16 August 2013
Americas Tax Center Weekly Roundup
Latest news — Americas
Venezuela implements new foreign exchange control adjustments
Venezuela has issued new guidance for the Supplementary System for Foreign Currency Administration (SICAD) mechanism. Exchange Agreement No. 22, issued by the Central Bank of Venezuela (BCV), establishes that special foreign currency auctions through SICAD, managed by BCV, may be conducted with positions held by private sector individuals and corporations wishing to partake in such bids, by the Republic and BCV, and by any other entity expressly authorized by the latter’s Board of Directors. Resolution No. 13-07-01, also issued by BCV, provides the General Norms of SICAD. A Tax Alert has details.
Panama adopts law creating custody regime for bearer shares
Law No. 47, of 6 August 2013, approved a custody regime in Panama for share certificates issued to the bearer. The law will enter into force following a two-year period after its date of promulgation (i.e., 6 August 2013). Bearer shares issued after the entry into force of the law must be delivered to a custodian together with an affidavit from the owner of the shares including specific identification information. Following the expiration of a three-year transition period, this obligation must also be fulfilled with respect to bearer shares issued before the law’s entry into force. A Tax Alert has details.
US-Belgium Competent Authority Agreement signed
A recent competent authority agreement between the US and Belgium clarifies that the principles of the "authorized OECD approach" apply for purposes of the determination of business profits attributable to permanent establishments. The agreement applies to tax years beginning on or after 1 January 2013, but taxpayers may apply the entirety of the agreement for all tax years beginning after 31 December 2008. A Global Transfer Pricing Alert has details.
Draft OECD International VAT/GST Guidelines — EY and other comments published
The OECD has published the comments it received from professional firms, businesses and other interested parties on the consultation paper on four new draft elements of the OECD International VAT/GST Guidelines that it released in February 2013. The OECD’s draft elements aim to address uncertainty and risks of double-taxation and unintended non-taxation that result from inconsistencies in the application of VAT to international trade, with a specific focus on trade in services and intangibles. Access the public comments on the draft elements, including EY’s response, here.
This week's tax treaty news in the Americas
- Cayman Islands and US FATCA agreement and Tax information exchange agreement initialed
- Ecuador and Korea: tax treaty approved for ratification
- Mexico and Panama: second round of negotiations on free trade agreement
- Uruguay and Germany: social security treaty approved
- Uruguay and India: tax treaty details available
- Uruguay and Romania: tax treaty details available
This week’s Global Tax Alerts
- India's CBDT revises rules on furnishing information regarding payments to nonresidents ( 12 August 2013 )
- China issues clarifying guidance on corporate income tax treatment of hybrid investments ( 12 August 2013 )
- Delhi Tribunal rules in Maruti Suzuki Ltd royalty payment case ( 9 August 2013 )
- Swiss Federal Supreme Court upholds tax information exchange with US ( 9 August 2013 )
- Urgent action may be required on Canadian upstream loan rules ( 8 August 2013 )
- US-Belgium Competent Authority Agreement signed ( 8 August 2013 )
- Brazil issues further guidance on pricing of interest bearing transactions; taxpayer-favorable decision in Resale Minus 60 case ( 8 August 2013 )
- Panama adopts law creating custody regime for bearer shares ( 8 August 2013 )
- Recent Brazilian decisions address compensation nature of stock option income ( 8 August 2013 )
- Venezuelan government implements new foreign exchange control adjustments ( 8 August 2013 )
Recently archived webcasts now available on-demand
- The shift toward risk management: 2013 global transfer pricing survey
EY's 2013 Global Transfer Pricing Survey reveals companies are placing a higher priority on managing risk associated with transfer pricing compared to the past, reflecting a need to adjust to more and new sources of controversy around the world. By identifying trends and anticipating changes in policy, legislation and enforcement, business can plan for adverse impacts, take proactive steps to adapt to changes and even engage with policymakers. A recent EY webcast discussed several sources of risk that may be contributing to the new environment to help companies prepare for these ongoing changes. Watch it on-demand here.
- OECD’s base erosion and profit shifting (BEPS) action plan
On 23 July 2013, EY hosted a webcast on the BEPS action plan released by the OECD on 19 July. This action plan has been much anticipated and widely covered by the media. The webcast starts with a quick background to provide an overview of the context and focus of the action plan and then individually addresses each of the action points and their possible impact on business. Watch the webcast on-demand here.