November 3, 2023
U.S. Tax This Week for November 3
Ernst & Young's U.S. Tax This Week newsletter for the week ending November 3 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 Multilateral Convention to implement Pillar One Amount A
On 11 October 2023, the Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) released a text of the Amount A MLC. The objective of the MLC is to create a coordinated agreement to reallocate taxing rights to market jurisdictions with respect to a portion of the profits of in-scope multinational enterprises (MNEs) in excess of 10% of their global revenues. EY Tax Alert 2023-1802 has details.
State law developments may impact tax-exempt organizations Many state tax developments will be of interest to tax-exempt organizations in Florida, Hawaii, Indiana, Iowa, Louisiana, Missouri and North Carolina. The recent developments cover an array of topics affecting tax-exempt organizations, including income tax guidance, indirect tax guidance and annual registration requirements. EY Tax Alert 2023-1815 has details.
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.
Tax considerations for asset managers and their families: The individual year-end tax matters you need to know (November 9)
During this EY Webcast, Ernst & Young Financial Services Private Tax professionals will share insights on key tax developments and what they might mean for asset managers and their family offices.
International tax talk quarterly series with the EY Global Tax Desk Network (November 14)
During this EY Webcast, Ernst & Young professionals will provide you with information on major tax law changes in the countries and jurisdictions covered by our US-based Global Tax Desk Network.
Tax in a time of transition: Legislative, economic, regulatory and IRS developments (November 17)
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.
Recent Tax Alerts
— Nov 01: Tax Court holds taxpayer must include revenue from loyalty rewards program in gross income and casts uncertainty on the conduit approach (Tax Alert 2023-1821)
Internal Revenue Service
— Nov 02: IRS releases the qualified retirement plan limitations for 2024: 401(k) pretax limit increases to $23,000 (Tax Alert 2023-1825)
— Nov 01: Proposed regulations outline reporting requirements for IRC Section 5000D excise tax on designated drugs, set December 1 deadline for comments (Tax Alert 2023-1822)
— Oct 31: IRS rules private foundation's expenses for acquiring artwork to loan to tax-exempt organizations are qualifying distributions, and artwork's value may be excluded from distributable amount calculation (Tax Alert 2023-1811)
— Oct 27: IRS allows certain employers to withdraw employee retention credit claims (Tax Alert 2023-1790)
— Nov 02: Costa Rica provides visa exemption for Honduran nationals (Tax Alert 2023-1826)
— Nov 02: EY Canada's Tax Matters @ EY for November 2023 (Tax Alert 2023-1824)
— Nov 02: Certain Canadian nationals now subject to entry fee when traveling to Colombia (Tax Alert 2023-1823)
— Nov 01: Hong Kong introduces bills on asset disposal gain regimes (Tax Alert 2023-1820)
— Nov 01: Italian Revenue Agency issue draft guidelines on asset management transfer pricing to support implementation of new Investment Management Exemption Regime (Tax Alert 2023-1819)
— Nov 01: Malta will not be introducing any component of Pillar Two in 2024 (Tax Alert 2023-1818)
— Nov 01: EU Council adopts new renewable energy rules and rules for promotion of sustainable aviation fuels under Fit for 55 (Tax Alert 2023-1817)
— Nov 01: Kenya Revenue Authority issues guidelines on tax amnesty application process (Tax Alert 2023-1816)
— Oct 31: Singapore's Economic Expansion Incentives (Relief from Income Tax) (Amendment) Bill 2023 proposes changes to the approved royalty incentive (Tax Alert 2023-1812)
— Oct 31: Bulgaria | New energy contribution for transfers of natural gas of Russian origin (Tax Alert 2023-1810)
— Oct 31: Monaco Legislature considers draft legislation to allow single-shareholder limited liability companies and innovation companies limited by shares; two new Double Tax Treaties signed (Tax Alert 2023-1809)
— Oct 31: South Africa's application to terminate Zimbabwe Exemption Permits dismissed (Tax Alert 2023-1806)
— Oct 30: OECD releases Multilateral Convention to implement Pillar One Amount A (Tax Alert 2023-1802)
— Oct 30: European Union's implementation of EES and ETIAS delayed until 2024 and 2025, respectively (Tax Alert 2023-1799)
— Oct 30: Australia's migration reform update provided (Tax Alert 2023-1798)
— Oct 27: Hong Kong Chief Executive announces several upcoming immigration changes (Tax Alert 2023-1794)
— Oct 27: Germany to lower reporting thresholds for energy and electricity tax subsidies (Tax Alert 2023-1792)
— Oct 27: Chilean Congress asked to approve double tax treaty with United States (Tax Alert 2023-1791)
— Nov 01: What to expect in Washington (November 1) (Tax Alert 2023-1814)
— Oct 31: House Energy & Commerce Subcommittee holds hearing on long-term care (Tax Alert 2023-1808)
— Oct 26: Senate Finance Committee examines need for Federal paid leave program, results from state programs (Tax Alert 2023-1807)
— Oct 31: President Biden issues Executive Order on safe, secure and trustworthy Artificial Intelligence (Tax Alert 2023-1805)
— Nov 01: State law developments may impact tax-exempt organizations (Tax Alert 2023-1815)
— Nov 01: Delaware law extends SUI tax rate relief to 2024, increases time to appeal SUI benefit determinations (Tax Alert 2023-1813)
— Oct 30: Connecticut law eliminates additional SUI reporting requirements that were to go into effect third quarter 2024 (Tax Alert 2023-1801)
— Oct 27: New Mexico tax department proposes rules clarifying when receipts from digital advertising services are taxable (Tax Alert 2023-1796)
IRS Weekly Wrap-Up
State and Local Tax Weekly
Highlights of this edition include:
— IRS releases guidance on transferring clean vehicle credits. The IRS and Treasury Department proposed regulations (REG-113064-23) and Revenue Procedure 2023-33 on how buyers can transfer clean vehicle credits under IRC §§ 30D (clean vehicles) and 25E (previously-owned vehicles) to eligible dealers at the time of purchase.
— Colorado revenue department proposes rules on buyer’s claims for refund of sales tax paid. On Nov. 2, 2023, the Colorado Department of Revenue (CO DOR) will hold a public rulemaking hearing on sales tax rules to implement law enacted in 2022 (HB 22-1118), that impose significant new penalties on refund claims for sales and use taxes paid by a purchaser to a vendor.
— Income/Franchise, Sales & Use, Business Incentives, Property Tax, Compliance & Reporting, Payroll & Employment Tax, Miscellaneous Tax, Value Added Tax
| ||REG-100908-23||Increased Credit or Deduction Amounts for Satisfying Certain Prevailing Wage and Registered Apprenticeship Requirements; Correction|
| ||2023-75||2024 Limitations adjusted as provided in Section 415(d), etc.|
Internal Revenue Bulletin
| ||2023-44||Internal Revenue Bulletin of October 30, 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.