In this edition we focus specifically on:
Operational transfer pricing: Beyond transfer pricing policy and strategy, building sustainable transfer pricing implementation
Digital transformation and upskilling in the banking sector - Building for success
FATCA: Notification from the Luxembourg Tax Authorities in case of missing US TIN in the context of the FATCA/CRS compliance program
VAT Case Law update - Danske Bank
New guidance from the EUCJ on the scope of the fund management VAT exemption
We hope you find the content useful and would welcome your feedback and suggestions for topics you would like us to cover in future editions.
You will also be able to read our various articles via our LinkedIn posts that we will share with our respective community.
Our next edition will be issued in mid Q1 of next year and we take this opportunity to already wish you and your family a Merry Christmas and a Happy New Year.
Murielle Filipucci & Roxane Haas
In the current climate, transfer pricing implementation requires more attention than ever to reduce the risk of errors in tax compliance, tax leakage and disputes. This is no longer solely an issue for finance and tax teams but touches a large number of internal and external stakeholders; from the CFO to non-executive Directors and other business departments, tax authorities, statutory auditors and internal auditors.
The banking sector has faced massive disruption in recent years, with the emergence of challenger banks and regulatory changes designed to increase competition. Our Annual Global CEO Survey shows that challenges remain and COVID-19 has introduced further disruption. Digital agility and a highly skilled workforce are two key tools to best mitigate against current disruption and prepare for further disruption to come.
We mentioned in a previous edition (May 2020) the requirement for Financial Institutions to establish FATCA and CRS governance and controls mechanisms as part of a compliance program. The monitoring by different tax authorities about such procedures and notably the data quality of the reports is more and more specific.
The EUCJ has handed down a further judgement concerning the VAT treatment of arrangements between the branch and head office of an entity where those establishments are in different territories, and one establishment is VAT registered within a VAT group.
On 17 June 2021, the Court of Justice of the European Union (“CJEU”) issued its decision in joined cases K (C-58/20) and DBKAG (C-59/20), where the scope of fund management VAT exemption was – once more – analysed by the CJEU.
Although the CJEU refers to the local court to decide on the application of the VAT exemption for the services at stake, the case provides meaningful insights on the scope of the fund management VAT exemption.
Luxembourg Banking & Capital Markets Leader, PwC Luxembourg
Tel: +352 49 48 48 2451
Global Banking & Capital Markets Tax Leader, PwC Luxembourg
Tel: +352 49 48 48 3118