12 July 2013
Americas Tax Center Weekly Roundup
Latest news — Americas
OECD releases G8 report on automatic exchange of financial account information
On 18 June 2013, the OECD publicly released a report that it provided to members of the G8 group of countries in advance of their recent Summit in Northern Ireland (the OECD report). The OECD report, A step change in transparency: Delivering a standardised, secure and cost effective model of bilateral automatic exchange for the multilateral context, was prepared at the request of the G8 Presidency. The OECD report focuses on the development of an efficient approach for implementing automatic exchange of information regarding financial accounts. A Tax Alert has details.
Peru removes deduction limit for research and development expenses
Law No. 30056, published in the Official Gazette on 2 July 2013, removes the deduction limit for research and development (R&D) expenses. The deduction for R&D expenses was limited to no more than 10% of annual net income, with a limit of 300 Tax Units (USD 396,000). If the R&D expenses are not related to the core business of the company, but qualification is obtained before the due date of the income tax return, the deduction for the expenses will be limited to 65%. The amendments to the R&D provisions will be effective 1 January 2014. A Tax Alert has details.
Uruguay proposes repeal of capital gains tax exemption on transfer of bearer shares
On 30 June 2013, the Uruguayan Executive Power sent the 2012 budget project bill for the Parliament’s consideration. Article 309 of this bill eliminates the capital gains tax exemption on the transfer of bearer shares issued by Uruguayan companies. At present, this exemption applies only if the transfer is performed by nonresidents or Uruguayan tax resident individuals. Should Article 309 be approved, the transfer of bearer shares by nonresidents or Uruguayan tax resident individuals will be subject to capital gains tax as follows: 12% rate applicable on a deemed profit of 20% of their sale price (which should correspond to the fair market value). A Tax Alert has details.
Puerto Rico approves tax bill as part of FY 2014 budget
On 30 June 2013, Puerto Rico enacted Act 40-2013, which includes significant changes to the Puerto Rico Internal Revenue Code, principally in the area of sales and use and income taxes. Act 40-2013 is one of the various tax and nontax measures that the Governor of Puerto Rico approved for the government’s budget for fiscal year 2014 and forward. Act 40-2013 also amended the Municipal Property Tax Act of 1991 to apply a special rule in the determination of the taxable value of inventory as a result of the changes in the reseller exemption certificate for sales tax purposes. A Tax Alert has details.
Electronic filing of Venezuelan income tax returns required for individuals
Venezuela’s Tax Authorities (SENIAT) enacted an administrative ruling establishing a requirement for individuals, companies and unincorporated entities to file their income tax return electronically exclusively on the SENIAT’s website. Additionally, after the filing is made, in cases where the tax return generates a payable tax, the taxpayer may choose to make the payment electronically (only through a Venezuelan Bank) or print the form from the system, which will be used for the purposes of payment of the amounts self-assessed to the National Funds (tax offices). A Tax Alert has details.
British Columbia updates its provincial fiscal 2013-2014 budget
British Columbia Finance Minister Mike de Jong tabled the province’s fiscal 2013-14 budget on 27 June 2013. All of the income tax measures announced in the 19 February 2013 budget were reintroduced. The budget contains tax measures affecting both individuals and corporations, including a previously announced increase in the corporate tax rate from 10% to 11%, effective 1 April 2013. A Tax Alert has details.
June 2013 issue of Canadian Quarterly Tax Developments now available
In the latest issue of Quarterly Tax Developments, EY Canada describes income tax developments in the second quarter of 2013 that may affect companies’ tax provision, planning and compliance. The publication includes: (1) updates on federal and provincial corporate tax law changes that were enacted, substantively enacted, or became effective in the quarter; (2) changes to tax treaties and tax information exchange agreements; and (3) a summary of significant outstanding corporate income tax legislative proposals.
This week’s Global Tax Alerts
- South African National Treasury seeks to limit interest deductions involving cross-border group member debt (9 July 2013)
- Ukrainian Parliament approves Transfer Pricing Law (9 July 2013)
- China issues draft revisions to Tax Collection and Administration Law (9 July 2013)
- Peru removes deduction limit for research and development expenses (8 July 2013)
- Slovenian Government publishes proposal to amend Corporate Income Tax Act including thin capitalization rules (8 July 2013)
- Singapore takes significant measures to strengthen its international tax cooperation (8 July 2013)
- EU Court holds Belgian notional interest deduction incompatible with EU freedom of establishment (8 July 2013)
- EU commission requests Spain amend its rules governing international double taxation relief (8 July 2013)
- Spanish tax authorities issue relevant interpretation regarding the portfolio provision (3 July 2013)
- Vietnam's National Assembly approves corporate income tax law amendments (3 July 2013)
- Portugal's Madeira's International Business Center regime transfer pricing deadline 15 July (3 July 2013)
- IRS no longer granting requests for early adoption of 2006 Section 987 proposed regulations (3 July 2013)
- Belgium agrees on 2013-2014 budget measures (3 July 2013)
- OECD releases G8 report on automatic exchange of financial account information (2 July 2013)
- New Japan-Portugal tax treaty enters into force (2 July 2013)
- Check-the-Box Regulations will be amended to add Croatian Dionicko Drustvo entity to per se corporation list (2 July 2013)
- Indian tax administration issues revised circulars on transfer pricing issues relating to development centers (2 July 2013)
- Spanish Government announces extension of limitations to use NOLs and other tax measures and abolishes worthless stock deduction regime (1 July 2013)
- Italy launches pilot project for tax Co-operative Compliance Program, applications required by 31 July 2013 (1 July 2013)
- IRS rules on application of manufacturing exception where sales activities did not include taking of title (1 July 2013)
- Dutch government acts to stimulate business investments(28 June 2013)
- Tax Court holds it has jurisdiction to review cancellation of APAs under an abuse of discretion standard (28 June 2013)
- Belgium issues final Budget 2013 bill containing miscellaneous tax provisions (28 June 2013)
- Singapore announces changes to corporate income tax objection and appeal process (28 June 2013)
- Italian government approves urgent measures for economic growth (28 June 2013)
- Bangladesh announces 2013-14 budget proposals (28 June 2013)
- Indonesia issues regulation on 1% tax rate on gross revenue applicable to small and medium taxpayers (28 June 2013)
- The Ukrainian Parliament adopts Draft Law On Amending the Tax Code on Transfer Pricing in the first reading (27 June 2013)