| | This week's tax news from the Americas - Chile enacts comprehensive tax compliance law
On 25 October 2024, Chile enacted Law No. 21,713, introducing a comprehensive tax compliance law. The tax package includes (1) changes in the application of the threshold for the general anti-avoidance rule, (2) a reformulation of the tax-free reorganization rules (including international reorganizations), (3) improvements in transfer pricing regulations focused on advance pricing arrangements (APAs), and (4) a simplified VAT regime for digital platforms. The law is effective 1 November 2024.
- G20 meeting highlights continued support for BEPS 2.0 and international tax cooperation
On 23-24 October 2024, G20 Finance Ministers and Central Bank Governors met in Washington, DC. The meeting concluded with a communiqué reaffirming the G20 Finance Ministers' commitment to the October 2021 statement of the Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework on the Base Erosion and Profit Shifting (BEPS) 2.0 project and to swift implementation by all interested jurisdictions. The G20 Finance Ministers also emphasized their commitment to working toward a fairer, more inclusive, stable and efficient international tax system fit for the 21st century.
- Nova Scotia to reduce Harmonized Sales Tax by one percentage point in 2025
In a news release dated 23 October 2024, Nova Scotia Premier Tim Houston announced that the province intends to reduce the provincial portion of the Harmonized Sales Tax (HST) from 10% to 9%, effective 1 April 2025, resulting in a new combined HST rate of 14%. If enacted, it would be the first rate change for the province since 1 July 2010, when the combined Nova Scotia HST rate increased from 13% to 15%.
- El Salvador's Tax Authority publishes list of tax havens for 2025
El Salvador's Tax Authority has issued its annual guide on transactions with tax havens, which lists countries, states and territories that are considered preferential tax regimes, low- or no-tax jurisdictions, or tax havens for Salvadoran tax purposes. This list will be effective for tax year 2025 (i.e., from 1 January through 31 December 2025).
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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. | |
