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

     This week's tax news from the Americas

• Peru enacts regulations for 18% VAT on use of digital services by individuals
  On 4 August 2024, Peru’s Executive enacted Legislative Decree 1623, establishing an 18% value-added tax (VAT) on individuals' use of digital services via online platforms. The tax also applies to the importation of intangibles via the internet. Beginning 1 October 2024, nonresident digital service providers and sellers will be obliged to withhold this 18% VAT.

• US IRS issues new proposed regulations that limit or modify taxpayers' ability to make or revoke certain foreign currency elections
  On 19 August 2024, the US Treasury Department and the Internal Revenue Service (IRS) issued proposed regulations under IRC Sections 954 and 988, while simultaneously withdrawing existing proposed regulations under those provisions. In particular, the new proposed regulations modify the timing within which a foreign currency mark-to-market election under Prop. Reg. Section 1.988-7 can be made or revoked, likely preventing taxpayers from making that election for the 2023 and 2024 tax years. The new proposed regulations also align the procedures for making elections under Treas. Reg. Section 1.954-2(g) to promote consistency with other filing requirements for controlled foreign corporations.

• Argentina implements withholding tax exemption for electronic payments
  The Argentine Tax Authorities, on 20 August 2024, implemented General Resolution No. 5554 to eliminate the VAT and income tax withholding regimes applicable to payments made to sellers through various electronic systems (e.g., debit and credit cards, purchase cards, electronic wallets and similar payment processors). General Resolution No. 5554 will apply to payments made from 1 September 2024.

• Canada proposes changes to enhanced trust reporting requirements and post-mortem tax planning by a trust
  Canada's Department of Finance has proposed income tax technical amendments affecting trusts and post-mortem tax planning. The proposed amendments would expand the list of express trusts that are exempt from the enhanced reporting requirements enacted in 2022. The proposed amendments also would exempt bare trusts from the enhanced reporting requirements for the 2024 tax year and reduce the number of bare trusts that would be subject to the filing requirements for 2025 and later tax years. Additionally, the proposed amendments would ease certain limitations relating to common post-mortem planning strategies.

• Canada Border Services Agency announces transition period and new process for certain customs adjustments
  The Canada Border Services Agency (CBSA) announced in Customs Notice 24-25 that a transition period for submitting adjustments to commercial import transactions will be effective from 1 September 2024 to 20 October 2024. During this period, importers and trade chain partners are asked to refrain from submitting single Form B2 adjustments, blanket B2 adjustments and voluntary disclosure requests. Processing of submissions during this period will be delayed as the CBSA will be transitioning to Release 3 of the CBSA Assessment and Revenue Management (CARM R3) system, which will be operational 21 October 2024.

• Colombia prohibits coal exports to Israel
  The Colombian Ministry of Commerce, Industry, and Tourism has issued Decree 1047 of 2024, which immediately prohibits coal exports to Israel. With coal representing more than 90% of Colombia's exports to Israel, a significant economic impact is anticipated.

     This week's newsletters

• Report on recent US international tax developments - 29 August 2024
  Our weekly report with brief summaries of all the week's US international tax developments and related activity.

     Upcoming EY webcasts

• 10 September: BEPS 2.0: What to expect from ongoing Pillar One and Two developments
• 12 September: Securing critical assets: navigating geopolitical compliance
• 17 September: How SAP RDP is addressing sustainability compliance and circularity
• 20 September: Tax in a time of transition: legislative, economic, regulatory and IRS developments - September 2024
• 24 September: Accounting for income taxes: a quarterly perspective - September 2024
• 26 September: What Q3 IFRS Quarterly Tax Developments could impact tax accounting

A calendar of all upcoming EY webcasts is available.

     Recent EY podcasts

• EY Podcast | Weekly US international cross-border taxation news for week ending 29 August 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

• Canada announces further restrictions on temporary foreign worker hiring
• Panama implements changes to the SEM Visa application process

     Africa

• Kenya Supreme Court stays Court of Appeal's decision declaring the Finance Act, 2023 unconstitutional

     Europe

• EU aiming to launch the Entry and Exit System (EES) on 10 November 2024
• Irish Government publishes second Feedback Statement on introduction of participation exemption for foreign dividends

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 personnel.