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

     This week's tax news from the Americas

• Brazilian Supreme Federal Court partially reinstates Government Decree related to changes in IOF
  The Brazilian Supreme Federal Court granted an injunction on 17 July 2025, partially reinstating the effects of Decree No. 12,499/2025, which introduced changes to the Tax on Financial Operations (IOF) applicable to credit transactions and foreign exchange transactions. Effective immediately upon publication of the decision, the tax rates will revert to the modified rates pursuant to Decree No. 12,499/2025.

• US Tax Court finds AbbVie properly deducted merger termination fee as an ordinary loss
  The US Tax Court, in AbbVie Inc. and Subsidiaries v. Commissioner of Internal Revenue, 164 T.C. No. 10, held that a nearly $1.6 billion merger termination fee (Break Fee) paid by AbbVie to Shire plc is deductible as an ordinary loss, contrary to IRS claims that it should be treated as a capital loss under IRC Section 1234A. The holding emphasizes that the Break Fee was related to services, not property, as it stemmed from AbbVie's board's decision not to recommend the merger.

      This week's newsletters

• Report on recent US international tax developments - 25 July 2025
  Our weekly report with brief summaries of all the week's US international tax developments and related activity.

• TradeFlash – July 2025
  Our monthly roundup of the latest developments in global trade around the world.

• Trade Talking Points - June 2025
  Our monthly report with the latest insights from EY's Trade Strategy team.

      Upcoming EY webcasts

• 29 July: The ‘One Big Beautiful Bill Act’: Key international tax provisions and business implications
• 31 July: BorderCrossings… with EY transfer pricing and tax professionals - July 2025
• 7 August: One Big Beautiful Bill Act: What’s ahead for private equity, funds and portfolio companies
• 15 August: 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 25 July 2025

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

• Ecuador requires new customs form for certain travelers entering or leaving Ecuador
• USCIS reaches Fiscal Year 2026 H-1B cap

     Africa

• Egypt enacts new labor law with changes affecting employers beginning 1 September 2025
• Egypt introduces significant VAT updates on certain goods and services
• Kenya updates Electronic Travel Authorization eligibility criteria

     Europe

• European Council extends temporary protection for Ukrainian nationals until March 2027
• EU Council adopts law for the gradual implementation of the Entry/Exit System
• EU Commission releases new 'own resources' package as part of its Multiannual Financial Framework, including lump-sum contributions by large companies
• Gibraltar's proposed anti-avoidance measures now implemented
• Lithuania announces changes to list of countries where applications may be submitted using external service providers
• Poland issues official withholding tax guidance
• Portugal announces new action plan to address immigration challenges and reform citizenship laws
• Portugal extends the validity of certain residence permits until 15 October 2025

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.