International Tax Round-up - March 2019

This publication gives an overview of key international tax developments across the Linklaters network. Click here to read more.

Topics include:

International Developments

• Digital Taxation

EU Developments

• CJEU considers “beneficial owner” and “abuse of rights” concepts in EU Directives

• Revised EU blacklist of non-cooperative jurisdictions

Germany

• Compatibility of the CFC rules with the free movement of capital

• Brexit Accompanying Tax Act

Netherlands

• Introduction of a thin-capitalisation rule for banks and insurers

Portugal

• Multilateral Instrument to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) approved by Portuguese Council of Ministers

• European Parliament approved the TAX3’s Report which made a reference to the investigation that the European Commission has been conducting on the effective compliance of the Madeira Free Zone tax regime conditions

Sweden

• Three Proposals to reintroduce the tax reduction for gifts; to decrease the VAT rate for electronic publications; to introduce new tax rules for transfer of ownership in close companies

• Several rulings from the Swedish Supreme Administrative Court on the deductibility of interest expenses between affiliated companies

• Advanced ruling regarding energy tax on solar cells on attached buildings

United Kingdom

• Withholding tax in the event of a no-deal Brexit

• Brexit: Input VAT recovery available for financial services exported within the EU

• Spring Statement 2019 has limited tax content

• Supreme Court confirms that payment of statutory interest in an administration can be “yearly interest” for withholding tax purposes