At the end of last year, the Belgian Parliament adopted a new Program law, which includes new rules on the controlled foreign company regime in Belgium applicable as of tax assessment year 2024.
In this webinar, we briefly explain the new rules, how they will impact you, and what the remaining uncertainties are.
On 8 December 2023, Treasury and the IRS released Notice 2024-16 announcing their intent to issue proposed regulations addressing the treatment of basis under section 961(c) in certain inbound nonrecognition transactions in which a domestic corporation acquires the stock a controlled foreign corporation (CFC) from another CFC. These proposed regulations are in addition to the highly anticipated proposed previously taxed earnings and profits (PTEP) regulations expected this year. According to the Notice, the proposed regulations will provide that, in the case of certain “covered inbound transactions,” the domestic acquiring corporation’s adjusted basis in the acquired CFC stock (as determined under section 334(b) or 362(b)) will be determined as if the transferor CFC’s section 961(c) basis were adjusted basis.
On 1 April 2024 new provisions contained in the Financial Code for the State of Mexico will become effective, with regard to the following taxes:
There are also new rates applicable to the Tax on Pollutant Air Emissions (“Air Emissions Tax”), in force since 2022.
Investigations are an essential tool for ensuring a company’s ethical standards are being followed by employees, business partners, and any others with whom the company interacts. However, investigations are also an essential tool for demonstrating and maintaining strong corporate governance – an integral part of a company’s ESG commitments and strategy. It is also a good time to set yourself some goals and resolutions. To help you on your way, we are pleased to share our top 5 Lunar New Year Resolutions for handling Internal or Government Investigations
The Canary Islands Government has decided to reduce the tax rate applicable to different goods and services including medical devices, veterinary medicines and veterinary services. These changes are expected to facilitate patients’ access to these products and services by reducing their costs.
In the recent case of Soroban Capital Partners LP v. Commissioner, 161 T.C. No. 12 (2023), the Tax Court held that the limited partner exception under section 1402(a)(13) does not apply to limited partners who the Court concluded were not limited partners “as such”; thus certain “limited partners” of a partnership may be subject to Self-Employed Contributions Act tax. The Tax Court in Soroban held that determining a “limited partner” for section 1402(a)(13) purposes requires a factual inquiry into the functions and roles carried out by such limited partner. If the factual inquiry shows that a limited partner is heavily involved in the partnership’s business and/or performed services for the partnership, such limited partner’s distributive share may be subject to Self-Employed Contributions Act tax.
On 27 December 2023, the BIR published RR No. 16-2023 to amend RR No. 2-1998 and impose withholding tax on the gross remittances by e-marketplace operators and digital financial services providers to sellers/merchants. On 11 January 2024, the BIR issued RMC 8-2024 to provide guidance on the timeline and procedures to implement RR No. 16-2023. According to RR No. 16-2023, e-marketplace operators and digital financial services providers are allowed a transitory period of 90 days from the issuance of RMC 8-2024 to comply with the provisions of RR No. 16-2023.
Looking back at 2023, it is clear that the IRS has begun to increasingly assert anti-abuse doctrines, most notably the economic substance doctrine (ESD), in contentious tax controversies. Correspondingly, courts have had more opportunities to analyze and conceptualize the various anti-abuse doctrines. Courts in Liberty Global, GSS Holdings, and Chemoil have each offered unique and sometimes conflicting analyses in this regard. When reviewing these cases at a high level, a worrisome pattern emerges of courts conceiving of the traditional three anti-abuse doctrines as simply manifestations of a much broader substance over form tax principle. Further, despite the text of section 7701(o), courts are rejecting the idea that there exist certain transactions to which the ESD does not apply.
Against a backdrop of economic stagnation and geopolitical conflict, businesses are preparing for a challenging year. Global disputes will continue at pace, according to insights from more than 600 senior lawyers at large corporations, with ESG and employment risks the greatest areas of concern. Our seventh annual report provides detailed analysis of disputes trends, as well as sectoral and region-specific developments, to prepare your organization for The Year Ahead.
The Doing Business in the Philippines handbook aims to equip both local and foreign entrepreneurs with a practical guide to navigating the ever-evolving business landscape in the Philippines. It provides information on the requirements needed when setting up and operating a business in the Philippines, including incentives under special registrations, taxation, employment, IP, dispute resolution, and industry-specific regulations.