This e-newsletter gives you an overview of international corporate tax developments being reported globally by KPMG member firms in the Americas Region between 1 February and 28 February 2013.
| |
Tax area concerned |
Relevant date/case reference |
Description of measures and publication link
(Considerations in italic where necessary) |
| Argentina |
| Treaties |
Information exchange agreement |
27 January 2013 |
A tax information exchange agreement between Argentina and India has entered into force, with an effective date of 27 January 2013.
Read more |
| Proposed legislation |
Reporting requirements |
February 2013 |
Argentina’s tax authorities announced changes to the information reporting requirements with respect to individual income tax and personal property tax.
Read more |
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| Bahamas |
| Proposed legislation |
VAT |
1 July 2014 |
A VAT regime has been proposed in the Bahamas and, if enacted, would be effective beginning 1 July 2014.
Read more |
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| Brazil |
| Tax legislation adopted and regulatory update |
Social security |
February 2013 |
Brazil’s government introduced changes to payment calculation and information reporting requirements with respect to social security contributions.
Read more |
| Tax on financial operations |
31 January 2013 |
The tax administration of Brazil issued a decree that reduces the rate of the “tax on financial operations” (Imposto sobre Operações Financeiras—IOF) for acquisitions made in connection with foreign investments in real estate investment funds. The new decree is effective as of 31 January 2013.
Read more |
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| Canada |
| Tax legislation adopted and regulatory update |
Sales Tax |
February 2013 |
Many financial institutions registered for Quebec sales tax (QST) purposes soon will have to file their QST returns with the Canada Revenue Agency (CRA) instead of the Quebec Revenue Agency (QRA).
Read more |
| 1 April 2013 |
Companies that sell taxable goods and services in British Columbia need to prepare for the new B.C. provincial sales tax that takes effect on 1 April 2013.
Read more |
| Reporting requirements |
30 June 2013 |
The Canada Revenue Agency confirmed that it will accept the prior version of the foreign affiliate information reporting on the Form T1134 series (i.e. prior Forms T1134A and T1134B) until 30 June 2013.
Read more |
| 1 March 2013 |
Business income trusts, resource trusts and real estate income trusts — i.e. public trusts — are required to post their T3 tax reporting information for unitholders on the Canadian Depository for Securities website within 60 days of the end of the calendar year (or 67 days for publicly traded trusts that invest in other publicly traded trusts, partnerships or corporations). Accordingly, the deadline for 2012 information was Friday, 1 March 2013.
Read more |
| February 2013 |
The Canada Revenue Agency revised its guidelines and information return to be used by charities. The Revised Guide T4033 requires charities to provide more details about their political activities, based on changes announced in the 2012 federal budget.
Read more |
| 20 November 2012 |
Certain trusts — regardless of residency — may now have to file a Quebec income tax return. These measures apply for tax years beginning after 20 November 2012, and reflect statements made by the Quebec Government with respect to the Quebec provincial budget for 2013-2014.
Read more |
| Withholding tax |
February 2013 |
The Canada Revenue Agency released guidance providing withholding tax waiver relief for non-resident employees who attend conferences in Canada.
Read more |
| Corporate income tax |
February 2013 |
The Canada Revenue Agency stated that interest income earned by a non-profit organization on membership fee payment plans is considered to be income from property.
Read more |
Certain trusts may benefit from recent legislative changes to ease the requirements to qualify as a real estate investment trust (REIT) for income tax purposes.
Read more |
| Workplace Safety and Insurance Board |
1 January 2013 |
Canada’s Workplace Safety and Insurance Boar announced that as of 1 January 2013, new rules apply to companies and individuals doing construction in Ontario.
Read more |
| Registered retirement savings plan |
February 2013 |
The Canada Revenue Agency confirmed that the 50 percent tax on prohibited investments — as part of the new registered retirement savings plan (RRSP) anti-avoidance rules — applies when an RRSP or a registered retirement income fund annuitant acquires a prohibited investment by exercising a warrant that is also a prohibited investment but that was acquired before 23 March 2011.
Read more |
| 1 March 2013 |
Taxpayers had until 1 March 2013 to file an election to have transitional relief apply to advantages earned on prohibited investments held in a registered retirement savings plan (RRSP) on 23 March 2011.
Read more |
| Administrative and case law |
Real estate |
Sunrise Realty Investments Limited v. The Queen |
The Tax Court of Canada allowed the taxpayer's appeal regarding the purchase price allocation of a property with land and a rental building. The case serves as a reminder that taxpayers need to be able to justify their purchase price allocation between land and building.
Read more |
| Treaties |
Information exchange agreements |
January/February 2013 |
Canada signed tax information exchange agreements with Liechtenstein in late January 2013, and with Uruguay in February 2013. They will enter into force following the countries’ respective ratification procedures.
Read more |
| Proposed legislation |
Budget |
2013 |
British Columbia Finance Minister Michael de Jong delivered the province’s 2013 budget. The budget contains measures to increase both corporate and individual (personal) tax rates.
Read more |
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| Colombia |
| Tax legislation adopted and regulatory update |
Customs |
January 2013 |
A new customs law in Colombia was enacted in early January 2013, and revises the framework (general rules) for amendments to customs tariffs, rates, and other customs-related provisions.
Read more |
| Budget |
2013 |
In Colombia, tax reform measures enacted in late 2012 generally are effective beginning 2013.
Read more |
| Withholding tax |
1 April 2013 |
Colombia’s tax administration (Ministerio de Hacienda y Crédito Público) issued guidance concerning withholding tax for amounts paid to employees. The effective date for the decree is 1 April 2013.
Read more |
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| Costa Rica |
| Tax legislation adopted and regulatory update |
Reporting requirements |
February 2013 |
Costa Rican taxpayers are required to keep their ‘accounting and financial records’ (registros contables y financieros), according to resolution N° DGT-R-001-2013, published on the official gazette on 14 February 2013.
Read more |
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| Jamaica |
| Proposed legislation |
Corporate
income tax/
Stamp duty/
Withholding tax/Property tax |
February 2013 |
Jamaica’s Minister of Finance and Planning proposed new revenue measures including:
| • |
A surtax at a rate of 5 percent on large unregulated companies with gross income of $500 million* or more |
| • |
Transfer pricing rules and thin capitalization rules |
| • |
A 15 percent tax on dividends distributed and payable from Jamaican resident companies to Jamaican residents |
| • |
An increased rate of property tax |
| • |
An increase in stamp duty and transfer tax rates |
Read more |
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| Latin America |
| Other |
Corporate income tax |
February 2013 |
KPMG’s Americas Tax Center examined corporate tax changes of interest to multinationals that operate in the region.
Read more |
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| Mexico |
| Tax legislation adopted and regulatory update |
Amnesty program |
31 May 2013 |
A release published in Mexico’s Diario Oficial de la Federación sets forth rules for a tax amnesty program for 2013. The deadline to apply for participation in the tax amnesty program is 31 May 2013.
Read more |
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| Panama |
| Tax legislation adopted and regulatory update |
Reporting requirements |
February 2013 |
Taxpayers are reminded of the requirements for reporting information to the local tax authorities of the Municipality of Panama concerning corporate income tax.
Read more |
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| Uruguay |
| Tax legislation adopted and regulatory update |
Corporate income tax/Treaties
|
February 2013 |
In Uruguay, recent tax developments concern the following items
| • |
Corporate income tax |
| • |
Tax information exchange agreement with Argentina |
| • |
Free zones |
| • |
Bearer instrument reporting |
| • |
Tax credit for farmers |
Read more |
| Corporate income tax |
February 2013 |
The government of Uruguay issued a decree establishing a tax exemption for corporations operating in the biotechnical sector.
Read more |
A decree establishes rules concerning the corporate income tax implications of certain transfers of immovable/real property interests to a trust grantee (fideicomitente).
Read more |
| Treaties |
DTT |
8 February 2013 |
An income tax treaty between Uruguay and Argentina entered into force 8 February 2013.
Read more |
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| USA |
| Tax legislation adopted and regulatory update |
- |
- |
For legislative changes and regulatory updates for the US please visit below link to the TaxNewsFlash United States.
Read TaxNewsFlash US |
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| Venezuela |
| Tax legislation adopted and regulatory update |
Financial institutions |
1 January 2013 |
In Venezuela, there are new rules for monthly tax payments made by banks and financial institutions. The measures are effective 1 January 2013.
Read more |
| Customs |
February 2013 |
Venezuela’s Ministry of Finance (Ministerio del Poder Popular de Planificación y Finanzas) issued a resolution concerning the list of imports that are eligible for expedited liquidation processes when foreign currency is involved.
Read more |
| Hydrocarbon- tax
|
February 2012 |
The government of Venezuela approved a legislative decree establishing a new ‘special tax on extraordinary prices and exorbitant prices in the international oil market’ (precios extraordinarios y precios exorbitantes en el mercado internacional de hidrocarburos).
Read more |
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