27 January 2025 Americas Tax Roundup | 27 January 2025 | | A weekly summary of the top weekly tax news, trends and developments in the Americas | | | | | | | | | | This week's tax news from the Americas - United States | Final regulations on DPL rules retain proposed regulations' framework but include several modifications
In final regulations (T.D. 10026; Final Regulations) issued 10 January 2025, the US Department of Treasury (Treasury) and the Internal Revenue Service (IRS) partially implement the proposed dual consolidated loss (DCL) regulations issued on 6 August 2024 (REG-105128-23; Proposed Regulations). The Final Regulations finalize two key aspects of the Proposed Regulations: (1) the disregarded payment loss (DPL) rules, which require income inclusions for certain disregarded payments that are deductible under foreign law, and (2) an anti-avoidance rule applicable to DCLs and DPLs. In addition, certain components of the Proposed Regulations were not finalized and are expected to be addressed in future guidance, including the elimination of the "inclusions on stock" rule (other than for portfolio investments) and the interaction of the DCL rules with the intercompany transaction rules under Treas. Reg. Section 1.1502-13.
- United States | Treasury releases guidance package on classifying and sourcing digital content and cloud transactions
The US Treasury and the IRS released guidance addressing the classification and sourcing of digital content and cloud transactions. Specifically, the guidance consists of (i) final regulations on the classification of digital content and cloud transactions and a new sourcing rule for sales of electronically transferred copyrighted articles (T.D. 10022), (ii) proposed regulations for sourcing income from cloud transactions (REG-107420-24); and (3) Notice 2025-6, which requests comments on potentially expanding these rules beyond their current application to the specifically enumerated international provisions of the Internal Revenue Code.
- US issues Executive Order on BEPS 2.0
US President Trump issued an Executive Order on the “Global Tax Deal” of the Organisation for Economic Co-operation and Development (OECD). The Executive Order directs the US Treasury Secretary and the US Ambassador to the OECD to notify the OECD that any commitments made by the prior administration regarding the Global Tax Deal have no force and effect in the United States absent an act by the US Congress adopting the relevant provisions. It further requires the US Treasury Secretary to develop options for responding to foreign countries’ tax rules that are extraterritorial in nature or that could disproportionately impact US companies, with findings and recommendations to be delivered to the President.
- United States President signs 'America First Trade Policy' Presidential Memo
On 20 January 2025, US President Trump signed the presidential memo "America First Trade Policy." The presidential memo directs the economic agencies of the US government to undertake reviews and propose recommendations across a range of trade issues raised by President Trump during his campaign, including creating an External Tariff Revenue Service and addressing persistent trade deficits.
- US publishes interim final rule addressing additional implementing regulations related to textile and apparel goods, automotive goods and other USMCA provisions
The US Customs and Border Protection (CBP) issued an Interim Final Rule (IFR) in the Federal Register on 17 January 2025 that is available for public comment to further address implementing regulations in the 19 CFR Section 182 United States-Mexico-Canada Agreement (USMCA), which went into effect in July 2020. The IFR, which is effective on 18 March 2025, with a 120-day delayed compliance date for the vehicle certification regulations, addresses the following: (i) automotive goods, (ii) textile and apparel goods, (iii) drawback and duty-deferral program requirements, (iv) recordkeeping and protest requirements, (v) temporary admission of goods requirements, (vi) applicable fee provisions, and (vii) other conforming amendments to fulfill the USMCA-related commitments.
- US Customs and Border Protection publishes amendments for entry of low-value shipments
On 13 January 2025, the United States CBP issued a Notice of Proposed Rulemaking (NPR) to amend the CBP's regulations exempting from duty and tax certain low-value shipments that do not exceed US $800 per person, per day. As part of the proposed rulemaking, CBP proposes a new entry process to enhance supply chain visibility and enable CBP to better target illegal shipments.
- Brazil enacts indirect tax reform establishing new consumption taxes
Brazil enacted Complementary Law No. 214/2025, which establishes and regulates new consumption taxes in Brazil (i.e., the tax on goods and services (IBS), the contribution on goods and services (CBS), and selective tax). The new law marks a significant step toward the implementation of tax reform in the country, with imposition of the IBS and CBS taxes beginning 1 January 2026.
- Canadian International Trade Tribunal continues its order for carbon steel welded pipe; SIMA values to be reviewed annually
The Canadian International Trade Tribunal concluded expiry review RR-2023-009 and issued an order under paragraph 76.03(12)(b) of the Special Import Measures Act (SIMA), continuing its order in expiry review RR-2018-001 (Order) on alleged dumping and subsidizing of carbon steel welded pipe originating in or exported from the People's Republic of China (the subject goods). The Canada Border Services Agency also issued its new policy to conduct annual administrative reviews of normal values, export prices and amounts of subsidy (SIMA values). The review process will be conducted using a tiered system based on the complexity of the required update.
- OECD releases new documents on GloBE rules and on qualified jurisdiction status
The OECD released new Administrative Guidance on the application of Article 9.1 of the GloBE Model Rules (the 9.1 AG), focusing on deferred tax assets (DTAs) (1) arising from certain tax benefits provided by all levels of federal, state, regional or local government or (2) following the introduction of a new corporate income tax after 30 November 2021. The 9.1 AG applies to DTAs arising from governmental arrangements as well as from elections and choices regarding tax treatment that have retroactive effects.
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Document ID: 2025-0321 |