close
Share with your friends

KPMG’s Week in Tax: 23 - 27 September 2019

KPMG’s Week in Tax: 23 - 27 September 2019

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

1000

Related content

Transfer Pricing

  • Belgium: Pre-filing requests regarding transfer pricing or an innovation income deduction must be filed by 31 January 2020 for corporate tax returns with an end of September 2020 filing date.
  • Australia: The Australian Taxation Office released a draft compliance approach to transfer pricing issues related to projects that involve the use, in Australian waters, of non-resident owned mobile offshore drilling units.
  • Denmark: A draft bill would require taxpayers to file their statutory transfer pricing documentation package along with their annual tax returns.
  • Ireland: The EU General Court in September 2019 held a hearing concerning a 2016 decision of the European Commission that two transfer pricing rulings granted by Ireland to a U.S. multinational group constituted illegal state aid.
  • Luxembourg: The EU General Court upheld the EC’s finding that a tax ruling granted by Luxembourg to a multinational entity was “illegal state aid.”
  • Netherlands: The EU General Court annulled the EC’s decision that an advance pricing arrangement (APA) with a multinational enterprise was illegal state aid, noting that the EC was unable to demonstrate the existence of an advantage in favor of the taxpayer.

Read TaxNewsFlash-Transfer Pricing

FATCA / IGA / CRS

  • Netherlands: The Dutch tax administration provided updates on the effects of FATCA on the residents of the Netherlands who are also U.S. citizens.
  • United States: The IRS issued a release about changes made to the naming convention for use with respect to all FATCA report files and updating the list of approved certificate authorities.

Read TaxNewsFlash-FATCA / IGA / CRS

Europe

  • Sweden: The 2020 budget bill proposes tax changes or tax reform initiatives. 
  • Hungary: Under a new “real-time” invoice data reporting system, taxpayers must comply with new communication and reporting formats and submit more data including value added tax (VAT) information beginning 1 April 2020.
  • Poland: The VAT law, as amended, includes a new mandatory requirement for use of the split-payment mechanism for selected transactions effective 1 November 2019.

Read TaxNewsFlash-Europe

Africa

  • Nigeria: The Lagos State tax authority announced the launch of its enterprise tax administration system (eTax) portal.
  • Nigeria: A legislative committee has started investigating compliance with the rules requiring employer contributions to the Nigerian Social Insurance Fund (NSITF).

Read TaxNewsFlash-Africa

Americas

  • Costa Rica: A list of non-cooperative jurisdictions for income tax purposes is effective 1 October 2019. Expenses pertaining to transactions conducted with related parties that are residents in countries or jurisdictions on the non-cooperative jurisdiction list are not deductible.

Read TaxNewsFlash-Americas

Asia Pacific

  • New Zealand: There are proposals to allow tax deductions for feasibility expenditures and other measures under the research and development (R&D) rules.

Read TaxNewsFlash-Asia Pacific

United States

  • A federal appeals court affirmed the federal claims court’s grant of summary judgment for the government, finding the taxpayer was not entitled to almost $20 million in energy tax credits available for certain alternative fuel mixtures under section 6426.
  • OMB’s Office of Information and Regulatory Affairs (OIRA) completed its review of Treasury proposed regulations that would provide guidance on the elimination of interbank offered rates.
  • Notice 2019-55 provides the 2019-2020 special per diem rates for taxpayers to use in substantiating the amount of ordinary and necessary business expenses incurred while traveling away from home.
  • The IRS issued a release providing tax relief for taxpayers in Mississippi who have been affected by the severe storms, straight-line winds, tornadoes, and flooding that took place from 22 February 2019 to 29 March 2019.
  • Rev. Proc. 2019-38 provides a “safe harbor” under which a rental real estate enterprise will be treated as a trade or business for purposes of section 199A.
  • The tax authorities in both Alabama and Massachusetts issued a list of “frequently asked questions” concerning remote sellers and marketplace facilitators.
  • Pending legislation in Florida would, if enacted, impose a sales and use tax collection obligation on remote sellers and marketplace facilitators with more than $100,000 in sales or 200 or more retail transactions of tangible personal property.
  • Draft guidance in Louisiana proposes to adopt a regulation requiring the electronic filing of all remote seller tax returns and electronic payment of all related sales and use tax.
  • The Nebraska Department of Revenue issued guidance addressing the state’s treatment of IRC section 965 income.
  • The Vermont Department of Taxes released information regarding the state’s conformity to the 2017 U.S. tax law (often referred to as the “Tax Cuts and Jobs Act”) with information about the state treatment of section 965 income and of the IRC section 250 deduction for both GILTI and FDII purposes.
  • The Virginia Department of Taxation issued a ruling that a taxpayer (a car dealership) was liable for use tax on computer equipment purchased and leased from an affiliate because under Virginia law, affiliated corporations are treated as separate entities for sales tax purposes and transfers between them are taxable.
  • A report, prepared by KPMG’s State and Local Tax practice, provides a summary of state and local tax developments for the third quarter of 2019 in table format.

Read TaxNewsFlash-United States

Trade & Customs

  • The U.S. Trade Representative issued a release about on-going trade negotiations between the United States and Japan. 

Read TaxNewsFlash-Trade & Customs

Indirect Tax

  • Hungary: A new requirement for “real-time” invoice data reporting will require taxpayers to comply with new communication and reporting formats and submit more data including VAT information beginning 1 April 2020.
  • Poland: The VAT law, as amended, includes a mandatory requirement to use the split-payment mechanism for selected transactions beginning 1 November 2019.
  • United States: A federal appeals court affirmed the federal claims court’s grant of summary judgment for the government in a case concerning whether the taxpayer was entitled to almost $20 million in energy tax credits for certain alternative fuel mixtures under section 6426.
  • United States: The tax authorities in both Alabama and Massachusetts issued sets of “frequently asked questions” concerning remote sellers and marketplace facilitators.
  • United States: Pending legislation in Florida would impose a sales and use tax collection obligation on certain remote sellers and marketplace facilitators.
  • United States: A proposal in Louisiana would require mandating electronic filing of all remote seller tax returns and electronic payment of all related sales and use tax.
  • United States: The Virginia Department of Taxation issued a ruling that a taxpayer (a car dealership) was liable for use tax on computer equipment purchased and leased from an affiliate because under Virginia law, affiliated corporations are treated as separate entities for sales tax purposes and transfers between them are taxable.

Read TaxNewsFlash-Indirect Tax

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 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal