Last month, the Tax Administration EU Summit brought together the leaders of tax administrations from across the European Union to discuss their complex challenges. The event demonstrated the collective commitment of EU tax administrations to work together  to address common challenges.

The EU-Chile Interim Trade Agreement (ITA) will enter into force on 1 February 2025, replacing the previous EU-Chile Association Agreement. The ITA introduces a simpler approach to establishing preferential origin, allowing the use of self-certification based on statements on origin or importer’s knowledge.

Last month, the OECD released a pricing tool and fact sheets to facilitate the implementation of Amount B under Pillar Two. The purpose of Amount B is to provide for a simplified and streamlined approach to the application of the arm’s length principle to in-country baseline marketing and distribution activities, with a particular focus on the needs of low-capacity countries. The adoption of Amount B remains under consideration by OECD member countries.

In Irish news, we bring you Revenue’s opening arrangements for the holiday period, and Revenue has published new guidance on leasing arrangements where the lessee can claim capital allowances on plant and machinery. In UK news, HMRC has advised of a delay in processing postal applications to register for an agent services account and we signpost readers to a new joint report on HMRC services which the Institute contributed a quote to. In International news, the Council has agreed on the directive proposal to introduce an electronic VAT exemption certificate.  Ireland See Revenue’s opening arrangements for the holiday period. Revenue has published new guidance on scenarios where lessees may claim capital allowances. UK HMRC has advised of a delay in processing postal applications to register for an agent services account. Read about the new joint report launched on HMRC services. International The Council has agreed on the directive proposal to introduce an electronic VAT exemption certificate. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount. You can also read this week’s EU exit corner here.          

The European Commission has adopted an amendment of the 'de minimis' Regulation for the agricultural sector which exempts small amounts of support in the agricultural sector from State aid control. The revised Regulation includes an increase in the maximum de minimis ceiling and will apply until 31 December 2032.

The OECD has published a report which provides insights on public perceptions on tax, and public trust in tax systems from twenty-six countries, primarily in Latin America, but also from Africa and Asia.

The OECD has published a report on revenue statistics in Africa 2024. This annual publication compiles comparable tax revenue and non-tax revenue statistics for 36 African countries. This edition includes a special feature on facilitation and trust as drivers of voluntary tax compliance.

The European Council has agreed on the new directive proposal from the EU Commission to introduce an electronic tax certificate for VAT exemptions. 

Read our update on publications in this area since October 2023. Belarus: tax treaties, New Zealand: tax treaties, 2023 UK-New Zealand Memorandum of Arrangement — in force, Luxembourg: tax treaties, International Tax: UK Real Estate Investment Trusts (REIT) property income dividends — UK-Japan Double Taxation Convention, San Marino: tax treaties, Norway: tax treaties, Peru: tax treaties, Liechtenstein: tax treaties, and Romania: tax treaties.

The latest tidbits features updated guidance across a wide range of areas. Capital Gains Tax relief on gifts and similar transactions (Self Assessment helpsheet HS295), Tell HMRC that Inheritance Tax is due on a gift or trust (IHT100), Avoid and report internet scams and phishing, Check genuine HMRC contact that uses more than one communication method, Claim the residence nil rate band, HMRC email updates, videos and webinars for Self Assessment, Complain about HMRC, Tell HMRC your employment related securities scheme has ended, Submit your employment related securities return, Late registrations for employment related securities, Register your employment related securities scheme, Submit an Enterprise Management Incentives notification, How employment related securities work if you're an employer, Set up as a sole trader: step by step, Corporation Tax: penalty determinations (CT211 Notes), Tax when you get a pension, Apply for a certificate to confirm you will pay UK National Insurance while self-employed abroad temporarily (CA3837), Tax-Free Childcare, How Inheritance Tax works: thresholds, rules and allowances, Economic Crime Supervision Handbook, Pay voluntary Class 3 National Insurance, Redundancy: your rights, Tax on your private pension contributions, National Insurance rates and categories, Tax if you come to the UK, Tax on termination payments, Company Tax Returns, Check you're eligible for free childcare if you're working, Applying for probate, Business Leasing Manual, Collection of Student Loans Manual, and Tell HMRC that Inheritance Tax is due on the 10 year anniversary of a trust (IHT100d).

In this week’s post EU exit corner, we bring you the latest guidance updates and publications relevant in the post EU exit environment. The most recent Trader Support Service bulletin is also available as is the latest Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. Miscellaneous guidance updates and publications Regulated aerodrome location codes for Data Element 5/23 of the Customs Declaration Service, Remote internal temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service, Maritime ports and wharves location codes for Data Element 5/23 of the Customs Declaration Service, Authorised Consignee Temporary Storage (ACTS) location codes for Data Element 5/23 of the Customs Declaration Service, and Lit of customs training providers.

In this week’s miscellaneous updates, HMRC has published a new Spotlight on using managed service company (MSC) products and the Government has published a new article which aims to provide more information on the controversial changes announced in the Budget to agricultural property relief (APR) for inheritance tax which will commence from April 2026. A new ‘side hustle’ tool has recently been published which aims to help individuals decide if income from online platforms needs to be declared to HMRC. The latest schedule of HMRC Talking Points live and recorded webinars for tax agents are available also for booking. Spaces are limited, so take a look now and save your place. And finally, check HMRC’s online services availability page for details of planned downtime and the online services affected. Spotlight on using managed service companies In this Spotlight, HMRC is warning individuals against using MSC products. The Spotlight also explain the difference between MSC providers and traditional accountants. By way of reminder, the MSC rules aim to prevent an individual securing a tax advantage by providing their services to end clients through an intermediary, for example a company. A number of conditions must be met for a company to be treated as an MSC, including that an MSC provider is involved with the company.  The Spotlight also provides guidance on the meaning of ‘MSC’ and ‘MSC provider,’ contains an example and sets out the following features of a common MSC product:  advertisements, for example, internet ‘pop-ups,’ which promise to maximise the person’s take-home pay, marketing which encourages the person to work using a company by becoming a shareholder, taking a small salary and receiving dividends, services are standardised and are not tailored to the person’s circumstances, fees are variable, going up when the person is working and down when they are not, and software, which usually includes ‘suggestive navigation,’ directs the person to the most tax advantageous result.  Budget change to APR The Government has published an article intended to explain the changes to APR announced at the Autumn Budget 2024. The article sets out how the changes are expected to work and includes  examples. It also contains the government’s latest figures for how many estates will be affected. Last week the Institute released a Press Release with comments from the NI Tax Committee Chair Janette Burns that sets out the disproportionate and damaging impact that the Budget’s employment and capital taxes changes will have for businesses in Northern Ireland. New HMRC online ‘side hustle’ guidance and tool Ahead of the 2023/24 online self-assessment filing deadline, a new range of resources has recently been published by HMRC to assist taxpayers with income from what is often referred to as a ‘side-hustle’ in deciding if this income needs to be reported to HMRC. Firstly, HMRC has published a new online tool which individuals can use to check if they need to declare income from using an online marketplace or social media to: sell personal possessions, goods or services, create online content, or rent out property. This includes step-by-step questions to help individuals work out if they need to tell HMRC about this type of income. A new guidance page is also available which discusses a number of common examples. HMRC is keen to stress that the rules about what is taxable income are unchanged. From 1 January 2024, digital platform operators are required to collect and report to HMRC certain details about sellers on their platforms. The first reports are due by 31 January 2025.