Switzerland signs new DTA with Argentina
Switzerland and Argentina have signed a new double taxation agreement (DTA). When it enters into force this agreement will replace the provisional agreement signed in 1997. The agreement contains provisions relating to the exchange of information
See MoreSouth Korea and US Agree on Text Of FATCA Agreement
South Korea has announced that it has agreed to the regular exchange of information with the US from next year to assist the implementation of the Foreign Account Tax Compliance Act (FATCA). The FATCA legislation in the US aims to ensure that the US
See MoreUS – Supreme Court Agrees Severance Pay Is Taxable
In the US the Supreme Court has decided in favor of the IRS in a case involving the tax status of involuntary severance payments made to employees who have been laid off. The Court decided that these payments are subject to the provisions of the
See MoreUK Pushes for conclusion of the Canada-EU FTA
The UK is hoping for a swift conclusion to negotiations for a free trade agreement (FTA) between the EU and Canada, as this could be of considerable benefit to UK companies. The EU is Canada’s second largest trading partner after the US, based on
See MoreChile introduces instructions on modifications included in Law 20.630
Chile issued a Circular on 11 March 2014 giving guidance on modifications to Law 20,630 dealing with international tax issues. A number of tax provisions were amended by the law including a rise in the First Category Tax and a tax on indirect
See MoreCanada: Newfoundland and Labrador budget for 2014
In Canada the Finance Minister of the province of Newfoundland and Labrador has issued the budget proposals for 2014. Under these proposals the corporate income tax for small businesses in the province would be reduced from 4 percent to 3 percent.
See MoreUS – IRS Issues Virtual Currency Tax Guidance
The IRS has published guidance in respect of the use of Bitcoin and similar digital currencies. These are to be regarded for federal tax purposes as property rather than currency. This should remove uncertainty about the tax treatment of these
See MoreUS – IRS Extends Colorado Storm 2012 Tax Relief Deadline
The deadline for taxpayers in Colorado to make a decision on claiming disaster losses has been extended to 15 October 2014. The disaster relief relates to the severe storms and flooding that also gave rise to landslides in September 2013. Taxpayers
See MoreUS: IRS has released its annual report for 2013 on APAs
The annual report on the advance pricing and mutual agreement (APMA) program was issued by the IRS on 27 March 2014. The APMA program takes place as part of the work of the Large Business and International Division of the IRS. The report shows that
See MoreSwitzerland – Peru DTA
The double taxation agreement (DTA) between Switzerland and Peru which was originally signed on 12 September 2012 entered into force on March 10, 2014. The agreement raises the standard of tax information exchange between the two countries to the
See MoreCanada: No tax rate changes in 2014 budget
In Canada the 2014 budget for Saskatchewan was published on 19 March 2014. There is no increase in the general rate of corporate or individual tax but the dividend tax credit rate in the province is to increase. There would also be a reduction in
See MoreUS: Important information regarding intra-group services
The regulations of Treasury and IRS final intercompany service were issued on 31 July 2009. Some permitted transfer pricing methods for services are similar to the OECD methods but the services cost method and shared services arrangements are also
See MoreUS – Tax Foundation Says IRS Mandate Should Shrink
The Tax Foundation (TF) in the US has recently recommended that, as the primary function of the Internal Revenue Service should be to collect tax revenue, it would be best to move the functions of refundable tax credits outside the tax code and
See MoreUS-Iraq Hold First TIFA Meeting
A joint council set up under the Trade and Investment Framework Agreement (TIFA) between the two countries has held its first meeting. The joint council provides a forum for discussion in relation to trade issues such as the rights of employees,
See MoreUS: Talks to Expand Duty-Free IT Agreement Deadlocked
Talks in the World Trade Organization (WTO) on broadening the scope of the Information Technology Agreement continue to be deadlocked after eleven days of negotiations. The product coverage of the existing agreement has not been updated since 1996,
See MoreUS Committee Considers Middle Class Tax Burden
In the US the Senate Finance Committee has been considering policy initiatives that could help to support and expand the middle class. These measures could include improvements to the education system, initiatives to increase the level of savings
See MoreTIEA between Canada and the British Virgin Islands enters into force
The Tax Information Exchange Agreement (TIEA) between Canada and the British Virgin Islands entered into force on March 11, 2014. The TIEA provides for information exchange in relation to assessing and collecting taxes as well as in matters related
See MoreFinland and Chile Sign US FATCA
On March 5 2014 the United States signed intergovernmental agreements (IGAs) with Finland and Chile to implement the Foreign Account Tax Compliance Act (FATCA). A total of twenty four of these IGAs have so far been signed by the US in connection
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