2023

Some jurisdictions are at loggerheads over transfer pricing simplification measures under pillar 1 of the OECD’s two-pillar global tax reform plan, dimming prospects of finalizing a deal in June, Italian Finance Minister Giancarlo Giorgetti said.

Martin A. Sullivan explores developments in Vietnam’s plans for implementing pillar 2 and creating an investment support fund and incentives to drive foreign direct investment.

Countries should keep working on approaches for resolving disputes related to global minimum tax rules and consider the legal basis for those mechanisms, such as a multilateral convention, the OECD told G7 ministers.

New Zealand’s coalition government should scrap the previous government’s bill for a digital services tax because the DST could lead the country’s trading partners to respond with retaliatory tariffs, an activist group has warned.

A new study by the European Left estimates that a permanent tax on excessive profitability of near-monopolies would raise between €81 billion and €107 billion.

A bipartisan group of lawmakers in the House and Senate introduced a measure to overturn the Biden administration’s rules implementing the EV tax credit, which they argue are too lenient on China.

Kenya has proposed withdrawing its digital services tax and replacing it with a significant economic presence tax after President William Ruto said the government would review the DST and align it with OECD tax reforms.

The International Tax and Investment Center describes some potential GLOBE rule disputes and analyzes some proposals for a dispute resolution mechanism, focusing on how the tax treaty mutual agreement procedure in article 25 of the OECD model tax convention can best be used.

Reuven S. Avi-Yonah examines the use of tax incentives to encourage location-specific investment and offers a new approach that he says will be more successful.

Martin A. Sullivan scrutinizes the no-benefit requirement under pillar 2 of the OECD’s base erosion project, highlighting the tension between incentives and taxation in light of Singapore’s planned implementation of two components of pillar 2.

Tomás Bailey, Colm Brussels, and Rachel O’Sullivan explain how Irish taxpayers can use the EU tax dispute resolution directive to challenge the tax treaty compatibility of EU member states’ digital services taxes.

Reuven S. Avi-Yonah casts doubt on whether bilateral investment treaties offer investors a viable shield from pillar 2’s qualified domestic minimum top-up tax, in response to a recent Tax Notes article.

Mindy Herzfeld explains the uneven effect of the Tax Cuts and Jobs Act’s carrot-and-stick approach to encouraging U.S. multinationals to bring valuable intellectual property back to the United States.

Companies in scope of digital services taxes will probably have more permanent establishments in jurisdictions with DSTs if OECD pillar 1 rules are enacted, according to a Joint Committee on Taxation economist.

EU member states are at odds over how to coordinate the application of double taxation agreements to accommodate the tax complexities of cross-border telework.

Manufacturers have two years to move their critical mineral supply chains away from foreign entities of concern if they want to qualify for the new clean vehicle tax credits, Treasury announced in final regulations.

Błażej Kuźniacki and Edwin Visser explain the difficulties for non-advanced economies trying to attract foreign direct investment while also adhering to new pillar 2 rules, and offer suggestions for new international approaches that could help create a more level playing field for all economies.

Canada’s digital services tax might cause U.S. companies to lose up to $2.3 billion annually, and if the United States doesn’t push back, the “global contagion” of DSTs will spread, a tech industry group said.

Roy Clemons argues that the United States should replace its quasi-territorial tax system and proposes a framework that taxes domestic and multinational corporations at the same statutory tax rate on a country-by-country basis.

Ryan Finley explains why withdrawing the cost-sharing regulations wouldn’t further the policy goals of cost-sharing critics.

Robert Goulder comments on a recent Congressional Research Service report on pillar 1 and digital services taxes.

Martin A. Sullivan examines newly released IRS data that reveal surprising shifts in where U.S. multinationals book profits and losses, with some of the usual suspects absent and Gibraltar topping the tax haven list.

Honda is the latest automaker to announce a multibillion-dollar investment in Canada, bolstered by new investment tax credits introduced by the federal government to support the green transition.

Vladimir Starkov and Alexis Jin explain their study on the effect of amount A on U.S. corporate income tax revenue.

EU member states have presented a common approach to discussions about a U.N. framework convention on international tax cooperation, but several countries are still not ready to discuss proposals.

Nana Ama Sarfo outlines some of the discussions at a recent Senate Budget Committee hearing on offshore tax avoidance.

Martin A. Sullivan examines the generous provisions of Bermuda’s new corporate income tax and how they interact with the OECD’s pillar 2 rules.

The European Commission is still open to the possibility of proposing mandatory publication of the effective tax rates of large corporations operating in the EU, according to a top EU tax official.

Peter Hongler and Simon Habich explain that upcoming U.N. negotiations should look to establish the institutional groundwork for a more credible evolution of the international tax system, recognizing that a global consensus may not be imperative across all tax-related domains, and instead should strive for global inclusivity.

Building consensus takes time, so the quick pace of the U.N.’s work on the terms of reference for a new framework convention on international tax cooperation is worrisome, a top EU tax official said.

A report commissioned by EU leaders on the future of the single market calls for a harmonized tax framework and says allowing exceptions to the unanimity rule could take a bite out of tax avoidance.

EU heads of state are scheduled to discuss how to strengthen the bloc’s single market and competitiveness, and some member states are determined to debate even the most politically sensitive proposals, with potential tax implications.

G-24 countries are hoping to engage multilaterally on a range of tax issues, including corporate income tax and consumption tax, and shore up domestic revenue amid debt woes.

The “Future Made in Australia” plan, which will form part of Australia's upcoming budget and address the green energy transition, will contain strict tests for receiving tax credits and subsidies.

Large U.S. companies are pressing lawmakers to revive expired tax breaks for research and development spending, as a political stalemate keeps some finance executives wrestling with those investments.

Jurisdictions may have missed a key deadline to reach agreement on the text of the pillar 1 multilateral convention, but the OECD remains optimistic about prospects for a deal, a top OECD official said.

The two-pillar OECD tax reform plan doesn’t go far enough to help developing countries, so the G-24 is hopeful for more progress under a U.N. framework convention for international tax cooperation, the group’s director said.

Nana Ama Sarfo reviews some responses to Australia's most recent public country-by-country reporting consultation and notes how the measure raises larger questions about international standardization.

EU leaders plan to adopt a draft statement calling for the harmonization of corporate tax law to advance the Capital Markets Union, but the European Commission’s meetings with tax officials tell a different story.

Reuven S. Avi-Yonah suggests that the EU adopt the pillar 1 three-factor formula for BEFIT and apply it to large multinationals operating in the EU.

Martin A. Sullivan examines how companies are addressing the effects of pillar 2 in their financial reports, using the “Magnificent 7” to show various approaches.

Mindy Herzfeld cautions that the United States’ tax base could erode in the wake of a global push for broad-based withholding taxes on services.

U.S. progress on implementing OECD global minimum tax rules would put American negotiators in a better position to ask for U.S.-friendly pillar 2 administrative guidance, according to a top Treasury official.

An EU task force looking at taxing rights over remote teleworkers appears to be leaning toward bilateral arrangements, and the possibility of triggering permanent establishments is a recurring theme in the talks.

The Joint Committee on Taxation is monitoring the implementation of global minimum tax rules around the world as it considers how to update its analysis of pillar 2’s potential U.S. revenue effects.

The Irish Finance Department has published a draft proposal for a participation exemption for foreign dividends that draws on feedback from a government consultation.

Arlene S. Fitzpatrick provides context for various proposals to address the Taiwan-U.S. tax relationship and explains the merits of the options available to navigate this landscape.

Nathan Boidman, Marc André Gaudreau Duval, and Michael N. Kandev give an overview of IP box regimes, discuss whether it would be advantageous for Canada to adopt one, and examine the Canadian government’s perspective on the issue.

Reuven S. Avi-Yonah examines the history of the arm’s-length standard and considers whether Treasury can deviate from it if it is necessary to clearly reflect related taxpayers’ income.

House appropriators tried to punish the OECD for its tax policies by eliminating its federal funding for fiscal 2024, but the organization instead got a 4 percent budget boost, according to a State Department document.