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KPMG Week in Tax: 18 – 22 March 2024

Recent tax developments from around the globe for the week of 18 – 22 March 2024

March 22, 2024

KPMG Week in Tax—published weekly to provide an overview of tax developments as reported in TaxNewsFlash—includes summaries of select tax-related news followed by a full list of reports (more information can be found at the links provided).

  • United States: The IRS released Notice 2024-30 which expands certain rules for determining what constitutes an energy community for the production and investment tax credits. Read TaxNewsFlash
  • Australia: Treasury released for consultation draft legislation implementing key aspects of the OECD’s Pillar Two global minimum tax rules. Read TaxNewsFlash
  • Finland: The bill implementing the EU Minimum Tax Directive into Finnish domestic legislation was approved on 28 December 2023. Read TaxNewsFlash

Additional reports

United States

  • Third Circuit: Taxpayer’s petition cannot be dismissed by Tax Court on grounds of mootness
  • IRS updates FAQ on QI/WP/WT website to provide guidance on WP/WT agreement renewals
  • Notice 2024-30: Expanded rules for energy community production and investment tax credits under Inflation Reduction Act
  • Notice 2024-31: Housing expense limit adjustments, foreign locations for 2024
  • Proposed regulations: Certain charitable remainder annuity trust transactions identified as listed transactions
  • Proposed regulations: Taxpayer notification in advance of IRS contact with third parties
  • Rev. Proc. 2024-17: Waiver of time requirements for individuals electing to exclude foreign earned income because of adverse conditions
  • Second quarter update to IRS 2023-2024 Priority Guidance Plan
  • KPMG report: CHIPS Act tax credit—direct pay final regulations
  • KPMG report: Accounting for tax credits generated by pass-through entities
  • KPMG report: Tax and trade considerations for U.S. inbound investment
  • KPMG reports: Montana (water’s-edge election); Oregon (guidance for “foreign” corporations); Tennessee (franchise tax refunds); multistate (short-term rental obligations)

Legislative Updates

  • Senate Finance Chairman Wyden releases legislation on grantor retained annuity trusts

Transfer Pricing

  • Australia: Consultation on draft legislation implementing Pillar Two global minimum tax rules
  • Finland: Legislation implementing Pillar Two global minimum tax
  • KPMG report: Amount B compliance challenges
  • KPMG report: Implications of ICAP statistics

Africa

  • Nigeria: Executive orders relating to petroleum sector include new tax incentives
  • Zambia: VAT on cross-border provision of digital services

Americas

  • Barbados: New tax credits for various sectors proposed in 2024 budget
  • Canada: Tax measures in 2024 budget (New Brunswick)
  • Canada: Tax measures in 2024 budget (Newfoundland and Labrador)
  • Canada: Tax measures in 2024 budget (Quebec)
  • Canada: Tax measures in 2024 budget (Saskatchewan)

Asia Pacific

  • Australia: Consultation on new proposed reporting exemptions for electronic distribution platform operators
  • Australia: Draft legislation to repeal stamp duty on commercial, industrial property and replace with property tax (Victoria)
  • Australia: Tax promoter bill passes House; changes to superannuation tax concessions; consultation on petroleum resource rent tax guidance
  • Australia: Temporary extension of land tax exemption for homeowners affected by construction delays (Western Australia)

Europe

  • Cyprus: Consultations on draft legislation on carbon tax on energy products, daily accommodation fee
  • Germany: Guidance on shareholder data reporting requirement for listed companies beginning 2025
  • Greece: Extension of deadlines for updating retail payment systems
  • Lithuania: Tax card for 2024
  • Netherlands: Interest deduction limitation rule compatible with EU law (CJEU Advocate General opinion)
  • Netherlands: Old taxpayer portal used for filing VAT returns will close 1 July 2024
  • Netherlands: Pension funds not treated as special investment funds eligible for VAT exemption (CJEU Advocate General opinion)
  • Poland: Interpretation of retail sales tax law; lump-sum car allowance taxable; expenses for B2B team-building meetings not deductible (Supreme Administrative Court decisions)
  • Poland: Temporary zero VAT rate on food products not extended
  • Poland: Update on consultations on national e-invoicing system (KSeF)
  • Sweden: Taxpayer entitled to penalty relief for incorrectly claimed interest deductions (Court of Appeal decision)

FATCA / IGA / CRS

  • Anguilla: FATCA and CRS reporting deadline remains 31 May 2024
  • Bahamas: Updated FATCA and CRS reporting deadlines
  • Finland: Updated FATCA and CRS technical guidance
  • Germany: Updated CRS communication manual
  • Luxembourg: Tax authorities begin FATCA and CRS audits
  • United States: IRS updates FAQ on QI/WP/WT website to provide guidance on WP/WT agreement renewals

Trade & Customs

  • U.S. final rule removing additional high-energy capacitors from U.S. Munitions List
  • U.S. final rule expands SDN-related end-user controls under Export Administration Regulations (EAR)
  • KPMG report: Tax and trade considerations for U.S. inbound investment

The items described above are also reported as editions of TaxNewsFlash:

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