This e-newsletter gives you an overview of international tax developments being reported globally by KPMG member firms in the Americas region between 1 June and 30 June 2015.
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Tax area concerned |
Relevant date |
Description of measures and publication link (Considerations in italic where necessary) |
| Bahamas |
| Tax legislation adopted and regulatory update |
FATCA |
May 2015 |
The Central Bank of The Bahamas in May 2015 issued guidance notes for implementing the FATCA regime.
Read more |
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| Brazil |
| Tax legislation adopted and regulatory update |
Social contribution on net profits |
1 September 2015 |
Effective 1 September 2015, the rate of social contribution on net profits (Contribuição Social sobre Lucro Líquido—CSLL) of certain financial entities, banks, and insurance companies will be increased to 20 percent (up from 15 percent).
Read more |
| Social contributions on finance income |
May 2015 |
Brazil’s tax authorities issued a decree to clarify earlier guidance concerning the rates of social contributions imposed on finance income of companies subject to taxation on a noncumulative basis.
Read more |
| Administrative and case law |
Various tax areas |
May 2015 |
Judgments of Brazil’s second highest administrative-level tax body (Conselho Administrativo de Recursos Fiscais—CARF) have been suspended due to investigations involving allegations of a bribery scheme involving multinational companies.
Read more |
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| British Virgin Islands |
| Tax legislation adopted and regulatory update |
Tax compliance |
31 July 2015 |
The British Virgin Islands tax authority announced that the reporting deadlines for British Virgin Islands reporting financial institutions have been extended by one month, to 31 July 2015 (from the previously established deadline of 30 June 2015).
Read more
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| Canada |
| Tax legislation adopted and regulatory update |
Anti-avoidance/ corporate income tax |
20 April 2015 |
Canadian corporations that receive dividends from other Canadian corporations may be adversely affected by a recently expanded anti-avoidance rule that characterizes certain tax-free inter-corporate dividends as capital gains subject to tax. The changes significantly broaden the circumstances when the rule can apply.
Read more |
| Corporate income tax/ Individual tax |
1 July 2015 |
The government of Alberta has introduced new tax brackets including an individual (personal) top marginal bracket of 15 percent that will be phased in for the 2015 tax year, and an increased corporate income tax rate to 12 percent (up from 10 percent) effective 1 July 2015, among other changes.
Read more |
| |
R&D |
June 2015 |
Canada Revenue Agency (CRA) may have softened its position on "shop-floor" scientific research and experimental development as signaled by recent revisions to a CRA guidance document. Among other changes, the CRA has reduced the emphasis on the term "scientific method," and has placed increasing importance back on technological uncertainty.
Read more |
| Tax compliance |
June 2015 |
Certain Quebec companies and other entities involved in the commercial development of oil, gas or minerals are to report to the Quebec government information and details about tax and other payments made to all levels of domestic and foreign governments.
Read more |
| Tax credits/ capital gains |
June 2015 |
Ontario Bill 91, which enacts certain tax changes in the province's 2015 budget, received Royal Assent on 4 June 2015. Among other changes, Bill 91:
| • |
repeals the resource tax credit and additional tax on Crown Royalties |
| • |
reduces the general apprenticeship training tax credit rate to 25 percent (from 35 percent) |
| • |
reduces the Ontario computer animation and special effects tax credit to 18 percent (from 20 percent) |
| • |
reduces the Ontario production services tax credit to 21.5 percent (from 25 percent) |
| • |
repeals the Ontario sound recording tax credit |
| • |
amends the capital gains refund mechanism for mutual fund trusts |
Read more |
| Tax credits/ R&D |
May 2015 |
Saskatchewan Bill 178, which enacts tax changes in the province's 2015 budget, received Royal Assent on 14 May 2015. The legislation includes measures that:
| • |
introduce a new credit for eligible manufacturing and processing (M&P) corporations that expand their workforce |
| • |
reduce the research and development tax credit to 10 percent (reduced from 15 percent) |
| • |
reduce the deductibility rate for capital expenditures for the potash industry |
Read more |
| Proposed legislation |
Tax credits |
June 2015 |
Nova Scotia recently clarified changes to its film industry and digital media tax credits announced in its 2015 budget.
Read more |
| Various tax areas |
19 June 2015 |
Prince Edward Island finance minister on 19 June 2015 delivered the province’s 2015 budget. The budget does not propose changes to the individual (personal) or corporate tax rates, but would provide for an increase to the taxation of tobacco.
Read more |
| Treaties |
Exchange of information |
2018 |
Canada Revenue Agency signed an international Multilateral Competent Authority Agreement that will activate the automatic exchange of financial information between tax jurisdictions, including balances, interest, dividends, and sales proceeds from financial assets as of 2018.
Read more |
| Other |
Indirect tax |
June 2015 |
Corporate groups need to review transactions that involve their holding companies to determine if there is a risk that the Canada Revenue Agency or Revenue Quebec could re-assess previously claimed input tax credits and input tax refunds.
Read more |
| Sales tax |
June 2015 |
Some contractors—including builders, electricians and plumbers—may be erroneously claiming British Columbia provincial sales tax exemptions on the goods they use to fulfill a supply-and-install contract while charging PST to their customers on the material components of those contracts.
Read more |
| Tax compliance /reporting |
June 2015 |
Canadian companies that manufacture goods for export need to evaluate whether they are fully complying with the reporting requirements enforced by the Canada Border Services Agency (CBSA). It appears that the CBSA is focusing on exporters who are not properly reporting these goods—especially exports that are bound for Mexico via the United States.
Read more |
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| Chile |
| Proposed legislation |
Foreign investment regime |
June 2015 |
Following tax reform changes in Chile, a new foreign investment statute is set to go into effect and replace the prior foreign investment regime. Among other, the regime includes:
| • |
Tax rules: under the new regime, foreign investors would be subject in all respects to the general tax rules (i.e., no “tax stability agreements” or tax invariability rulings). However, VAT exemptions would be available for foreign investors under certain conditions |
| • |
Grandfather rule: for a period of four years, foreign investors may apply the provisions available under the prior regime. |
Read more |
| Treaties |
Double tax treaty |
25 May 2015 |
Representatives of the governments of Chile and China, following numerous rounds of negotiations, have signed a new income tax treaty.
The new treaty generally follows the OECD model tax convention, and includes a non-discrimination clause to allow full deductions of certain expenses (with no limitations).
Read more |
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| Colombia |
| Administrative and case law |
|
June 2015 |
Colombia’s constitutional court (Corte Constitucional) has found that rules that do not allow taxpayers to offset losses relating to the tax imposed on “equity income” (known by the acronym CREE) originating prior to 2015 are contrary to the Colombian constitutional tax principles.
Read more |
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| El Salvador |
| Treaties |
Anti-avoidance |
June 2015 |
The Organisation for Economic Co-operation and Development announced that representatives of El Salvador signed the multilateral agreement to provide mutual administrative assistance in tax matters.
Read more |
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| Mexico |
| Tax legislation adopted and regulatory update |
Customs duties |
20 June 2015 |
A new, amended version of Mexico’s customs law, that is effective 20 June 2015, provides new documentary requirements.
Read more |
| Proposed legislation |
Tax compliance |
31 December 2015 |
The tax administration (Servicio de Administración Tributaria) has issued a draft of provisions that, once officially released, would provide that declarations to be filed by manufacturers, maquiladora and exporters may be filed no later than 31 December 2015.
Read more |
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| United States |
| 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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