InCorp Global’s Post

Indian multinationals have to pay 15% global minimum tax in Europe Indian multinational enterprises will have to start reviewing and accounting for any additional tax liability as per the #globaltaxreform signed off by over 130 countries, including #India. #mncs #tax #eu #multinationals #europe #taxrule #Indiancompanies #accounting

𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐭𝐡𝐞 𝐈𝐦𝐩𝐚𝐜𝐭 𝐨𝐟 𝐆𝐒𝐓 𝐨𝐧 𝐓𝐫𝐚𝐧𝐬𝐟𝐞𝐫 𝐏𝐫𝐢𝐜𝐢𝐧𝐠 𝐏𝐨𝐥𝐢𝐜𝐢𝐞𝐬 With the growing complexities of global taxation, businesses must align their Transfer Pricing (TP) strategies with the Goods and Services Tax (GST) framework. GST impacts transactions between related parties, which can influence intercompany pricing decisions and overall profitability. Understanding how GST influences TP policies can help companies mitigate tax risks, optimize compliance, and ensure smooth cross-border operations. By analyzing transactions holistically, businesses can maintain tax efficiency while staying compliant with both TP and GST regulations. For a detailed overview, read our full blog here: https://lnkd.in/dbxbKU6t #GST #TransferPricing #TaxCompliance #GlobalBusiness #AimbizGlobal #InternationalTax CA Majhar Awedin Mohsin Khan Sumaiyya Khan Shabina Fatima

How does substance over form affect Multinational Corporations? The principle of “substance over form” significantly affects multinational corporations (MNCs) in several ways: Tax Compliance and Planning: MNCs must ensure that their cross-border transactions and structures have genuine economic substance to comply with international tax laws. This is particularly important in light of the OECD’s BEPS initiative, which aims to prevent tax avoidance strategies that exploit gaps and mismatches in tax rules. MNCs need to demonstrate that their tax structures are aligned with the location where value is created and economic activities are performed. Regulatory Approval: For instance, in Singapore, the Monetary Authority of Singapore (MAS) requires companies to demonstrate substance in the country to qualify for tax exemptions under various schemes. Anti-Avoidance Measures: Countries have implemented various anti-avoidance measures, such as the “substance over form” rule, which allows tax authorities to re-characterize transactions that lack commercial substance. This can impact how MNCs structure their operations and transactions to avoid being challenged by tax authorities. Operational Structure: MNCs may need to adjust their operational structures to meet economic substance requirements. This could involve making significant changes to where they conduct business activities, how they manage and control their entities, and where their key decision-makers are located. Financial Reporting: The principle also affects financial reporting, as companies must reflect the economic substance of transactions in their financial statements, which can impact reported earnings and tax liabilities. Legal Challenges: MNCs may face legal challenges if tax authorities deem that the form of their transactions does not reflect their substance, leading to potential disputes and litigation. In summary, the “substance over form” principle requires MNCs to carefully consider the economic reality of their business arrangements and ensure that their tax strategies are robust and defensible under scrutiny. Failure to do so can result in significant tax adjustments, penalties, and damage to reputation. If you need more detailed information or have specific questions, feel free to ask! #beeshmaadvisorygroup #substanceoverform Sathya Prakash Shaswat Misra

🔍 Navigating GST Compliance: A Case of Rectification Unveiled! ⚖️📑In a recent development, the GST Department acknowledges rectification applications stemming from a situation where the department inadvertently claimed the entire Input Tax Credit (ITC) under the categories of Central Goods and Service Tax (CGST) and State Goods and Service Tax (SGST), rather than appropriately under Integrated Goods and Service Tax (IGST). 🔄💡The resolution of this matter came in the form of a writ petition, concluding with a directive for the Authority to meticulously review the application submitted by the Assessee and subsequently issue the necessary orders. 📜✨This case serves as a reminder of the importance of rectification avenues, ensuring that inadvertent errors are rectified promptly for fair and accurate tax assessments. Stay informed, stay compliant! 🌐💼 #GSTCompliance #TaxRectification #LegalInsights VidyaSunil & Associates - Your trusted allies in Auditing, Direct Tax & Indirect Tax Compliance, Corporate Law, and CFO On CALL Services. Navigating the complexities of GST for seamless compliance and financial excellence. 🤝📊 #GSTExperts #TrustedAdvisors #vidyasunilassociates #vidyasunil

𝐍𝐚𝐯𝐢𝐠𝐚𝐭𝐢𝐧𝐠 𝐈𝐧𝐝𝐢𝐚'𝐬 𝐂𝐨𝐦𝐩𝐥𝐞𝐱 𝐓𝐚𝐱 𝐋𝐚𝐧𝐝𝐬𝐜𝐚𝐩𝐞 Discover the challenges and opportunities facing businesses in India's evolving tax environment. Read more #ETEdgeInsights #Tax #India #Business #Compliance #Opportunities Jitin Asudani

Here's everything you need to know about value added tax (VAT). #TaxAttorneysPH #TaxLawExpertPH #LMALawTaxCorporateAttorney #LMALaw #CarlosYulo #GoldMedalist

Peru's tax authorities have published details on the registration mechanism for the nonresident digital services VAT rules that are effective October 1, 2024! For more information, read the helpful guide drafted by KPMG in Peru. #VAT #digitaleconomy https://lnkd.in/ePYWXXkA

🗂 #BenchmarkingAnalysis - Its critical role in 𝐓𝐫𝐚𝐧𝐬𝐟𝐞𝐫 𝐏𝐫𝐢𝐜𝐢𝐧𝐠 📌 #TPverse's Benchmarking services helps Multinationals for, 💫 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐰𝐢𝐭𝐡 𝐈𝐧𝐝𝐢𝐚𝐧 𝐓𝐫𝐚𝐧𝐬𝐟𝐞𝐫 𝐏𝐫𝐢𝐜𝐢𝐧𝐠 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐢𝐨𝐧𝐬: India follows the arm's length principle for transfer pricing, as mandated by the Income Tax Act, 1961. Transfer pricing documentation, including benchmarking studies, is crucial to demonstrate that prices charged in transactions between related parties are consistent with market rates. 🎟 𝐌𝐚𝐧𝐝𝐚𝐭𝐨𝐫𝐲 𝐃𝐨𝐜𝐮𝐦𝐞𝐧𝐭𝐚𝐭𝐢𝐨𝐧 𝐑𝐞𝐪𝐮𝐢𝐫𝐞𝐦𝐞𝐧𝐭𝐬: Tax authorities require taxpayers to maintain detailed transfer pricing documentation, including a benchmarking analysis, for transactions with associated enterprises. This documentation must be submitted annually with the tax return and must comply with the specified rules and formats outlined by the #CBDT. 🛑 𝐌𝐢𝐭𝐢𝐠𝐚𝐭𝐢𝐧𝐠 𝐓𝐫𝐚𝐧𝐬𝐟𝐞𝐫 𝐏𝐫𝐢𝐜𝐢𝐧𝐠 𝐀𝐮𝐝𝐢𝐭𝐬 𝐚𝐧𝐝 𝐀𝐝𝐣𝐮𝐬𝐭𝐦𝐞𝐧𝐭𝐬: Effective benchmarking helps #mitigate the #risk of #transferpricing #audits by providing objective evidence that transfer prices are at arm's length. By demonstrating compliance with Indian transfer pricing regulations through robust documentation, companies can 𝐫𝐞𝐝𝐮𝐜𝐞 𝐭𝐡𝐞 𝐥𝐢𝐤𝐞𝐥𝐢𝐡𝐨𝐨𝐝 𝐨𝐟 𝐚𝐝𝐣𝐮𝐬𝐭𝐦𝐞𝐧𝐭𝐬 𝐛𝐲 𝐭𝐚𝐱 𝐚𝐮𝐭𝐡𝐨𝐫𝐢𝐭𝐢𝐞𝐬 𝐚𝐧𝐝 𝐚𝐬𝐬𝐨𝐜𝐢𝐚𝐭𝐞𝐝 𝐩𝐞𝐧𝐚𝐥𝐭𝐢𝐞𝐬. 🎯𝐔𝐬𝐞 𝐨𝐟 𝐒𝐩𝐞𝐜𝐢𝐟𝐢𝐜 𝐁𝐞𝐧𝐜𝐡𝐦𝐚𝐫𝐤𝐢𝐧𝐠 𝐌𝐞𝐭𝐡𝐨𝐝𝐬: In India, taxpayers can use various methods for benchmarking, including #CUP method, #RPM, #CPM, #TNMM, and #PSM. Selecting and applying the most appropriate benchmarking method is crucial to align with Indian transfer pricing guidelines and ensure compliance. 🌟 𝐒𝐮𝐩𝐩𝐨𝐫𝐭𝐢𝐧𝐠 𝐀𝐝𝐯𝐚𝐧𝐜𝐞 𝐏𝐫𝐢𝐜𝐢𝐧𝐠 𝐀𝐠𝐫𝐞𝐞𝐦𝐞𝐧𝐭𝐬 (𝐀𝐏𝐀𝐬): Indian tax laws allow for Advance Pricing Agreements (APAs), where taxpayers can agree on transfer pricing methodologies with tax authorities in advance. Benchmarking studies are essential in negotiating APAs to demonstrate the reasonableness and reliability of proposed transfer pricing arrangements. 📚 𝐀𝐥𝐢𝐠𝐧𝐢𝐧𝐠 𝐰𝐢𝐭𝐡 𝐆𝐥𝐨𝐛𝐚𝐥 𝐁𝐞𝐬𝐭 𝐏𝐫𝐚𝐜𝐭𝐢𝐜𝐞𝐬: India is increasingly aligning its transfer pricing regulations with international standards set by organizations such as the OECD. Effective benchmarking ensures that Indian taxpayers adopt global best practices in transfer pricing compliance and documentation. 🌎 TPverse Benchmarking services is crucial for compliance with local regulations, mitigating audit risks, aligning with global standards, supporting APAs, and informing strategic decisions. ✨ It serves as a cornerstone for #multinational enterprises operating in India to manage transfer pricing effectively and maintain transparency with tax authorities. 🎗 Do let us know in case of any assistance. 🌐 Visit our website https://tpverse.in/ 📩 Drop your queries info@tpverse.in

Our Tax Partner, Gouri Puri, addressed the 15 percent minimum #corporatetax rule as part of India’s #IncomeTaxActreview. Gouri remarked, “Multinationals will need to tweak their internal systems and tax functions and be data ready to meet such QDMTT compliances in India. Foreign multinationals are also looking for clarity around the future of Indian tax incentives (specially the tax holiday in GIFT city) vis-à-vis the QDMTT,” This indicates that MNCs will need to adapt their internal processes significantly to comply with new regulations. As India prepares to incorporate these changes, the focus will be on ensuring compliance while navigating the complexities of the new regulations. To read more: https://lnkd.in/gDA9djvX #CorporateTax #TaxCompliance #MultinationalCorporations #TaxStrategy #TaxPolicy

Navigating the complexities of taxes can be challenging, especially regarding withholding tax. 💼 Understanding exemptions and reductions in Malaysian withholding tax, however, can lead to significant savings! 💰 Empower your business with the knowledge to optimise your savings and streamline your tax strategy! Get in touch with our consultants today for more information! 📞 +6012 548 7911 or WhatsApp us at wa.link/l84n90 . . . #withholdingtax #Malaysia #Malaysiantax #entrepreneur #businessowner #InCorpMY