21 October 2013
Americas Tax Center Weekly Roundup
Latest news — Americas
US ends government shutdown, raises debt ceiling
On 17 October 2013, President Obama signed into law a measure passed by the US Congress the previous evening to reopen the government and raise the debt ceiling. The law funds the government at the $986 billion spending level through 15 January and raises the debt ceiling until 7 February. A bipartisan conference committee is also to be named to work through differences between the House- and Senate-passed budget resolutions, with a deadline of reaching agreement by 13 December.
Brazil offers new company amnesty programs
On 10 October 2013, Law 12,865 came into force in Brazil, providing specific rules on the expected amnesty programs targeting companies that carry open debts resulting from Provisional Measure 2,158-35/2001, Article 74. The law also established amnesty conditions regarding financial institutions and insurance companies’ turnover taxes – PIS (Social Integration Program) and Cofins (Contribution to Social Security Financing) – as well as reopened the application term for the so-called "Crisis Refis." A Tax Alert comments on the specific rules related to each one of these programs.
Venezuelan taxpayers must report information on their main business activity to the tax administration
Administrative Order No.SNAT/2013-0066, issued by the National Integrated Service of Customs and Tax Administration (SENIAT) and published in Official Gazette N°40.262 of 1 October 2013, requires taxpayers to supply information on their main business activity performed to the SENIAT. This requirement applies to companies, communities and entities with or without legal identity, which according to existing laws are required to register with the Sole Tax Information Registry (RIF). Information must be filed within three months following the date of publication of the Order. A Tax Alert has details.
Colombia issues decree listing tax havens
On 7 October 2013, Colombia’s Ministry of Finance and Public Credit issued Decree 2193, listing the countries, jurisdictions, domains, associated states or territories that are considered tax havens for tax purposes. The decree temporarily excludes certain jurisdictions – including Barbados, Bermuda and Panama – because Colombia is carrying out paperwork to sign treaties or agreements that permit the exchange of tax information with these jurisdictions. A Tax Alert has details.
EY client webcast: What you should know and do as Mexico’s tax reform moves forward (21 October)
EY will host a webcast on Mexico's pending tax reform, which is advancing rapidly. This reform will have a significant tax impact on all multinationals operating or investing in Mexico. The webcast that will take place on Monday, 21 October, live from Mexico City. Register here.
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: (1) the application of Brazil’s IPI tax to software and IPI rates for certain building materials, furniture and appliances; (2) a Mexican VAT reform proposal; (3) Peruvian VAT amendments introduced to promote the stock market; and (4) changes to the Venezuelan VAT withholding regime in Venezuela.
Latest issue of Canadian TaxMatters@EY now available
TaxMatters@EY, a monthly bulletin prepared by EY Canada, provides a summary of recent Canadian tax news, publications and resources. The October 2013 issue takes a look at the pros and cons of incorporating a business, discusses why large multinationals should consider simplifying their corporate organization, and reviews a recent Canada Revenue Agency pronouncement on unreported net capital losses and also a recent Tax Court of Canada decision on the characterization of income.
This week's tax treaty news in the Americas
- Brazil and India: tax treaty protocol signed
- Canada and France: tax treaty protocol ratified
- Canada and Chile: protocol to free trade agreement enters into force
- Chile and South Africa: tax treaty ratified
- Chile and Thailand: free trade agreement signed
- Colombia and Israel: free trade agreement signed
- Ecuador and Peru: social security agreement enters into force
This week’s EY Global Tax Alerts
- OECD report recommends new approaches to encouraging business innovation via tax incentives (18 October 2013)
- Nigerian Tax Appeal Tribunal rules on tax deductibility of recharges
(17 October 2013)
- Brazil offers new special amnesty programs (16 October 2013)
- Belgium's transitory regime for liquidation bonuses requires action by 31 December 2013 (16 October 2013)
- Czech Senate approves Income Tax Law amendment (16 October 2013)
- India's Supreme Court establishes principles on evaluating "real" accrual of income for levy of tax (16 October 2013)
- Polish limited partnerships expected to remain tax transparent in 2014
(16 October 2013)
- Denmark publishes proposed exit tax rules (15 October 2013)
- Angola issues Presidential Decrees regarding large taxpayers regime and invoicing requirements (15 October 2013)
- India's Delhi High Court rules nonresident is entitled to 10% concessional tax rate on capital gains from sale of shares
(15 October 2013)
- New China-Switzerland tax treaty signed (15 October 2013)
- EU incentive limit provisions effective 1 July 2014 require review of Czech Republic investments (15 October 2013)
- Portugal proposes amendments to exit tax to conform to EU principles
(15 October 2013)
- Norway releases 2014 Budget with proposals on new interest deductibility restrictions and reduction of corporate income tax rate
(15 October 2013)
- Ireland's Budget 2014 sets forth international tax proposals
(15 October 2013)
- Hong Kong Tax Authorities comment on deductibility of payments for sub-contracted research and development (14 October 2013)
- China issues circular on qualified research and development expenses eligible for super deduction (14 October 2013)
- Spain's draft Budget Law extends application of increased tax rates for non-Spanish residents (11 October 2013)
- Italian Lower Chamber passes guidelines for tax reform
(11 October 2013)
- Colombia issues decree listing tax havens (11 October 2013)
- Italy issues Amending Decree on Financial Transaction Tax
(10 October 2013)
- Venezuelan taxpayers obligated to supply information on their main business activity to the tax administration (10 October 2013)
- The CJEU finds Portuguese thin capitalization rules contrary to free movement of capital (10 October 2013)
- Ghana reinstates 5% profits tax (9 October 2013)
- Russian President signs laws on mineral extraction rate and offshore hydrocarbon extraction activities (9 October 2013)
- Vietnam releases draft anti-treaty shopping provisions (9 October 2013)
- Angola passes new transfer pricing documentation rules
(8 October 2013)
- Cyprus and Ukraine complete procedures to bring new treaty into force
(8 October 2013)
- Peru extends deadline to file 2012 transfer pricing informative return and transfer pricing technical study (8 October 2013)
Upcoming EY webcasts
- What you should know and do as Mexico’s tax reform moves forward
Mexico’s proposed tax reform is rapidly advancing through the approval process. The changes included in the reform package could have a significant tax impact on all multinationals operating or investing in Mexico. An upcoming EY webcast will cover highlights of the proposal – increased income tax rates on earnings, a broadened tax base and changes to the maquiladora regime – as well as the revised recommendations from the tax committee of the lower house of Congress. Register here.
- Managing VAT/GST in rapid-growth markets (24 October)
Are you concerned about managing value added tax (VAT) and goods and services tax (GST) in rapid-growth markets? What impact could tax reforms have on your plans? Do you want to avoid unnecessary costs and risks while maximizing the opportunities available to your organization? An upcoming webcast will explore the VAT and GST landscape and look at how companies can manage indirect taxes more effectively. The webcast will discuss the latest economic developments, their potential impact, and ways of operating more effectively. Register here.
Recently archived webcasts now available on-demand
- Managing incentives in rapid-growth markets
What’s the best way to identify, obtain and manage grants and incentives in rapid-growth markets? How can you build an incentives framework that allows your organization to avoid unnecessary costs and risks while maximizing the opportunities available? Do you know how economic developments might affect government policies for incentives? In a recent webcast, our experienced panel discussed insights on how managing grants and incentives can help companies enter new markets, improve margins and increase their return on investment. Watch it on-demand here.
- Puerto Rico's tax regime after Act 40-2013
On 30 June 2013, Puerto Rico enacted Act 40-2013, which includes significant changes to the Puerto Rico Internal Revenue Code of 2011, as amended, principally in the area of sales and use (SUT) and income taxes. Act 40-2013 is one of the various tax and non-tax measures that the Governor of Puerto Rico approved for the government’s budget for fiscal year 2014 and forward. A recent webcast discussed these new and controversial tax measures. Watch it on-demand here.
EY industry, service and issue publications
- EY Mega trends shaping the Indian commercial vehicle industry
- Megatrends shaping the Latin American light vehicle market