Article Posted date
12 April 2024
KPMG Week in Tax—published weekly to provide an overview of tax developments as reported in TaxNewsFlash—includes summaries of select tax-related news followed by a full list of reports (more information can be found at the links provided).
- United States: Two sets of proposed regulations would (1) provide guidance on the new 1% excise tax on repurchases of corporate stock made after December 31, 2022, and (2) provide guidance regarding reporting and payment of the new excise tax. Read TaxNewsFlash
- Australia: Legislation containing new interest limitation (thin capitalization) rules received Royal Assent. The new law (1) requires Australian public companies to disclose information about their subsidiaries in their annual financial reports by way of a “consolidated entity disclosure statement,” and (2) amends the thin capitalization rules to limit the amount of debt deductions that multinational entities can claim in an income year. Read TaxNewsFlash
- Hong Kong: Draft legislation was gazetted on a proposed patent box regime that would offer a 5% concessionary tax rate for Hong Kong-sourced taxable (i.e., non-capital) profits derived from use or sale of eligible intellectual property, beginning year of assessment 2023-2024. Read TaxNewsFlash
- Netherlands: The lower house of the Dutch Parliament adopted a motion asking the government to propose legislation that would tax “carried interests” in private equity structures at the progressive individual (personal) income tax rates (top rate of 49.5%). Read TaxNewsFlash
- United Kingdom: The Advocate General of the Court of Justice of the European Union (CJEU) issued an opinion that the decision of the European Commission (EC) finding that the United Kingdom granted illegal tax rulings to certain multinational enterprises (MNEs) between 2013 and 2018 be annulled, because both the EC erred in determining that the UK controlled foreign company (CFC) rules, instead of the general UK corporation tax system as a whole, were the correct reference framework for examining whether a selective advantage had been granted. Read TaxNewsFlash
Additional reports
United States
- Proposed regulations: Guidance on new 1% excise tax on repurchases of corporate stock
- Supplemental proposed regulations: Clean hydrogen production credit under section 45V and related energy credit under section 48(a)(15)
- IRS corrects appendices to Notice 2024-20, census tracts for qualified alternative fuel vehicle refueling property credit under section 30C
- KPMG report: CAMT recent developments—changes to instructions for Schedule K-1
- KPMG report: State, local tax changes (first quarter 2024, table format)
- KPMG reports: Arizona (sales tax nexus); Kentucky (unitary combined reporting); Minnesota (corporate NOL limit change)
Transfer Pricing
- Bahrain: Deadline for country-by-country reporting filings for FY 2023 is 31 December 2024
- Belgium: Draft amendments to Pillar Two minimum tax rules
- Cyprus: FAQs on adoption of new transfer pricing legislation
- Korea: Guidance regarding amendments to Pillar Two rules
- Liechtenstein: Guidance on Pillar Two minimum tax rules
- Poland: Public country-by-country reporting bill approved by lower house of Parliament, updated national list of non-cooperative jurisdictions
- Sweden: Draft amendments to Pillar Two minimum tax rules
- UAE: Consultation on Pillar Two minimum tax rules
- KPMG report: Transfer pricing and ESG—improving governance by operationalizing transfer pricing
Americas
- Canada: Reminder of 30 April 2024 deadline for tax on cross-border insurance
Asia Pacific
- Australia: Consultation on attribution of risk weighted assets to branches of foreign banks for purposes of thin capitalization rules
- Australia: Consultation on implementation of build-to-rent tax incentives
- Australia: Consultation on proposal to exempt lump sums payments in arrears from medicare levy
- Australia: Guidance on reduced input tax credit claims
- Australia: Legislation on interest limitation rules receives Royal Assent
- Hong Kong: Draft legislation on proposed patent box regime
- Hong Kong: Guide to 2023-2024 profits tax filing
- Malaysia: Updated e-invoicing guidelines, software development kit
Europe
- Czech Republic: Deductibility of increased interest; uncollectible debt (Supreme Administrative Court decisions)
- Czech Republic: Draft amendment to VAT law includes changes to treatment of construction sector
- Germany: Proposed legislation includes VAT-related measures, other VAT developments
- Italy: Scope of self-disclosure regime extended to certain VAT-registered companies and deadline extended to 31 May 2024
- Luxembourg: Referral to CJEU for failing to correctly transpose ATAD interest limitation rules
- Netherlands: Consultation on proposed division exemption in real estate transfer tax
- Netherlands: Proposed legislation to tax “carried interests” as ordinary income
- Poland: Consultations on mandatory use of KSeF and changes to issuer’s and remitter’s statement templates
- Poland: No taxable income upon lapse of statute of limitations, treatment of Norwegian VAT, appropriate individual tax form (court decisions)
- Poland: Public country-by-country reporting bill approved by lower house of Parliament, updated national list of non-cooperative jurisdictions
- Serbia: Amended guidance relating to “Eco Tax”
- Sweden: Withholding tax on foreign public pension funds incompatible with EU law (CJEU Advocate General opinion)
- UK: Consultation on additional tax relief for visual effects in film expenditures
- UK: Consultation on carbon border adjustment mechanism (CBAM)
- UK: Draft legislation on new reserved investor fund regime
- UK: EC erred in finding illegal State aid based on controlled foreign company rules in isolation (CJEU Advocate General opinion)
- UK: HMRC guidance on salaried member rules for professional partnerships
- UK: Labour announces planned international tax reforms
- UK: Labour announces plans to close tax gap
- UK: Updated draft guidance on overseas restrictions, subcontracted rules under new merged R&D tax relief regime
Read TaxNewsFlash-Europe
FATCA / IGA / CRS
- Germany: FATCA reporting deadline is 31 July 2024
- Oman: CRS reports due 31 May 2024
- Panama: Updated list of reportable jurisdictions under CRS regime
- Uruguay: Production environment required for submission of CRS reports is available until 30 June 2024
Trade & Customs
- U.S. CBP “withhold release order” on certain work gloves manufactured in China (convict labor)
- U.S. additions to Export Administration Regulations (EAR) entity list
The items described above are also reported as editions of TaxNewsFlash:
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.