On November 13, 2019, the Court of Justice of the European Union (CJEU) rendered its decision in the College Pension Plan of British Columbia case (C-641/17) concerning the compatibility with EU law of the German withholding tax on dividends paid to a Canadian pension scheme. The Court ruled that the German legislation constitutes an unjustified restriction to the free movement of capital and noted that the derogation from the prohibition on restrictions to the free movement of capital with non-EU countries (also referred to as the ‘Standstill Clause’) does not apply to the case at hand
EU Mandatory Disclosure Requirements – Update
As previously reported, mandatory disclosure requirements (MDR) for intermediaries and relevant taxpayers entered into force in the European Union on June 25, 2018 and must be implemented by Member States before December 31, 2019, to be applied as of July 1, 2020. Intermediaries are also required to track reportable transactions as of June 25, 2018 and disclose this information to the tax authorities by August 31, 2020.
This sixth Special Edition Euro Tax Flash summarizes the most recent implementation updates of the new rules into Member States’ domestic legislation, as at November 8, 2019.
ECOFIN discusses digital taxation agenda and removes Belize from the tax haven blacklist
Belgian Constitutional Court annuls annual tax on securities accounts
In its decision of 17 October 2019, the Belgian Constitutional Court annuls the annual tax on securities accounts, with effect as of 1 October 2019. This implies that the tax can no longer be levied for future periods. However, taking into account the potential budgetary and administrative implications, the Court also decided that for the taxable periods that have elapsed till 30 September 2019, the tax remains due (case n° 138/2019).
Digital Economy Tax Tracker
As digitalization disrupts the way businesses operate and rapidly changes the tax landscape, new tax requirements (both indirect and direct) seek to ensure that tax is collected at the point of consumption.
OECD consultation on a “unified approach” to taxing the digital economy
Following a meeting on October 1, 2019 of the OECD Task Force on the Digital Economy (TFDE), the OECD Secretariat published a public consultation document on October 9, 2019 that sets out a proposal for a unified approach to the nexus and profit allocation challenges arising from digitalization. The OECD invites comments from the public with a view to discussing the results during a public consultation on November 20 and 21, 2019. Interested parties are invited to send their comments by email to the OECD no later than 12pm (Paris time) on Tuesday, November 12, 2019, using the email address TFDE@oecd.org.
Nieuwe publicatie van grensoverschrijdende btw-rulings
Op 15 juli 2019 publiceerde de Europese Commissie op haar website de recentste update van grensoverschrijdende btw-rulings. Daarmee maakt de Europese Commissie een inhaalbeweging, omdat de vorige publicatie al dateerde van mei 2017 (zie; https://ec.europa.eu/taxation_customs/business/vat_en). Hieronder een korte samenvatting van recente btw-rulings waarin ook het standpunt van de Belgische btw-administratie werd gevraagd.
Nouvelle publication de rulings TVA transfrontaliers
Le 15 juillet 2019, la Commission européenne a publié sur son site web la dernière mise à jour des rulings TVA transfrontaliers. Ce faisant, la Commission européenne amorce une manœuvre de rattrapage puisque sa précédente publication remonte à mai 2017 (voy. https://ec.europa.eu/taxation_customs/business/vat_en). Vous trouverez ci-dessous un bref résumé des derniers rulings TVA dans le cadre desquels le point de vue de l'Administration TVA belge a également été sollicité.
Prefiling requests regarding transfer pricing or innovation income deduction must be filed by 31/01/2020
The ruling commission has communicated that prefiling requests or ruling requests (without prefiling) regarding the innovation (or patent) income deduction or transfer pricing with impact on the corporate tax return to be filed by the end of September 2020 must be introduced on 31 January 2020 at the latest. For companies that are not closing their annual accounts on a calenda ...
General Court examines the compatibility of rulings granted by Ireland, Luxembourg and the Netherlands with EU State aid rules
Following multiple State aid investigations launched by the European Commission, the General Court of the European Union was asked to examine whether the advance transfer pricing agreements granted by Ireland, Luxembourg and the Netherlands were compatible with EU law. In the case involving Netherlands, the Court ruled on September 24, 2019 that the Commission’s decision should be annulled, but upheld the Commission’s findings in the case involving Luxembourg. As regards the Irish case, during a hearing that took place on September 17 and 18, 2019 the Court requested the Commission, Ireland and the taxpayer concerned to clarify their arguments.