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

     This week's tax news from the Americas

• Canada's updates to developing-country tariff preference programs and direct shipment requirements come into force in 2025
  Canada’s updates to the General Preferential Tariff, the Least Developed Country Tariff and the Commonwealth Caribbean Countries Tariff programs came into effect on 1 January 2025. In addition, legislative authority for the new General Preferential Tariff Plus program will come into force. These updates are intended to enhance access and use of Canada's nonreciprocal tariff preference programs for Canadian importers and developing country partners.

• Argentina eliminates the Impuesto PAIS
  After being in force for five years, Argentina’s tax on some purchases of foreign currency used to pay for certain goods and services abroad (Impuesto PAIS) was repealed as of 23 December 2024. While the Impuesto PAIS was eliminated, the reverse withholding regime for income tax and the tax on personal assets remains 30% on certain cross-border transactions that involve the purchase of foreign currency.

• Argentina-China double tax treaty enters into force
  On 19 December 2024, Argentina’s Ministry of Foreign Relations announced that a tax treaty to prevent double taxation, tax evasion and tax avoidance between Argentina and China (Tax Treaty) — initially signed on 2 December 2018 — had entered into force on 26 November 2024 and would become effective as of 1 January 2025. China had already complied with the domestic requirements for the entry into force of the Tax Treaty, which had been notified to Argentina on 27 June 2019.

• Peru enacts tax benefits affecting energy, hospitality and other business sectors
  On 29 December 2024, the Peruvian Government enacted Laws 32217, 32218, 32219 and 32220 to extend certain tax benefits and exemptions and incorporate new income tax exemptions. The changes include accelerated depreciation for electricity and energy companies, exemption for capital gains and interest on securities issued by the Peruvian Government, a special VAT rate for hotels and restaurants, and a special installment payment regime.

• Dominican Republic grants automatic extension for filing CbCR
  In Notice 26-24, the Dominican Republic’s tax administration extended the due date for the country-by-country report for fiscal year 2023 to 31 January 2025.

• Uruguay updates list of countries or jurisdictions deemed low or no taxation
  In Resolution No. 3,034/024, the Uruguayan tax administration updated the list of countries or jurisdictions that are considered to be low or no taxation. The only country removed from the list was Saint Martin.

• UN General Assembly approves Terms of Reference for Framework Convention on International Tax Cooperation
  The United Nations (UN) General Assembly adopted the Terms of Reference (ToR) for the development of a UN Framework Convention on International Tax Cooperation (Framework Convention) on 24 December 2024. The ToR outline the structure and objectives of the Framework Convention, including the development of two early protocols addressing key tax issues. A negotiating committee will be established to draft these documents, with the text expected to be submitted to the General Assembly for consideration in 2027.

     This week's newsletters

• Report on recent US international tax developments - 10 January 2025
  Our weekly report with brief summaries of all the week's US international tax developments and related activity.

• IFRS version of Quarterly Tax Developments - December 2024
  Our publication provides a quarterly overview of enacted and substantively enacted tax legislation and IFRS accounting developments, as well as regulatory developments and other items.

• Global Immigration Trends and Highlights | October - December 2024
  Our quarterly publication provides a snapshot of corporate immigration developments worldwide.

     Upcoming EY webcasts

• 21 January: GenAI for Legal: How to move from proof of concept to production
• 22 January: Preparing your operating model for 2025’s expected trade shifts
• 24 January: Tax in a time of transition: Legislative, economic, regulatory and IRS developments

A calendar of all upcoming EY webcasts is available.

     Recent EY podcasts

• EY Podcast | Weekly US international cross-border taxation news for week ending 10 January 2024
• EY talks tax | Tax in a time of transition - 13 December 2024
• EY talks tax | Preparing your operating model for potential trade shifts - 12 December 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

     Asia

• China officially enacts VAT law, ushering in a new era of tax governance
• Malaysia extends visa exemption period for India and China nationals
• Mauritius enacts legislation to give effect to extra allowance for qualifying employees
• Thailand enacts Top-up Tax Emergency Decree to implement BEPS 2.0 Pillar Two

     Europe

• Austria increases minimum salary requirements for various categories of foreign employees
• Estonia | Significant tax changes apply in 2025-2026
• EU Deforestation Regulation now postponed by 12 months
• Gibraltar's Pillar Two measures, including Qualified Domestic Top-up Tax, now enacted into legislation
• Hungary announces updates to its Guest Worker Permit regulations
• Italy approves 2025 Italian Budget Law and other relevant legislation enacting new VAT measures
• Italian 2025 Budget Law introduces reduced alternative corporate income tax rate equal to 20% for FY 2025
• Italian penalty protection regime for tax hybrids becomes effective
• Spain approves Pillar Two legislation
• UK prohibits sponsors from recouping additional sponsorship-related costs from Skilled Workers

     Middle East

• Oman issues Supplementary Tax Law for certain multinational enterprises
• Saudi Arabia announces 19th wave of Phase 2 e-invoicing integration
• Saudi Arabia further extends tax amnesty initiative until 30 June 2025
• Turkiye determines withholding tax rates on payments for electronic commerce activities
• Turkiye increases minimum salary requirements for all employees, including foreign nationals
• Turkiye increases withholding tax rate on dividend distributions from 10% to 15%

      This week's EY publications

     Banking and capital markets

• USTC Industry Considerations Report: key guide for SEC rule readiness
• 10 ways the U.S. Treasury central clearing rule impacts technology

     Energy

• The outlook for IRA tech-neutral tax credits

     Legislation and policy

• Trump, taxes and ’25—what to expect on TCJA, tariffs and tax policy
• Prospects for budget reconciliation in 2025
• Top 10 geopolitical developments for 2025

     Mergers & Acquisitions

• Navigate your path to IPO with our latest global insights

Additional resources

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

About Americas Tax Roundup

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

Distributed weekly to all Americas Tax personnel.