OECD: Pillar One consultation document and Pillar Two implementation package – including Safe Harbours – published

On 20 December 2022, the OECD published a consultation document including draft multilateral convention (MLC) provisions on the removal of digital service taxes (DSTs) and other relevant measures of a similar nature. Comments on the consultation draft are invited by 20 January 2023.

Additionally, the OECD published an implementation package in respect of Pillar Two. The package includes guidance on safe harbors, a public consultation document on the GloBE information return, and a public consultation document on tax certainty (for details please read the article on taxathand.com).

This follows a statement on the components of global tax reform approved by more than 135 members of the OECD/G20 Inclusive Framework on BEPS (OECD inclusive framework) in October 2021.

OECD: New signatories to the Multilateral Competent Authority Agreement

An OECD update to the list of signatories of the Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports (CbC MCAA), dated 22 and 23 December 2022, states that Ukraine and Thailand signed the agreement on 3 November 2022 and 9 December 2022, respectively. A total of 95 jurisdictions have now signed the CbC MCAA and committed to the automatic exchange of CbC reports.

EU: DAC 8 on proposed crypto assets

On 8 December 2022, the European Commission presented its proposal for new tax transparency rules that would apply to all service providers facilitating transactions in crypto assets for EU customers. This new update (also referred to as “DAC 8”) to Council Directive 2011/16/EU on administrative cooperation in the field of taxation (DAC), would complement the Market in Crypto-Assets Regulation, which provides the conditions for access to the EU market for crypto assets, and anti-money laundering rules. The EU Commission launched a public consultation on the proposal that is open for feedback until 8 February 2023.

EU: DAC 7 implemented into law of several countries

EU member states are in the process of implementing Council Directive (EU) 2021/514 (DAC 7) into their domestic law which amends the EU directive on administrative cooperation in the field of taxation to impose new reporting obligations on certain operators of digital platforms. While some counties are yet to publish their draft legislation, a number of EU member states adopted the respective bills in December 2022 (including, but not limited to Germany, Belgium, and the Netherlands).

Italy: 2023 budget law enacted, including certain measures relevant to multinational groups

Italy’s 2023 budget law was published in the Italian official gazette on 29 December 2022, and its provisions entered into force on 1 January 2023 and are applicable as of the same date.

The budget law contains several tax provisions that could be relevant to multinational groups with activities in Italy, such as provisions relating to the definition of a permanent establishment, the tax treatment of certain inbound dividends, the introduction of rules relating to the taxability of certain capital gains from transfers of participations in companies the value of which is principally derived from Italian immovable property, and the settlement of certain assessment procedures with the Italian tax authorities.