- OECD Tax Certainty Day: The OECD held its sixth annual Tax Certainty Day on November 15, 2024, releasing 2023 statistics on mutual agreement procedures (MAP) and advance pricing arrangements (APA), indicating a 16% decrease in new transfer pricing cases, while “other” cases saw a 2.8% increase.
- EU VAT in the Digital Age (ViDA): The Economic and Financial Affairs Council adopted the ViDA initiative, which proposes significant changes to VAT rules in the EU, aiming to enhance compliance, prevent tax fraud, and adapt VAT regulations for the digital economy, with further legislative steps to be taken.
- New VAT and Tax Regulations: Countries such as the Philippines implemented a 12% VAT on digital services from non-resident sellers, while Australia passed legislation for a 15% global minimum tax under OECD guidelines. Additionally, Latvia will require e-invoicing for B2G transactions starting January 1, 2025, and for B2B transactions by January 1, 2026.
- Italy’s Tax Reforms: Italy is proposing significant changes to its corporate income tax and Digital Services Tax, with the latter aiming to remove revenue thresholds for applying the tax, effective January 1, 2025, and ongoing discussions regarding broader corporate tax reforms.
- Transfer Pricing and Compliance: The Kenya Tax Appeals Tribunal upheld the use of the Resale Price Method for transfer pricing adjustments, while the Swiss Federal Supreme Court ruled on beneficial ownership related to interest on bonds, highlighting ongoing developments in tax compliance and transfer pricing methodologies globally.
Source EY
