The OECD has published a working paper on the impact corporate income tax (CIT) design can have on investment by the private sector in clean technologies to help achieve net-zero climate goals. Setting out a conceptual framework of the key channels through which CIT can influence investment in clean technologies, it also identifies policy implications and potential policy options to enhance the alignment of CIT with climate policy objectives.

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. HMRC has also announced that the parcels and freights changes under the Windsor Framework which were originally due to commence from 30 September 2024 and which were then delayed to 31 March 2025 have now been further delayed and will commence from 1 May 2025. HMRC’s announcement last week was as follows: ‘Following the guidance issued in September 2024, there has been extensive preparatory work undertaken for the new arrangements for the movement of goods from Great Britain to Northern Ireland by parcels or freight set out in the Windsor Framework. As a result, and subject to the relevant procedures, the new arrangements as set out in the Windsor Framework are planned to take effect from 1 May 2025.’ The Institute has been discussing these changes with HMRC via the NI Joint Customs Consultative Committee and was concerned at the low level of awareness among businesses. Minutes from the most recent meeting are available here and here (note that all references to 31 March 2025 in these documents should now be taken to be 1 May 2025). We are pleased to see that a further month is being provided to assist businesses in their preparations given the low levels of awareness of the changes for many businesses. It is therefore imperative that businesses take action now to consider the specific impact of these changes on their supply chain and plan accordingly for a commencement date of 1 May 2025 as we do not expect any further delay will be announced. The following guidance has therefore been updated accordingly: Internal Market Movements from Great Britain to Northern Ireland, Submitting the Internal Market Movement Information, Sending parcels to and from Northern Ireland, Sending parcels between Great Britain and Northern Ireland under the Windsor Framework, Sending parcels from Great Britain to Northern Ireland between private individuals, How to send parcels from a business in Great Britain to a private individual or a business in Northern Ireland, How to move parcels from Great Britain to Northern Ireland for parcel carriers, and Data requirements for parcel carriers who move consumer parcels from Great Britain to Northern Ireland. Miscellaneous guidance updates and publications Check if you can use transit to move goods to the EU and Common Transit Convention countries, Known error workarounds for the Customs Declaration Service (CDS), Designated export place (DEP) codes for Data Element 5/23 of the Customs Declaration Service, Report a problem using the Customs Declaration Service, and External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service.

The Youth Policy Dialogue with Commissioner Hoekstra took place on Thursday, 6 February. Twenty young people from across Europe gathered to discuss EU climate action and taxation, focused on fair and green taxation for a competitive EU.

The Minister for Finance, Paschal Donohoe has recently signed the statutory instrument transposing Council Directive (EU) 2020/285 on the special VAT scheme for small enterprises into Irish law (“the SME scheme”).   From 1 January 2025, the SME scheme allows small enterprises to avail of the VAT registration thresholds in other Member States. If eligible, businesses can supply goods and services in another Member State without a requirement to register for VAT thus alleviating their VAT compliance obligations. In general, to be eligible to use the SME scheme in another Member State, an Irish business must:  be established for VAT purposes in Ireland only,  not exceed the domestic turnover threshold(s) of the other Member State(s) where supplies are made,  not exceed the Union turnover threshold of €100,000,  be registered in Ireland to use the scheme, and        file quarterly reports once registered.  An Irish business wishing to register to use the SME scheme in other Member States must make a formal application to Revenue in Ireland.  Revenue has a dedicated webpage Overview of the EU VAT SME Scheme which provides further details on the scheme.

Last week, the European Parliament and the European Commission co-hosted the EU Tax Symposium 2025. Under the theme of "Strengthening competitiveness and fairness to build prosperity”, the event brought together finance ministers, members of the European Parliament and National Parliaments, policymakers, academics and civil society to discuss the future of tax systems in the EU.

We remind readers that the deadline for filing the annual share scheme returns for 2024 due by employers and trustees operating share schemes is 31 March 2025. The relevant forms and information on the filing obligations are available on Revenue’s share reporting obligations webpage. Our news item from 24 February 2024 includes further information on the forms.

The latest UK tax tidbits features the updated guidance in several areas including updated guidance on the suite of the UK’s creative sector tax reliefs. Appeals reviews and tribunals guidance, Negligible value claims and agreements, HMRC issue briefing: operational activity during the new independent review of the Loan Charge, Apply to pay voluntary National Insurance contributions when abroad (CF83), Taxable pay tables: manual method, Supplementary pages CT600N: Residential Property Developer Tax, Class 1A National Insurance contributions on benefits in kind (CWG5), CWG2: further guide to PAYE and National Insurance contributions, Check if a letter you've received from HMRC is genuine, Named tax avoidance schemes, promoters, enablers and suppliers, Check if an email you've received from HMRC is genuine, Check genuine HMRC contact that uses more than one communication method, Child Benefit notes for coming to or leaving the UK, Check the recognised overseas pension schemes notification list, How to pay a debt to HMRC with a Time to Pay arrangement, Inheritance Tax account (IHT400), Direct Payment Schemes for Inheritance Tax (IHT423), Claiming Children’s Television Tax Relief for Corporation Tax, Claiming Theatre Tax Relief for Corporation Tax, Claiming Orchestra Tax Relief for Corporation Tax, Claiming Video Games Expenditure Credits for Corporation Tax, Claiming Film Tax Relief for Corporation Tax, Claiming Animation Tax Relief for Corporation Tax, Claiming High-end Television Tax Relief for Corporation Tax, Claiming Video Games Tax Relief for Corporation Tax, Claiming Museums and Galleries Exhibition Tax Relief for Corporation Tax, Claiming Audio-Visual Expenditure Credits for Corporation Tax, Creative industry tax reliefs for Corporation Tax, Detailed tax guidance for charities, Claim a refund if you've paid tax on your savings and investments, What to do when someone dies: step by step, Pension savings — tax charges (Self Assessment helpsheet HS345), Research and Development (R&D) Tax Relief: Enhanced R&D intensive support for loss-making SMEs based in Northern Ireland, GAAR Advisory Panel opinion of 29 October 2024: Reducing the value of an estate for Inheritance Tax and avoiding Inheritance Tax on a lifetime transfer by acquiring shares in a company and gifting those shares to an employee trust, Manage your trust's details, GAAR Advisory Panel opinion of 29 October 2024: Reward through creation of an obligation to make pension payments to employees and the transfer of that obligation to another employee in exchange for payment, and How to pay a debt to HMRC with a Time to Pay arrangement.

In UK news this week, HMRC is launching a new email enquiry service for agents, a long-standing recommendation of the Institute, and we invite you to share your views on two important consultations. In Irish news, Revenue has updated several Tax and Duty manuals including the manuals on the reimbursement of travel and subsistence expenses and capital gains tax clearance by non-resident vendors. In International news, the VAT in the Digital Age (ViDA) package is adopted by Member States. Ireland 1. Revenue has updated the Tax and Duty Manual on the reimbursement of travel and subsistence expenses. 2. Read about the updates to the manual on capital gains tax (CGT) clearance requests by non-resident vendors. UK 3. Get in touch with your views on two important consultations recently announced by HMRC. 4. Read about the new email enquiry service for agents launched by HMRC. International 5. Read about the measures included in the recently adopted VAT in the Digital Age (ViDA) package. 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 post EU exit corner.

The Commission has issued a reasoned opinion to Spain for failure to allow the deduction of directly related expenses when calculating withholding taxes on royalty payments received by non-resident taxpayers. Spain has two months to respond and take the necessary measures.

The European Commission has decided to refer Spain to the Court of Justice of the European Union on a failure to remedy an infringement in relation to the free movement of capital (Article 63TFEU) leading to a discriminatory tax treatment of non-resident taxpayers.

The European Commission has released its latest data on taxation trends in all EU countries, Iceland and Norway. The data provides statistical information on tax revenue by economic function, type of tax, level of government and implicit tax rates, enabling the assessment of tax systems from various perspectives.

The European Council has reached political agreement on a further amendment of Directive 2011/16/EU on administrative cooperation in the field of taxation (DAC9). The amendment will streamline the filing obligations and reduce the compliance burden for companies arising under the Pillar 2 Directive, as it enables MNEs to file one top-up tax information return for the entire group at a central level.