21 June 2013
Americas Tax Center Weekly Roundup
Latest news — Americas
G8 summit calls for greater transparency with tax authorities
At the conclusion of the G8 summit on 18 June 2013, the G8 issued a communiqué and supporting documents expressing support for greater transparency with tax authorities and endorsing the OECD’s ongoing work on base erosion and profit shifting (BEPS). The language regarding tax matters in the communiqué reconfirms the strong interest of the G8 member countries in the work of the OECD on addressing BEPS, on enhancing exchange of information between tax authorities, and on providing support for the tax administrations of developing countries. A Tax Alert has details.
Argentina enacts voluntary declaration system for foreign currency holding
The Argentine Congress has passed Law 26,860, published in the Official Gazette on 3 June 2013, approving the voluntary declaration system of foreign exchange holding in Argentina or abroad. This system and the related tax exemptions on previously undeclared funds will apply as long as the declared currency is invested in certain financial instruments related to public infrastructure and construction. In addition, the Argentine Federal Tax Authorities (AFIP) issued a resolution stating that the system will be available until 30 September 2013 and providing certain additional clarifications. A Tax Alert has details.
Chile — Requests for extensions to file transfer pricing annual sworn statement due 21 June 2013; TP statement due 28 June 2013
On 14 June 2013, the Chilean Internal Revenue Service published Circular No. 29 with instructions addressing the modifications to the transfer pricing rules applicable since September 2012 (Law 20.630). According to this Circular, Friday, 21 June, is the last day to file a request with the tax authority for an extension of time to file the transfer pricing annual sworn statement (Form 1907), which is otherwise due the last business day of June (Friday, 28 June). A Tax Alert has details.
Brazil once again amends Financial Transaction Tax
Due to the recent US dollar appreciation, the Brazilian Government has changed rates on calculation of the Financial Transactions Tax (Imposto sobre Operacoes Financeiras or IOF). Federal Decree 8,027, published 13 June 2013, amended article 32-C of Federal Decree 6,306 (the IOF regulations), which dealt with taxation of derivative contracts — the so-called IOF-derivatives. A Tax Alert has details.
Venezuela eliminates VAT withholding exemption for payments with credit and debit cards
The Venezuelan Tax Administration has issued Orders eliminating the exemption from the Value Added Tax (VAT) withholding obligation for payments made by credit or debit cards. The Orders will become effective on the first day of the second calendar month initiated after their publication in the Official Gazette and will apply to any tax event occurring on or after their effective date. Accordingly, any payment made in respect of VAT taxable transactions, regardless of the mechanism used, will be subject to VAT withholding from the effective date of the Orders.
Costa Rica and Ecuador sign Tax Information Exchange Agreement
On 4 June 2013, the foreign ministers of Costa Rica and Ecuador signed a Tax Information Exchange Agreement. This bilateral agreement, which has not yet been released, sets out the means by which both countries will cooperate and exchange information in connection with the administration and enforcement of their respective taxes. It is not yet clear when the agreement will enter into force. A Tax Alert has details.
EY global mining and metals tax survey report released
Global mining and metals tax survey: From backroom to boardroom reports on an EY survey of tax directors from the top 40 global mining and metals houses to examine the challenges and issues that they are now facing. The report is a follow up to EY’s 2009 mining and metals tax survey to see where the tax function has moved and how it has been affected by the dramatic changes in the mining and metals landscape over the past few years. The tax directors provided insight into the key challenges facing the mining and metals industry, specifically around areas of resource nationalism, tax risk management, tax planning and transfer pricing.
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
- G8 summit calls for greater transparency with tax authorities (19 June 2013)
- Korea's recent tax audit trend focuses on specific targets (19 June 2013)
- Indonesia issues new guidance for transfer pricing audits (19 June 2013)
- Polish tax authorities increase transfer pricing scrutiny of business restructurings (19 June 2013)
- Indonesia's current tax audit trends (19 June 2013)
- Italian financial transaction tax update (19 June 2013)
- Israeli budget proposal contains significant changes to taxation of trusts (18 June 2013)
- Dutch Supreme Court rules in participation exemption case (18 June 2013)
- China issues guidance on nationwide launch of VAT Pilot Arrangements for transportation industry, certain modern service industries (18 June 2013)
- Portugal enacts withholding tax exemption for interest and royalties paid between associated companies of EU member states and also Switzerland (18 June 2013)
- Russia's Ministry of Finance issues guidance on the deduction of interest on loans to finance investment in a subsidiary (14 June 2013)
- European Commission proposes extending automatic exchange of information to cover dividends, capital gains, other financial income and account balances (14 June 2013)