European Union Tax & Compliance Bulletin 59

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European Commission Publishes Customs Union Roadmap

The European Commission has published a Roadmap concerning its Action Plan for Taking the Customs Union to the Next Level. The Commission aims to further “IT implementation and optimisation, customs risk analysis and management, integration of operations and cooperation between customs authorities, harnessing innovation and improving efficiency of customs administrations”. A forthcoming Communication will set out the Commission’s strategy as concerns an EU-approach to risk management and supporting EU-custom administration controls.

OECD’s COVID-19 Taxation Measures Toolkit

The OECD has now published a Toolkit containing the details of taxation and financial measures taken by governments around the world in response to the COVID-19 outbreak. The OECD has also created a dedicated webpage concerning the COVID-19 outbreak, providing information and country profiles on the spread of the virus, and recommended responses concerning a variety of policy areas.

BEPS Action 6 Peer Review Report on Preventing Treaty Shopping Published

The OECD has released the second Peer Review Report on Action 6 of the Base Erosion & Profit Shifting Project, concerning the prevention of granting treaty benefits in inappropriate circumstances. The report contains results concerning aggregate data of the Inclusive Framework jurisdictions as of 30 June 2019, which then totalled 129 jurisdictions. The report concerning Action 6 sets out that the majority of the Inclusive Framework jurisdictions are in the process of modifying treaties in order to comply with their commitments made concerning treaty shopping, demonstrating the effectiveness of the BEPS MLI.

OECD Issues Guidance on Cross-Border Tax Issues Raised by COVID-19

The OECD has published guidance analysing tax treaty implications concerning certain tax issues raised by circumstances surrounding the COVID-19 outbreak. The guidance examines issues such as potential creation of a permanent establishment or change in the place of effective management on the basis of a cross-border employee carrying out duties remotely, as well as other issues concerning cross-border workers and changes in the residence status of workers.

Luxembourg to Limit Deductibility of Interest & Royalties for European Blacklisted Jurisdictions

The Luxembourg government has approved draft legislation which, if passed, will limit the deductibility under Luxembourg corporate income tax rules of interest and royalties owed of companies registered in jurisdictions which are on the EU List of Non-Cooperative Jurisdictions for Tax Purposes.

Platform for the Collaboration on Tax Create Website to Assist Developing Countries Strengthen Tax Systems

The Platform for Collaboration on Tax, a joint initiative of the International Monetary Fund, the Organisation for Economic Co-operation & Development, the United Nations and the World Bank Group, have now launched a website which aims to disseminate information to assist developing countries to strengthen tax systems and mobilise domestic revenue. The website contains toolkits, guidance, reports, relevant tax news as well as an extensive database concerning resource mobilisation activities and projects of partners of the Platform for Collaboration on Tax. The website aims to assist with achieving the Sustainable Development Goals by 2030 and the Addis Ababa Action Agenda.

European Commission Temporarily Waives VAT & Custom Duties on Medical Equipment Imports

The European Union Commission has approved a 6-month waiver of all customs duties and VAT due on the import of medical equipment. The measure will cover protective equipment such as masks, gloves and gowns, as well as testing kits, ventilators and other medical equipment. The decision was taken after all Member States submitted requests to waive the VAT and import duties, at the invitation of the European Union Commission to do so. The measure will initially apply for 6 months, with the possibility of being extended.


Source: Malta Institute of Taxation Click here and CFE Tax Advisors Europe Click Here

Please contact David Marinelli should you wish to discuss any matter relating to your Malta registered company.