Summary: 1. Treaties • Singapore / Luxembourg signed new treaty on 9 October 2013, to replace 1993 treaty • Notable aspects of new treaty - No "limitation of relief" article - Collective investment vehicles covered - Deletion of exclusion of third country branches - PE definition changes, making it more difficult for there to be a PE - Withholding tax rates reduced 2. Cases • India: Marine Links shipping agencies - Owner of ship: Iranian company - Charterer: Netherlands company - Ship carries cargo from India to Belgium - Charterparty agreement effectively places the balance of risks and rewards with the Iranian company - Court: Netherlands company did not derive "profits from the operation of ships in international traffic", and thus was not exempt from Indian tax under the India / Netherlands treaty • India: Cairn UK Holdings - UK company sold shares in an Indian listed company in an off-market transaction, deriving a long-term capital gain - Controversial issue: 20% tax rate or 10% tax rate? - Court: 10% - Opportunity for refunds 3. BEPS • OECD / BIAC meeting - 1 October 2013 meeting between OECD and BIAC (Business and Industry Advisory Committee) - Focused on digital economy, interest deductions, and the PE definition - OECD gave impression that Action Number 7 would be widened to cover some types of buy / sell limited risk distributors - Unilateral law changes by some countries • OECD memorandum on country-by-country reporting - OECD issued memorandum on 3 October 2013 - OECD asking business community for input on how to draft a workable country-by-country reporting template - Memorandum sets out four possible models - Feedback to be given during intangibles consultation on 12 and 13 November 2013 • Ireland - 15 October 2013: Irish government announced that its law will be changed to remove the so-called "Stateless" Irish company – an Irish incorporated company which is not tax-resident anywhere 4. Mongolia • New law on foreign investment passed by Mongolian Parliament, effective on 1 November 2013 • Private companies will no longer need government approval to invest in the strategic areas of mining, telecommunications, and banking • "Stability" on rates for VAT, corporate income tax, mining royalties, and customs duties, during the project's "stabilization period" 5. In brief • OECD: R&D report - Report released on 10 October 2013, focusing on tax incentives for R&D • UN Committee of Tax Experts - Annual meeting next week - Items to watch + UN Commentary on Article 9 + Next update of the UN's Transfer Pricing Manual • China: MAP - SAT issued Bulletin 56, which sets out new implementation rules for MAP procedures
