Arindam Lahiri’s Post

EU List of Non-Cooperative Jurisdictions for Tax Purposes – Removals #cyprus #tax #wht #withholdingtax #dividends #interest #royalties #eu #blacklist #removal #countries

Delhi High Court: Taxpayer Entitled To Tax Credit on Income from Foreign Subsidiary under DTAA The Delhi High Court has upheld the Income Tax Appellate Tribunal (ITAT) order allowing tax credit to an Indian company on its dividend income from a Thai subsidiary based on the concept of tax sparing under the Double Taxation Avoidance Agreement (DTAA). Link to read full news : https://lnkd.in/dzmkNtgf #delhihighcourt #tax

Bermuda’s Parliament passed legislation for the implementation of the Corporate Income Tax that would apply to Bermuda based businesses within Multinational Enterprises with annual revenue of €750M or more. Here is a short note on the regime based on the OECD's Pillar 2 initiative. #offshore #tax #regulatory #bermuda

The Subpart F and GILTI are anti-deferral tax regimes. Subpart F and GILTI results in most income earned by foreign corporations being subject to current U.S. taxation.

In a very interesting case where certiorari is granted by US Supreme Court to the Appeal Court of Ninth Circuit, discussing the constitutional validity of taxing unrealised income under Section 965 dealing with Mandatory Repatriation Tax under TCJA 2017 What is Moore Vs United States? Prior to the Tax Cuts and Jobs Act (TCJA) of 2017, profits repatriated from a foreign jurisdiction to U.S. shareholders would be subject to 35 percent corporate tax rate (less any relevant foreign tax credits). This tax incentivised U.S. companies to keep earnings offshore to avoid the 35 percent tax on these repatriated earnings. In the same year, TCJA imposed deemed repatriation under Section 965 wherein the unrepatriated earnings for past 30 years were accumulated and deemed to have been repatriated with different deductions applied on whether these earnings were in form of cash or illiquid assets. In a recent case pending before Supreme Court (Moore Vs United States), where plaintiff has challenged the constitutional validity of §965 since it applies retrospectively to “unrealised income” accumulated over past 30 years. As per the plaintiff, this contravenes the Sixteenth Amendment to the constitution and subsequent case laws which required that the income has to be “clearly realised” to be taxed. Why it is interesting? Having regard to the fact that this ruling would deal with constitutional validity of tax on unrealised income, its impact on other tax laws may warrant some attention namely: -Global Intangible Low taxed income (GILTI) -Subpart F -Corporate alternative minimum tax on book income What could be the impact from an International tax perspective? #PillarTwo is a 15 percent minimum tax on large multinational entities applicable through multiple methodologies. One of these methodologies, Pillar Two’s Income Inclusion Rule (IIR), allocates to parent entities a pro-rata share of tax on the income of their constituent entities, regardless of whether that income is distributed/realised. The IIR is a top-up tax, calculated as the difference between the constituent entity’s effective rate and 15 percent. A ruling that §965 does not comply with a realization requirement, may have constitutional implications on implementation of Pillar Two in US. The IIR, given its applicability to international profits (whether realised or not), may be impacted by this ruling. #tcja #internationaltax #ustax

🇸🇨 Our latest newsletter for the week: 𝗔 𝗦𝗽𝗼𝘁𝗹𝗶𝗴𝗵𝘁 𝗢𝗻 𝗧𝗵𝗲 𝗦𝗲𝘆𝗰𝗵𝗲𝗹𝗹𝗲𝘀 - 𝗪𝗵𝗮𝘁'𝘀 𝗡𝗲𝘄? Discover all the latest changes by reading the article now 📓: https://lnkd.in/eJyrVCkP #internationaltaxation #seychelles #taxes #taxpayer #offshore #seychelles #jurisdiction #taxnews #taxes #taxchanges #taxconsiderations

The Supreme Court reprimands the Spanish Tax Agency (AEAT) for skipping double taxation agreements. It points out that what these agreements establish prevails over national legislation. Keep reading ⇨ https://lnkd.in/d_rwuE9N #AEAT #DoubleTaxation #Spain #USTaxConsultants

𝐑𝐞𝐯𝐢𝐞𝐰 𝐨𝐟 𝐌𝐅𝐍 𝐑𝐮𝐥𝐢𝐧𝐠 - 𝐀 𝐥𝐚𝐬𝐭 𝐝𝐢𝐭𝐜𝐡 𝐞𝐟𝐟𝐨𝐫𝐭 The judgment of the Hon'ble Supreme Court on the MFN issue was expected to have far-reaching implications for MNEs from some jurisdictions. It was also expected that a review could be sought. The amounts of tax and interest involved are significant. Hence, in line with the expectations, a review petition has been filed, and would be interesting to see whether it would be considered. Here is a story for detailed reading in the Business Today with my comments. #tax #india #internationaltaxation #crossbordertransactions #mfn #MNEs #MNCs #foreigncorporations #foreigncompanies

Income generated from the sale of land is also subject to final tax in accordance with the regulations stipulated in Bangladesh's Income Tax law. The tax calculation process for income arising from the sale of land is elaborated on in the details provided here: https://lnkd.in/gfsi7xrY #taxvatpoint #finaltax #taxonlandsale #landtax #bdtax #NBR #taxsro

Amount B Won't Change ATO's Inbound Distributor Approach Appreciated to be quoted in Stephanie Soong's Tax Notes article last week on the Australian view on the proposed tax profile for distributors under the OECD’s proposed Pillar 1, Amount B plan. 👌⬇️ It is unlikely that the ATO will commit to the P1 measure, as the ATO already has a significant amount of guidance on issue on this topic in PCG 2019/1. In addition, Australia’s tax laws are also less prescriptive than other jurisdictions. The legislation allows for the ATO to have a greater degree of flexibility in administering the law and provides for the commissioner to be able to exercise his discretion to provide taxpayers with wide-reaching administrative concessions. Accordingly, adopting a rigid methodology would be seen to be contrary to the commissioner’s traditional approach to administering the tax laws. It will be interesting to see whether the OECD will get consensus on the proposed P1 Amount B plan as whilst it might give certainty to some jurisdiction it would be at the expense of flexibility for others‼️ Andersen in Australia #taxnotes #ATO #internationaltax #transferpricing #pillar1amountb #oecd