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The IBA’s response to the situation in Ukraine
Committee publications
Crypto, blockchain and FinTech – can tax keep pace with technology?
This session provided guidance on the tax treatment of gains and losses on cryptos, the issues arising in connection with the use of crypto funds, tax compliance matters in relation to crypto ownership and trading, and the tax treatment of staking (but not mining) in South Korea, Spain, Switzerland and the US.
Released on Mar 29, 2023
Internet services in exchange for user data: Facebook’s potential VAT sales tax bill in Italy of USD 925 million
Facebook’s parent company Meta has been requested by the Italian tax authorities to pay EUR 870 million (USD 925 million) in unpaid VAT sales tax from 2015 to 2021. Based on information provided by an Italian newspaper, the Italian tax authorities seem to be arguing that Facebook membership is granted upon a consideration in kind.
Released on Mar 29, 2023
Taxation in Brazil and the social policy goals
When looking to deepen the analysis of the social policy goals, especially within the Brazilian tax system as an instrument for its implementation, there are discussions on how taxation may have a relevant impact on the consumption of essential goods and services, energy, telecommunication, public transportation, and basic food.
Released on Mar 29, 2023
Paris Court of Appeal says no to the Parent–Subsidiary Directive for funnel entities
A recent decision by the Paris Court of Appeal uses the notion of beneficial ownership to refuse the application of the Parent–Subsidiary Directive in the context of a purely European real estate structure. This decision, which raises questions about the autonomy of the said notion vis-à-vis the abuse of law procedure, calls for caution.
Released on Mar 28, 2023
New Portuguese personal income tax framework applicable to crypto-assets
The Portuguese State Budget for 2023 introduced new rules for the personal income taxation of income connected to crypto-assets. The boost in the mainstream adoption of crypto-assets led to the increased attention from tax authorities worldwide to income that otherwise would typically fall outside the scope of taxation or would be incompatible with the rules in place. Until the 2023 State Budget was approved, no tax law provisions were directly applicable to crypto-assets in Portugal.
Released on Mar 28, 2023
Taxation in Brazil and the social policy goals
When looking to deepen the analysis of the social policy goals, especially within the Brazilian tax system as an instrument for its implementation, there are discussions on how taxation may have a relevant impact on the consumption of essential goods and services, energy, telecommunication, public transportation, and basic food.
Released on Mar 28, 2023
The developing cybersecurity framework in Pakistan
It is imperative for Pakistan to formulate a comprehensive cybersecurity framework in line with the global practices, which also addresses data privacy and protection. It currently has no comprehensive legislation governing cybersecurity and the law can only be found in fragments under various legislations. A major recent development, however, has been the National Cyber Security Policy 2021, introduced by the Ministry of Information and Technology and approved by the parliament.
Released on Mar 27, 2023
French National Financial Prosecutor’s Office publishes new guidelines on judicial conventions of public interest
On 16 January 2023 France’s National Financial Prosecutor’s office updated its guidelines on the implementation of corporate settlements, which were initially published jointly with the French Anti-Corruption Agency on 29 June 2019. On the following day, the US Department of Justice published a revised Corporate Enforcement and Voluntary Self Disclosure Policy.
Released on Mar 27, 2023
Specific considerations on the consequences resulting from Spanish income tax laws regarding transactions carried out with countries or territories that have recently been listed as ‘non-cooperative jurisdictions’
This article outlines the significant Spanish tax implications that could arise from transactions undertaken with, or by, persons resident or incorporated in non-cooperative jurisdictions, as enumerated in a recent ministerial order.
Released on Mar 27, 2023
Pushing the investment fund industry in Italy: the new investment management exemption regime
‘Providing certainty to the operators of the investment business industry active in Italy’: this is the rationale that led to the introduction into the Italian tax system of the so-called ‘investment management exemption’. We consider here below some of the interpretative issues arising in relation to the application of the new rule, which will hopefully be addressed in the implementing decree.
Released on Mar 27, 2023
Statutory limitation in Lithuania concerning historical tax losses
The utilisation of historical tax losses by Lithuanian companies might appear very attractive, as the Lithuanian Law on Corporate Income Tax provides that it is generally unlimited in time (for tax losses from general economic activities). The general statutory limitation term for the recalculation of taxes is also quite short, three years. Recent case law from the Supreme Administrative Court has provided the explanation that the statutory limitation term, however, does not apply to situations when the taxpayer wishes to utilise tax losses from earlier periods. Thus, the taxpayer should substantiate and the tax administration could challenge the historical tax losses incurred in the out-of-statutory limitation term periods, if the taxpayer wishes to use them within the open period.
Released on Mar 27, 2023
The recent public consultations on Pillar Two and BEFIT
The IBA Taxes Committee submitted contributions in response to two recent public consultations on Pillar Two – Tax Certainty for the GloBE Rules issued by the OECD's Inclusive Framework and on an EU common consolidated corporate tax base as part of the European Commission’s BEFIT (Business in Europe: Framework for Income Tax) initiative.
Released on Mar 27, 2023
Turkish Superior Court decision: can a website, in itself, constitute a permanent establishment?
The Council of State ruled that the websites constitute the permanent establishment, and that the income generated from Turkey by the companies, which provide online advertising.
Released on Mar 27, 2023
Turkey’s new earthquake tax
With Act No 7440, published in the Official Gazette on 12 March 2023, a new earthquake tax was introduced in Turkey. This tax will be paid at a rate of ten (and in special cases, five) per cent in the 2022 corporate tax return.
Released on Mar 27, 2023
Conversion of the Brazilian transfer pricing rules into the OECD framework
This article comments on the ongoing reform of the Brazilian transfer pricing rules, briefly describing the ‘fixed margin methodology’ as it was originally provided by Law 9,430/96 and the challenges facing the country and the Brazilian tax administration regarding the replacement of the old rules with new ones that converge with the OECD transfer pricing framework, via the enactment of Provisional Measure (PM) No 1,152/22. The new rules, which if eventually approved in Congress are expected to enter into force in 2024 going forward, though companies may elect to apply them from 2023, abandon the free choice of traditional transfer pricing methods with predetermined margins, while migrating to the so-called ‘best method approach’ to determine the arm’s length parameters, taking into consideration the dealignment of the controlled transaction and the comparability analysis for transactions contracted with unrelated parties.
Released on Mar 27, 2023
ATAD3 - The Unshell Directive: An overview of the latest developments as at 13 March 2023
The initial draft of the proposal for a directive laying down rules to prevent the misuse of shell entities for tax purposes and amending Directive 2011/16/EU, otherwise known as the ‘ATAD3 directive’, was made public by the European Commission on 22 December 2021. On 17 January 2023, the European Parliament approved the European Commission’s draft ATAD3 directive, as amended by the Committee on Economic and Monetary Affairs. Between the technical and implementation date uncertainties, the discussions that follow attempt to synthesise the current state of affairs regarding the ambitious ATAD3 directive.
Released on Mar 27, 2023
Turkey introduces new tax law
Law No 7440 on the Restructuring of Certain Receivables and the Amendment of Certain Laws, which entered into force after being published in the Official Gazette on 12 March 2023, provides for the restructuring of taxes, insurance premiums, and administrative fines; the settlement of existing and potential disputes; the correction of business records, such as cash, receivables from shareholders, and inventories; and the increase of the tax base for certain taxes.
Released on Mar 27, 2023
Tax on the market value of real estate properties in France owned by legal entities (the so-called three per cent tax)
The three per cent tax was introduced in France in 1983 to identify the ultimate owners of real estate properties located in France despite the interposition of French or foreign legal entities. To summarise, French and foreign entities owning real estate properties (or real estate property rights relating to such properties) must annually declare their shareholding and disclose the identity of their ultimate owner. If they fail to file a proper tax return and disclose the required information, entities can be sanctioned to pay, for each failing year, a tax equal to three per cent of the market value of the real estate property or the rights of the real estate property they own.
Released on Mar 27, 2023
The ‘Unshell Directive’ and its potential impact on domestic minimum substance tests
The ATAD 3 goals of preventing tax avoidance through the misuse of shell entities should be seen more as EU-wide goals, rather than an objective to be achieved at the level of EU Member States. This article focuses on the ‘minimum substance test’ under ATAD 3 as a potential guide for Member States when assessing domestic minimum substance tests.
Released on Mar 27, 2023
The new Spanish tax regime on carried interest income earned by Spanish residents
Spanish Law 28/2022 of 21 December 2022, the so-called ‘Start-up Law’ includes, for the first time in Spanish tax history, a special tax regime applicable to the so-called carried interest income earned by directors, employees and/or managers of eligible closed-end alternative investment funds.
Released on Mar 27, 2023
New Mexican tax obligation: identification of beneficial owners
The Mexico Tax Reform of 2022 imposed new tax obligations regarding beneficial ownership. The new obligation is not only applicable to legal entities, but also to service providers, including lawyers and notaries.
Released on Mar 27, 2023
Why the sale of Austrian real estate by a company can trigger an exit tax at shareholder level
Asked to provide its view on a specific case, the Austrian Federal Ministry of Finance recently responded that the sale of real estate property by an Austrian company could trigger Austrian exit tax at the level of a non-resident shareholder and also stated at what time in the process such a tax would be triggered.
Released on Mar 27, 2023
The Indian green bond market: a step towards ‘green financing’ in a growing taxonomy
Over the last few years, the Indian government has taken measures towards environmental sustainability along with economic growth. The Finance Minister, while tabling the Union Budget 2023–24, specified green growth as one of the seven priorities of the Indian government and in doing so, the aim of achieving net-zero carbon emission by 2070 was highlighted.
Released on Mar 15, 2023
Proposed amendments to the trademark law (2023)
China National Intellectual Property Administration (CNIPA) has recently issued a consultation draft of amendments to the Trademark Law. The draft for consultation has triggered a lot of discussions in the trademark circle, as this article will explore.
Released on Mar 14, 2023
The opening-up of the Chinese insurance asset management market
On 21 July 2021, Allianz (China) Insurance Holding Company Limited obtained the approval of business commencement from China Banking and Insurance Regulatory Commission (CBIRC), becoming the first wholly foreign-owned insurance asset management company approved for business commencement in China.
Released on Mar 14, 2023
International Women's Day 2023 - Women Lawyers' Committee
Today on United Nation's International Women's Day, we celebrate women's social, economic, cultural, and political achievements.
Released on Mar 8, 2023
Guidelines and Regulations to Provide Insights on Public Policies to Ensure AI’s Beneficial Use as a Professional Tool
The Artificial Intelligence Working Group of the IBA Alternative New Law and Business Structures (ANLBS) Committee presents a comprehensive, up to date guide to the use of artificial intelligence as a professional tool, covering the main multilateral organisations and nine jurisdictions worldwide.
Released on Mar 6, 2023
Corporate governance in private companies: the pitfalls of poor practices and the benefits of well-structured governance
Conference report from a Closely Held Companies’ session at the IBA Annual Conference, Miami, 30 October – 4 November 2022
Released on Mar 3, 2023
Private equity and venture capital in Latin America in the aftermath of the pandemic – the new wave?
Conference report from a Closely Held Companies’ session at the IBA Annual Conference, Miami, 30 October – 4 November 2022
Released on Mar 3, 2023
Onboarding a private equity investor: conflicts and benefits from an entrepreneurial perspective
Conference report from a Closely Held Companies’ session at the IBA Annual Conference, Miami, 30 October – 4 November 2022
Released on Mar 3, 2023