Americas International Tax Newsletter
Americas Region
August 2018
This e-newsletter gives you an overview of international tax developments being reported globally by KPMG member firms in the Americas region between 1 August and 31 August 2018.
| Brazil | Canada | Chile |
| Dominican Republic | Mexico | Venezuela |
| United States |
For a full summary of global tax developments, visit kpmg.com/taxnewsflash.
To contact the International Tax Team email internationaltax@kpmg.com.
To register for the International Tax webcasts, click here.
Brazil
Administrative and case law
Social security contributions - 10 August 2018
A recent tax appellate court decision recognizes the nature of certain meal benefits that companies provide to employees as salary and as being subject to social security contributions.
Canada
Tax legislation approved and regulatory update
Corporate income tax - 15 August 2018
Bill includes corporate tax changes announced in 2018 provincial budget.
HST - 21 August 2018
Large businesses are essentially no longer required to repay input tax credits for the provincial component of the Ontario HST that becomes payable on or after July 1, 2018.
Tax compliance - 17 September 2018
Certain taxpayers in British Columbia will be required to report additional information on their property transfer tax returns.
Tax compliance - 1 October 2018
The CRA prescribed income tax interest rates for taxable benefits, overpaid taxes and underpaid taxes for the fourth quarter of 2018 (October 1, 2018 - December 31, 2018) will remain unchanged.
Proposed legislation
Carbon tax - 25 July 2018
Ontario Bill 4 includes changes to cancel the province's cap-and-trade program and reimburse eligible participants who have already made payments under the program.
Carbon tax - 1 January 2019
Manitoba has released additional details on its carbon tax framework which companies will have to comply with starting in 2019.
Corporate income tax - 27 July 2018
One may be affected by draft legislation released by Finance, which implements measures that affect partnership at-risk rules and passive investment income rules, among other things.
GST / HST - 11 August 2018
Holding companies may face additional tax costs due to recently proposed GST/HST rules. These proposed changes may restrict the amount of input tax credits that holding corporations are eligible to claim under the GST/HST holding corporation rules, in certain circumstances.
Tax incentives - 21 August 2018
Quebec has announced that it will temporarily enhance the tax credit for investments relating to manufacturing & processing equipment.
Chile
Tax legislation approved and regulatory update
VAT -1 August 2018
Taxpayers in Chile purchasing goods or services that are subject to VAT need to verify that the counterparty to the transaction is register for VAT purposes in Chile.
Trade and customs - 17 August 2018
An amendment to Chile’s customs rules allows the value of imported goods to be determined according to the valuation established by an advance pricing agreement as granted under the transfer pricing measures.
Proposed legislation
Tax reform - 23 August 2018
Legislative text of the tax reform bill was submitted to Congress thereby giving a first look at the proposals that would affect income tax, VAT, international tax regime, the taxation of capital gains, and the rules concerning the tax treatment of reorganizations, among others.
Dominican Republic
Tax legislation approved and regulatory update
Transferrable tax credits - 1 October 2018
Taxpayers with a fiscal year ending 30 September 2018 are reminded of the opportunity to acquire and use “transferrable tax credits” by 1 October 2018.
Mexico
Administrative and case law
Tax audits - August 2018
Changes to Mexico’s tax law grant new authority to the tax administration to make “site visits” or on-site inspections of taxpayers to verify certain information such as the number of transactions that give rise to income, the amount of such income, the date and time when the transactions were completed, and whether receipts were correctly issued for tax purposes.
Tax legislation approved and regulatory update
Tax incentives - August 2018
There are potential tax benefits available for those holding clean energy certificates.
Venezuela
Tax legislation approved and regulatory update
Corporate income tax/ VAT - August 2018
Several decrees were published in the Official Gazette introducing changes in the VAT and corporate income tax regimes in Venezuela. Changes include:
- increase in the general VAT rate (to 16 percent)
- increase in the rate of tax on large financial transactions (currently set at one percent)
- temporary regime for advance payments of corporate income tax and VAT.
United States
For legislative changes and regulatory updates for the US please visit below link to the TaxNewsFlash United States.
Read TaxNewsFlash US
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