A weekly summary of the top weekly tax news, trends
and developments in the Americas

      This week's tax news from the Americas

• US Treasury finalizes regulations on domestically controlled QIEs, modifying the "domestic corporation look-through rule" and providing a transition rule for certain existing QIEs
  On 24 April 2024, the US Treasury Department and Internal Revenue Service issued final regulations providing guidance as to when qualified investment entities (QIEs), which include real estate investment trusts and certain regulated investment companies, are considered domestically controlled for purposes of the Foreign Investment in Real Property Tax Act rules of IRC Section 897. The final regulations retain the general approach and structure of proposed regulations published on 29 December 2022, with certain modifications.

• Argentine Central Bank allows subscription of BOPREAL to pay profits, dividends to nonresidents
  On 30 April 2024, the Argentine Central Bank (BCRA) issued Communication "A" 7999, which allows the subscription of Bonds for the Reconstruction for a Free Argentina (BOPREAL) to pay profits and dividends to nonresident shareholders. (For background, see EY Global Tax Alert, Argentina to issue "Bonds for the Reconstruction for a Free Argentina" dated 10 January 2024.) This subscription would be for up to the equivalent in local currency of the total profits and dividends pending payment, based on the distribution documented in the shareholders' meeting minutes.

• Canada's federal budget 2024 announces further changes to alternative minimum tax
  On 16 April 2024, as part of the 2024 federal budget, the government introduced several revisions and technical amendments (updated amendments) to the proposed changes to the alternative minimum tax regime introduced in the 2023 federal budget for tax years beginning after 2023. The updated amendments contain mostly welcome changes that address some concerns identified by stakeholders with respect to certain measures in the initial draft legislative proposals released on 4 August 2023.

• Canada delays implementation of CBSA Assessment and Revenue Management (CARM) project Release 2 to October 2024
  The Canada Border Services Agency (CBSA) announced that the 13 May 2024 go-live date for Release 2 of CARM has been delayed to October 2024 for importers, customs brokers and trade advisors. The CBSA will continue with an internal implementation of Release 2 on 13 May 2024.

• Colombian Tax Authority issues ruling on limitation of expenses incurred abroad in cases of futures contracts and forward agreements
  On 23 April 2024, the Colombian Tax Authority (DIAN) issued opinion No. 758, on whether the deductibility of loss/expense generated by futures agreements that are reached with nonresident entities is subject to the 15% limitation applicable to expenses incurred abroad. In addition, the DIAN noted that forward contracts and futures agreements have certain common characteristics that allow for similar tax treatment, as they both are derivative instruments.

• Dominican Republic filing deadline approaches for Country-by-Country Report
  The deadline for filing the Country-by-Country Report (CbCR) in the Dominican Republic is 31 May 2024.

• Peru introduces new 10-year passports
  Effective 7 May 2024, Peruvian nationals aged 18 years or above will be eligible to obtain ordinary passports that are valid for 10 years. Peruvian nationals between the ages of 12 and 17 will be eligible for ordinary passports that are valid for five years. Those under the age of 12 will be eligible for passports with a validity period of three years. Amendments to Peru's immigration laws, including the extended validity period for passports, were introduced in 2023 but implementation was only recently confirmed.

• EY Canada's Tax Matters @ EY for May 2024
  Prepared by Ernst & Young Canada, this monthly bulletin provides a summary of recent tax news, case developments, publications, and upcoming presentations. Highlights of this month's edition include (i) budget season 2024-25 in review: what do the measures mean for individuals? (ii) employer’s effort to encourage carpooling may lead to unintended tax consequences for employees; and (iii) a federal court rules that ignorance of taxation rules is not a “reasonable error.”

• How to improve your tax data value chain
  In the tax domain, data is not just an asset but an instrument that unlocks value when correctly orchestrated. However, the value may be unrealized without effective data governance and accurate analysis. Tax leaders should harness the right tools, approaches and standards to create business value from data. Businesses should also be aware of the disruption AI will potentially bring. Tax functions strive for improved processes and technology enhancements that facilitate robust data collection, analysis and conversions into actionable insights. However, what are the challenges and how can leaders create sustainable solutions? Learn more in this EY article.

      This week's newsletters

• Report on recent US international tax developments - 3 May 2024
  Our weekly report with brief summaries of all the week's U.S. tax developments and related activity.

      This week's tax treaty news from the Americas

• Argentina and Canada: social security agreement and administrative arrangement approved by Argentine Senate
• Argentina and Hungary: commitment to conclude a tax treaty expressed by Argentina
• Chile and United Arab Emirates: joint statement confirming the successful conclusion of negotiations for a comprehensive economic partnership agreement signed
• Ecuador and People’s Republic of China: free trade agreement entered into force
• Venezuela and Hong Kong: first round of negotiations for a tax agreement scheduled to take place from 6 to 10 May 2024

      Upcoming EY webcasts

• 8 May: Spotlight on BEPS 2.0: developments and practical implications for US MNEs
• 10 May: Tax in a time of transition: US legislative, economic, regulatory and IRS developments
• 14 May: International tax talk quarterly series with the EY Global Tax Desk Network
• 22 May: Spotlight on BEPS 2.0: developments and practical implications for US MNEs
• 22 May: How mining and metals can navigate ESG tax and regulatory challenges

A calendar of all upcoming EY webcasts is available.

      Recent EY podcasts

• EY Podcast: Weekly US international cross-border taxation news for week ending 3 May 2024

All episodes of the EY Cross-Border Taxation Spotlight and
EY Talks Tax are available through Apple podcasts.

      This week's EY Global Tax Alerts

     Americas Tax Alerts

• Report on recent US international tax developments — 3 May 2024
• Argentine Central Bank allows subscription of BOPREAL to pay profits, dividends to nonresidents
• Canada's federal budget 2024 announces further changes to alternative minimum tax
• Canada delays implementation of CBSA Assessment and Revenue Management (CARM) project Release 2 to October 2024
• Colombian Tax Authority issues ruling on limitation of expenses incurred abroad in cases of futures contracts and forward agreements
• Dominican Republic filing deadline approaches for Country-by-Country Report
• US Treasury finalizes regulations on domestically controlled QIEs, modifying the "domestic corporation look-through rule" and providing a transition rule for certain existing QIEs

     Other Global Tax Alerts

• Ethiopia issues Directive regulating foreign investors' participation in restricted export, import, wholesale and retail trade
• Kenya gazettes Statute Law (Miscellaneous Amendments) Act, 2024 with several tax-related changes
• Turkiye's Ministry of Trade announces all trade with Israel has been halted

     Indirect Tax Alerts

• Italy and UK reach agreement on reciprocity for VAT refunds
• Saudi Arabia announces 11th wave of Phase 2 e-invoicing integration
• Slovakia proposes new tax on sweetened soft drinks

     Human Capital Alerts

• European Union announces five-year multiple-entry Schengen Visas for first-time applicants from Bahrain, Oman and Saudi Arabia
• Malaysia implements change in Employment Pass application submission process
• Peru introduces new 10-year passports
• Turkiye introduces new Digital Nomad Visa

      This week's EY Industry publications

     Banking & Capital Markets

• Impacts of Central Clearing of US Treasuries and Repo

     Energy reimagined

• How mining and metals can navigate ESG tax and regulatory challenges

     Oil and Gas

• How tax and finance can play a critical role in changing oil and gas

     
     This week's EY Services publications

     Transaction Advisory Services

• How CEOs juggle transformation priorities – the art of taking back control

     Risk

• EY Global Integrity Report 2024

Additional resources

Comments. If you have any questions or suggestions about this newsletter, please email Global Tax News Update Help at: globaltaxnewsupdatehelp@ey.com.

About Americas Tax Roundup

Published by NTD's Tax Technical Knowledge Services Group, Washington, D.C.
Jennifer Brittenham, writer and editor

Distributed weekly to all Americas Tax personnels.