1. Introduction

The Luxembourg direct tax authorities issued on 27 December 2016 new guidelines by means of the issuance of Circular L.I.R. no. 56/1 – 56bis/1 (hereinafter the “Circular”) which deals with the Luxembourg tax treatment applicable to Luxembourg companies engaged in intra-group financing transactions. The Circular details the application of the arm’s length principle to such transactions which principle has been codified in the Luxembourg direct tax law via articles 56 LIR and a newly introduced article 56bis LIR (which will apply as from 1 January 2017). Click here for an English translation of the Circular.

As announced earlier in 2016, the Netherlands has enacted a new innovation box regime as of January 1, 2017, in line with the outcomes of the OECD’s BEPS project (Action Plan 5). The new legislation has a grandfathering period until 2021 for (qualifying) intellectual property (“IP”) developed before July 1, 2016.

Because of the new regulations, all existing innovation box rulings with the Dutch tax authorities have been cancelled as of January 1, 2017.

On Monday November 21, 2016, the Dutch State Secretary of Finance announced he is postponing the deadline for the country-by-country-reporting notification.

On July 4 2016, the Belgium government adopted a law introducing statutory transfer pricing documentation requirements for certain taxpayers.

On 6 June 2016, a new law1 was proposed in the Belgian Federal Parliament’s Chamber of Representatives to introduce, amongst other items, a statutory transfer pricing documentation requirement for certain undertakings in Belgium, which would take effect from the accounting years starting on or after 1 January 2016.

The OECD’s transfer pricing documentation requirements significantly change the equilibrium of ‘business as usual’ even for MNEs (multinational enterprises) that have already compiled documentation in the past. Furthermore, the new, three-tiered approach - Master File, Local File, Country-by-Country Report - will not only provide tax administrations with more detailed information regarding the global value chain of a company, but may bring to the surface inconsistencies in both TP policies and their implementation. This article outlines these new obligations and how companies should be preparing to comply with them.

The nominees have been revealed for International Tax Review's European Tax Awards 2016.

The European Tax Awards have taken place annually since 2005 and seek to recognise the leading international tax professionals from around Europe.

The first (hopefully not last) draft “anti-fraud plan” of the Belgian Minister of Finance, Johan Van Overtveldt, of 4 December 2015 appears to be an anthology of measures to stop attracting investments into Belgium, or even to encourage disinvestments (whilst currently still being affordable).

On 5 October 2015, the OECD released their 13 final reports and an explanatory note on its Base Erosion & Profit Shifting (BEPS) project. Three days later G20 Finance Ministers endorsed this final BEPS package in Lima, Peru. We gladly refer to the website of the OECD (www.oecd.org/ctp/beps) for an overview of the aforementioned reports.

We are pleased to announce the launch of TIVALOR, a new professional service offering in the fields of Business & Legal Economics, focusing on Transfer Pricing, Valuations, Business Modeling and Legal Economics. TIVALOR is a joint venture between tax law firm Tiberghien and Andy Neuteleers, a seasoned transfer pricing and valuation professional. The creation of TIVALOR follows closely on the recent developments at G20/OECD and EC-level to alter the rules in international taxation drastically, leading to an ‘economization’ of the fiscal profession.