On 22 June 2017, the OECD released for public comment the revised discussion draft on the application of the profit split method, which intends to continue the work developed in the OECD Transfer Pricing Guidelines and, in more details, in the BEPS Actions 8-10, whose motto aims to assure that transfer pricing outcomes are in…

As widely reported by the news media, a major corporate tax reform has been under discussion in the United States, which may cause spillover effects on taxpayers engaged in cross-border transactions. One of the proposals on the table is the Paul Ryan’s blueprint “A Better Way — Our Vision for a Confident America”, released by…

On 24 November 2016, the OECD released the Multilateral Convention designed for the implementation of tax treaty measures related to the Base Erosion and Profit Shifting (“BEPS”) Project. The Multilateral Convention is backed up by an Explanatory Statement, which clarifies the approach adopted to modify the provisions of existing bilateral tax treaties. The Multilateral Convention…

On September 14th, 2016, the Brazilian Federal Revenue Service (“RFB”) published the Normative Instruction RFB No. 1,658/2016, which included legal entities incorporated as holding companies in Austria in the list of privileged fiscal regimes. Although the list mentions “legal entities incorporated in the form of holding company“, the wording is imprecise, because the administration of…

In a recent post, Professor Werner Haslehner raised an interesting discussion on the new wording of Article 4.1 (a) of the Parent-Subsidiary Directive (“PSD”), which obliges the Member State of the parent company to tax the dividends received to the extent that the corresponding payment are deductible from the corporate income tax paid by the…

In general terms, the application of anti-hybrid rules proposed by the OECD in Action 2 of the BEPS Project, with the aim of establishing a link between the tax treatment applicable to the remuneration derived from hybrid financial instruments in different jurisdictions, will depend on the fulfillment of four cumulative conditions: (i) the use of…

The first part of this blog post addressed the incompatibility of the anti-hybrid rule proposed by the OECD to the source state (“primary response”), which restricts the right to deduct the payments made to non-residents, with the non-discrimination provision found in article 24(4) of tax treaties patterned on the OECD MC. In this second part…

With the declared aim of curbing cross-border tax arbitrage practiced with hybrid financial instruments, the OECD recommended, in Action 2 of the BEPS project, the adoption of anti-hybrid rules, designed to establish a link between the tax treatments applicable to the remuneration derived from financial instruments with characteristics of both equity and debt in the…