KPMG’s Week in Tax: 31 December - 4 January 2019 - KPMG Luxembourg
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KPMG’s Week in Tax: 31 December 2018 - 4 January 2019

KPMG’s Week in Tax: 31 December 2018 - 4 January 2019

Tax developments or tax-related items reported this week include the following.

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Transfer Pricing

  • Hong Kong: The Inland Revenue Department concluded its first unilateral advance pricing arrangement (APA).

Read TaxNewsFlash-Transfer Pricing

Americas

  • Argentina: A regulatory decree provides guidance for implementing income tax changes introduced by the 2017 tax reform legislation, and includes rules relating to transfer pricing requirements; the taxation of certain financial investments, indirect transfers of stock or assets, and thin capitalization requirements; and regarding fiscal transparency measures. The decree also clarifies definitions of certain terms under the rules for permanent establishments.
  • Costa Rica: A tax amnesty program is available from 5 December 2018 to 5 March 2019.

Read TaxNewsFlash-Americas

Asia Pacific

  • China: Guidelines for implementing individual income tax measures are effective beginning 1 January 2019, and include rules concerning itemized deductions, withholding tax calculations, individual income tax declarations, and foreign-sourced income of foreign individuals.
  • Hong Kong: Legislation has been proposed to provide a profits tax exemption for private funds operating in Hong Kong. The proposed exemption would apply for funds that meet certain qualifying criteria, and for “special purpose entities” established by a qualifying fund.

Read TaxNewsFlash-Asia Pacific

Europe

  • Netherlands: In the final value added tax (VAT) return for 2018, a VAT correction may be needed to reflect the measures concerning VAT deduction exclusion decree and the private use of company cars.
  • EU: New rules under the Anti-Tax Avoidance Directive (ATAD) aiming to eliminate corporate tax avoidance practices have an effective date of 1 January 2019. Beginning in 2019, all EU Member States are to apply new legally binding anti-abuse measures that target the main forms of tax avoidance used by certain large multinational entities.
  • Greece: The corporate income tax rate (except for credit institutions) is reduced to 28% beginning in 2019. 
  • Italy: A “web tax” and certain VAT measures are included in the Budget Law 2019, but no changes to the VAT rates are effective in 2019.
  • Spain: Individuals and entities that provide tourism-related “intermediation services” to connect lessors and lessees (e.g., internet platforms) for holiday property rentals will be required to file “179 Form” to report the use of property for tourism purposes on a quarterly basis.

Read TaxNewsFlash-Europe

United States

  • The “oil spill” excise tax under section 4611 that is imposed on crude oil and imported petroleum products expired at the end of 2018. There are implications for refiners and importers.
  • Reports from KPMG provide analysis and observations regarding the JCT “Bluebook” descriptions of: (1) the application of section 163(j) to passthrough entities; and (2) the adjusted gross income limitation for charitable contributions of cash made by individuals to public charities and certain private foundations.

Read TaxNewsFlash-United States

 

  • The then-current chairman of the U.S. House Ways and Means Committee released a discussion draft of a tax technical corrections bill.

Read TaxNewsFlash-Tax Reform

Exempt Organizations

  • The IRS released Notice 2019-09 as interim guidance regarding the excise tax imposed under section 4960 on the amount of remuneration in excess of $1 million and on any excess parachute payment paid by an applicable tax-exempt organization to a covered employee.

Read TaxNewsFlash-Exempt Organizations

Trade & Customs

  • U.S. Customs and Border Protection notified that Advance Electronic Data (AED) will be required for postal shipments originating in China and destined for delivery in the United States beginning 1 January 2019. This release affects ocean and air carriers.

Read TaxNewsFlash-Trade & Customs

Indirect Tax

  • Netherlands: In the final value added tax (VAT) return for 2018, a correction may be needed to reflect the VAT deduction exclusion decree and the private use of company cars.
  • Italy: A “web tax” included in the Budget Law 2019 provides for a 3% tax on certain electronically provided sales. The Budget Law 2019 does not include any changes to the VAT rates.
  • Spain: Individuals and entities that provide tourism-related “intermediation services” to connect lessors and lessees (e.g., internet platforms) for holiday property rentals will be required to file “179 Form” to report the use of property for tourism purposes on a quarterly basis.
  • United States: Notice 2019-09 provides interim guidance regarding the excise tax imposed under section 4960 on the amount of remuneration in excess of $1 million and on any excess parachute payment paid by an applicable tax-exempt organization to a covered employee.

Read TaxNewsFlash-Indirect Tax

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