November 19, 2023
U.S. International Tax This Week for November 17
Ernst & Young's U.S. International Tax This Week newsletter for the week ending November 17 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 last week approved a two-step continuing resolution to extend federal government funding, beyond the 17 November deadline to avert a government shutdown. Under the plan, certain appropriations bills would be extended through 19 January 2024, and the remainder of appropriations through 2 February. President Biden signed the bill into law late on 16 November.
IRS and Treasury officials last week confirmed that they expect to release both corporate alternative minimum tax guidance and stock buyback excise tax guidance before the end of 2023. The coming guidance is considered "high priority" and reportedly will be extensive.
The IRS now expects proposed previously taxed earnings and profits (PTEP) regulations to be released in the first half of 2024, according to an IRS official. An official earlier this fall said PTEP regulations would be issued in early 2024. The initial proposed regulations — which will be released in tranches — reportedly will cover shareholder- and foreign corporation-level accounting rules, IRC Section 961(c) basis, currency gain or loss and issues related to controlled foreign corporations that are owned through a partnership or that involve split-ownership structures.
The Chilean Congress has approved the new 2010 US-Chile income tax treaty with US reservations. The proposed treaty next must be ratified by the Chilean President, which is expected to occur soon. For the treaty to enter into force, the United States and Chile must notify each other, in writing, through diplomatic channels, that their respective applicable procedures for ratification have been satisfied.
A Treasury official last week was quoted as saying that the US is proposing a new timeline for the signing deadline for the BEPS 2.0 Multilateral Convention to Implement Amount A of Pillar One (MLC). The OECD released the text in October. The MLC would update the global international tax framework to "coordinate a reallocation of taxing rights to market jurisdictions, improve tax certainty, and remove digital services taxes." The Treasury official also reportedly reiterated that it was important that countries not impose any new digital services taxes. The OECD on 10 November announced that 48 countries and jurisdictions, including the United States, have pledged to implement the OECD Crypto-Asset Reporting Framework (CARF) by 2027. CARF provides for the automatic exchange of tax information on crypto-assets.
Spotlight on BEPS 2.0: developments and practical implications for US MNEs (December 13)
Jurisdictions are enacting and proposing legislation implementing the Pillar Two rules developed under the Organisation for Economic Co-operation and Development/G20’s project on addressing the tax challenges of the digitization of the economy (BEPS 2.0). Global minimum tax rules are set to take effect as soon as 2024, and many multinational entities (MNEs) still have a lot to do to prepare. Join this EY Webcast for an action-oriented panel discussion, moderated by EY’s Jose Murillo, National Tax Department Leader and former US Department of the Treasury Deputy Assistant Secretary (International Tax Affairs).
Recent Tax Alerts
— Nov 16: US IRS launches new initiative to strengthen transfer pricing enforcement (Tax Alert 2023-1907)
— Nov 16: US IRS announces hiring for Advance Pricing and Mutual Agreement Program (Tax Alert 2023-1906)
— Nov 15: United States | Proposed regulations on qualified business units include simplified elections for determining IRC Section 987 gain or loss, but restrict the recognition of losses (Tax Alert 2023-1898)
— Nov 15: U.S. - Chile tax treaty ratified by Chilean Congress closer to entering into force (Tax Alert 2023-1895)
— Nov 14: U.S. Federal Claims Court permits US citizens who are residents of France to claim a treaty-based foreign tax credit against US net investment income tax (Tax Alert 2023-1890)
— Nov 16: Kenya Tax Appeals Tribunal determines key role of management and control in determining residency (Tax Alert 2023-1908)
— Nov 15: Kenya requires non-VAT-registered taxpayers to onboard on e-TIMS (Tax Alert 2023-1897)
— Nov 10: Kenya High Court ruling provides clarity on what constitutes manufactured tobacco (Tax Alert 2023-1875)
— Nov 10: China Mainland becomes a signatory to the Apostille Convention (Tax Alert 2023-1876)
Canada & Latin America
— Nov 15: Uruguay's Government enacts law for accountability for 2022, making some changes to tax regulations (Tax Alert 2023-1893)
— Nov 10: Salvadoran Congress approves brief tax amnesty program (Tax Alert 2023-1880)
— Nov 15: Denmark confirms automatic extension of residence permits issued pursuant to the Ukraine Special Act (Tax Alert 2023-1892)
— Nov 14: Cyprus enacts law implementing tax transparency rules for digital platforms (DAC 7) (Tax Alert 2023-1888)
— Nov 13: The Dutch House of Representatives further restricts Dutch 30%-facility (Tax Alert 2023-1885)
— Nov 10: Italy implements major changes relating to EU Blue Cards (Tax Alert 2023-1873)
— Nov 10: Saudi Arabia issues drafts of new Income Tax Law and Zakat and Tax Procedures Law for public consultation (Tax Alert 2023-1877)
IRS Weekly Wrap-Up
Internal Revenue Bulletin
| ||2023-45||Internal Revenue Bulletin of November 6, 2023|
| ||2023-46||Internal Revenue Bulletin of November 13, 2023|
| ||2023-47||Internal Revenue Bulletin of November 20, 2023|
EY’s Tax News Update, 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:
EY’s Tax and Law Guides. — Tax and Law Guides | EY - Global is your guide to planning ventures in the global economy, offering a wealth of tax and business knowledge on more than 150 countries.
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.