On 8 December 2021, Treasury issued Notice of Proposed Rulemaking to allow the public to review and comment on proposed regulations to implement the beneficial ownership information reporting provisions of the Corporate Transparency Act. Passed on 1 January 2021, the CTA imposes on so-called “Reporting Companies” the obligation to report to Financial Crimes Enforcement Network information regarding their “Beneficial Owners” and company “Applicants.”
Interested parties could, until 6 April 2022, provide their views to the EU Commission regarding the so-called Unshell proposal or ATAD 3. Many will have flagged the uncertainties about certain concepts and the need for more clarifications while others will also have indicated more substantial issues such as possible non-compatibility with EU Law. It remains to be seen whether the EU Commission will take (some of) these comments on board. Meanwhile, international groups should not rest on their laurels because it is likely that the Proposal will be adopted (as is or in an amended form) but rather start screening the European affiliates in their corporate structure, to identify possible issues under ATAD 3 and look for possible remedies.
With the COVID-19 pandemic coming to an end, agreements regarding taxation and social security legislation for cross-border workers who telework from Germany, Belgium and France will not extend past 30 June 2022.
We’re pleased to announce the publication of the second edition of Ukrainian Laws in Wartime: Guide for International and Domestic Businesses. This guide provides a brief overview of the key features of such wartime legislation. It is structured as a set of responses to the most common questions raised and considered by international and Ukrainian businesses these days.
Baker McKenzie’s Sanctions Blog published the alert titled Russian tax authorities recommend withholding VAT on B2B e-services in light of sanctions on 6 April 2022. Read the article via the link here. Please also visit our Sanctions Blog for the most recent updates.
The Carbon Tax was introduced in Law No. 7/2021 on Harmonization of Tax Regulation. The Carbon Tax will be imposed on carbon emissions that have a negative impact on the environment. The law stated that the Carbon Tax would be applied starting on 1 April 2022 for coal fired power plants. The law requires an implementing regulation in the form of a Minister of Finance regulation to stipulate the tariff and basis of the Carbon Tax, and a government regulation to stipulate the tax subject and tax object. There has to be consultation on the regulations with the Indonesian parliament.
On 4 April 2022, the OECD released a new public consultation document with respect to the draft model rules for Amount A. This latest draft model rules cover the Scope building block which stipulates which MNE Groups will be covered by the Amount A model rules. This document is the fourth building block of Amount A to be released. On 4 February 2022, the OECD issued its first extensive publication on Amount A covering the two components Nexus and Revenue Sourcing.
Stay tuned to Baker McKenzie’s Supply Chains Disrupted video series for discussions and practical insights about current and emerging supply chain issues, with a focus on the tax, legal, trade and regulatory implications supply chain management teams should consider.
In this latest update of the Global Equity Matrix, we summarize the key issues for share-based awards and cash awards and cover tax and securities, exchange control, labor law and data privacy considerations for such awards in 50 countries.
The UK’s Plastic Packaging Tax becomes effective on 1 April 2022 and applies to plastic packaging in the UK that contains less than 30% recycled plastic content at a rate of GBP 200 per metric tonne. The tax is aimed at encouraging the use of more sustainable plastic packaging, increasing the use of recycled plastic and helping to reduce plastic waste. The PPT has been promoted by the UK government as a world leading measure and other jurisdictions are already putting in place similar regimes.