13 December 2013

Americas Tax Center Weekly Roundup

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Latest news — Americas

Mexico’s tax reform signed by president and published

On 11 December 2013, the final components of Mexico’s 2014 tax reform were published in the Official Gazette, after having been signed by President Peña Nieto on 6 December 2013. A Tax Alert provides a summary of some of the more significant aspects of the final tax reform for international investors.  An EY webcast on 17 December will focus on Mexico's tax reform package and its impact on the maquiladora industry. See below to register for the webcast.

Argentina imposes 35% tax surcharge on acquisition of foreign currency for travel and tourism

The Argentine Federal Tax Authorities (AFIP) have issued General Resolution No. 3550/2013 (published in the Official Gazette on 3 December 2013), which expands the scope of the reverse withholding (“percepción” in Spanish) surcharge applicable to certain purchases of goods and services outside of Argentina to include the purchase of foreign currency for travel and tourism purposes. The General Resolution also increases the surcharge rate from 20% to 35%. The provisions contained in the General Resolution became effective on 3 December 2013. A Tax Alert has details.

Canada’s TaxMatters@EY – December 2013 issue available

TaxMatters@EY, a monthly bulletin prepared by EY Canada, provides a summary of recent Canadian tax news, publications and resources. The December 2013 issue offers helpful tips for reducing the 2013 and 2014 tax burden, highlights the increasing risks of sending employees on short-term cross-border business travel, and discusses a recent Tax Court of Canada decision that found that an amount paid by an employer to a former employee was a taxable benefit, not a gift.

Private equity interest in the oil and gas industry to grow with emphasis on emerging markets

Fifty-five percent of private equity (PE) executives cite the growing capital requirements of the oil and gas industry as the biggest driver of their investment activity in the industry, according to a newly-released EY and Mergermarket report, Financing the Future Energy Landscape: Private Equity Trends in Oil and Gas. While the bulk of PE investment in the oil and gas industry is heavily focused on North America, Latin American and Asia-Pacific regions are expected to receive the highest increase in attention from PE firms over the next two years.

This week's tax treaty news in the Americas

  • Brazil and Malaysia: tax treaty negotiations ongoing
  • Brazil and Turkey: additional information available on effective date of tax treaty
  • Canada and Luxembourg: tax treaty protocol enters into force
  • Costa Rica and Mexico: tax treaty initialed
  • Ecuador and China: tax treaty ratified
  • Mexico and Malaysia: tax treaty negotiations ongoing
  • Uruguay and Malaysia: tax treaty negotiations ongoing
  • Uruguay and Vietnam: investment protection agreement signed
  • Uruguay and Vietnam: tax treaty signed

This week’s EY Global Tax Alerts

Upcoming EY webcasts

  • Mexico's tax reform package and its impact to the maquiladora industry (17 December)
    Mexico’s proposed tax reform has been approved by the two houses of Congress and is about to be finalized and signed into law. The changes included in the final reform package will likely have a significant tax impact on all multinationals operating in Mexico’s maquiladora industry. An upcoming webcast will cover highlights of the final proposal as they relate to the maquiladora industry. The webcast will also address the Rules and Presidential Decree provisions impacting the maquiladora industry that were announced recently by the National Maquiladora Council (INDEX). Register here.

EY industry, service and issue publications

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