September 18, 2022
U.S. International Tax This Week for September 16
Ernst & Young's U.S. International Tax This Week newsletter for the week ending September 16 is now available. Prepared by Ernst & Young's International Tax Services group, this weekly update summarizes important news, cases, and other developments in international taxation.
The House and Senate this week were in session at the same time for a regular week of business for the first time since July. For both chambers of Congress, the focus is on a continuing resolution (CR), to extend government funding beyond 30 September and into December. After the midterm elections, and before the December expiration of the CR currently being negotiated, Congress is expected to try to assemble a year-end bill that could address tax and possibly retirement issues, in addition to government funding that could extend through the remainder of the fiscal year.
The tax press is reporting that House Republicans will release their "Commitment to America" November election platform on 23 September, laying out what a Republican majority House would attempt to legislate if they take control of the chamber. The tax aspect of the plan reportedly will include the 2017 tax rate cuts for individuals, a 20% tax rate on passthrough income, and bonus depreciation. Extending Tax Cuts and Jobs Act expiring provisions beyond their 31 December 2025 expiration will be at the core of the Republican platform, according to a Republican House Ways and Means Committee member. Proposals to rollback provisions in the recently enacted Inflation Reduction Act also reportedly are under consideration.
The Republican proposals will stem from seven task forces that were created in 2017 by House Minority Leader Kevin McCarthy.
The Organisation for Economic Co-operation and Development (OECD) on 12 September hosted a public consultation meeting on the Progress Report on Amount A of Pillar One, which had been released by the OECD Secretariat on 11 July in connection with the ongoing OECD/G20 BEPS 2.0 project. The Progress Report describes the proposed design for Amount A, reflecting the mechanics for the new nexus and profit allocation rules being developed under Pillar One with the aim of providing market jurisdictions with a greater share of the taxing rights over global business income. Three panels discussed key elements of the proposed design for Amount A, including the marketing and distribution profits safe harbor, the approach for eliminating double taxation with respect to Amount A and other aspects of the rules.
Recent Tax Alerts
— Sep 13: United States | Substantial retrogression in the employment-based second preference category for Indian-born green card applicants (Tax Alert 2022-1368)
— Sep 15: Visa application processing resumes at South African Missions and deadline extension for ZEP holders (Tax Alert 2022-1380)
— Sep 12: Kenya High Court holds that administration and enforcement of betting tax should be in accordance with the Tax Procedures Act (Tax Alert 2022-1363)
— Sep 15: Taiwan relaxes requirement to submit withholding tax statement from a Foreign Institutional Investor when applying ex-post for reduced tax rate in accordance with an income tax agreement (Tax Alert 2022-1381)
Canada & Latin America
— Sep 14: Mexico’s proposed 2023 Economic Package includes minimal changes to tax law (Tax Alert 2022-1374)
— Sep 12: Peruvian Government sends MLI to Congress for approval (Tax Alert 2022-1362)
— Sep 15: European Commission proposes Regulation introducing electricity revenue cap and solidarity contribution of fossil sector (Tax Alert 2022-1382)
— Sep 14: Poland issues draft amendments to address potential issues when applying withholding tax relief at source based on management board's statement (Tax Alert 2022-1373)
— Sep 14: EU considers electricity revenue cap and windfall tax as part of emergency package (Tax Alert 2022-1372)
— Sep 13: Portugal introduces new visas for job seekers and remote workers and updates existing immigration rules (Tax Alert 2022-1369)
— Sep 13: Five major EU Member States commit to swift implementation of Pillar Two by any possible legal means (Tax Alert 2022-1367)
— Sep 13: Poland proposes additional changes to shifted profits tax (Tax Alert 2022-1366)
— Sep 09: Ireland publishes updated guidance on tax deductibility of Digital Services Taxes (Tax Alert 2022-1357)
— Sep 15: Turkey confirms non-taxable status of liaison offices that are licensed to perform regional management center activities and that do not perform any commercial activities (Tax Alert 2022-1379)
— Sep 09: UAE Federal Tax Authority publishes Public Clarification on financial guarantee calculation for excise tax designated zones (Tax Alert 2022-1359)
IRS Weekly Wrap-Up
Internal Revenue Bulletin
| ||2022-38||Internal Revenue Bulletin of September 19, 2022|
Ernst & Young Client Portal, the leading source for news, analysis, and reference materials for corporate tax professionals, has a variety of content of interest to international tax practitioners, including:
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Because the matters covered herein are complicated, U.S. International 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.