The Brazilian Government has introduced a fresh legal framework for transfer pricing rules through Law No. 14,596/2023, effective from June 15, 2023. This move aligns Brazil’s transfer pricing (TP) rules with the Organization for Economic Cooperation and Development (OECD) standards.

Previously, Brazil’s TP rules diverged from OECD standards, often using fixed margins for TP calculations. This deviation posed challenges for multinational companies with Brazilian subsidiaries.

The updated rules apply to transactions with: (i) related parties; (ii) entities in countries that either do not tax income or tax it at a rate below 17%; and (iii) entities benefiting from a privileged tax regime.

Grounded in the arm’s length principle, for purposes of determining the Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSLL) calculation basis, the terms and conditions of a controlled transaction will be established according to those that would be established between unrelated parties in comparable transactions.… Read More

Based on recent decisions of the Independent Authority of Public Revenues in Greece, the application of a VAT exemption to imported goods under certain procedures detailed below shall no longer be granted if the declared customs value is disputed and subsequently increased by the customs authorities.

Certain categories of goods are no longer eligible for VAT exemption on import based on the procedures mentioned above. The relevant measures shall be effective as of 24.07.2023.

 

The procedures and types of goods to which the above decisions apply are the following:

Procedures where the new measures apply to cases where a VAT exemption is requested under a special duplicate exemption note, under a VAT warehousing procedure (“Procedure 07”), or to imported goods that are to be directly transported to another EU member state in the context of a zero-rated intra-Community supply (“Procedure 42”).… Read More

Author Grant Gilmour B.Sc. HONS , MBA, CPA BC Canada , CA, CPA Arizona USA

Recently I attended training on VAT in the UAE. That experience made me think about how different VAT programs are similar and different around the world. VAT is new in the UAE. It was implemented in 2018. Like other VAT programs around the world many questions have already come up and the UAE taxation authorities are rapidly bringing forward guidance and clarification.

Looking at Value Added Tax conceptually it is similar around the world. It is usually levied by each participant at each step of the process. I realized when studying UAE VAT that business clients are often challenged by the basics of the system and our value as advisors is often explaining these basics and the similarities and differences between different tax systems.… Read More

Author Grant Gilmour B.Sc. HONS , MBA, CPA BC Canada , CA, CPA Arizona USA

When I became editor of this newsletter, I knew many members of Integra and in particular many who are primarily tax advisors. What I am growing to know is the large “World” of tax and tax advisors that make up the Integra community.  I started to put together a list or tool to help me keep track of what firms are doing and in particular what they have on their websites regarding tax. Think of it as “speed dial” for tax advice in Integra. This is still a work in Process. I need your help to create this resource database.

Today I am asking for members to contribute their favorite resources.… Read More

Authors Chris Klug, JD, LLM Founder, Klug Counsel PLLC Tetsunori (Ted) Chiba, LLM, MST International Tax Partner,  Actus Tax Corporation

Edited By Integra International Grant Gilmour, CPA (Canada, BC) CPA (USA, Arizona)

 

Klug Counsel had the wonderful opportunity to collaborate with Actus Tax Corporation to provide cross-border tax representation to our now mutual client.  The Company develops solar and wind projects in Japan.  Both owners of the Company are U.S. citizens with one of the owners also being a Japanese tax resident at the time of initial representation.  The Company’s business was entering a new phase with a clean energy U.S. private equity fund investor (“PE Investor”) leading to the restructuring of the solar energy ownership structure.  Since there were Japanese tax implications, based on the location of the project, and U.S.… Read More

Author Wagemann + Partner PartG mbB, Berlin, Patrick Löchel, Steuerberater Edited By Integra International Grant Gilmour, CPA (Canada, BC) CPA (USA, Arizona)

In Germany, there is a widespread belief among the population that, despite all political assurances to the contrary, a tax once introduced will never be repealed.

A prominent example of this is the so-called “sparkling wine tax”. This has been levied on carbonated wines with an alcohol content for over 120 years. It covers but is not limited to champagne, crémant and sparkling wine in particular.

The tax was introduced 1902 by the German Reichstag (the parliament at that time) in the German Empire under Emperor Wilhelm the II to finance the construction of the imperial navy because “with such a sharp increase in spending on the country’s military strength, sparkling wine must also be called upon.”… Read More

An overview of OECD Pillar Two Model Rules

Author Bright Grahame Murray, Cheryl Thomas, Partner (ACA CTA ) Edited By Integra International Grant Gilmour, CPA (Canada, BC) CPA (USA, Arizona)

The Organization for Economic Co-operation and Development [OECD] Base Erosion and Profit Shifting [BEPS] programme introduced 15 actions to ensure profits are taxed where economic activities generating the profits are performed and where value is created.

Action 1 was to address the tax challenges arising from the Digitalisation of the Economy. In the middle of 2021, the international community agreed a Two-Pillar Solution to address these issues.

Currently, multinational enterprises [MNEs] can earn revenue in foreign markets without being taxed there, due to current Permanent Establishment [PE] rules and some countries only taxing domestic business income of entities, not foreign income.… Read More

By Nicholas Raycroft, Hendry Warren

Edited by Grant Gilmour

On June 9, 2022, the Canadian government enacted the “UHT Act”. This tax is intended to discourage the ownership of vacant or underused Canadian real estate. Although it primarily targets ownership of Canadian real estate by non-resident non-Canadians, this tax may be applicable to certain Canadian-Controlled Private Corporations (CCPCs), trusts and partnerships. The UHT will be administered by the Canada Revenue Agency.

 

Overview

The UHT imposes a 1% tax on the taxable value of residential property to owners on December 31of a calendar year, other than “excluded owners”, of residential property in Canada beginning with 2022. The taxable value is the greater of the property’s assessed value for property tax purposes and the property’s most recent sale price on or before December 31of the calendar year.… Read More

By Wagemann + Partner PartG mbB, Berlin, Dr. Filip Schade, Steuerberater, Master of Laws

Edited By Integra International Grant Gilmour, CPA (Canada, BC) CPA (USA, Arizona)

 

Question: Is there an internationally coordinated set of rules regarding the legal and tax treatment of private foundations and trusts?

Answer: The OECD has hardly any recommendations available and there are no harmonization efforts observable. Private foundations and trusts remain a purely national and sometimes regional matter.

When preparing this article, I asked myself whether there is an international set of rules in which many countries have agreed on certain principles for the legal and tax treatment of private foundations and trusts. After all, we live in a globalized world. Private foundations and trusts, unlike, for example, cryptocurrencies and blockchain, are nothing brand-new.… Read More