October 13, 2023
U.S. Tax This Week for October 13
Ernst & Young's U.S. Tax This Week newsletter for the week ending October 13 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/G20 Inclusive Framework launches Multilateral Convention to implement the Subject to Tax Rule
On 3 October 2023, the OECD announced that the Inclusive Framework on BEPS had concluded negotiations on a Multilateral Convention to Facilitate the Implementation of the Pillar Two Subject to Tax Rule. Together with the announcement, the OECD released the STTR MLI, an explanatory statement to the STTR MLI, a summary overview including a roadmap toward signature, and a frequently asked questions document. EY Tax Alert 2023-1698 has details.
OECD releases outcomes of sixth peer review on BEPS Action 13 on country-by-country reporting
On 25 September 2023, the Organisation for Economic Co-operation and Development (OECD) published a compilation of the outcomes from the sixth annual peer review (the Compilation) of the minimum standard on Action 13 (Transfer Pricing Documentation and Country-by-Country Reporting) of the Base Erosion and Profit Shifting (BEPS) project. The Compilation covers 136 jurisdictions and reflects a finding that implementation of country-by-country (CbC) reporting (CbCR) is largely consistent with the Action 13 minimum standard. EY Tax Alert 2023-1665 has details.
EY Guides and Publications
EY publication highlights accounting implications of 2023 Q3 income tax developments
The Quarterly tax developments for the quarter ended September 30 is attached below. Prepared by Ernst & Young LLP's Tax Accounting group, this publication provides a quarterly overview of enacted tax legislation, as well as regulatory developments and other items through September 15, 2023, except as noted.
Sales/Use Tax Quarterly Update for Fourth Quarter of 2023
The EY Sales and Use Tax Quarterly Update provides a summary of the major legislative, administrative and judicial sales and use tax developments. Highlights of this edition, attached below, include a review of the most recent developments involving nexus, tax base and exemptions, technology, and compliance and controversy.
Payroll Month in Review | September 2023
EY's Employment Tax Advisory Services group has developed the attached publication summarizing the latest employment tax and other payroll developments in an easy-to-read format. Developments in US federal, state and local payroll and human resources matters are highlighted, as are our insights to improve US employment tax and payroll compliance.
Global Tax Policy and Controversy Watch | October 2023 edition
The latest edition of the Global Tax Policy and Controversy Watch is available now. Highlights in this edition include (1) Argentina’s evaluation of a proposal to enact a 15% corporate minimum tax, (2) Brazil’s introduction of an individual income tax bill affecting taxation of foreign investment income, and (3) interim guidance published by the US IRS on the corporate alternative minimum tax.
New Brazilian TP rules: What companies need to consider (October 17)
During this EY Webcast, panelists discuss key features of the latest Brazilian transfer pricing (TP) rules enacted recently and what it means for companies.
How to energize a workforce in the great rebalance (October 17)
During this EY Webcast, Ernst & Young professionals discuss the EY 2023 Work Reimagined Survey with insights from 17,050 employees and 1,575 employers in 22 countries, revealing the contours of new workforce realities.
How transferable tax credits are changing the tax landscape (October 17)
The Inflation Reduction Act (IRA) introduced federal transferable tax credits. This EY Webcast, will cover many FAQs, including which tax credits are transferable, an update on the contents of the recently released proposed regulations and how the transfer process works.
Business impacts of sustainability and ESG tax policies (October 18)
During this first in a quarterly series of EY Webcast, Ernst & Young professionals will be discussing the role of tax in sustainability and how it can impact businesses’ ESG strategy and operations. Topics will include: (i) the impact of sustainability on business and tax operations; (ii) the sustainability tax landscape; and (iii) the legislative and tax policy emphasis on climate change.
EY Tax.Tech™ Ecosystem series: Finance and Tax convergence - the next transformation frontier (October 19)
In this dynamic, complex, and competitive landscape, Finance and Tax alignment is critical and can unlock data to help identify synergies and establish viable and enduring business value. During this EY Webcast, we will explore how Thomson Reuters tax and accounting clients have adopted a transformation mindset through better aligning with the finance agenda, integrating into an enterprise resource planning (ERP) strategy, and helping their people, processes and technology improve their tax function and better utilize their ONESOURCE suite of products.
Tax in a time of transition: legislative, economic, regulatory and IRS developments (October 20)
During this EY Webcast, Ernst & Young professionals will provide updates on: (i) the US economy and tax policy; (ii) what’s happening at the IRS; and (iii) breaking developments.
US corporate income tax compliance: Insights from Tax Year 2022 and considerations for the future (October 25)
During this EY Webcast, Ernst & Young professionals will provide the latest insights on dynamic compliance environment and how your company can continue navigating its complexity and challenges. We will also focus on preparing for tax year 2023 (TY23) and beyond.
Crypto and digital asset information reporting: Navigating the operational challenges of the recently proposed regulations (November 1)
The proposed regulations issued by the IRS and Treasury Department introduce new standards unlike any seen previously in the digital asset space. From traditional financial institutions to decentralized exchanges, firms across the industry will need to determine how the new regulatory requirements impact any existing processes and technology, from customer onboarding to reporting. During this EY Webcast, Ernst & Young professionals will discuss operational challenges, implementation considerations, and maintaining a seamless client experience in the dynamic digital asset sector.
Realizing the full potential of your tax and finance function: Insights and leading practices for financial services institutions (November 7)
During this EY Webcast, Ernst & Young professionals will discuss how financial services institutions are elevating their tax operating models to: (i) empower their people to shape change; (ii) utilize technology to improve efficiency and data integrity; and (iii) future-proof their tax and finance responsibilities.
Recent Tax Alerts
Internal Revenue Service
— Oct 12: New report analyzes 2020 community benefits of tax-exempt hospitals (Tax Alert 2023-1695)
— Oct 10: IRS and Treasury issue 2023 - 2024 Priority Guidance Plan, addressing various accounting method issues (Tax Alert 2023-1681)
— Oct 12: Sweden extends Temporary Protection Directive for Ukrainian nationals and residents until March 2025 (Tax Alert 2023-1692)
— Oct 12: Irish immigration authorities request certain Residence Permit holders to submit renewal applications before 31 October 2023 (Tax Alert 2023-1690)
— Oct 12: Dominican Republic appoints payment processors as withholding and collection agents for VAT (Tax Alert 2023-1689)
— Oct 10: Argentine Government amends the Income Tax Law, incorporating 'cedular' tax for 'high-income' individuals (Tax Alert 2023-1682)
— Oct 09: Italian Parliament passes Italian Windfall Tax for banks (Tax Alert 2023-1679)
— Oct 09: Canada's Underused Housing Tax Act — 2022 filing deadline fast approaching; no extensions announced for 2023 (Tax Alert 2023-1678)
— Oct 09: Cyprus issues draft legislative proposal on Pillar Two global minimum tax (Tax Alert 2023-1676)
— Oct 09: Swedish government confirms new salary threshold to go into effect on 1 November 2023 (Tax Alert 2023-1674)
— Oct 06: Costa Rica increases period of authorized stay for visa-exempt business visitors and other non-residents (Tax Alert 2023-1669)
— Oct 06: Belgium's new proposal for mandatory electronic invoicing from 1 January 2026 (Tax Alert 2023-1666)
— Oct 12: Social Security wage base to increase in 2024 (Tax Alert 2023-1696)
— Oct 11: What to expect in Washington (October 11) (Tax Alert 2023-1684)
— Oct 10: United States | Proposed Regulations would amend IRC Section 367(b) regulations applying to certain cross-border triangular reorganizations and inbound nonrecognition transactions (Tax Alert 2023-1683)
— Oct 09: TE/GE FY 2024 Program Letter describes how division plans to contribute to overall IRS initiative (Tax Alert 2023-1677)
— Oct 11: North Carolina law gradually reduces personal income tax rates starting in 2024 (Tax Alert 2023-1685)
— Oct 09: Ohio Department of Taxation issues revised withholding tables effective November 1, 2023 (Tax Alert 2023-1675)
IRS Weekly Wrap-Up
| ||REG–109348–22]||Identification of Monetized Installment Sale Transactions as Listed Transactions; Hearing Cancellation|
| ||REG–113064–23||Transfer of Clean Vehicle Credits Under Section 25E and Section 30D|
| ||REG–117614–14||Guidance Under Section 367(b) Related to Certain Triangular Reorganizations and Inbound Nonrecognition Transactions|
Internal Revenue Bulletin
| ||2023-42||Internal Revenue Bulletin of October 16, 2023|
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.