International Tax Newsletter: Americas

International Tax Americas December 2018 - January 2019

This e-newsletter gives you an overview of international tax developments being reported globally by KPMG member firms in the Europe and Africa Regions between 1 December 2018 and 15 January 2019.

Argentina	Costa Rica	United States
Brazil	Mexico
Canada	Panama

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

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Highlights

Presidential Decree for the Mexican northern border

On December 29, 2018 the Mexican President issued a Decree to promote development of the Mexican northern border, by establishing tax incentives for Value Added Tax (VAT) and Income Tax (IT) purposes, applicable from January 1, 2019 to December 31, 2020.

The Decree applies to activities performed within 43 municipalities listed in order to reboot the economic activity therein. In addition, it is expected the tax incentives should encourage the economic growth of the Mexican northern border considering its direct competition with the southern region of the United States of America.

Argentina

	Tax area concerned	Relevant date	Description of measures and publication link
Tax legislation approved and regulatory update	Corporate income tax	January 2019	A regulatory decree was published in the official bulletin as guidance for implementing income tax changes introduced by the 2017 tax reform legislation.

Brazil

Tax area concerned

Relevant date

Description of measures and publication link

Tax legislation approved and regulatory update

International trade

January 2019

Updated common nomenclature of the Mercosur trading block and new units of measures for foreign trade apply beginning 1 January 2019.

Tax legislation approved and regulatory update	Small business tax	1 January 2019	P.E.I. Bill 57 received Royal Assent This bill reduces the province's small business tax rate to 3.5% (from 4%), among other changes.
Tax legislation approved and regulatory update	Speculation tax	December 2018	B.C.'s new Speculation and Vacancy Tax Act is now law after receiving Royal Assent.
Tax legislation approved and regulatory update	Various tax areas	December 2018	Quebec delivered the fall update on the province’s economic and financial situation on 3 December 2018.
Other	Corporate income tax / Tax accounting	January 2019	Certain 2018 Canadian income tax rate and other changes may need to be reflected in year-end financial statements.
Other	GST and Customs — Overview of 2018 Changes	December 2018	Corporations should take stock of indirect tax changes announced throughout 2018.
Other	VAT	January 2019	VAT Challenges for the Digital Economy. Read more

Costa Rica

Tax legislation approved and regulatory update

Tax amnesty

December 2018

A tax amnesty program is available for three-month period, from 5 December 2018 to 5 March 2019.

Tax legislation approved and regulatory update

Tax reform

4 December 2018

New tax reform legislation in Costa Rica was passed. The tax reform law includes significant income tax law changes such as the introduction of rules on the taxation of capital gains and interest expense deduction limitations, as well as rules addressing hybrid mismatch arrangements and anti-tax haven provisions.

Treaties

Double tax treaty

10 December 2018

Costa Rica’s legislature approved legislation concerning ratification of an income tax treaty for the avoidance of double taxation and to prevent fiscal evasion between Costa Rica and Mexico.

Mexico

Tax legislation approved and regulatory update

Tax reform

December 2018

Tax legislative amendments have been published in the official gazette. The legislative changes reflect amendments to various rules under the income tax law, the VAT law, and other tax legislation.

Tax legislation approved and regulatory update

Tax incentives

29 December 2018

A decree was issued by the executive branch to promote the development of Mexico's northern border region (“frontera norte”).