International Tax Newsletter: Americas

Americas Region

November 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 November and 30 November 2018.

Canada	Colombia	Costa Rica
Domeninican Republic	United States

For a full summary of global tax developments, visit kpmg.com/taxnewsflash.

To contact the International Tax Team email internationaltax@kpmg.com.

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Canada

Tax legislation approved and regulatory

Corporate income tax - 8 November 2018

Manitoba's Bill 34 received Royal Assent. The corporate income tax measures include an increase to the small business deduction limit to CAD 500,000 (from CAD 450,000).

Input tax refund - 1 January 2019

Second stage of Quebec's phase-out of the input tax refund restrictions to start in the new year.

Taxable benefits - 6 November 2018

The CRA prescribed income tax interest rates for taxable benefits, overpaid taxes and underpaid taxes for the first quarter of 2019 will remain unchanged.

Proposed legislation

Capital cost allowances - 22 November 2018

Canadian businesses will be able to more quickly recover the costs of certain investments under new rules announced in Finance's 2018 Fall Economic Update.

Tax credit - 1 January 2019

Canada’s Department of Finance in announced it will propose a new refundable tax credit to support labour costs for qualifying news organizations.

Various tax areas - 15 November 2018

Ontario will not adopt federal measures to phase-out the small business limit for passive investment income.

Treaties

Double tax treaty - November 2018

Negotiations to update the tax treaty between Canada and Brazil will be held in November 2018.

Other

Time Sensitive Tax Tips for 2018 - November 2018

KPMG in Canada prepared a summary of year-end tax planning tips for owner-managers to consider.

Colombia

Proposed legislation

VAT - 31 October 2018

A bill submitted to Colombia’s legislature is intended to raise revenue in an effort to reduce the current deficit. The main revenue raising provision would be the broadening of items subject to VAT, even though the bill includes measures that would gradually reduce the current VAT rate of 19 percent to 17 percent by 2021.

Costa Rica

Tax legislation approved and regulatory update

Individual tax / Tax residency - 9 November 2018

An executive decree reflects changes to the concept of "tax resident."

Administrative and case law

Tax compliance - November 2018

The Ministry of Finance along with other government offices advised legal representatives of taxpayer entities to take steps to obtain their digital signature cards and to verify their registration during the first quarter of 2019.

Tax reform - 23 November 2018

The Constitutional Chamber upheld the constitutionality of tax reform resolution number 2018-19511.

Treaties

Free trade agreement - November 2018

A resolution published in the official gazette includes provisions concerning a free trade agreement between Costa Rica and Panama.

Dominican Republic

Other

Tax credits - 31 December 2018

Taxpayers with a fiscal year ending 31 December 2018 may want to consider a tax credit program to settle their tax liabilities, but they need to act before the end of the year.