26 July 2013
Americas Tax Center Weekly Roundup
Latest news — Americas
Tax Alert provides details on OECD's BEPS Action Plan
A new Tax Alert on the OECD’s much-anticipated Action Plan on Base Erosion and Profit Shifting (BEPS) outlines the plan’s proposed work in 15 areas of international tax law and practice and the specific outputs linked to each area to be completed in 2014 or 2015. The Action Plan is an ambitious document that reflects the high-level political concern about BEPS issues in many OECD member countries. Companies should evaluate which aspects of the Action Plan could have the greatest impact on their businesses and determine how to participate most effectively in discussions regarding the project. Tax Alert.
Brazil's Central Bank announces annual census of foreign capital
The Central Bank of Brazil has announced a new "Foreign Capital Census" aimed at collecting information on foreign investment in Brazil. Corporate entities, including investment funds headquartered in Brazil, must file this report if, by 31 December 2012, the entities: (1) had any amount of direct foreign capital with a net equity equal to or greater than US$100 million, or (2) had a total outstanding balance of short-term trade credits (enforceable within 360 days) that equaled or exceeded US$10 million. Penalties may apply for untimely, incorrect or incomplete required reporting. A Tax Alert has details.
Argentina establishes new promotional investment system for the oil and gas industry
The Argentine Executive Power has issued Decree N° 929/2013 (published in the Official Gazette on 15 July 2013), establishing a new system to promote investments in the oil and gas industry. The benefits of this system can be requested by those entities enrolled at the "National Registry of Oil & Gas Investments" that: (1) are holders of hydrocarbon exploration permissions and/or holders of hydrocarbon exploitation concessions; and (2) present a project that entails an investment of no less than US$1 billion for the first five years of the project. A Tax Alert has details.
Peru ratifies Pacific Alliance Framework Agreement
Peru’s Ministry of Foreign Affairs issued a decree, published in the Official Gazette on 1 July 2013, ratifying the Pacific Alliance Framework Agreement. The Pacific Alliance is a transpacific trade development area integrated by Peru, Chile, Colombia and Mexico. The agreement was signed on 6 June 2012. The main purpose of this agreement is to establish a deep integration area between the member countries to promote the growth, development and competitiveness of their economies. A Tax Alert is available.
July 2013 issue of Global Tax Policy & Controversy Quarterly Briefing is now available
The latest edition of EY's Global Tax Policy & Controversy Quarterly Briefing is now available. Key events since the last edition include the publication of the OECD’s report on base erosion and profit shifting (BEPS), and a meeting between the Business and Industry Advisory Committee and the OECD shortly thereafter. With the report now in place, the three key areas of focus of the BEPS project — transfer pricing, jurisdiction to tax and countering base erosion — are clear, and the upcoming delivery of the OECD’s action plan is awaited.
EY VAT newsletter highlights global indirect tax developments
EY’s VAT newsletter addresses the many ways that VAT can affect businesses and the changing rules around the world. Although aimed specifically at a US audience, the coverage is global. The latest issue discusses, among other things, a bill submitted to the Chilean Congress on electronic invoicing and the US Marketplace Fairness Act of 2013, which allows eligible states to require most sellers to collect and remit sales and use tax on remote sales into the state without regard to the seller's location.
Rapid-Growth Markets Forecast — July 2013 edition now available
In recent months, investment order indicators in the major economies have been relatively soft and world trade growth has been subdued. While demand in some of the advanced economies has held up reasonably well, domestic demand in some of the key rapid-growth markets (RGMs) has faltered. EY’s latest Rapid-Growth Markets Forecast reports that we now expect a slower recovery in RGMs, with growth of 4.6% in 2013, similar to the expansion in 2012. The main drivers of strong growth in emerging markets, however, remain intact. Over the medium term, RGMs will grow by close to 6% in 2015–16, much faster than the advanced economies.
EY annual report on global infrastructure released
Infrastructure 2013: Global Priorities, Global Insights is the seventh in a series of global annual reports assessing the state of infrastructure globally and connecting strong infrastructure investment decisions to national and metropolitan prosperity. Produced by the Urban Land Institute and EY, the report pinpoints the trends, policies and issues shaping infrastructure in 2013 and beyond. Based on interviews with infrastructure experts, up-to-date research and analysis and other sources, the report is full of essential information and insights for any infrastructure or land-use professional.
This week’s Global Tax Alerts
- Final Ruling of Russia's SAC highlights the risks of a cost allocation approach to charges to Russian subsidiaries(25 July 2013)
- Update on Russia's actions to implement FATCA (25 July 2013)
- Chile - Australia Double Taxation Convention is enacted (25 July 2013)
- Singapore and Barbados sign a new income tax treaty (25 July 2013)
- Belgian Parliament adopts tax measures from 2013-2014 budget including the Fairness Tax (24 July 2013)
- EU Commission concludes that Spanish tax lease scheme constitutes in part illegal state aid (23 July 2013)
- Malaysia acts to promote trade and investment (23 July 2013)
- Brazil's Central Bank announces annual census of foreign capital (23 July 2013)
- EU Court of Justice finds that exceptions to change of ownership rules granting tax loss carry forwards in certain circumstances may not qualify as State Aid (22 July 2013)
- OECD issues Action Plan on Base Erosion and Profit Shifting (BEPS) (22 July 2013)
- Hong Kong enacts new law to promote investment in Islamic bonds (22 July 2013)
- EU Commission launches new investigation of the Spanish financial goodwill tax amortization (22 July 2013)
- Peru ratifies Pacific Alliance Framework Agreement (22 July 2013)
- Philippines' new regulation disallows a taxable deduction in the event of failure to withhold tax on the payment (19 July 2013)
- OECD releases Action Plan on Base Erosion and Profit Shifting (BEPS) (19 July 2013)
- India proposes amendments to its foreign direct investment policy (19 July 2013)
- Argentina's new promotional investment system for the oil and gas industry (19 July 2013)
- EU Court of Justice rules on Danish exit tax (19 July 2013)