Summary: 1. OECD: Transfer Pricing (TP) • White paper on TP documentation - Focuses on how best to simplify and standardize the preparation of TP documentation on a global basis - Also considers the "big picture" issue (Action 13 in the BEPS Action Plan) - Two-tiered approach + First tier: Global masterfile + Second tier: Local country file - Public comments invited by 1 October 2013 • Revised discussion draft on the TP aspects of intangibles - Two parts - Proposed amendments to Chapter I of the Transfer Pricing Guidelines (TPG) + Location savings + Other local market features + Assembled workforce + Group synergies - Proposed re-write of Chapter VI of the TPG + More examples than June 2012 draft + "Intangible related returns" is replaced by a requirement that the legal owner compensates related parties for their contributions to the value of the intangible + Public comments invited by 1 October 2013 2. Treaties • Signed - Korea / Tajikistan - Australia / Switzerland • Entry into force - Hong Kong / Kuwait - Australia / Mauritius • Negotiations - Mongolia / Luxembourg 3. Case • Veeda Clinical Research • Ahmedabad Income Tax Appellate Tribunal • Definition of "fees for technical services" (FTS) in India / UK treaty: "make available" condition • Case law: "make available" condition requires transfer of technology • The training services in this case were general in nature and thus they did not involve any transfer of technology • Thus, FTS definition not satisfied For information: K.R. Sekar (Bangalore): krsekar@deloitte.com 4. UN Committee of Tax Experts • Agenda for next meeting (21 to 25 October 2013) released 5. Taiwan: Dividend Withholding Tax (DWT) • Cash distributions from share premium reserve: not subject to DWT For information: Cheli Liaw (Taipei): cheliliaw@deloitte.com.tw 6. In brief • China - Bulletin 40: relaxation of foreign exchange procedures on outbound payments for services and other items For information: Ye Hong (Shanghai): hoye@deloitte.com.cn • Australia - Investment management regime - Revised draft legislation released for public comment (by 13 September 2013) For information: David Watkins (Sydney): dwatkins@deloitte.com.au • Japan - Public debate as to whether increases in consumption tax rates should + Proceed as scheduled + Be deferred + Be abandoned? For information: Jun Takahara (Tokyo): jun.takahara@tohmatsu.co.jp
