Tax & Legal

Tax & Legal

ECJ: Services between head office and foreign branch may be subject to VAT

The ECJ held that services by an EU head office, who is part of a VAT group, to its foreign branch are in general subject to VAT if the cost of such services are charged to the branch. For VAT purposes head office and its branch located in another Member State must be regarded as separate taxable persons. Continue reading

Council approves greater corporate transparency for big multinationals

The EU is taking measures to enhance corporate transparency of big multinational companies. Member states’ ambassadors mandated the Portuguese presidency to engage in negotiations with the European Parliament for the swift adoption of the proposed directive on the disclosure of income tax information by certain undertakings and branches, commonly referred to as the public country-by-country reporting (CBCR) directive. Continue reading

Germany: Higher penalties for organized tax evasion?

The representatives of the German provinces (the upper chamber of parliament – Bundesrat) would like higher penalties for organized tax evasion and further suggest improving the investigation of such crimes. On 27 November 2020 the upper chamber decided to introduce a corresponding bill in the German Bundestag to amend the German Fiscal Code. Continue reading

Fair and effective taxation: Council of the European Union adopts conclusions

EU member states want to ensure that EU tax policy remains fit for purpose and results in fair and effective taxation in the increasingly globalised and digitalised economy of the 21st century. Therefore, the European Council approved conclusions setting out its comprehensive assessment of the main tax policy issues to be addressed over the coming years, to shape the EU policy agenda in the field of taxation. Continue reading

Italy Step up regime: Italy reinstates modified ‚Äėstep-up‚Äô regime with 3% substitutive tax

In brief

As part of its response to the global pandemic, the Italian government reinstated the asset step-up regime in August. The regime applies a 3% substitutive tax on assets accounted for as of December 31, 2019. If a taxpayer elects the step-up, then the higher values shall be disclosed in the 2020 financial statements and can be deducted for direct tax purposes starting from the tax period that includes December 31, 2021. Continue reading