As part of the 2017 US Tax Reform, a Base Erosion and Anti-Abuse Tax (BEAT) was introduced in the Internal Revenue Code under Section 59A with the aim to combat eroding of US tax base through related-party payments of interest, royalties and management fees. The Internal Revenue Service (IRS) issued proposed Regulations on BEAT mid-December 2018 with a consultation period of two months. On 19 February 2019, the EBF presented the US Treasury with a comment letter emphasizing the detrimental effects of BEAT for European banks. The EBF points out in particular that the exception for interest paid on intercompany funding held in the U.S., which is a welcomed relief for interest paid on certain total loss-absorbing capacity (TLAC) securities, does not extend to similar securities issued by non-U.S. corporations nor does it capture other regulatory-driven funding. In addition, the BEAT applies to a portion of the interest expense that is attributed by a foreign bank to its U.S. branch in accordance to U.S. tax regulations and treaties.
Call open for @EBFeu and @UNEP_FI members to develop high level voluntary guidelines for banks to use the #EUTaxonomy. Recorded webinar available - get in touch for more information.https://t.co/t7y52PZHFT
“International Directors Banking Programme” is a new modular programme of three three-day modules at the INSEAD business school in Fontainebleau, France. The content is driven by the needs for bank directors and senior executives working in banks to review and update their corporate governance practices due to the many pressures they face, and will focus on the effectiveness of directors and boards. Successful completion by participants offers certification by INSEAD. Read more
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European Banking Federation
The EBF is the voice of the European banking sector, bringing together national banking associations from 45 countries. The EBF is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere.
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