EU Groups Propose Pillar 2 Permanent Safe Harbor Features
BusinessEurope and Accountancy Europe have told the Platform for Good Tax Governance that a new OECD global minimum tax permanent safe harbor should be designed without the “once out, always out” rule to ensure its effectiveness.
Revitalizing the U.S. Semiconductor Supply Chain Through Tax Policy
Patrick M. Ryle, Caleb S. Watkins, Keith Carruthers, and Robert Haverland examine the final regulations on the advanced manufacturing investment credit, focusing on the direct-pay election, the denial of the double benefit rule, and the excessive payment rule.
Reeves Hints at U.S. Tariff Pressure Regarding U.K. DST
U.K. Chancellor of the Exchequer Rachel Reeves indicated the digital services tax is part of tariff discussions with the U.S. government but dodged questions about whether she is under pressure to drop it.
No Amount B in Austria’s Detailed Transfer Pricing Rules Update
A comprehensive revision of Austria’s transfer pricing guidelines presents rule changes as mere clarifications despite their partially retroactive tightening effect, while simultaneously omitting any guidance on the OECD’s amount B concept.
Cloud Services Sourcing Regulations: Moving in the Right Direction?
Paul W. Oosterhuis, Will Shirey, and Moshe A. Gershenfeld analyze a recently proposed method for determining the source of income for international cloud transactions that are characterized as services for sourcing purposes, arguing that the proposed regulations can help achieve certainty for global businesses.
Does Transfer Pricing Have a Loper Bright Problem?
Thomas D. Bettge, Mark R. Martin, and Hans Gerling consider how the Supreme Court’s decision in Loper Bright may affect the application of section 482, the first sentence of which serves as the basis for the entire U.S. transfer pricing system but does not squarely address one of Loper Bright’s guardrails — the question of delegation.
Harmonizing Tax Frontiers: OECD’s Soft Law in International Taxation and Its Effect on the EU Legal Order
Franklin Cachia explores the role of OECD soft law in shaping international taxation within the EU legal order, emphasizing its dual effect on harmonization and national sovereignty.
Australian Government Will Tax Digital Assets Under Existing Laws
The Australian government will not introduce new tax legislation focused on cryptoassets, but will continue to evaluate the need for decentralized finance rules following the Board of Taxation's recommendations.
Ireland Announces Tax Revenue Analysis Amid U.S. Tariffs
The Ireland Department of Finance issued a release announcing the publication of an Irish tax revenue analysis in relation to the widespread U.S. tariff policies, noting that the paper does not take into account windfall corporate tax receipts from the last few fiscal years, which could mean that the need to protect Irish public finances is higher than the paper estimates.
Tax on Ultrarich Is Gaining Support at All Levels in the EU
The Netherlands has asked the EU Code of Conduct Group on business taxation to set its sights on the tax treatment of wealthy individuals while the EU Tax Observatory sees its own tax proposal gaining traction.
U.S. Coalition Supports Withdrawal From OECD’s Global Tax Plan
The Alliance for Competitive Taxation issued a letter to U.S. Treasury Secretary Scott Bessent voicing support for the executive order pulling the United States out of the OECD global tax deal, emphasizing that the undertaxed profits rule under pillar 2 of the OECD’s two-pillar tax reform plan would cause the United States to lose an estimated $122 billion in tax revenue over the next decade.
EU Tax Commissioner Against Throwing Pillar 2 ‘in the Dustbin’
As some EU member states and businesses ratchet up the pressure to put pillar 2 on pause amid global tax and trade tensions, EU Tax Commissioner Wopke Hoekstra said the bloc should stand its ground.
EU Transfer Pricing Platform Talks Collapse
The European Commission is not interested in establishing a coordinating group on transfer pricing that does not produce political commitment from member states or peer reviews, leaving talks on a joint platform at an impasse.
The Trump Memoranda and the Future of International Taxation
Raffaele Russo and Gaia Maglione examine the future of international taxation following the withdrawal of support for the OECD global tax deal and the launching of the America First trade policy via Trump administration memoranda.
EU to Target Republican States’ Products With Countertariffs
After the Trump administration’s decision to impose a 25 percent import duty on steel and aluminum, the EU plans to hit the U.S. president where it hurts, targeting Republican states with tariffs on their exports.
Tax Platform Will Soon Finalize Tax Incentives Principles
The Platform for Collaboration on Tax hopes to finalize in the coming weeks incentives principles to guide policymakers navigating an international landscape shaped by developments such as the OECD’s global minimum tax rules.
EU Walking Tightrope Between OECD and U.S. Minimum Tax Rules
Despite EU businesses’ increasing calls for a pause in pillar 2 talks, a senior EU official said the bloc will seek an agreement that considers both the U.S. and OECD rules on minimum corporate taxation.
EU Council Announces Agreement on Information Exchange Directive
The EU Council announced that it has reached a final agreement on the ninth directive on administrative cooperation (DAC9) that will implement the global minimum information exchange standard under the OECD’s two-pillar tax reform plan, noting that member states are required to enforce DAC9 by December 31.
EU Commission Reports on 2023 Tax Trends
The EU Commission has announced the availability of tax trend data from 2023, noting that EU member states collected €6.7 billion in taxes — a 4.7 percent rise from 2022 — with increases in labor taxes and capital taxes of 5.9 percent and 4.5 percent, respectively.
Big Pharma Profits Stay Outside the United States
Martin A. Sullivan examines recent Form 10-K data from big pharmaceutical companies indicating that there is more worldwide, before-tax profit shifting outside the United States since passage of the Tax Cuts and Jobs Act.
NFTC Comments on Transfer Pricing Approach Consultation
The National Foreign Trade Council in a March 7 letter responded to the IRS’s public consultation regarding Notice 2025-4, which outlines the IRS and Treasury’s plan to propose regulations that are compliant with the OECD’s simplified amount B standard, urging Treasury and the IRS to expand the transfer pricing approach to include more industries and services and provide necessary guidance.
USCIB Calls for U.S. Leadership on Widespread Amount B Adoption
The United States must keep pushing for broader implementation of the amount B simplified and streamlined transfer pricing approach to avoid complexity and current controversy levels, the U.S. Council for International Business said.
EU Envoys Fail to Reach Agreement on DAC9
Once again, EU member states couldn’t agree on how to make future updates to the ninth directive on administrative cooperation, which transposes the OECD's standard global minimum tax information return into EU law.
Business Groups Call for U.S. Action at WTO on Digital Taxes
The United States should act at the WTO level to push back against other countries’ digital services taxes and similar measures that extract revenue from U.S. exports of digital products and services, business groups said.
China Targets U.S. Farm Products With Retaliatory Tariffs
China has responded to President Trump's decision to implement new tariffs against Chinese imports by targeting American imports with a second round of retaliatory tariffs that threaten to disrupt agricultural trade.
Trump’s Ambiguous Statements Throw EU Observers Off Balance
The Trump administration’s executive order disengaging from the OECD’s global tax plan and threatening retaliatory measures describes some actions that have never been taken and are legally questionable, further fueling global uncertainty, observers said.
G20 Ministers Note Sovereignty Amid Global Tax Deal Talks
G20 members have observed recent progress on the OECD’s two-pillar global tax plan, recognizing countries’ autonomy while backing quick adoption of the reforms, according to a summary of a key G20 meeting.
The Effect of Digital IP on Taxation and Transfer Pricing
Paul Glunt, Andrew Vickrey, and Jack O’Meara highlight examples of the digital transformation that is creating transfer pricing issues for multinational enterprises unique to the transfer or licensing of digital intangible property, and explain how investments in digital can address these issues and create value.