Tim Keeling’s Post

Proposed transfer pricing changes - read all about it ….

The Australian Government is proposing to retrospectively update the guidance materials relating to Australia’s transfer pricing laws to the 2022 version of the OECD Transfer Pricing Guidelines. These updates include: - updated guidance on the Transactional Profit Split Method; - new guidance on Financial Transactions; and - new guidance for tax administrations on the application of the approach to hard-to-value intangibles. Taxpayers with intra-group financing arrangements, intangible arrangements, or arrangements where Australia is a party to ‘unique and valuable’ contributions, highly integrated activities and/or shares in the assumption of economically significant risks, should review their transfer pricing policies and documentation given a likely increased focus from the ATO on these types of arrangements.

The Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Bill 2024 - has passed the House of Representatives. This Bill includes a proposal to retrospectively update the guidance materials relating to Australia’s transfer pricing laws to the 2022 version of the OECD Transfer Pricing Guidelines (OECD TPG). As a reminder, the 2022 OECD TPG includes: - Updated guidance on the Transactional Profit Split Method; - New guidance on Financial Transactions; and - New guidance for tax administrations on the application of the approach to hard-to-value intangibles. #KPMGTax #transferpricing #OECD

KPMG NZ’s Darshana Elwela discusses how New Zealand’s Inland Revenue’s general guidance on the proposed 39 percent trustee tax rate provides insight to how the administrator may view certain transactions and restructures that may be affected by the change. Find out more on #KPMGTaxNow. 

KPMG Australia's latest Banking and Finance Tax webinar recording is now available on #KPMGTaxNow. If you are a banking and finance industry professional, this webinar held in early March 2024, delivers the latest updates on: - practical steps for BEPS Pillar 2 - public CbC reporting - the PepsiCo case and latest ATO Intangibles guidance - recent ATO guidance and interactions on GST - topical Employment Tax issues for the financial services sector Follow the link to watch the webinar recording.

The Government of Hong Kong has adopted proposals to enhance certain tax policies and rules, including the tax incentives for funds and family offices in their 2024-25 Budget. Key details are available in our Hong Kong Buget Summary 2024-25 on #KPMGTaxNow.

The ATO's 2024 Reportable Tax Position schedule instructions include a number of changes and notably include two new Category C questions relating to the recently finalised Practical Compliance Guidelines on Intangible Migration Arrangement. Sophie Lewis and Caleb Han outlines the new questions on #KPMGTaxNow that confirms the ATO's continued focus on Intangibles Migration and DEMPE activities in light of transfer pricing and anti-avoidance considerations.

Earlier this week Treasury released for consultation, draft legislation to implement the previously announced build-to-rent concessions for reduced withholding tax rates under the Managed Investment Trusts regime and accelerated capital works deductions.  While the draft legislation is broadly in line with expectations, however there are key areas which have changed from the initial announcement in May 2023. Scott Farrell, Matt Ervin, Shirley Lam, and Ivan Chan outline the key changes and initial observations on #KPMGTaxNow.

The OECD has announced further information relating to Amount B of Pillar One and the global minimum tax under Pillar Two. This #KPMGTaxNow report outlines key details in the new guidance.

In the submission to Treasury, KPMG makes eight recommendations which aim to further enhance alignment with global rules, reduce compliance costs, and foster a global standard for tax transparency reporting. Read KPMG's submission by Alia Lum, Tim Keeling, Phil Beswick, Jenny Wong on #KPMGTaxNow.