10 November 2025 Global Tax Policy and Controversy Watch | November 2025 edition On 31 October 2025, the Organisation for Economic Co-operation and Development (OECD) held its seventh annual OECD Tax Certainty Day, releasing the 2024 statistics on Mutual Agreement Procedures (MAPs) and Advance Pricing Agreements (APAs) and presented the 2024 MAP and APA awards. The 2024 statistics show a continued increase in MAP caseloads and APA applications, with more countries participating and a growing emphasis on dispute prevention and early certainty tools. The Court of Appeal of Amsterdam, on 11 September 2025, delivered its judgment in a significant transfer pricing case in the Netherlands, largely upholding the tax authorities' position. The appellate decision highlights the Dutch tax authorities' strict approach to transfer pricing, the importance of robust documentation and arm's-length analyses and the high stakes for multinational groups in restructuring scenarios. Ireland plans to overhaul its invoicing system by introducing e-invoicing in 2028, as detailed in an 8 October 2025 publication by Irish Revenue. The rollout will occur in three phases, beginning with large value-added tax (VAT)-registered corporates in Phase 1, followed by all VAT-registered enterprises in Phase 2, and culminating in full compliance with EU requirements by July 2030. This initiative aims to enhance efficiency and compliance in cross-border trade, particularly benefiting businesses familiar with digital invoicing systems. In a landmark decision handed down in August 2025 (PepsiCo), Australia's highest court found by majority that a royalty did not exist where not expressly provided for in an agreement between unrelated parties. The decision was also the first in which Australia's Diverted Profits Tax (DPT) has been considered by the High Court. Announced 1 November 2025, the United States (US) will reduce tariffs on Chinese imports by "removing 10 percentage points of the cumulative rate," effective 10 November 2025, while maintaining the current 10% tariff during a suspension period until 10 November 2026. Further, China will suspend certain tariffs on a range of US agricultural products and commit to purchasing significant quantities of US soybeans through 2028. The announcement also highlights new commitments secured in South Korea. The G20 Chair's Summary, issued at the conclusion of the 15-16 October 2025 meeting, notes members' commitment to continue engaging constructively to address concerns regarding Pillar Two global minimum taxes, with the shared goal of finding a balanced and practical solution acceptable to all as soon as possible. In advance of the meeting, the OECD released the Secretary-General Tax Report providing an update on ongoing tax work, together with new reports on the Base Erosion and Profit Shifting (BEPS) project and exchange of information on real estate for tax purposes. On 10 October 2025, the European Union (EU) Finance Ministers approved the EU list of noncooperative jurisdictions for tax purposes (Annex I) was approved without changes. The usual state-of-play document (Annex II) was approved with Vietnam removed, and Greenland, Jordan, Morocco and Montenegro added. Presented on 14 October 2025, the draft Bill proposes to (1) extend for one more fiscal year the temporary corporate income tax surcharge for companies with revenue of €1b or more, (2) commence an earlier repeal of the business contribution on the added value and (3) create a new 2% tax on non-professional assets for certain holding companies. A vote on the final version is expected by the end of December 2025. Presented on 7 October 2025, Budget 2026 includes a total package of €9.4b aimed at enhancing competitiveness for domestic and foreign investment. Key tax measures for international investors include an increase in the research and development (R&D) tax credit from 30% to 35% and changes to the dividend participation exemption. Announced on 2 November 2025, the reform is expected to improve the tax environment, enhance tax certainty for foreign groups operating and investing in Israel and help facilitate the return of Israeli expatriates. Key provisions include fast-track ruling for intangible property valuations upon exit, transfer pricing guidance for R&D centers, capital gains tax exemptions for foreign investors in Israeli tech companies and a preferred tax rate on carried interest, effective immediately upon publication. In a decision issued on 5 September, Milan Tax Court sided with a private equity fund, exempting tax on capital gains from the indirect sale of an Italian company through Luxembourg-based entities. The court emphasized that the Luxembourg holding companies were genuine entities with their own offices, staff and independent decision-making processes, countering the Revenue Agency's claims that they were mere conduits for tax avoidance purposes.
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