May 22, 2022
U.S. Tax This Week for May 20
Ernst & Young's U.S. Tax This Week newsletter for the week ending May 20 is now available. Prepared by Ernst & Young's National Tax Department in Washington, D.C., this weekly update summarizes important news, cases, and other developments in U.S. taxation.
Top of the Week
OECD releases public consultation document on Regulated Financial Services Exclusion under Amount A for Pillar One
On 6 May 2022, the Secretariat of the Organisation for Economic Co-operation and Development (OECD) released a public consultation document regarding the Regulated Financial Services Exclusion under Amount A for Pillar One of the OECD/G20 project on Addressing the Tax Challenges Arising from the Digitalisation of the Economy (the BEPS 2.0 project). The new taxing right established through Amount A applies only to those Multinational Enterprise (MNE) Groups that fall within the defined scope of Amount A. The Regulated Financial Services Exclusion will exclude from the scope of Amount A the revenues and profits of a Regulated Financial Institution. EY Tax Alert 2022-0777 has details.
Our US employment tax rates and limits publication is updated through May 2, 2022
We are pleased to announce we have updated our annual publication of key federal and state rates and limits for 2022. The updated guide reflects changes in the 2022 state income tax withholding rates/tables and state unemployment insurance wage bases and tax rates. EY Tax Alert 2022-0800 has details.
EY Guides, Surveys, and Reports
EY's 2020-21 Worldwide Transfer Pricing Guide now available
The EY Worldwide Transfer Pricing Reference Guide 2020-21, is a publication designed to help international tax executives identify transfer pricing rules, practices and approaches. These must be understood for a company to carry out both transfer pricing compliance and planning activities in the base erosion and profit shifting (BEPS) era. The information included in the EY Worldwide Transfer Pricing Reference Guide 2020-21 covers 131 jurisdictions.
Banking and finance: How to realize the full potential of your tax and finance function (May 23)
During this EY Webcast, Ernst & Young professionals will discuss key banking and insurance results from our 2022 Global Tax and Finance Operations Survey. As tax and finance functions face unprecedented times, firms that embrace the fluidity of change will experience sustainable growth and a competitive edge.
BorderCrossings (May 25)
During this EY Webcast, Ernst & Young professionals will discuss issues arising from transactions and global economic developments impacting domestic transfer pricing (TP). Panelists will also review the latest state tax administrative approaches to resolving TP disputes, such as state advanced pricing agreement initiatives, as well as recent case law and legislative proposals – highlighting controversy considerations for multicorporate businesses.
Domestic tax quarterly webcast series: A focus on state tax matters (June 2)
During this second quarter EY Webcast, Ernst & Young professionals will discuss important state tax policy developments, as well as international tax policy developments that could affect state and local taxes.
Tax in the time of COVID-19: Update on legislative, economic, regulatory and IRS developments (June 3)
During this EY Webcast, Ernst & Young professionals will discuss how businesses can navigate the tax policy environment and continue to effectively operate their tax function in this time of crisis and change. Panelists will provide updates on: (i) the US economy and tax policy; (ii) breaking developments; and (iii) what’s happening at the IRS.
Are you ready for July 1? — Top five questions companies ask about Superfund tax implementation and selected issues (June 7)
During this EY Webcast, Ernst & Young professionals will discuss questions most commonly asked by companies preparing for the July 1 implementation date for Superfund chemicals excise taxes, which were reinstated by the Infrastructure Investment and Jobs Act (IIJA).
The indirect tax technology journey: Now. Next. Beyond. (June 9)
During this EY Webcast, Ernst & Young professionals will share insights into how market-leading organizations are using technology to adapt to new legislation and market trends, and to effectively transform tax operations. This webcast will focus on leading practices for global indirect tax technology selection and implementation.
Accounting for income taxes: A quarterly perspective (June 21)
During this EY Webcast, Ernst & Young professionals will address developments and issues in accounting for income taxes.
Recent Tax Alerts
Internal Revenue Service
— May 16: Tax M&A Update for April 2022 (Tax Alert 2022-0784)
— May 19: European Parliament approves five elements of “Fit for 55” climate package, including a more ambitious EU Carbon Border Adjustment Mechanism (Tax Alert 2022-0801)
— May 18: Canada's proposed federal investment tax credit for carbon capture, utilization and storage discussed (Tax Alert 2022-0797)
— May 18: Canada's temporary expansion of immediate expensing incentive discussed (Tax Alert 2022-0796)
— May 18: Switzerland eliminates import customs duties on industrial goods as of 1 January 2024 (Tax Alert 2022-0795)
— May 18: The Latest on BEPS and Beyond for May 2022 (Tax Alert 2022-0792)
— May 17: Australia's federal election 2022 and immigration policy discussed (Tax Alert 2022-0791)
— May 17: Turkey publishes Communique on inflation adjustment for revaluation purposes (Tax Alert 2022-0790)
— May 17: Turkey publishes Communique regarding one-point corporation tax rate reduction on certain income generated from manufacturing and exportation (Tax Alert 2022-0789)
— May 16: Argentina announces new temporary residence permits for digital nomads (Tax Alert 2022-0782)
— May 16: OECD releases public consultation document on Regulated Financial Services Exclusion under Amount A for Pillar One (Tax Alert 2022-0777)
— May 20: What to expect in Washington (May 20) (Tax Alert 2022-0811)
— May 19: House Energy & Commerce Committee advances bipartisan user fee, mental health and research bills to the full House (Tax Alert 2022-0805)
— May 18: Our US employment tax rates and limits publication is updated through May 2, 2022 (Tax Alert 2022-0800)
— May 17: Utah issues revised state income tax withholding tables for use starting May 1, 2022 (Tax Alert 2022-0793)
— May 16: Maryland issues revised 2022 percentage method income tax withholding calculation (Tax Alert 2022-0786)
— May 13: Minnesota pushes closer to adopting paid family and medical insurance program (Tax Alert 2022-0772)
State and Local Tax Weekly
Highlights of this edition include:
— New York updates draft regulations to identify protected and unprotected internet activities under P.L. 86-272. The New York Department of Taxation and Finance (NY DOTF) recently released updates to Parts 1 through 3 of the Article 9-A Business Corporation Franchise Tax draft regulations (draft regulations) identifying which activities conducted over the internet would be protected by P.L. 86-272.
— NY DOTF's position. Section 1-2.10 "Foreign corporations — Public Laws 86-272" of the draft regulations addresses how out-of-state sellers should apply P.L. 86-272 to business activities conducted over the internet.
— Income/Franchise, Sales & Use, Business Incentives, Property Tax, Compliance & Reporting, Payroll & Employment Tax, Miscellaneous Tax, Value Added Tax, Upcoming Webcasts
IRS Weekly Wrap-Up
| ||2022-10||Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property|
| ||2022-11||Section 6621.- Determination of Rate of Interest|
| ||2022-27||Extension of Temporary Relief from the Physical Presence Requirement Through December 31, 2022|
| ||2022-28||Treatment of Amounts Paid to Section 170(c) Organizations under Employer LeaveBased Donation Programs to Aid Victims of the Further Russian Invasion of Ukraine|
Internal Revenue Bulletin
| ||2022-21||Internal Revenue Bulletin of May 23, 2022|
Because the matters covered herein are complicated, U.S. Tax This Week should not be regarded as offering a complete explanation and should not be used for making decisions. Any decision concerning matters covered herein should be reviewed with a qualified tax advisor.