3 January 2014

Americas Tax Center Weekly Roundup

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Latest news — Americas

Mexico’s President issues decree granting tax incentives to maquiladoras

On 26 December 2013, following up on the tax reform passed earlier in the month, Mexico’s President Pena Nieto published a decree granting tax incentives to the manufacturing, maquiladora and export services industry in the Official Gazette. The decree provides some guidance and relief with respect to changes in the laws that will go into effect on 1 January 2014. In addition, on 30 December 2013, the Mexican tax authorities issued clarifying rules related to certain items included in the tax reform relevant for maquiladoras. A Global Alert provides details.

New Argentine tax compliance obligations address transactions between local related parties

The Argentine Federal Tax Authorities (AFIP) have issued General Resolution 3572 (published in the Official Gazette on 19 December 2013), creating obligations related to transactions performed between local related parties. Argentine corporate resident taxpayers – including companies, Argentine branches and certain trusts – must register in the new "Related Parties Register" whenever they are related to other entities located in Argentina or abroad. The same entities will also have to comply with a monthly informative system for transactions performed in the Argentine market with local related parties. A Tax Alert has details.

Peru approves treaties with Portugal, Korea, Switzerland and Mexico

On 27 December 2013, the Peruvian Parliament submitted Legislative Notices No. 30140 and No. 30141, approving tax treaties with Korea and Portugal. The next day, 28 December 2013, the Peruvian Parliament submitted Legislative Notices No. 30143 and No. 30144, approving tax treaties with Switzerland and Mexico. The notices have been published in the Official Gazette. The treaties specify withholding tax rates and generally follow the OECD Model with slight variations. Separate Tax Alerts have details on the Portugal and Korea treaties and the Switzerland and Mexico treaties.

Argentina-Spain tax treaty enters into force

As published in the Official Gazette on 24 December 2013, the Argentina-Spain Tax Treaty signed on 11 March 2013 entered into force on 23 December 2013. Article 28 of the Treaty indicates that the treaty applies retroactively to 1 January 2013. The new treaty includes a number of changes from the previous treaty that was applicable through the end of 2012. A Tax Alert has details.

This week's tax treaty news in the Americas

  • Barbados and Malta: tax treaty protocol ratified
  • Bermuda and US: FATCA agreement details available
  • Canada and France: tax treaty protocol ratified
  • Ecuador and Qatar: tax treaty authorized for signature
  • Guatemala and World Trade Organization: Guatemala signs agreement to abolish certain tax incentives and exemptions

This week’s EY Global Tax Alerts

Upcoming webcasts

  • Cloud computing – a global perspective (23 January)
    Does your organization understand its global tax risks surrounding cloud-based transactions, and how the cloud tax landscape may change in the coming months and years? We invite you to join our panel of tax professionals for an informative and multinational discussion regarding the cross-border tax considerations for global cloud computing arrangements. Whether you are a cloud user or cloud service provider, this webcast will help you understand the relevant tax issues and opportunities. Register here.

Recently archived webcasts now available on-demand

  • Brazil's broad tax changes – what you need to know now!
    On 12 November 2013, Brazil’s Executive Branch published Provisional Measure 627 containing a broad array of tax changes that will affect multinational companies doing business in Brazil as well as Brazilian multinationals with operations abroad. Taxpayers need to decide, based on their specific facts and circumstances, whether to adopt the sweeping changes for fiscal year 2014. A recent webcast discussed the new tax rules and the circumstances where early adoption of the newly issued tax rules may be beneficial. Register here.

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