This article showcases the potential interplay between transfer pricing rules and the OECD’s Pillar One and Pillar Two proposals.Given their simultaneous application,conflicts between these sets of rules may arise.Th...This article showcases the potential interplay between transfer pricing rules and the OECD’s Pillar One and Pillar Two proposals.Given their simultaneous application,conflicts between these sets of rules may arise.The article also emphasizes the importance of careful consideration before implementation of these rules,including potential adjustments to domestic laws,and the need to prevent double taxation and less-than-single taxation risks through enhanced cooperation and clear communication.展开更多
The confluence of several factors including government fiscal pressures and growing opportunities for tax minimization in a digital economy prompted the OECD to embark on a program to reduce base erosion and profit sh...The confluence of several factors including government fiscal pressures and growing opportunities for tax minimization in a digital economy prompted the OECD to embark on a program to reduce base erosion and profit shifting(BEPS).At the same time,countries became increasingly unhappy about international tax rules that left them unable to impose income taxes on companies earning profits by selling to customers inside their country without establishing a taxable presence there.The frustration led to unilateral responses that prompted the OECD to develop proposals to address this problem as well.The OECD’s proposals to reduce profit shifting and enhance taxing rights of sales destination countries evolved into what are now known as Pillar One and Pillar Two international tax reforms.This paper provides an overview of the operation of each of the Pillars and notes the limitations that prevent them from addressing the underlying causes of profit shifting and providing full taxing rights to sales destination jurisdictions.展开更多
This article summarizes a Dutch court case regarding a business restructuring within a multinational enterprise,where the valuation of the transferred business activities was not confirmed by the tax authorities in ad...This article summarizes a Dutch court case regarding a business restructuring within a multinational enterprise,where the valuation of the transferred business activities was not confirmed by the tax authorities in advance.As a result of the lack of certainty beforehand,the taxpayer experienced a significant tax correction.According to the author’s perspective,this situation could have been prevented by seeking certainty in advance.展开更多
A major concern on base erosion and profit shifting(BEPS)is transfer pricing,which is discussed in BEPS Action Items 8-10 and 13.Actions 8-10 contain revised guidance,which ensures that transfer pricing rules secure o...A major concern on base erosion and profit shifting(BEPS)is transfer pricing,which is discussed in BEPS Action Items 8-10 and 13.Actions 8-10 contain revised guidance,which ensures that transfer pricing rules secure outcomes that better align operational profits with the economic activities that generate them,as well as guidance on transactions involving cross-border commodity transactions and on low value-adding intra-group services.Action 13 contains a three-tiered standardized approach to transfer pricing documentation,including a minimum standard on country-by-country reports(CbCRs).However,the approach of Actions 8-10 still focuses on the restoration of the dysfunctional rules built on the arm's length principle,which is rooted in the principle of separate independent entity.The threshold of Action 13 excludes many large multinational enterprises(MNEs)from the CbCR requirement and deprives developing countries access to the information of MNEs below the threshold.Chapter 6 of the Chinese Corporate Income Tax Law,under the title"Special Tax Adjustments,"provided the legal foundations of transfer pricing and transfer pricing documentation in China.To effectively implement the BEPS package in China and to comprehensively update the existing Circular 2,the State Taxation Administration(STA)released a Discussion Draft of a Circular on Implementation Measures for Special Tax Adjustments in September 2015,ranging from Action 3(controlled foreign company rules),Action 8-10(aligning transfer pricing outcomes with value creation)to Action 13(transfer pricing documentation and country-by-country reporting)in details.Right now,a series of patches,such as the STA Bulletins 45,42,64,and 6,have been made to replace a substantial part of Circular 2.展开更多
In order to successfully compete in the global market,many multinationalcompanies use control and evaluation systems for monitoring the performanceof their subsidiaries abroad,which are faced with complexities of poli...In order to successfully compete in the global market,many multinationalcompanies use control and evaluation systems for monitoring the performanceof their subsidiaries abroad,which are faced with complexities of political,social,cultural,and legal differences,tax regulations,import and export re-strictions,foreign exchange regulations,control on the transfer of f unds,and various other restrictions imposed by host countries to protect their nation-al interests.The challenge for multinationals is to design a transfer strategywhich appropriately rewards the management of the subsidiaries overseas andalso copes with the various poli tical,legal,cultural,and economic restric-tions of the host countries.展开更多
Earlier this year, the State Administrationof Taxation promulgated the much-antic-ipated transfer pricing measures detailingthe administrative rules for all special taxadjustments. These special tax adjustments,includ...Earlier this year, the State Administrationof Taxation promulgated the much-antic-ipated transfer pricing measures detailingthe administrative rules for all special taxadjustments. These special tax adjustments,including cost sharing, thin capitalization,展开更多
This paper explores the linkage between emerging new technologies and transfer pricing,and the mechanisms available to minimise and resolve disputes in this area.It explores the way that these technologies can help ac...This paper explores the linkage between emerging new technologies and transfer pricing,and the mechanisms available to minimise and resolve disputes in this area.It explores the way that these technologies can help achieve a better application of the Arm’s Length Principle(ALP)which remains the bedrock for transfer pricing around the world.It also identifies the way that both MNEs and Tax Administrations can use these technologies to get access to more comparable information and to achieve greater consistency in the allocation on the basis of the ALP.Finally some new ways of achieving more effective cross-border resolution mechanisms in the BRI jurisdictions are explored.展开更多
The current transfer pricing(TP)legislation of Armenia was elaborated back in 2014-2015 and the Tax Code with a special TP chapter in it(Chapter 73)was adopted in 2016.The provisions of 2016 Tax Code came into force i...The current transfer pricing(TP)legislation of Armenia was elaborated back in 2014-2015 and the Tax Code with a special TP chapter in it(Chapter 73)was adopted in 2016.The provisions of 2016 Tax Code came into force in 2018,but the implementation of the TP regulations came into force on 1 January 2020.Currently,the legal framework of TP regulations is not complete for conducting tax administration.In this regard,in early 2021,a project on amending TP regulations was proposed,which has been already effective since 13 April 2022.This paper will discuss the five biggest issues of the current TP regulations and the proposed amendments and additions to the TP rules as solutions to those issues,which would help to effectively conduct tax administration.展开更多
The transfer of the rural collective construction land is increasingly accelerating,and the factors affecting transfer price are manifold. In this paper,the research area is Yichang,and we establish hedonic price mode...The transfer of the rural collective construction land is increasingly accelerating,and the factors affecting transfer price are manifold. In this paper,the research area is Yichang,and we establish hedonic price model to explore and analyze the factors which affect the collective construction land transfer price. The simulation results show that in geographical factors,the higher degree of prosperity,road accessibility and soundness of infrastructure will result in higher collective construction land transfer price; in economic factors,the higher farmers' per capita net income and added value of the village's tertiary industry will lead to higher collective construction land transfer price; in ownership factors,the integrity of usufruct,disposition and possession has increasingly significant impact on collective construction land transfer price. In the process of establishing rural collective construction land circulation market,the government should gradually improve conditions of collective construction land; strengthen the construction of the rural economy,improve the economic attribute of the collective construction land; establish and improve China's rural collective construction land-related laws and regulations,make the rural collective construction land use rights clear,and give the whole rights of occupation,use,earning and disposition.展开更多
Raising tax certainty constitutes a fundamental for investment de-cisions by multinational enterprises(MNEs)while it is highly valuable also for tax administrations.Therefore,it has been considered as one of the core ...Raising tax certainty constitutes a fundamental for investment de-cisions by multinational enterprises(MNEs)while it is highly valuable also for tax administrations.Therefore,it has been considered as one of the core areas by the BRITACOM parties.Over the past few years,considerable attention has been devoted to improving tax certainty while new challenges arise.This article analyses some of the recent advances and emerging initiatives in terms of raising tax certaintywww.britacom.org mechanisms for cross-border transactions in areas such as dispute prevention and resolution,transfer pricing,General Anti-Avoidance Rules(GAARs)and the taxation of digital economy.展开更多
Trade,investment and tax treaties are concluded for different reasons and with different objectives.The international trade and tax systems are overseen by different global organizations.The overlaps and inconsistenci...Trade,investment and tax treaties are concluded for different reasons and with different objectives.The international trade and tax systems are overseen by different global organizations.The overlaps and inconsistencies between these agreements could be exploited by investors to gain unintended advantages.Therefore,developing countries must ensure that there is greater cooperation and exchange of information in relation to trade,investment and tax policy.The exchange of information between tax administrations is important in the context of the Belt and Road Initiative(BRI),where the tax administration in each jurisdiction needs to know more about the cross-border transactions of multinationals operating in its territory.The most effective way for developing countries to improve the exchange of information is to sign multilateral agreements,in particular the Convention on Mutual Assistance in Tax Matters.The customs and transfer pricing functions within a jurisdiction should collaborate and exchange information to ensure that the pricing of import transactions is consistent across different taxes.Both functions could carry out risk-based compliance audits that would involve comparison of transfer pricing and customs documentation.In the context of coordination between customs and direct tax functions,the comparison of customs and transfer pricing documentation can be established on a routine basis.Closer coordination of transfer pricing and customs would also help taxpayers reduce compliance costs in relation to cross-border transactions.In view of the compliance costs involved in putting together transfer pricing documentation,it would help taxpayers if much of the same documentation could also be used for the purposes of customs valuation.展开更多
文摘This article showcases the potential interplay between transfer pricing rules and the OECD’s Pillar One and Pillar Two proposals.Given their simultaneous application,conflicts between these sets of rules may arise.The article also emphasizes the importance of careful consideration before implementation of these rules,including potential adjustments to domestic laws,and the need to prevent double taxation and less-than-single taxation risks through enhanced cooperation and clear communication.
文摘The confluence of several factors including government fiscal pressures and growing opportunities for tax minimization in a digital economy prompted the OECD to embark on a program to reduce base erosion and profit shifting(BEPS).At the same time,countries became increasingly unhappy about international tax rules that left them unable to impose income taxes on companies earning profits by selling to customers inside their country without establishing a taxable presence there.The frustration led to unilateral responses that prompted the OECD to develop proposals to address this problem as well.The OECD’s proposals to reduce profit shifting and enhance taxing rights of sales destination countries evolved into what are now known as Pillar One and Pillar Two international tax reforms.This paper provides an overview of the operation of each of the Pillars and notes the limitations that prevent them from addressing the underlying causes of profit shifting and providing full taxing rights to sales destination jurisdictions.
文摘This article summarizes a Dutch court case regarding a business restructuring within a multinational enterprise,where the valuation of the transferred business activities was not confirmed by the tax authorities in advance.As a result of the lack of certainty beforehand,the taxpayer experienced a significant tax correction.According to the author’s perspective,this situation could have been prevented by seeking certainty in advance.
文摘A major concern on base erosion and profit shifting(BEPS)is transfer pricing,which is discussed in BEPS Action Items 8-10 and 13.Actions 8-10 contain revised guidance,which ensures that transfer pricing rules secure outcomes that better align operational profits with the economic activities that generate them,as well as guidance on transactions involving cross-border commodity transactions and on low value-adding intra-group services.Action 13 contains a three-tiered standardized approach to transfer pricing documentation,including a minimum standard on country-by-country reports(CbCRs).However,the approach of Actions 8-10 still focuses on the restoration of the dysfunctional rules built on the arm's length principle,which is rooted in the principle of separate independent entity.The threshold of Action 13 excludes many large multinational enterprises(MNEs)from the CbCR requirement and deprives developing countries access to the information of MNEs below the threshold.Chapter 6 of the Chinese Corporate Income Tax Law,under the title"Special Tax Adjustments,"provided the legal foundations of transfer pricing and transfer pricing documentation in China.To effectively implement the BEPS package in China and to comprehensively update the existing Circular 2,the State Taxation Administration(STA)released a Discussion Draft of a Circular on Implementation Measures for Special Tax Adjustments in September 2015,ranging from Action 3(controlled foreign company rules),Action 8-10(aligning transfer pricing outcomes with value creation)to Action 13(transfer pricing documentation and country-by-country reporting)in details.Right now,a series of patches,such as the STA Bulletins 45,42,64,and 6,have been made to replace a substantial part of Circular 2.
文摘In order to successfully compete in the global market,many multinationalcompanies use control and evaluation systems for monitoring the performanceof their subsidiaries abroad,which are faced with complexities of political,social,cultural,and legal differences,tax regulations,import and export re-strictions,foreign exchange regulations,control on the transfer of f unds,and various other restrictions imposed by host countries to protect their nation-al interests.The challenge for multinationals is to design a transfer strategywhich appropriately rewards the management of the subsidiaries overseas andalso copes with the various poli tical,legal,cultural,and economic restric-tions of the host countries.
文摘Earlier this year, the State Administrationof Taxation promulgated the much-antic-ipated transfer pricing measures detailingthe administrative rules for all special taxadjustments. These special tax adjustments,including cost sharing, thin capitalization,
文摘This paper explores the linkage between emerging new technologies and transfer pricing,and the mechanisms available to minimise and resolve disputes in this area.It explores the way that these technologies can help achieve a better application of the Arm’s Length Principle(ALP)which remains the bedrock for transfer pricing around the world.It also identifies the way that both MNEs and Tax Administrations can use these technologies to get access to more comparable information and to achieve greater consistency in the allocation on the basis of the ALP.Finally some new ways of achieving more effective cross-border resolution mechanisms in the BRI jurisdictions are explored.
文摘The current transfer pricing(TP)legislation of Armenia was elaborated back in 2014-2015 and the Tax Code with a special TP chapter in it(Chapter 73)was adopted in 2016.The provisions of 2016 Tax Code came into force in 2018,but the implementation of the TP regulations came into force on 1 January 2020.Currently,the legal framework of TP regulations is not complete for conducting tax administration.In this regard,in early 2021,a project on amending TP regulations was proposed,which has been already effective since 13 April 2022.This paper will discuss the five biggest issues of the current TP regulations and the proposed amendments and additions to the TP rules as solutions to those issues,which would help to effectively conduct tax administration.
基金Supported by National Social Science Foundation(12CGL092)
文摘The transfer of the rural collective construction land is increasingly accelerating,and the factors affecting transfer price are manifold. In this paper,the research area is Yichang,and we establish hedonic price model to explore and analyze the factors which affect the collective construction land transfer price. The simulation results show that in geographical factors,the higher degree of prosperity,road accessibility and soundness of infrastructure will result in higher collective construction land transfer price; in economic factors,the higher farmers' per capita net income and added value of the village's tertiary industry will lead to higher collective construction land transfer price; in ownership factors,the integrity of usufruct,disposition and possession has increasingly significant impact on collective construction land transfer price. In the process of establishing rural collective construction land circulation market,the government should gradually improve conditions of collective construction land; strengthen the construction of the rural economy,improve the economic attribute of the collective construction land; establish and improve China's rural collective construction land-related laws and regulations,make the rural collective construction land use rights clear,and give the whole rights of occupation,use,earning and disposition.
文摘Raising tax certainty constitutes a fundamental for investment de-cisions by multinational enterprises(MNEs)while it is highly valuable also for tax administrations.Therefore,it has been considered as one of the core areas by the BRITACOM parties.Over the past few years,considerable attention has been devoted to improving tax certainty while new challenges arise.This article analyses some of the recent advances and emerging initiatives in terms of raising tax certaintywww.britacom.org mechanisms for cross-border transactions in areas such as dispute prevention and resolution,transfer pricing,General Anti-Avoidance Rules(GAARs)and the taxation of digital economy.
文摘Trade,investment and tax treaties are concluded for different reasons and with different objectives.The international trade and tax systems are overseen by different global organizations.The overlaps and inconsistencies between these agreements could be exploited by investors to gain unintended advantages.Therefore,developing countries must ensure that there is greater cooperation and exchange of information in relation to trade,investment and tax policy.The exchange of information between tax administrations is important in the context of the Belt and Road Initiative(BRI),where the tax administration in each jurisdiction needs to know more about the cross-border transactions of multinationals operating in its territory.The most effective way for developing countries to improve the exchange of information is to sign multilateral agreements,in particular the Convention on Mutual Assistance in Tax Matters.The customs and transfer pricing functions within a jurisdiction should collaborate and exchange information to ensure that the pricing of import transactions is consistent across different taxes.Both functions could carry out risk-based compliance audits that would involve comparison of transfer pricing and customs documentation.In the context of coordination between customs and direct tax functions,the comparison of customs and transfer pricing documentation can be established on a routine basis.Closer coordination of transfer pricing and customs would also help taxpayers reduce compliance costs in relation to cross-border transactions.In view of the compliance costs involved in putting together transfer pricing documentation,it would help taxpayers if much of the same documentation could also be used for the purposes of customs valuation.
