Tax News: the latest developments in Argentina, Bolivia, Brazil, Mexico, OECD, Panama, and the European Union
ArgentinaArgentinean tax authority (“AFIP”) extends the deadline for the notification of the country-by-country report.
On March 23rd, AFIP published General Resolution N º 4218, extending the notification deadline for the country-by-country report. The new deadline, for multinational groups with the fiscal year ending December 2017, is May 2nd, 2018.
BoliviaBolivian tax authority updates the list of tax havens.
On March 9th, the Bolivian tax authority (SIN) updated the list of countries or regions considered as tax havens, effective for fiscal years ending from July 1st, 2018, and onwards.
BrazilBrazilian tax authority clarifies requirements for deductibility of intragroup services payments.
On January 9th, the Brazilian tax authority (Receita Federal) published the SOLUÇÃO DE CONSULTA DISIT/SRRF01 Nº 1001, wherein it clarified the requirements for deductibility purposes of intragroup service payments, including strategic support, IT management, risk management and supply chain management services. Taxpayers must provide a benefit test of the services received. The transfer pricing method applied to determine the parameter price should be the comparable uncontrolled price method (PIC) with reference to tariffs on similar services, or the cost-plus method.
Brazil and OECD launch a joint project to examine the differences in cross-border tax rules.
On February 28th, Brazil and the OECD launched a joint project to examine the differences in cross-border tax rules. In addition to examining the similarities and differences in cross-border transactions between related parties, during the 15-month work program, Brazil’s potential to approach the OECD transfer pricing rules will also be assessed.
ColombiaThe Country-by-Country report is included in transfer pricing Form 120.
Colombian tax authorities (DIAN) published the new transfer pricing disclosure form no 120 for the fiscal year 2017. The new form included a section for the notification of the country-by-country report (same format as FY2016).
The notification is intended to inform whether the taxpayer is part of a multinational group, whether the group is required to file the country-by-country report, and which entity is the filing entity.
MexicoMexican tax authority extends the deadline for filing Annex 9.
On March 23rd, the Mexican tax authority (SAT) published the first Miscellaneous Resolution of 2018, and its Annexes 1-A and 23, extending the filing of Annex 9 to June 30th, 2018, for those taxpayers who do not have a tax audit report (Dictamen Fiscal).
OECDOECD publishes an additional guide for attribution of profit to permanent establishments.
On March 22nd, the OECD issued additional guidance on the attribution of profits to a permanent establishment under BEPS Action Plan 7.
PanamaMinistry of Economy and Finance issues a list of countries that apply discriminatory or restrictive measures to Panama.
On March 9th, the Ministry of Economy and Finance released a list of 20 countries , including Colombia, which applies discriminatory or restrictive measures to Panama. The list was published under Ministerial Resolution No. 001-2018.
This measure was made by appealing to the law of retaliation, issued on October 26th, 2016, which states that countries considered to be discriminatory towards Panama may be subject to tax, tariffs, migratory quotas, and labor measures.
European UnionEuropean Union updates the list of tax havens.
On March 13th, the European Union updated the list of non-cooperating jurisdictions, excluding Bahrain, the Marshall Islands, and St. Lucia, and placed on the gray list together with Anguilla, Antigua and Barbuda, the British Virgin Islands, and Dominica.
The Bahamas, St. Kitts and Nevis, and U.S. Virgin Islands were listed as tax havens. Furthermore, a decision for the Turks and Caicos Islands is still pending.