China has widened the number of qualifying research and development (R&D) costs that are eligible for a super deduction for Chinese corporate income tax purposes.
The country released Circular 119, which would allow Chinese resident enterprises to retroactively deduct qualifying R&D expenses incurred over the past three years, among other things. The information in the guidance is part of China’s continuing efforts to strengthen and encourage R&D innovation and development strategies. (more…)
The IRS has issued proposed regulations requiring large companies to report information such as the
amount of revenue, profit or loss, capital and accumulated earnings for each country where they operate.
The filing of these annual country-by-country (CbC) reports is consistent with recommendations by the Organisation for Economic Cooperation and Development (OECD) aimed at helping to combat base erosion and profit shifting. Under the IRS regulations, the reports are to be filed by the U.S. persons that are the ultimate parent entity of a multinational enterprise (MNE) group with annual revenue of $850 million or more for the immediately preceding annual accounting period. The reporting form would include, on a country-by-country basis for each separate entity, such information as: (more…)
Dutch Finance Minister Jeroen Dijsselbloem indicated that the Netherlands will be at the forefront of efforts to combat multinational tax avoidance.
In a passing reference to his country’s current struggles with the European Commission (EC) over tax rulings, Dijsselbloem said, “If the Netherlands has been part of the problem in the past, we want to be part of the solution from now on.” (more…)
Nearly 600 large corporations operating in Australia paid no tax in 2014. That’s according to a report published by the Australian Taxation Office. The list includes units of U.S. companies, including Apple, Boeing, Ford, Google, Halliburton, Hilton, and Microsoft. This article outlines how Australia is taking steps to deter tax avoidance.