La viñeta del día

European Parliament adopts resolutions on combating tax fraud/tax evasion and on the CCCTB

On April 19, 2012, the European Parliament adopted a resolution to more effectively combat tax fraud and tax evasion. In another resolution adopted on the same day, the Parliament amended and adopted the European Commission’s March 2011 proposal for the Common Consolidated Corporate Tax Base ("CCCTB"). The Parliament believes the CCCTB is key to combating tax fraud.

Source and more info: pwc

Macro statistics on Euro Zone

The average tax burden on earnings in OECD countries continues to rise

On 25 April 2012, the OECD issued the publication Taxing Wages, which provides information on the taxes paid on wages in OECD countries. It covers personal income taxes and social security contributions paid by employees, social security contributions and payroll taxes paid by employers and cash benefits paid to in-work families.
The tax burden is measured by the "tax wedge as a percentage of total labour costs" – or the total taxes paid by employees and employers, minus family benefits received, divided by the total labour costs of the employer. Taxing Wages also breaks down the tax burden between personal income taxes (PIT), including tax credits, and employee and employer Social Security Contributions (SSC).
Key "Taxing Wages" results in 2011 included:

• The highest tax wedges for single workers without children who are earning the average wage in their country were observed in Belgium (55.5%), Germany (49.8%) and Hungary and France (49.4%). The lowest tax wedges on the same basis were in Chile (7%), Mexico (16.2%) and New Zealand (15.9%) The average for OECD countries was 35.3%.
• The average overall tax wedge, for those earning the average wage, increased by 0.3 percentage points between 2010 and 2011. This was largely due to PIT. Of the 26 countries where the tax wedge rose, in 18 the PIT wedge also rose, most notably in Ireland (+3.8 percentage points), Hungary (+2.4 percentage points) and Portugal (+1.4 percentage points). Falls in the overall tax burden were also primarily due to PIT changes – the largest decrease was in New Zealand where the tax wedge fell by 1.1 percentage points due to changes in the income tax rates in 2011.
• The United States was the main exception to the rule. The overall tax wedge fell by 0.9 percentage points in 2011, due to a decrease in employee social security contributions which outweighed an increase in income taxes resulting from the expiry of the temporary "Making Work Pay" non-wastable tax credit.
• The highest tax wedges for one-earner families with two children at the average wage were 42.3% for France, 40.3% for Belgium and 38.6% for Italy. New Zealand had the smallest tax wedge for these families (-1.2%), followed by Chile (7%), Ireland (7.1%) and Switzerland (8.4%). The average for OECD countries was 25.4%.
• Single people in Hungary faced the biggest increase in the tax burden, but families with children enjoyed the biggest reduction due to a reform of the child tax relief scheme that changed from a tax credit to a more advantageous tax allowance in 2011.
• In all OECD countries except Mexico and Chile, the tax wedge for families with children is lower than that for single individuals without children. The differences are particularly large in the Czech Republic, Luxembourg, Belgium, Germany, Hungary, Ireland, New Zealand and Slovenia.

As regards the trends over time, according to the analysis in the publication, the most pronounced trend has been the reduction in top statutory PIT rates, inclusive of surtaxes and sub-central income taxes. The average OECD-wide top statutory PIT rate decreased significantly in each of the last three decades, from 65.7% in 1980 to 46.5% in 2000, and to 41.7% in 2010. More recently, this trend appears to have come to a halt, in 2010 and 2011 more countries increased than reduced their top PIT rates.

Over the last decade, almost two-thirds of OECD countries have reduced the income threshold at which the top statutory PIT rate starts to apply, though in the majority it is still more than twice the average wage. However, for people earning average wages, the marginal PIT rate fell across the OECD countries from an average 30.5% in 2000 to 27.4% in 2010, with the corresponding average personal income tax rate falling from 16% to 14.5%. For low-income earners, there were no clear trends in the level of income at which an individual starts to have to pay tax, or in the starting rate of tax.

EBITDA-based limitation on related party interest proposed in Finland

Finland's Ministry of Finance issued a draft proposal on 12 April 2012 that would limit the deduction of interest on related party loans. According to the draft, a full deduction would be allowed for interest expense if the borrower has interest income, but the deduction of the excess amount would be limited to a maximum of 30% of profit before interest, tax, depreciation and amortization (EBITDA). Finland currently does not have a specific limitation on interest deductibility and the substance-over-form and anti-avoidance rules generally have not been used to limit such deductions.
The proposed rules would not limit the deductibility of interest on loans granted by unrelated creditors, and net interest expense always would be deductible up to EUR 500,000 per tax year to ease the administrative burden. All Finnish and nonresident limited liability companies and partnerships would fall within the scope of proposed rules. The rules also would cover passive income earners, such as companies operating in the real estate industry.
Parties would be deemed to be related for purposes of the EBIDTA limitation rules if one party had direct or indirect control over the borrower. Control would be established if the beneficial owner of the interest held at least 50% of the capital or voting power or the right to nominate a certain number of board members or other factors were present that constitute control. Back-to-back and collateral arrangements would be taken into account when assessing the deductibility.
Any interest that could not be deducted because of the EBIDTA limitation could be carried over to future tax years and deducted according to the 30% limit. Specific rules would apply in the case of reorganizations (mergers, demergers and transfer of assets).
If approved in its current form, the proposed law would enter into force on 1 January 2013 and be applied for the first time when assessing taxes for 2013.
The draft proposal has been circulated for comments, but it is unlikely that comments will materially change the contents.

Source: Deloitte

Costa Rica's tax reform (incl. TP rules) declared unconstitutional

In a decision issued on 10 April 2012, Costa Rica’s Constitutional Supreme Court ruled that, due to significant and material errors in the legislative process that led to the National Congress pre-approving a proposed tax reform on 14 March, the reform measures are unconstitutional. Should the government wish to pursue the reform, the legislative process with have to start anew, which currently seems unlikely.
The reform included the following:

• Capital gains derived by Costa Rican residents would be subject to a 15% tax (3% for nonresidents) if the gains do not arise from the disposal of assets used in a normal trade or business. Under current law, capital gains are not subject to tax unless the gains arise from “habitual” transactions or the transfer of an asset subject to depreciation (or amortization in the case of intangibles).
• Foreign exchange gains and losses would be considered taxable/deductible for income tax purposes in the fiscal year in which they are realized. Existing law is unclear as to whether such gains are taxable or nontaxable income, with several cases pending before the national tax courts.
• Formal transfer pricing rules that follow the OECD guidelines would be introduced.
• Formal thin capitalization rules that include a 3:1 debt-to-equity ratio would be introduced. Costa Rica currently does not have any restrictions on interest deductions if interest rates on related party debt are in accordance with market standards.
• The double taxation relief rule would be abolished. The rule currently allows companies in certain countries (including Mexico and the U.S.) to obtain a 100% exemption from withholding tax on dividends, interest, royalties, commissions and insurance premiums.
• A 15% withholding tax on dividend distributions would be introduced for free trade zone companies that begin operations in 2015; currently, dividends are covered by tax holiday rules.
• The standard rate of VAT would increase from 13% to 14%, the list of exempt products would be significantly curtailed and the provision of services, with limited exceptions (i.e. certain cases of public transportation), would be brought within the scope of VAT.

The decision of the Constitutional Supreme Court means that existing rules will remain unchanged.

Source: Deloitte

Investing in the USA

President Obama released his fiscal year 2013 budget on 13 February (Budget). This Budget contains many of the proposals affecting foreign multinational investors in the US (Inbound Investors) from the FY 2012 Budget. The international proposals included in this year’s budget generally are proposed to be effective for tax years beginning after 31 December 2012.

Source and more info: Ernst & Young

La viñeta del día

La viñeta del día

IRS issues thirteenth annual APA report for 2011

The IRS issued the thirteenth congressionally-mandated, annual Advance Pricing Agreement (APA) report on 2 April 2012, in Announcement 2012-13. The thirteenth annual report provides an updated discussion of the APA Program, including its activities and structure for calendar year 2011. The report provides useful insights into the operation of the Program, and can give some indication of the treatment and processes that companies applying for an APA can expect to encounter.
Source and more info: Ernst & Young

Spanish government introduces changes affecting Spanish international and domestic tax framework

The Spanish government introduced significant changes to the rules governing the tax deductibility of financing expenses incurred by Spanish entities, relaxed certain requirements for the application of the Spanish participation exemption regime and amended the rules relating to the calculation of corporate income tax advanced payments in legislation that was published on 31 March 2012. This new legislation is applicable to tax years starting on or after 1 January 2012.
These rules form part of a wider set of tax and non-tax measures that seek to reduce Spain’s public deficit.
Source: Ernst & Young
More info: International tax framework
Domestic tax framework

Brazilian government introduces Provisional Measure modifying transfer pricing rules

Published on 4 April 2012, Provisional Measure (MP) 563 introduced changes to the Brazilian transfer pricing rules. These are the first significant changes since the introduction of transfer pricing rules in 1996, which received further interpretation by the Brazilian tax authorities in administrative regulations in 2002 (Normative Instruction (IN) 243 of 2002). The rules determine the calculation of the so-called parameter price, which determines the deductibility of intercompany purchases or the minimum price for tax purposes for export transactions.
Source and more info: Ernst & Young

Proposed Canadian Transfer Pricing Amendments

The March 29, 2012, Canadian fiscal budget contained transfer pricing-related amendments to the Income Tax Act. Previously, transfer pricing adjustments made by the Canada Revenue Agency (“CRA”) resulted in a constructive or deemed dividend as a result of the benefit conferred to the non-resident parent company by its Canadian subsidiary company. That is, when a Canadian subsidiary receives an income or capital transfer pricing adjustment, the CRA “deems” the non-resident parent to have received a dividend equal to the amount of this primary adjustment. The deemed dividend, or secondary adjustment, is subject to withholding tax of 25 percent. Tax treaties typically reduce this withholding tax rate (e.g., the Canada-US tax treaty reduces the rate to 5 percent). The budget proposes to treat the benefit from the primary adjustment as a deemed dividend irrespective of whether the non-resident is a shareholder of the Canadian corporation.

Previously, under certain conditions, an administrative practice of the CRA allowed the elimination of the deemed dividend if the amount of the primary adjustment was repatriated to the Canadian Corporation. The budget proposes to codify this administrative practice into legislation. These proposals will apply to transactions that occur on or after March 29, 2012.

In addition, thin capitalization rules would be amended under the new fiscal budget. These rules address the deductibility of interest payments a Canadian resident pays to certain non-residents for debts owing that exceed twice the amount of the corporation’s equity. The budget proposes to reduce the debt-to-equity ratio from 2-to-1 to 1.5-to-1. This change would apply to corporate taxation years that begin after 2012.

Source: Ceteris Transfer Pricing Times Volume IX, Issue 4‏

Brazilian government makes significant changes to transfer pricing legislation

As part of a long-awaited initiative to stimulate domestic growth, the Brazilian government on 3 April published Provisional Measure (MP) 563/2012, which includes significant changes to the country's transfer pricing rules. MP 563/2012 amends the rules applicable to imports of goods, sets profit margins for certain sectors, and creates two new transfer pricing methodologies.
The MP still must be enacted into law, which is expected to take place within 60 days following publication. Although the changes made by MP 563/2012 will apply to fiscal years starting on or after 1 January 2013, taxpayers can opt to apply the rules from fiscal year 2012.

More info: Deloitte

Entrada en vigor del CDI con Armenia

• Convenio entre el Reino de España y la República de Armenia para evitar la doble imposición y prevenir la evasión fiscal en materia de impuestos sobre la renta y el patrimonio, hecho en Madrid el 16 de diciembre de 2011.

Entró en vigor el pasado 21 de marzo de 2012.

Entrada en vigor del CDI con Hong Kong

• Convenio entre el Reino de España y la Región Administrativa Especial de Hong Kong de la República Popular China para evitar la doble imposición y prevenir la evasión fiscal en materia de impuestos sobre la renta y su Protocolo, hecho en Hong Kong el 1 de abril de 2011.

Entró en vigor el pasado viernes, 13 de abril de 2012.

INFORME SOBRE EL ANTEPROYECTO DE LEY DE MEDIDAS DE PREVENCIÓN Y LUCHA CONTRA EL FRAUDE

El Consejo de Ministros ha recibido un informe del Ministro de Hacienda y Administraciones Públicas sobre un Anteproyecto de Ley de intensificación de lucha contra el fraude que completa el Real Decreto Ley de medidas tributarias aprobado el 30 de marzo. En ese Real Decreto Ley se introdujeron medidas correctoras en el Impuesto de Sociedades para elevar el tipo de gravamen efectivo que pagan las grandes empresas, además de un plan extraordinario de regularización de rentas ocultas en donde se fija un gravamen del 10 por 100 sobre el importe de bienes y derechos aflorados.

Tanto el plan especial de regularización de rentas ocultas incluido en el Real Decreto Ley como el Anteproyecto de Ley puesto en marcha hoy por el Consejo de Ministros pretenden el mismo objetivo de reducir la economía sumergida y elevar el número de contribuyentes que cumplen con sus obligaciones tributarias.

En concreto, el Anteproyecto de Ley viene a reforzar las actuaciones en la prevención y lucha contra el fraude fiscal, una de las prioridades de la política económica del Gobierno. En él se combinan medidas novedosas diseñadas para impactar directamente en nichos tradicionales de fraude con otras que refuerzan la seguridad jurídica del sistema tributario y potencian la recaudación.

LIMITACIÓN DEL PAGO EN EFECTIVO

Una de las medidas más ambiciosas aprobadas hoy consiste en la limitación del uso de dinero en efectivo en determinadas operaciones. Se ha tenido en cuenta la experiencia legislativa en países comunitarios del entorno como Francia e Italia. El objetivo último de la medida es dotar a la Agencia Tributaria de mayor información en su tarea de detectar tanto bolsas de fraude como actuaciones ilícitas.

Así, no podrán pagarse en efectivo operaciones iguales o superiores a 2.500 euros en las que intervenga, al menos, un empresario o profesional. La limitación no será aplicable a los pagos e ingresos realizados con entidades de crédito.

Quienes incumplan la prohibición se enfrentarán a multas del 25 por 100 del valor del pago hecho en efectivo. Tanto el pagador como el receptor del pago responderán de forma solidaria de dicha infracción, por lo que la Administración podrá dirigirse contra cualquiera de ellos. Se fija, además, el deber de toda autoridad o funcionario público de denunciar los incumplimientos de los que tengan conocimiento en esta materia. Si la denuncia procede de una de las partes que hayan intervenido en la operación, Hacienda no aplicará sanción alguna a esta parte si voluntariamente lo pone en conocimiento de la Agencia Tributaria dentro de los tres meses siguientes a la fecha del pago.

Los intervinientes en estas operaciones en las que participe un empresario o profesional deberán conservar los justificantes de pago durante cinco años para acreditar ante la Agencia Tributaria que se efectuó a través de alguno de los medios de pago distintos al efectivo.

Esta limitación en el uso de efectivo entrará en vigor cuando lo haga el citado Anteproyecto de Ley, aunque se refiera a operaciones concertadas con anterioridad.

CUENTAS EN EL EXTRANJERO

Por otro lado, la norma fija la obligatoriedad para todos los contribuyentes de suministrar información sobre cuentas y valores situados en el extranjero de los que sean titulares, beneficiarios o figuren como autorizados. Se hará mediante un modelo que se aprobará a tal efecto. Están incluidos todo tipo de títulos, activos, cuentas en entidades financieras así como valores o seguros de vida.

El incumplimiento de esta nueva obligación de información llevará aparejado un régimen sancionador propio a razón de cinco mil euros por cada dato o conjunto de datos omitidos, con un mínimo de diez mil euros. Además, se declara la imprescriptibilidad de las rentas no declaradas. La modificación permitirá la detección de ganancias de patrimonio no justificadas, en un entorno de globalización económica internacional.

EXCLUSIÓN DEL RÉGIMEN DE MÓDULOS

El texto normativo recoge también modificaciones que afectan a los empresarios incluidos en el régimen de módulos. De esta forma, se fija la exclusión del régimen de estimación objetiva para aquellos empresarios que facturen menos del 50 por 100 de sus operaciones a particulares. Dicha exclusión solo operará para empresarios cuyo volumen de rendimientos íntegros sea superior a cincuenta mil euros anuales.

Las actividades susceptibles de exclusión son las afectadas por la retención del 1 por 100. Entre ellas se encuentran la albañilería, la fontanería, la carpintería y el transporte de mercancías por carretera.

MEDIDAS PARA REFORZAR LA CAPACIDAD RECAUDATORIA

El Anteproyecto de Ley incluye también una serie de medidas encaminadas a reforzar la capacidad recaudatoria de la Agencia Tributaria, sobre todo en los casos en donde el contribuyente intenta escapar de sus obligaciones fiscales retrasando el pago de la cuota, interponiendo obstáculos procedimentales o diluyendo su patrimonio.

Administradores y socios

Por todo ello, se introduce un nuevo supuesto de responsabilidad subsidiaria contra los administradores de empresas carentes de patrimonio, pero con actividad económica regular, que realizan autoliquidaciones recurrentes sin ingresos por determinados conceptos tributarios, con un ánimo defraudatorio. Estos administradores serán responsables de las deudas derivadas de los tributos que deban repercutirse o de las cantidades que deban retenerse a trabajadores o profesionales.

La norma regula también expresamente la responsabilidad de los socios en la deuda tributaria de las personas jurídicas o entidades disueltas o liquidadas.

El texto aprobado hoy elimina, asimismo, la posibilidad de aplazamientos o fraccionamientos de créditos en las situaciones de concurso para evitar la postergación artificiosa del crédito público.

Para combatir determinadas conductas fraudulentas que persiguen la despatrimonialización de una empresa, se prohíbe la disposición de inmuebles de sociedades en donde han sido embargadas acciones equivalentes a más de la mitad del capital social.

Cobro de deudas y embargo de bienes

Para garantizar el cobro de deudas, la norma modifica al alza el importe de la garantía que es necesario depositar para que se suspenda la ejecución de un acto impugnado, a fin de que éste cubra todos los recargos que pudieran ser exigibles.

También se modifica el régimen del embargo de bienes y derechos en entidades de crédito para que éste se pueda extender más allá de la oficina o sucursal a la que se remitió el embargo.

Respecto a las medidas cautelares, se modifica el precepto para permitir su adopción en cualquier momento del procedimiento cuando así se estime oportuno. Se permitirá a la Agencia Tributaria adoptar medidas cautelares en los procesos penales.

Además, se endurecen las sanciones a imponer por resistencia u obstrucción a las actuaciones inspectoras. Si el contribuyente desarrolla actividades económicas, la sanción puede llegar a seiscientos mil euros.

OBLIGACIONES TELEMÁTICAS

Por otro lado, el Anteproyecto de Ley crea un nuevo tipo de infracción tributaria para los que no respeten las obligaciones en la presentación de autoliquidaciones o declaraciones telemáticas. Llevará aparejadas sanciones fijas en el supuesto de autoliquidaciones, y variables, en función del número de datos, en el supuesto de declaraciones informativas.

IVA Y TASAS JUDICIALES

En relación con el IVA, se establece la inversión del sujeto pasivo en los supuestos de renuncia a la exención del impuesto vinculada a ciertas operaciones inmobiliarias. Así, el sujeto adquirente sólo podrá deducirse el IVA soportado si acredita que ha ingresado el IVA repercutido. Se evita con ello el doble perjuicio para la Hacienda por la falta de ingreso del impuesto por el transmitente del inmueble y por la deducción del IVA soportado.

El texto legislativo incluye un nuevo régimen de las tasas por el ejercicio de la potestad jurisdiccional, con el ánimo, por un lado, de ayudar a financiar la Administración de Justicia y, por otro, de disuadir a quien se acerca a los tribunales con la sola finalidad de dilatar en el tiempo el cumplimiento de sus obligaciones. La cuota de las tasas oscilará entre 150 y 10.000 euros, dependiendo de si se trata del orden civil, contencioso-administrativo o social. Se fija una bonificación del 10 por 100 si se utilizan medios telemáticos en el pago de la misma.

Más información: Ministerio de Hacienda

La viñeta de El Economista

Germany suggests 12 company tax changes

The German government has agreed upon a concept paper (no legislative bill) with 12 suggested points of company tax changes. These may impact US multinational companies operating in Germany. Following is a brief overview of the major potential changes.
Source and more info: pwc

Canadian withholding taxes to be payable on "deemed dividends" from transfer pricing adjustments

The Canadian Federal budget tabled in Parliament on March 29, 2012 proposed new provisions that specifically impose withholding taxes on transfer pricing adjustments that increase Canadian income. These provisions would have effect from March 29, 2012 and add clarity to a taxpayer's exposure to secondary adjustments.
Source and more info: PKN

Provisional measure introduces significant changes in Brazilian transfer pricing regulations

On April 4, the Brazilian Government issued Provisional Measure ("PM") 563 introducing significant changes to the existing Brazilian transfer pricing regulations.

Source and more info: PKN

PWC comment on OECD Report on Hybrid Mismatch Arrangements

On 5 March 2012, the Organisation for Economic Co-operation and Development (OECD) released a report entitled Hybrid Mismatch Arrangements: Tax Policy and  compliance Issues (the Hybrid Report). The Report builds on prior OECD and Forum on Tax Administration (FTA) reports. It was prepared by representatives from the tax authorities of 20 countries comprising 19 OECD members plus India.

More comment: pwc

El Salvador passes transfer pricing regulations resulting in immediate compliance requirements

El Salvador passes transfer pricing regulations resulting in immediate compliance requirements.  Taxpayers are recommended to file the informative return by the deadline of April 10, 2012 to avoid penalties. Moreover, there are no penalties if the taxpayer decides to amend this initial filing. Transfer pricing documentation will need to be prepared by May 31, 2012, to support the transfer pricing review as part of the Dictamen Fiscal.

Source and more info: pwc

Spain 2012 budget includes significant corporate tax changes

On March 30, 2012, the Spanish government announced the 2012 budget.  At the same time, the government approved Royal Decree-Law 12/2012, which introduces a number of relevant changes in the corporate tax area, including new limitations on the deductibility of interest expense.
Source and more info: pwc

Belgium overhauls general anti-avoidance rule and introduces 5/1 thin cap provision

Belgium has enacted more of the tax measures proposed at the end of November 2011 under the 2012 budget agreement. The newly enacted provisions include an overhaul of the general anti-avoidance rule and a new thin capitalization ("thin cap") provision. This newsalert summarizes the proposed and enacted income tax provisions that are most relevant to US multinationals.
Source and more info: pwc