2024-02-28-KPMG_s_EU_Tax_Centre-E-News_from_the_EU_Tax_Centre_22页_556kb

EU Institutions:

• OECD: Released report on Amount B (Pillar One simplification) and progress on combating harmful tax practices.
• European Commission: Member states issued formal opinions on the BEFIT Directive proposal, primarily citing concerns over the principle of subsidiarity, administrative burden, sovereignty issues, and potential complexity.
• European Parliament: Subcommittee discussed tax avoidance obstacles and good practices against tax avoidance; identified challenges like enforcement fragmentation, low-tax regimes, and harm from EU tax havens.
• EU Council: Revised the EU list of non-cooperative jurisdictions (Annex I) and grey list (Annex II), removing jurisdictions that fulfilled commitments or met good governance principles.

Local Law and Regulations:

• France: Issued a revised list of non-cooperative jurisdictions, applying local tax good governance criteria.
• Greece: Consultation period concluded on draft bill implementing the EU Minimum Tax Directive (Pillar Two), incorporating IIR, UTPR, and DMTT rules.
• Hungary: Published DAC7 guidance, clarifying terms like platform operator; registration and reporting deadlines apply.
• Ireland: Published public consultation responses on a potential participation exemption; previously noted concerns on BEFIT proposal.
• Malta: Published regulation to implement EU Minimum Tax Directive, opting for a deferred application of IIR and UTPR.
• Netherlands: Consultation launched on a draft decree for the Legal Forms Tax Qualification Policy Act.
• Poland: Draft DAC7 bill published (expected adoption Q1 2024); reporting deadline set for Dec 31, 2024 for existing operators.
• Saudi Arabia: New tax rules for Regional Headquarters (RHQ), including zero corporation tax and withholding tax, with economic substance requirements.
• Sierra Leone: Enacted Finance Act 2024 with direct tax measures (digital services tax, INCREASED WHT rates, reduced minimum tax).
• South Africa: Draft legislation published to implement Pillar Two, referencing OECD Model Rules; includes IIR/UTPR from Jan 1, 2024.
• United Kingdom (UK): Finance Bill 2023-2024 introduced changes to R&D tax reliefs and electricity generator levy; HMRC consulted on draft guidance.
• Ukraine: State Tax Service clarified CFC reporting requirements and penalties.
• Zimbabwe: Finance Act 2023 introduced a domestic minimum top-up tax (DMTT).

Local Courts:

• Belgium: Supreme Court ruled on GAAR applicability, confirming anti-abuse effect even without taxpayer's direct involvement in all stages, if unified intention exists.
• Czech Republic: Supreme Court decisions clarified rules on the direct link between expenses and income for tax deductibility, emphasizing substance over form.

KPMG Insights & Events:

• Pillar Two: Over 30 jurisdictions implementing or drafting legislation; significant variations in implementation details. KPMG advises on Pillar 2 readiness.
• BEPS 2.0 (Pillar Two): Discussions on GloBE rules, Amount B (simplified TP), and potential impacts on entities like family offices.
• Tax Transparency & Substance: Survey highlighting trends in beneficial ownership (BO), governance substance requirements, national-level anti-treaty shopping measures.
• Events/Webcasts: KPMG series focusing on Pillar 2 readiness, Amount B TP, BO substance.
• Talking Tax: KPMG's series offering short insights on evolving tax topics.