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Ernst & Young's U.S. Tax This Week newsletter for the week ending August 5 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.

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EY Guides, Surveys, and Reports

EY publication highlights 2022 Q2 tax policy developments across the Americas
The second quarter of 2022 ushered in several significant tax policy developments across the Americas. The Americas Tax Policy Update highlights the top tax policy developments from April through June 2022.

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Upcoming Webcasts

Potential implications of the Inflation Reduction Act of 2022 and recent regulatory developments (August 11)
During this EY Webcast, Ernst & Young professionals will provide an update on the Inflation Reduction Act of 2022 and an in-depth discussion of the potential international tax implications of its corporate alternative minimum tax (CAMT) proposal. EY will also discuss the potential business implications of recent technical corrections to the foreign tax credit (FTC) regulations.

Private equity and private capital — navigating transformative global and US legislative change (August 18)
During this EY Webcast, Ernst & Young professionals will discuss recent private equity and private capital industry trends and the outlook for US and international legislative and regulatory changes relevant to PE and alternative funds, transactions and portfolio companies.

Tax in the time of COVID-19: update on legislative, economic, regulatory and IRS developments (August 19)
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.

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Recent Tax Alerts

Internal Revenue Service

— Aug 04: Tax M&A Update for July 2022 (Tax Alert 2022-1184)

— Aug 01: Normalization rules do not apply to cost of removal, the IRS rules again (Tax Alert 2022-1161)

— Jul 29: Inflation Reduction Act of 2022 would significantly modify tax treatment of carried interest income under IRC Section 1061 (Tax Alert 2022-1153)

International

— Aug 04: South Africa adds new occupations to its 2022 Critical Skills List (Tax Alert 2022-1186)

— Aug 04: New Colombian Government expected to propose tax reform (Tax Alert 2022-1185)

— Aug 04: Uruguay intends to change its traditional source criteria for corporate income tax purposes to comply with EU requirements (Tax Alert 2022-1181)

— Aug 04: Luxembourg Tax Authority issues guidance on application of controlled foreign company rules in Luxembourg (Tax Alert 2022-1180)

— Aug 03: Technical corrections to foreign tax credit regulations offer relief from cost recovery rules and include other impactful changes (Tax Alert 2022-1179)

— Aug 03: Brazilian nationals traveling to Mexico are no longer eligible for electronic travel authorizations (Tax Alert 2022-1176)

— Aug 03: OECD's Forum on Harmful Tax Practices concluded that the Costa Rican free trade zone regime is not harmful (Tax Alert 2022-1175)

— Aug 02: Egypt provides relief from delay interest, additional taxes, and duties (Tax Alert 2022-1168)

— Aug 02: Korea's 2022 tax reform proposals include new global minimum tax rules to align with OECD BEPS 2.0 Pillar Two (Tax Alert 2022-1164)

— Aug 01: Korea announces 2022 tax reform proposals (Tax Alert 2022-1162)

— Aug 01: India's Supreme Court holds secondment of employees between group entities is a taxable service (Tax Alert 2022-1160)

— Jul 29: OECD releases 2022 update on peer review of preferential tax regimes and no or only nominal tax jurisdictions (Tax Alert 2022-1155)

— Jul 29: Australian Taxation Office issues Taxpayer Alert on treaty shopping arrangements to obtain reduced withholding tax rates (Tax Alert 2022-1150)

— Jul 29: German Ministry of Finance issues first draft of Annual Tax Act 2022 including provisions regarding extraterritorial taxation of IP (Tax Alert 2022-1149)

— Jul 29: Luxembourg publishes draft tax transparency rules for digital platforms (Tax Alert 2022-1142)

— Jul 29: South Sudan enacts Financial Act 2021 - 2022 (Tax Alert 2022-1141)

Legislation

— Aug 05: What to Expect in Washington (August 5) (Tax Alert 2022-1192)

States

— Aug 02: Texas adopts additional amendments to its franchise tax rule for research and development activities credits (Tax Alert 2022-1173)

— Aug 02: Recent state law developments could affect tax-exempt organizations (Tax Alert 2022-1172)

— Aug 01: Louisiana legislation freezes the 2023 SUI taxable wage base at 2021—2022 level (Tax Alert 2022-1159)

— Jul 29: New York Division of Tax Appeals determines that combined group could not remove deferred intercorporate profits but could deduct bad debt from its New York combined return (Tax Alert 2022-1154)

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Recent Newsletters

State and Local Tax Weekly
   Highlights of this edition include:

— Pennsylvania enacts corporate income tax rate reduction and other tax changes. On July 8, 2022, Pennsylvania Governor Tom Wolf signed into law HB 1342 (Act 53), which includes a long-sought-after reduction to the corporate income tax rate, market-based sourcing rules for receipts from sales of intangibles, codification of the Pennsylvania Department of Revenue's economic nexus standard for corporate income taxes, imposition of sales and use tax on peer-to-peer car sharing, among other changes.

— Income/Franchise, Sales & Use, Business Incentives, Property Tax, Payroll & Employment Tax, Miscellaneous Tax, Global Trade

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IRS Weekly Wrap-Up

Final Regulations

Revenue Procedures

Notices

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.