Sticking with worldwide and cross-border tax issues for this week, and we start with the OECD, which has simply launched the 2022 version of its Switch Pricing Tips for Multinational Enterprises and Tax Administrations.
The OECD Switch Pricing Tips present steerage on the applying of the arm’s size precept, which represents the worldwide consensus on the valuation, for revenue tax functions, of cross-border transactions between related enterprises.
This newest version consolidates right into a single publication the adjustments to the 2017 version of the Tips ensuing from varied studies adopted by the OECD and the G20 within the intervening years.
Later within the week, the Organisation launched evaluations into territories’ preferential tax regimes and on tax dispute decision by means of the Mutual Settlement Process, below the auspices of its Inclusive Framework on BEPS.
The OECD steered that the findings show that international locations are persevering with to make progress on combating dangerous tax practices and offering larger tax certainty to massive taxpayers.
The findings of evaluations into 9 preferential tax regimes have been revealed, as a part of the work on the implementation of BEPS Motion 5. The variety of regimes reviewed now stands at 317.
In Europe, in the meantime, all eyes have been on reforming and modernizing the bloc’s VAT system, and the European Fee has launched a session on a brand new Directive to modernize the European Union’s value-added tax guidelines.
The Directive is meant to ship the Fee’s motion plan for “VAT within the digital age”, which appears to enhance how tax authorities use know-how to battle tax fraud and profit companies, and modernize the bloc’s VAT guidelines to reply to the digitalization of the financial system.
Specifically it’ll replace VAT reporting obligations and facilitate e-invoicing, replace the VAT guidelines for the platform financial system, and transfer to having a single VAT registration course of within the EU.
The suggestions interval is open till February 17, 2022.
Till subsequent week!
In regards to the Writer
Kitty Miv, Editor
Kitty was born in Argentina in 1960 to a Scottish cattle rancher and his Argentine spouse. Educated in Edinburgh and at Princeton, Kitty labored for the World Financial institution as an economist, the place she met and married an emigre Iranian banker. Throughout her time with the Financial institution, Kitty labored in a variety of rising markets, together with a spell within the ex-USSR as a Transition Economies Group Chief. Kitty is now a advisor in Brussels and has free-lance writing relationships with a variety of distinguished financial publications. kitty@lowtax.web
