This year’s Corporate and Indirect Tax update webinar focused on two main key topics - COVID-19 and Brexit – which have had a huge impact on the economies and our lives over the past year. As companies continue to navigate the changing business environment, now is the moment to embrace new challenges together.
Other topics covered included OECD BEPS 2.0 and the possible EU response, the new government and the corporate tax measures introduced, and other inspiring subjects like enhancing new investments and digitalization.
Many companies are actively thinking about the new reality and how to develop a new business vision or adapt an existing one. During this process, companies must take into account a number of recent tax developments.
During the webinar, our experts provided insights into a number of important changes and evolutions.
First of all, we looked at the corona pandemic which has forced changes in the way companies organize themselves. For example, more emphasis had to be placed on working from home. We also took a moment to look at the tax issues, several of which are still relevant and will continue to be so. The government has also taken a series of measures to safeguard the cash position of companies, such as the early loss deduction (loss carry back). With regard to VAT, the new rules on the reduced VAT rate for demolition and reconstruction and the tolerance measures regarding the VAT deduction on car expenses were briefly discussed. Finally, we looked ahead to possible future measures such as the tax credit for the remission of rent, the temporary reduction of the negligence interest on VAT and excise duties as well as the abolition of the December advance.
The next topic was Brexit where we went deeper into the consequences in terms of withholding taxes. The customs aspects of the trade agreement were discussed in more detail, as well as the various obstacles regarding VAT.
We then took stock of the international and European developments regarding BEPS 2.0 and a digital tax that is expected to have a broad scope. We also explained the key points of the new rules on e-commerce that will soon be applicable.
We discussed the experience gained during the past tax return season, such as the complexity of applying the earnings stripping rules and the possibilities of tax consolidation.
In addition, we talked about recent trends in tax audits and new reporting requirements (DAC 6).
Finally, we discussed the consequences of a possible reform of the ruling service.