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Reform of the UK’s international tax laws: a step closer

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Against the background of Pillar Two implementation and the new compliance burdens it brings, it is good news that the UK government is seeking to improve and streamline domestic tax law affecting multinational enterprises. The proposed reforms to the UK’s transfer pricing (TP), permanent establishments (PE) and diverted profits tax (DPT) rules are mostly at the detailed level, rather than making seismic changes. While many of the reforms will bring welcome simplifications, businesses and their advisers will need to look out for any knock-on effects that the final changes trigger.

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