27 September 2013
Americas Tax Center Weekly Roundup
Latest news — Americas
Mexican tax reform proposal would affect financial institutions
Mexico’s new tax reform package includes significant changes to the tax law that, if enacted, could have a significant effect on companies operating in the financial services industry. The proposed reform includes changes that would eliminate certain taxes, while increasing others and expanding the tax base overall. In particular, financial institutions should be aware of the proposed changes to deductions for losses. A Tax Alert summarizes some of the proposed changes that would affect companies operating in the financial services industry.
Argentine tax reform on capital gains and dividends enters into force
On 23 September 2013, Law 26,893 was published in the Argentine Official Gazette,introducing significant changes to the income tax law regarding the taxation of dividends and capital gains. The text of the law states that the provisions contained in it will enter into force from the date of its publication in the Official Gazette and will be applicable to taxable events that take place from that entry into force. A Tax Alert discusses the main modifications introduced by the reform.
Argentina issues additional regulations regarding Software Promotional Regime
On 16 September 2013, Presidential Decree 1,315/2013 was published in the Argentine Official Gazette, regulating a Promotional Regime under which companies that develop software may receive a number of benefits until December 2019. The Decree establishes several requirements and clarifications for companies to receive the benefits. Companies with software development activities or computer services should evaluate the possibility of applying for the benefits. In addition, companies already registered in the Promotional Regime must evaluate their status and need to re-register in accordance with the new rules. A Tax Alert has details.
Canada Revenue Agency releases 2012-13 APA Program Report
On 18 September 2013, the Canada Revenue Agency released its Advance Pricing Arrangement (APA) Program Reportfor the fiscal year ending 31 March 2013 (covering the period from 1 April 2012 to 31 March 2013). The report provides an overview of the operations of the APA program, including statistical analyses of APAs completed and in progress. APAs completed in 2012-13 were at a historic high. While interest in the program remains high, applications received in 2012-13 were down from 2011-12. A Tax Alert discusses highlights from the report.
Latest issue of EY’s Trade Watch now available
The September 2013 issue of Trade Watch,a quarterly communication prepared by EY’s Customs & International Trade Practice, is now available. News items from the Americas in the current issue include: (1) Brazil – New supplement to the tariff nomenclature coming soon, (2) Brazil – REINTEGRA program extended, (3) Canada – The Canadian “iPod Tariff” update, and (4) Peru – Peru ratifies Pacific Alliance Framework Agreement. In addition to these and other country updates, the issue also includes a Spotlight on the EU and a discussion of our 2013 Global Transfer Pricing Survey.
Oil and gas, cloud computing tax guides join ey.com’s global suite
The 2013 edition of the Global oil and gas tax guide and the 2013-14 Worldwide Cloud Computing Guide, already in the market via PDF and hard copies, are now fully integrated into ey.com’s suite of global tax guides. Use the oil and gas online guide to browse through concise summaries of 74 countries’ national oil and gas tax regimes. The cloud computing guide offers easy access to information on relevant corporate tax regimes in 57 countries. These online versions of our publications link our other ey.com guides, including the Worldwide corporate tax guide; Transfer Pricing Global Reference Guide; and Worldwide VAT, GST and sales tax guide.
Mergers, acquisitions and capital raising in mining and metals — EY report
Our 2013 mid-year update on market activity in the mining and metals sector reports that, as expected, capital raising activity over the first half of 2013 has been subdued. The report notes that if 2012 represented the peak of capital spending, then 2013 will come to represent a hiatus and period of retrenchment. Management teams across the industry are focused on cost-containment, margin improvement and asset optimization at the expense of high-risk capital expenditure, acquisitions or exploration. Read the report to learn more.
This week's tax treaty news in the Americas
- Canada and Serbia: negotiations concluded on foreign investment promotion and protection agreement
- Colombia and Panama: free trade agreement signed
- Mexico and United Arab Emirates: tax treaty ratified
- Panama and Cyprus: tax treaty negotiations ongoing
This week’s Global Tax Alerts
- IRS issues guidance for correction of wages and taxes for same-sex spousal benefits (24 September 2013)
- Russia's SAC's Presidium rules calculation of thin cap limitations must be prepared quarterly (24 September 2013)
- Ghana publishes Transfer Pricing Return and Practice Notes on transfer pricing regulations (23 September 2013)
- Philippines Supreme Court ruled failure to comply with time requirement for tax treaty relief application should not bar taxpayer from treaty benefit (23 September 2013)
- Argentine tax reform on capital gains and dividends enters into force (23 September 2013)
- Argentina issues additional regulations regarding Software Promotional Regime (23 September 2013)
- US Tax Court Holds Account Receivable Established under Revenue Procedure 99-32 is Related-Party Indebtedness for Purposes of Section 965 (23 September 2013)
- Mexico's tax reform proposal affects financial institutions (20 September 2013)
- US IRS issues regulations applying straddle rules to certain debt instruments (20 September 2013)
- Indian Tax Administration issues final rules on transfer pricing safe harbor (19 September 2013)
- European Commission scrutinizes Member States' tax schemes under State Aid criteria (19 September 2013)
- Managing incentives in rapid-growth global markets (10 October)
What’s the best way to identify, obtain and manage grants and incentives in rapid-growth markets? How can clients build an incentives framework that allows their organization to avoid unnecessary costs and risks while maximizing the opportunities available? Do clients know how economic developments might affect government policies for incentives? In an upcoming external webcast, an experienced EY global panel will discuss insights on how managing grants and incentives can help companies enter new markets, improve margins and increase their return on investment. Register here.
- Global payroll: the reality behind the myth (16 October)
Managing global payroll is an increasingly complex and specialized area. Businesses want to reduce costs, comply with local legislation and deliver consistency to their employees while managing the risks effectively. A recent EY Global payroll survey found that 55% of organizations felt a single vendor could not deliver their entire global payroll. An upcoming webcast will examine the reality of outsourced global payroll with case studies from companies at various stages of outsourcing. We’ll look at the factors which determine the decision to outsource and successful strategies for global implementation. Register here.
EY industry, service and issue publications
Banking and Capital & Debt Markets
- Meta-alerting: the new way forward for AML transaction monitoring
- Understanding sanctions: how to identify risk factors
Mining and Metals
Oil and Gas
Power and Utilities