International Tax Newsletter: Americas

International Tax – Americas, July 2019

This e-newsletter gives you an overview of international tax developments being reported globally by KPMG member firms in the Americas Region between 1 July and 31 July 2019.

Bermuda	Canada	Mercoser
Brazil	Costa Rica	United States

For a full summary of global tax developments, visit TaxNewsFlash- Global.

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Bermuda

Tax legislation approved and regulatory update

Substance requirements

July 2019

Newly enacted law in Bermuda provides that non-resident entities are not subject to economic substance requirements in Bermuda.

Brazil

Proposed legislation

ICMS / ST

June 2019

A tribunal in São Paulo recognized a taxpayer’s right to a full tax credit with regard to ICMS / ST imposed on fuel acquisitions relating to the production process of sugar and ethanol plants.

Canada

Tax legislation approved and regulatory update	Budget	12 July 2019	Prince Edward Island's budget implementation bill received Royal Assent, thereby several income tax measures that were introduced in the 2019 budget have been enacted. Read more
Tax legislation approved and regulatory update	Compliance	July 2019	Certain 2019 Canadian tax changes need to be reflected in interim financial statements. Read more
Tax legislation approved and regulatory update	Compliance	15 October 2019	Distributed investment plans—including investment limited partnerships—need to begin considering their collection of certain ownership details from their investors before 15 October 2019. Read more
Proposed legislation	Trade	July 2019	The Department of Finance proposed to allow the Canada Border Services Agency address price distortions when calculating margins of dumping and also new policy changes to help monitor anti-dumping levels of steel imports. Read more
Proposed legislation	QST	July 2019	Quebec announced new harmonization measures to align two Quebec sales tax (QST) measures with proposed changes to federal goods and services tax / harmonized sales tax legislation. Read more
Other	Taxation of international executives		KPMG in Canada prepared a summary on the taxation of international executive.

Costa Rica

Tax legislation approved and regulatory update

VAT

10 July 2019

A law providing a moratorium on penalties related to VAT deficiencies was published in the official gazette.

Tax legislation approved and regulatory update

Various tax areas

June 2019

The income tax regulations in Costa Rica were updated in late June 2019. There are measures relating to, among other topics, dividend distributions, the tax treatment of real estate capital, and transfer pricing.

Mercosur

Treaties

Trade agreement

July 2019

The European Union and Mercosur member states—Argentina, Brazil, Paraguay and Uruguay—in late June 2019 reached a political agreement for a trade agreement.