Interpretation of EU tax directives and the impact on the national laws of EU Member States

The interpretation and impact of EU tax directives on Member State national laws is a fairly new element in the discussions with national tax authorities in the EU, for example, discussions concerning the granting of an exemption that is based on an EU tax directive. In order to interpret the national laws that transpose EU tax directives, one needs to look beyond the national laws themselves. It is necessary to analyse the meaning of the EU tax directive in question. It is important to ascertain what exactly is the obligation on Member States and what is the meaning of certain terms in the EU tax directive that has been transposed into national law? These types of questions relate to the interpretation of EU tax directives and are increasingly relevant for all EU Member States. Moreover, the specific EU tax directive and the context in which it was developed has an impact on the interpretation of the national laws of a particular Member State. These aspects are discussed in this article.

Released on Feb 20, 2024

Peruvian Tax Authority revises the approach to the indirect transfer of shares and the Double Taxation Treaty between Peru and Chile

The Peruvian Tax Authority has issued Internal Report No. 117-2023-SUNAT/7T0000 concluding that, under the Double Taxation Treaty (DTT) between Peru and Chile, capital gains obtained by a company resident in Chile from the indirect transfer of shares of a company resident in Peru, through a transfer of shares issued by a Chilean company, can also be taxed in Peru, in accordance with Article 21 of the DTT. This new decision revises the interpretation of the DTT included in Internal Report No. 001-2021-SUNAT/7T0000, in which the Peruvian Tax Authority stated that capital gains in such cases could only be taxed in Chile.

Released on Feb 20, 2024

Overview of recent updates to Brazilian tax legislation

The year 2023 brought significant changes to the Brazilian tax landscape, including, among others, the approval of a tax reform encompassing the taxation of consumption, the introduction of new taxes (IBS, CBS and IS) and the abolishment of others (PIS, COFINS, IPI, ICMS and ISS), as well as the alignment of the Brazilian transfer pricing rules with the Organisation for Economic Co-operation and Development’s (OECD) Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations through the conversion of Provisional Measure No. 1,152/2022 into Law No. 14,596/2023. This article provides a brief summary on the key changes from the past year and early 2024.

Released on Feb 20, 2024

Power Law: Editorial February 2024

John Vellone, Newsletter Editor of the IBA Power Law Committee introduces the latest collection of articles from Committee members.

Released on Feb 19, 2024