Tax 

The new EU Tax Policy Framework of the European Commission

On 18 May 2021, the European Commission (“EC”) published its long-awaited Communication on Business Taxation for the 21st Century, introducing a short-term and long-term vision for the business tax policy agenda. The proposed agenda should support Europe in recovery from the Covid-19 pandemic and secure sufficient public revenues in upcoming years. This document complements the tax Action Plan presented by the European Commission in July 2020 as part of a package for fair and simple taxation. 

Tax 

In Brief from International Taxation [June 2021]

June’s news from International Taxation brings information about new tax measures in Germany and Belgium which were introduced with the aim to combat abuse and unfair tax competition. Further, it informs about tax administration guidance published in Italy (in respect to the newly implemented sugar tax) or in Finland (with respect to the cross-border loss relief). Read more below! 

Tax 

In Brief from International Taxation [May 2021]

May’s news from international taxation among other introduces a follow-up on CJEU cases on dividend distribution, summarises an CJEU opinion on dividend payment to collective investments undertaking and informs about the EU-UK Trade and Cooperation Agreement entering into force as of 1 May 2021. For more read below! 

Tax 

In Brief from International Taxation [April 2021]

The Court of Justice of the EU reached a decision in the disputes of the European Commission with Hungary and Poland. The Netherlands proposes to introduce a conditional withholding tax on dividends from 2024. American president Joe Biden introduced a US corporate income tax reform. Taxation changes are also taking place in Germany or Slovenia. We bring you a selection of news and planned tax changes abroad. 

Tax 

Significant updates to domestic withholding tax rules in Germany

Draft law would tighten application of anti-treaty shopping rules substantially and modernize existing WHT procedural rules. The approach provided in the draft law would result in a significant tightening of the conditions to benefit from a reduced WHT rate under a tax treaty or an EU directive. Foreign investors should consider their structures and any payments made by a German company that may trigger WHT. 

Tax 

When does the burden of proof pass to the tax administrator?

The recent judgement of the Supreme Administrative Court (ref. no. 1 Afs 73/2019-71) confirmed the way in which the burden of proof is distributed between the taxable entity and the tax administrator during the withholding tax proceedings. In this present case, the interpretation of the concept of “beneficial owner of royalties” will also be interesting in relation to the possibility of applying the modified rate according to a Double Taxation Treaty (“DTT”). However, the courts (the Regional Court and the Supreme Administrative Court) have only dealt with the procedural aspect of the case so far, i.e. the distribution of the burden of proof in particular. The case will thus be heard again by the Regional Court (“RC”), which made an incorrect conclusion about the transfer of the burden of proof, hence the Supreme Administrative Court (“SAC”) returned the case for further proceedings. 

Tax 

OECD has released an updated version of the manual for the assessment of international tax aspects following anti-epidemic measures

The updated version summarises the conclusions and recommendations set out in the original version published last spring. At the same time, it offers examples of how different countries approach, within the current situation and restrictive measures, the fulfilment of the conditions for setting up permanent establishments, determining tax residency and the taxation of employees. 

Tax 

Ex officio registration of a ‘permanent establishment’ is not possible without finding out the facts of the case

At the beginning of January 2021, the Supreme Administrative Court ruled in favour of the plaintiff (foreign legal entity – the founder of a branch in the Czech Republic) in case 7 Afs 173/2020-27 relating to their ex officio registration for corporate income tax in the Czech Republic. 

Tax 

In Brief from International Taxation [January 2021]

Reports on exchange of financial account information and guidance on the transfer pricing implication of the COVID-19 pandemic were published by the OECD. ECOFIN expressed their support for the implementation of DAC 7. Divided distribution by Gibraltar companies to eligible Luxembourg entities will be subject to dividend withholding tax as of 1 January 2021. The French Supreme Administrative Court ruled on the interpretation of tax treaties and PE concept. New PE rules were introduced also in Denmark. Other interesting news refers also to tax changes in Portugal, Belgium or US.