September 3, 2024
2024-1617 Americas Tax Roundup | 29 August 2024 | | | | 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 | | | | | | | Upcoming EY webcasts A calendar of all upcoming EY webcasts is available. | | | | | | | Recent EY podcasts 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 Africa Europe | | | | | | | | | Additional resources EY Global Tax News Update
EY's Global Tax Alerts and other content can be delivered directly to your inbox. Register for EY's Global Tax News Update. | EY Guides available for download
Browse our in-depth guides covering corporate tax, indirect tax, personal taxes, TP and other tax matters in more than 150 countries. |
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. | | | |
|
