8 November 2013
Americas Tax Center Weekly Roundup
Latest news — Americas
Colombia issues new Decree for calculating basis for withholding at source for mature securities
Colombia's Ministry of Finance and Public Credit issued Decree 2318, on 22 October 2013, which modifies the basis calculation for withholding at source for overdue financial returns in Colombian pesos that are regulated by Decree 700 of 1997. The Decree will be effective beginning in January 2014 because of technological changes that must be made by withholding agents. However, taxpayers may be able to withhold under the new rules earlier. A Tax Alert has details.
US IRS issues additional guidance regarding FATCA
The US IRS issued Notice 2013-69 on 29 October 2013, its latest guidance under the Foreign Account Tax Compliance Act (FATCA). The Notice generally provides guidance to foreign financial institutions (FFIs) entering into FFI agreements with the IRS to be treated as participating FFIs. A Tax Alert has details.
Puerto Rico issues procedures for requesting waivers from new AMT components
Puerto Rico's Treasury Department has issued procedures on requesting a partial waiver of the applicable rate under the new Alternative Minimum Tax (AMT) component called additional tax on gross income. The procedures also address how to request a full exclusion from the disallowance of expenses incurred or paid to a related person for purposes of the AMT and a partial waiver from the applicable tax rate of the AMT component related to purchases from related persons. A Tax Alert has details.
Panama approves Tax Information Exchange Agreements with Nordic countries
Panama's Congress approved bilateral Tax Information Exchange Agreements (TIEA) with Denmark, Faroe Islands, Finland, Greenland, Iceland, Norway and Sweden, which were signed in London on 12 November 2012. The TIEA are now in force with Faroe Islands, Finland, Greenland and Iceland as of 8 October 2013, and with Norway, Sweden and Denmark as of 17 October 2013. A Tax Alert has details.
El Salvador: Tax Authorities publish a revised list of tax havens for 2014
El Salvador's Tax Authorities issued resolution No. DG-001/2013, which is an annual guide on transactions with tax havens that sets out a revised list of countries, states or territories that are considered to be preferential tax regimes, low or nil-tax jurisdictions and tax havens for Salvadoran tax purposes. This revised list will be effective for tax year 2014 (i.e., from 1 January to 31 December 2014). A Tax Alert has details.
EY global survey finds growing confidence in economy, increasing interest in acquisitions
Almost 70% of global executives expect deal volumes and deal sizes to improve over the next 12 months, according to EY’s ninth bi-annual Capital confidence barometer, a survey of 1,600 senior executives in more than 70 countries. With core fundamentals in place to support mergers and acquisitions, over a third (35%) of companies will pursue acquisitions in the next 12 months compared to 25% a year ago. More positive sentiments around deal-making stem from a growing economic confidence, which has risen dramatically over the last 12 months – 65% expect the global economy to improve, compared to just 22% a year ago.
This week's tax treaty news in the Americas
- Argentina and Switzerland: treaty initialled
- Canada and Serbia: treaty entered into force
- Mexico and St. Lucia: exchange of information agreement signed
This week’s EY Global Tax Alerts
- Colombia's Ministry of Finance and Public Credit issues Decree modifying basis calculation for withholding for mature securities (5 November 2013)
- Hungarian Government submits 2014 tax amendments to Parliament (5 November 2013)
- Panama approves Tax Information Exchange Agreements with Nordic countries (5 November 2013)
- UK announces changes to compensating adjustments (5 November 2013)
- Hong Kong's Tax Authority provides interpretations on certain tax positions (1 November 2013)
- Spain enacts new tax measures and extends temporary measures including NOL limitation (1 November 2013)
- Malaysia announces 2014 Budget Proposal (31 October 2013)
- Canada-Hong Kong tax treaty enters into force (31 October 2013)
- Association Agreement with European Union enters into force for Costa Rica and El Salvador (31 October 2013)
- El Salvador's Tax Authorities publish list of 2014 tax havens (31 October 2013)
- Mexico's proposed tax reform awaiting approval and signature by president (31 October 2013)
- Introduction of goods and services tax in Malaysia (31 October 2013)
- Mauritian Financial Services Commission introduces additional conditions to enhance economic substance of GBL1 companies (31 October 2013)
Upcoming EY webcasts
- IFRS 10 and 12: Practical issues for asset management (12 November)
IFRS 10 Consolidated Financial Statements and IFRS 12 Disclosure of Interests in Other Entities, present challenging practical issues to the asset management sector. This webcast will address topics such as issues encountered with implementing those standards, considerations in assessing whether you should consolidate the funds you manage or whether those funds are structured entities and issues that the IFRS Interpretations Committee is considering around the investment entities amendment. Register here.
- Put Mexico, Ireland and Spain tax issues on your radar screen (12 November)
In the next International tax talk webcast, the EY Global Tax Desk team will focus on the significant Mexico tax reforms and the latest tax regime developments in Ireland and Spain. These countries’ political and regulatory proposals and actions have wide ranging implications for multinationals. The webcast will discuss Mexico’s key reforms, Ireland’s recent budget proposals and the current BEPS (base erosion and profit shifting) debate in these countries. Register here.
- Your talent in motion: Global mobility effectiveness survey 2013 (5 December)
Global organizations now deploy their talent around the world, around the clock – in structured assignments, in flexible work patterns, in ad hoc business travel and in short-term crisis management roles. This webcast will examine how the individuals in the global talent pool, and the organizations they work for, can both benefit from effective practices in the management of global mobility. Register here.
Recently archived webcasts now available on-demand
- Managing VAT/GST in rapid-growth markets
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? A recent webcast explored the VAT and GST landscape and looked at how companies can manage indirect taxes more effectively. The webcast discussed the latest economic developments, their potential impact, and ways of operating more effectively. Watch it on-demand here.
EY industry, service and issue publications
Mining and Metals
Oil and Gas
- Transfer pricing and the challenging road ahead
- Oil and gas cybersecurity: Penetration testing techniques