Upcoming Transfer Pricing Due Dates
- Argentina: August 31 – second Country-by-Country Report due for Ultimate Parent Entity with fiscal year ended 06/23.
Australia: introduction of bills to implement Pillar Two rules
The Australian tax authority has introduced three bills to Parliament to implement the OECD Pillar Two Global Anti-Global Base Erosion (GloBE) rules, which include the Taxation (Multinational – Global and Domestic Minimum Tax) Bill 2024, the Taxation (Multinational – Global and Domestic Minimum Tax) Imposition Bill 2024 and the Treasury Laws Amendment (Multinational – Global and Domestic Minimum Tax) (Consequential) Bill 2024.
These bills, introduced on July 4, 2024, build on the March 2024 consultation drafts, and clarify provisions such as joint and several liability for backfill tax and penalties for noncompliance.
The income inclusion rule and the domestic top-up tax will apply as of January 1, 2024, while the Undertaxed Profits Rule will come into effect on January 1, 2025. The legislation follows the OECD model and allows the Minister to issue legislative instruments to adapt the regulations to future updates of the OECD Administrative Guide.
The final version of the secondary legislation, which contains the detailed rules for the calculation of the top-up tax, has not yet been published.
Brazil: court issues decision on transfer pricing rules in force until 2023
Brazil’s Superior Chamber of Tax Appeals (CSRF) has issued a relevant decision on the application of the transfer pricing rules in force until 2023. The dispute arose from a 2008 tax audit during which the tax authorities questioned the transfer pricing method used by the taxpayer, without notifying the taxpayer to present an alternative study.
The court concluded that the provision of Law 12,715/2012, which requires taxpayers to use a single annual transfer pricing method, cannot be applied retroactively to cases prior to 2012. The decision, reached by tie-breaking vote, was issued on July 9, 2024, in Case 16561,720052/2013-11, and has not yet been officially published.
Mexico: US – Mexico QMA agreement renewed
Mexico’s tax authority (SAT) and the US Internal Revenue Service (IRS) renewed, for the second time, the Qualified Maquiladora Approach (QMA) agreement. This agreement allows US taxpayers conducting maquiladora activities in Mexico to avoid double taxation and allows maquiladora companies in Mexico to ensure proper taxation in Mexican territory. The agreement contains coordination provisions agreed between U.S. and Mexican authorities, applicable to fiscal years 2020 to 2024.
This renewal agreement is consistent with the QMA’s transfer pricing framework for fiscal year 2019 and prior years, as the determination is that it continues to produce results based on the arm’s length principle.
Only those maquiladoras that have requested, obtained, and successfully implemented a ruling for tax years 2019 and prior will be able to obtain a ruling applicable to tax years 2020 through 2024.
To consult the official notice, click here. There you will also find the file to apply for the QMA applicable to fiscal years 2020 to 2024.
OECD: tax report presented to G20 finance ministers and Central Bank governors
For the third meeting of G20 finance ministers and central bank governors, held under the chairmanship of Brazil on July 25-26, 2024, in Rio de Janeiro, the OECD presented a key report on progress in international tax reform. This report highlights significant developments since February 2024 in the implementation of the Two Pillar Solution to address tax challenges arising from the digitalization of the economy, and in the implementation of the BEPS minimum standards.
The document also highlights progress on tax transparency, tax administration, and development- and consumption-oriented tax policies. In addition, specific segments were devoted to issues of taxation and inequality, as well as new trends in tax policy.
To read the report, click here.
OECD and the Inclusive BEPS Framework: launch of draft user guide for the Global Anti-Base Erosion Reporting (GloBE) rules
The OECD, in collaboration with the Inclusive BEPS Framework, has launched a draft user guide for the Global Anti-Base Erosion (GloBE) Information Return (GIR) and XML schema. This development seeks to standardize and facilitate the filing and exchange of tax information of multinational groups under the GloBE Model Rules.
The XML schema and user guide are designed to facilitate both the internal filing of GIRs within jurisdictions and the exchange of information between tax administrations under the GloBE Multilateral Competent Authorities Agreement for the Exchange of Information Reporting (GIR MCAA).
The document, still in draft form, is available for public consultation, inviting interested parties to submit comments by August 19, 2024. These comments will be posted on the OECD website, promoting transparency and dialogue with stakeholders.
To consult the draft guidance and add your comments, click here.
Peru: new Risk Schemes Catalog 2024 – Version 3.0
Peru’s tax authority has published the third version of the Risk Schemes Catalog 2024. In this version, situations of different nature are described that may imply a potential tax non-compliance related to specific anti-avoidance and transfer pricing rules regulated in the Income Tax Law.
The purpose of this catalog is to make available to all taxpayers and advisors’ useful information about schemes that could lead to an incorrect determination of the tax liability or the obtaining of undue tax advantages.
To download the catalog, click here.
United Kingdom: guidance published on preparing for Multinational Top-up Tax and Domestic Top-up Tax arising from the implementation of OECD Pillar Two
The UK tax authority has published detailed guidance on how to prepare for multinational top-up tax (MTT) and domestic top-up tax (DTT) under the OECD’s Pillar II rules. These rules, which came into effect on December 31, 2023, set a minimum tax rate of 15% for UK entities belonging to multinational or domestic groups with consolidated revenues of more than €750 million.
The guidance explains the fundamentals of the new reporting process and the online registration service, which will be implemented in stages. This service will allow companies to register for the new taxes and make advance payments if necessary.
In addition, the guide provides an overview of the scope of the MTT and DTT taxes, as well as compliance obligations.
To view the updated guide, click here.