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 November and 30 November 2012.
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Tax area concerned |
Relevant date/case reference |
Description of measures and publication link
(Considerations in italic where necessary) |
| Argentina |
| Tax legislation adopted and regulatory update |
VAT |
November 2012 |
Guidance to recover VAT on exports was published in the official bulletin.
Read more |
| Treaties |
DTT |
1 January 2013 |
An income tax treaty between Argentina and Russia entered into force on 16 October 2012, and pursuant to Article 28 of the treaty, its provisions will be effective in both countries as of 1 January 2013.
Read more |
Provisions in a new income tax treaty between Argentina and Russia—as published in the Argentine official gazette (Boletín Oficial) will be effective 1 January 2013.
Read more |
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| Brazil |
| Tax legislation adopted and regulatory update |
Indirect tax |
November 2012 |
Recent indirect tax developments in Brazil concern:
| • |
special programs that allow the Brazilian states to collect outstanding indirect taxes with reduced penalty offerings |
| • |
an injunction on indirect tax benefits for computer-related products granted by São Paulo |
| • |
new information reporting requirements concerning cross-border sales. |
Read more |
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| Canada |
| Proposed legislation |
Corporate income tax |
November 2012 |
The Auditor General released the fall 2012 report, in which the only tax issue addressed concerns a decision of the Department of Finance Canada as to whether to consider the impact of spending and tax measures on long-term fiscal sustainability before recommending new policies.
Read more |
KPMG in Canada prepared a summary table that highlights the federal tax legislation contained in Bill C-45 and when these corporate, international, and individual tax measures are considered to be substantively enacted for purposes of IFRS and Canadian GAAP. However, these tax measures will not be considered to be substantively enacted for purposes of U.S. GAAP until the bill is passed through Parliament and receives Royal Assent.
Read more |
| Tax legislation adopted and regulatory update |
Corporate income tax |
1 January 2013 |
The Canada Revenue Agency announced the CRA-prescribed income tax interest rates for taxable benefits, overpaid taxes and underpaid taxes for the first quarter of 2013 (1 January – 31 March 2013) will remain unchanged.
Read more |
| November 2012 |
A recent Canada Revenue Agency technical interpretation provides that whether the level of investment activity of an entity qualifies for the non-profit organization exemption is a question of fact.
Read more |
| Pensions |
2013 |
The Canada Revenue Agency announced that the maximum pensionable earnings under the Canada Pension Plan for 2013 will increase to $51,100* (from $50,100).
Read more |
| Reporting requirements |
November 2012 |
Compliance with business indirect tax filing obligations in Canada may become more complicated and time-consuming in the coming months because business taxpayers will have to meet current filing deadlines, along with some new requirements arising from federal and provincial tax changes.
Read more |
| Harmonized sales tax/ services tax/ provincial sales tax |
November 2012 |
Home builders in British Columbia must comply with new disclosure requirements related to B.C.’s transition from the harmonized sales tax (HST) back to the goods and services tax (GST) and a new provincial sales tax (PST).
Read more |
| Workplace Safety and Insurance Board |
1 January 2013 |
Companies and individuals doing construction in Ontario that previously did not have to pay Ontario Workplace Safety and Insurance Board (WSIB) premiums may have to begin paying these amounts beginning 1 January 2013.
Read more |
| Quebec Sales Tax |
1 January 2013 |
Financial institutions and other businesses operating in Quebec will have to change many of their systems and processes to prepare for amendments to the Quebec Sales Tax (QST) effective 1 January 2013.
Read More |
| Non Profit organizations |
November |
The Canada Revenue Agency (CRA) stated in a technical interpretation that it may consider a non-profit organization (NPO) that makes a loan to a taxable subsidiary to be carrying on a for-profit activity unrelated to its not-for-profit objectives
Read More
The Canada Revenue Agency also addressed in a technical interpretation whether a non-profit organization (NPO) that incorporates and holds shares in a for-profit taxable subsidiary jeopardizes its tax-exempt status under subsection 149(1).
Read More |
| Treaties |
DTT |
November 2012 |
An income tax treaty between Canada and Hong Kong was signed 11 November 2012 in Hong Kong. The treaty will enter into force once Canada and Hong Kong have notified each other that the procedures required by their laws for the ratification of the treaty have been completed.
Read more |
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| Costa Rica |
| Tax legislation adopted and regulatory update |
Excise tax |
October 2012 |
The rates of excise tax on bottled non-alcoholic beverages and on soap were updated by a decree published 26 October 2012.
Read more |
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| Latin America |
| Other |
VAT |
November 2012 |
KPMG International published an overview of the VAT/GST regimes in Latin America.
Read more |
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| Mexico |
| Tax legislation adopted and regulatory update |
Labor |
October 2012 |
A labor reform bill was passed by Mexico’s Senate on 23 October 2012. The legislation passed by the Chamber of Deputies includes provisions concerning:
| • |
recruitment of employees |
| • |
outsourcing |
| • |
rendering of services by Mexicans who work overseas |
| • |
working condition requirements including the payment of wages via electronic means, wage discounts, employee credits, and profit-sharing programs |
Read more |
| Customs |
November 2012 |
A decree published in the Diario Oficial de la Federación on 1 November 2012 concerns foreign trade of Mexican entities and under Mexico’s trade agreements. The decree provides that the Ministry of the Economy awarded the status of “approved exporters” (exportadores autorizados) under Mexico’s trade agreements with the European Union for certain companies.
Read more |
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| Peru |
| Tax legislation adopted and regulatory update |
Customs |
November 2012 |
Peru’s tax administration issued a resolution modifying the valuation procedures for customs (procedimiento de valoración aduanera).
Read more |
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| USA |
| Tax legislation adopted and regulatory update |
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- |
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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| Uruguay |
| Tax legislation adopted and regulatory update |
Reporting requirements |
1 November 2012 |
Uruguay’s tax administration issued a resolution establishing new information reporting rules for large taxpayers (grandes contribuyentes).The new rules are effective 1 November 2012.
Read more |
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