World news
Commission clamps down on shell companies
The European Commission released its first proposal for a directive aiming to prevent the misuse of shell entities for tax purposes. Companies without sufficient economic substance will be denied benefits ensuing from double taxation treaties and…
Reform of reduced VAT rates in EU
The current EU rules on VAT rates for goods and services were set almost 30 years ago and need to be modernised to correspond to developments in EU legislation. In 2018, the European Commission therefore proposed a reform of VAT rates, and an…
EU to strengthen protection for Uber and other internet platform workers
Over 28 million people in the EU work for internet platforms such as Uber, Wolt and Dáme jídlo. It is estimated that by 2025 this number could increase to 43 million. Internet platform workers are mostly hired as self-employed persons, although they…
EU wants to introduce a global minimum effective tax as early as 2023
In December last year, the OECD published draft rules for a minimum global effective corporate income tax of 15%. The European Commission subsequently issued a draft directive containing rules for the implementation of this tax by EU member states.…
EP: multinationals to publish profits and taxes paid in individual countries
On 11 November 2021, the European Parliament approved a proposal for the directive introducing public country-by-country reporting. The CbC report, informing, among other things, about profits generated and taxes paid, broken down by individual…
Changes in international taxation probably as early as 2023
The G20 has endorsed the framework changes to international taxation agreed at the OECD level (including non-member countries) on 8 October 2021. The changes are spread across two pillars containing rules for shifting taxing rights on profits from…
Blue Card – future of EU labour mobility
Projections show that by 2070, the European Union will have 292 million people of working age, compared to 333 million in 2016. This trend would mean a significant decline in the workforce for the EU member states. This is one of the reasons why the…
Germany: New transfer pricing guidelines
Transfer pricing is a hot issue at a time when all finance ministries are searching for funds to cover their exorbitant budget deficits. The German Ministry of Finance has issued new transfer pricing guidelines (Verwaltungsgrundsätze…
International taxation rules may change as early as 2023
In a joint declaration, 130 out of the 139 countries united under the OECD for the purpose of implementing the BEPS initiative have agreed on new rules for the international taxation of multinational corporations. The final wording of the rules,…
Companies to disclose income tax payment information
The European Commission has published a draft directive on the mandatory disclosure of information on income tax payments in individual member states and non-cooperative jurisdictions (public country-by-country reporting). The duty will apply to…
Future direction of EU business taxation
The European Commission has issued its Communication on Business Taxation for the 21st Century, summarising current actions and future plans in response to the OECD debate on changes to international tax rules and the introduction of minimum…
Country-by-Country Reporting data publicly available?
Country-by-Country Reporting (CbCR) is one of the pieces of the puzzle that provides a view of a multinational corporation’s transfer prices. Rather than looking at individual entities, CbCR, fairly truthfully depicts how the group operates in…