| | This week's tax news from the Americas - Canada's EIFEL rules and other business income tax measures substantively enacted as part of Bill C-59
Amended Bill C-59, Fall Economic Statement Implementation Act, 2023, received its third reading in Canada’s House of Commons and became substantively enacted for Canadian financial reporting purposes. Bill C-59 implements the majority of the remaining income tax measures from the 2023 federal budget, as well as certain measures from the 2023 fall economic statement and other previously announced measures. From a business income tax perspective, Bill C-59 contains (1) rules on the excessive interest and financing expenses limitation (EIFEL), (2) the carbon capture, utilization, and storage and clean technology investment tax credits, (3) the substantive Canadian-controlled private corporation measure, (4) the hybrid mismatch arrangement rules, and (5) changes to the General Anti-Avoidance Rule.
- Canada's proposed changes to capital gains inclusion rate and stock option deduction has implications for employers/employees
Proposals introduced in Canada’s 2024 federal budget would effectively cause stock options and capital gains that exceed an annual limit to be taxed at a higher effective rate than under the current rules. For example, the top effective marginal tax rate for stock option benefits and capital gains that exceed the annual limit in Ontario will increase from 26.8% to 35.7%. Although employers will have time to implement the required changes to their processes and policies to comply with these proposals, employees have a short time to assess their potential tax exposure before the new proposals take effect on 25 June 2024.
- Colombia | Government Decree updates customs regulations
Colombia’s Ministry of Finance and Public Credit issued Decree 659, partially amending Decree 1165 of 2019 (Customs Code) to reflect current operational realities and improve the country's logistical performance. The Decree introduces significant changes to various aspects of the customs regime, including rules on customs brokers, primary customs zones, the import regime, customs classification and free trade zones.
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| | 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 personnel. | |
