effective post-publication, with updated documentation requirements from 2024.
• Lithuania (April 4, 2023): Amended DAC7 transposition law based on EC formal notice regarding partial implementation.
• Malta (April 13, 2023): Updated FAQs for DAC6 clarifying reporting obligations (Maltese intermediaries only, privilege waivers, arrangement marketing).
• Netherlands: Proposal for 2024 tax reform bill published (extension of conditional WHT to reverse hybrids, exclusion of foreign shareholders from WHT deduction).
• Norway: Public consultation launched on expanding interest limitation rules to cover financial leasing expenses.
• Saudi Arabia: Launch of four new SEZs with incentives announced.
• South Africa (February 22, 2023): Budget commits to implementing OECD Pillar Two solution through public consultation in 2023 and legislation in 2024.
• United Kingdom: New R&D tax relief guidance published (additional information requirements, individual claimant forms).

Local Court Decisions

• France:
  • Supreme Court ruled on foreign tax credit limitation for exempt dividends, clarifying aggregate extent of foreign tax credit.
  • Court confirmed French banking sector's justification under free movement after CJEU upheld domestic deductibility of UK losses post-tax waiver.
• Spain:
  • Supreme Court suspended DAC6 notification requirement for intermediaries under legal professional privilege, requiring only client notification.
  • Supreme Court ruled French AIF parent entitled to partial refund of Spanish dividends subject to 15% WHT, finding discriminatory.
  • Supreme Court confirmed legal professional privilege limiting Spain's DAC6 notification requirements.

KPMG Insights

• EU Tax Perspectives: KPMG discussed BEPS 2.0, Unshell Directive, transparency reporting, non-cooperative jurisdictions list updates.
• Developments for Digital Economy: KPMG covered VAT investigations related to digital platforms accessing customer data in Italy and tax measures for NZ gig economy.
• EU Social Security Agreement: Framework Agreement for social security ceiling drafted; aims to provide opt-in for maintaining coverage in employer's country during short-term remote work abroad (enters force July 1, 2023).