Article Posted date
08 September 2023
5 min read
Tax developments or tax-related items reported this week include the following.
Africa
- Nigeria: The Tax Appeal Tribunal Lagos Zone held that the transfer of the taxpayer’s file between tax offices, based on Federal Inland Revenue Service (FIRS) guidelines and regulations and without due consideration of the taxpayer’s registered address, was illegal.
Read TaxNewsFlash-Africa
Americas
- Argentina: Resolution 714/2023 provides that effective 1 September 2023, the importation of certain goods related to the generation of electrical energy will not be subject to the PAIS tax.
- Bolivia: The tax authority issued guidance extending the deadline for certain taxpayers to register in the value added tax (VAT) sales and purchases registry for August 2023.
- Costa Rica: The draft bill (No. 23.581) to reform the income taxation of passive income from foreign sources was approved in second debate by the Legislative Assembly.
Asia Pacific
- Australia: The revenue management agency in New South Wales released a statement detailing the amendments introduced with its Revenue, Fines and Other Legislation Amendment Act 2023.
- Australia: The Minister for Infrastructure, Transport, Regional Development and Local Government registered a legislative instrument modifying the list of vessels excluded from tax incentives effective 1 October 2023.
- Australia: The Department of Climate Change, Energy, the Environment and Water announced that it will be reviewing the feasibility of a carbon border adjustment mechanism.
- Bahrain: The National Bureau for Revenue (NBR) published an updated excise tax guide on their website.
- Indonesia: The Minister of Finance issued updated guidance on the depreciation of tangible assets and/or amortization of intangible assets.
- Malaysia: The KPMG member firm in Malaysia prepared a monthly summary of tax developments that includes discussions of income tax and indirect tax.
- Philippines: The Fiscal Incentives Review Board (FIRB) provided guidelines on the imposition of local taxes, fees, and charges by local government units (LGUs) on transitioning registered business enterprises (RBEs) or those granted incentives prior to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
- Sri Lanka: The government published a bill to amend the Value Added Tax (VAT) Act No. 14 of 2002.
Europe
- Albania: Law no. 29/2023 introduced special provisions and rules on taxation of investment income realized by individuals, effective 1 January 2024.
- Belgium: Circular 2023/C/72 provides that the provision of company cars by foreign employers to Belgian resident employees is treated as providing car rental services to the employees for VAT purposes and therefore is subject to Belgian VAT.
- Cyprus: The KPMG member firm in Cyprus prepared reports about the registry of beneficial owners and payment of the 0.4% central equal weight sharing agency fee.
- Poland: The Supreme Administrative Court held that insurance services are not similar to guarantee services to such an extent that they are subject to lump-sum tax under Article 21(1)(2a) of the CIT Act.
- Poland: The Ministry of Finance made available an updated version of the National e-Invoicing System (KSeF), adjusted to support the FA(2) logical structure.
- Spain: Law 13/2023—which implemented European Directive 2021/514 (DAC7)—also introduced amendments to the limit on the corporate income tax deductibility of financial expenses for tax periods beginning on or after 1 January 2024.
- Sweden: The government has extended, in scope and time, the study of the “3:12 rules” that limit the ability of closely-held or family-owned companies to pay preferentially-taxed dividends, instead of higher-taxed employment income, to its owners.
- UK: The Upper Tribunal held that interest deductions on intra-group debt to fund a share acquisition were disallowed because they had an unallowable purpose.
Read TaxNewsFlash-Europe
Transfer Pricing
- Greece: Decision A.1107/2023 of the Independent Authority for Public Revenues (AADE) replaced the previous circular POL.1284/2013 concerning the procedure for the issuance of advance pricing agreements (APAs) under Article 22 of the Tax Procedure Code—effective 28 July 2023.
- Nigeria: The Tax Appeal Tribunal Lagos Zone held that the country-by-country (CbC) regulations, 2018 were not adopted by a legally constituted Board of the Federal Inland Revenue Service (FIRS), rendering them illegal, unconstitutional, and void.
- UK: HMRC provided updated guidance on APAs.
FATCA / IGA / CRS
- United States: The IRS announced that all qualified intermediary (QI) (including qualified derivatives dealer), withholding foreign partnership (WP), and withholding foreign trust (WT) applications for the 2023 year must be submitted through the QI, WP, WT application and account management system (QAAMS) no later than October 27, 2023, to allow sufficient time for processing by year end.
United States
- Notice 2023-63 provides interim guidance intended to clarify the application of section 174, as amended by Pub. L. No. 115-97 (commonly referred to as the “Tax Cuts and Jobs Act” (TCJA)).
- The IRS announced a new compliance effort focused on high-income individuals, partnerships, and large corporations.
- The IRS announced the opening of the application period for the 2024 Compliance Assurance Process (CAP) program, which will run from September 6, 2023, to October 31, 2023.
- The IRS issued a “frequently asked question” (FAQ) to provide guidance to pass-through entities for electronically filing Schedules K-2 and K-3 to report negative amounts.
- Taxpayers in South Carolina affected by Hurricane Idalia now have until 15 February 2024 to file various individual and business tax returns and to make tax payments.
- A KPMG report discusses the proposed regulations on the prevailing wage and apprenticeship requirements under clean energy tax incentives established by H.R. 5376 (commonly called the “Inflation Reduction Act of 2022” (IRA)).
Trade & Customs
- The Bureau of Industry and Security (BIS) imposed a $48,750 civil penalty against a U.S. aerospace company based in Muskegon, Michigan to resolve alleged violations of U.S. antiboycott provisions of the Export Administration Regulations (EAR).
- The Office of the United States Trade Representative (USTR) posted a notice on its website concerning the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation.
The items described above are also reported as editions of TaxNewsFlash:
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