14 June 2013
Americas Tax Center Weekly Roundup
Latest news — Americas
Brazil amends Financial and Exchange Transactions Tax
Brazilian Federal Decree 8,023, issued on 4 June 2013, establishes some changes to the taxation of foreign investments in Brazil. According to the Decree, investments made by nonresidents in fixed income instruments in the Brazilian financial and capital markets that were formerly subject to the Financial and Exchange Transactions Tax (IOF or Imposto sobre Operacoes Financeiras) at a 6% rate are, as of 4 June 2013, are subject to IOF at a 0% rate. This change also applies to remittances aiming to fund margin accounts (usually required by organized exchanges). This change also applies to investments made under Resolution n. 2,689. This IOF rate reduction does not eliminate the 6% rate imposed on loans contracted abroad whenever the average maturity of the loan contract is less than one year. For more information on this development please contact: Felipe Aquino (ph: +55-11-2573-3437) or Pedro Custodio (ph: +55-11-2573-3035)
US IRS rules Mexican Land Trust arrangement is not a trust for US tax purposes
The Mexican Federal Constitution prohibits non-Mexican persons from directly holding title to residential real property in certain areas (restricted zones) of Mexico. However, non-Mexican persons may hold title to residential real property in restricted zones through a Mexican Land Trust (MLT) with a Mexican bank. In a recent ruling, the US Internal Revenue Service has ruled that MLTs are not trusts for US tax purposes. Accordingly, information return requirements for US holders of foreign trusts do not apply.
Ernst & Young,S.A. (Costa Rica) transfer pricing conference to be held on 21 June
EY is hosting a Costa Rican transfer pricing conference on 21 June at the Hotel Crown Plaza Corobici. Various EY speakers will discuss the background of the transfer pricing rules, a practical analysis of their methods, and potential opportunities and risks. View the invitation (in Spanish) here.
Ernst & Young LLP (Canada) discusses tax issues for family businesses and other hot topics
TaxMatters@EY, a monthly bulletin prepared by EY Canada, provides a summary of recent Canadian tax news, publications and resources. The latest edition discusses important tax issues for family businesses, the Canada Revenue Agency’s revised provincial allocation of income policies in respect of taxable benefits and public warehouses, tax issues in the new digital environment, the outlook for global tax policy in 2013, and a recent Federal Court of Appeal decision on the definition of "active business."
Renewable energy country attractiveness index — latest update now available
Established in 2003, EY’s global quarterly publication, Renewable energy country attractiveness index (RECAI), ranks 40 countries on the attractiveness of their renewable energy investment and deployment opportunities, based on a number of macro, energy market and technology-specific indicators. The 10-year anniversary issue sees the US regaining the top spot, while South America leaves Europe behind.
Ernst & Young LLP International Tax podcasts available
The US firm regularly records podcasts on important US and global international tax developments. Two types of international tax podcasts are available: weekly Cross-border Taxation podcasts and the monthly Washington Dispatch podcast. Click here to Subscribe to the Cross-border podcast series on iTunes in the Apple store. Click here to Subscribe to the monthly Washington Dispatch podcast series on iTunes. You may also listen to the podcasts directly from the EY Thought Center webcast page on ey.com (click "Podcasts" on the left side navigator).
This week's Global Tax Alerts
- Russia publishes draft law on a tax and customs regime for shelf projects (13 June 2013)
- India's Karnataka High Court rules foreign company's sourcing support activities do not create a taxable presence (13 June 2013)
- Slovakia amends rules on the taxation of bond income (13 June 2013)
- Protocol amending Spain - Switzerland tax treaty to enter into force (12 June 2013)
- New tax treaty provisions between China and the Netherlands to promote investment (12 June 2013)
- Spain announces amendments to patent box regime; other measures to promote R&D activities and support small- and medium-size companies (10 June 2013)
- FBARs to report financial interests in, or signature authority over, foreign financial accounts, are due 30 June 2013 (10 June 2013)
- German State Council requests stricter tax rules for AIFM Tax Adaption Act - Action required to secure marketability of foreign mutual and hedge funds in Germany (7 June 2013)
- German legislature finally passes 2013 annual tax act measures (7 June 2013)
- New Russia-Malta Tax Treaty signed (6 June 2013 )
- Nigerian tax authorities issue guidance on tax implications of adoption of International Financial Reporting Standards (6 June 2013)