Germany and Costa Rica sign a double tax agreement
On February 13, 2014, the Costa Rican government announced that it has signed an agreement for the avoidance of double taxation on income and capital with Germany. The agreement aims to eliminate situations of conflicting double taxation between the
See MoreCanada: Tax provisions in British Columbia’s 2014 budget
On 18 February 2014, British Columbia’s Finance Minister delivered the province’s 2014 budget. The British Columbia 2014 budget: Does not propose any general corporate or individual (personal) income tax rate changes; Would extend the
See MoreUS: IRS Publishes Updated Tax Guide for Aliens
The US Internal Revenue Service has released a revised United States Tax Guide for Aliens, providing guidance for resident and nonresident aliens for use in preparing their 2013 tax returns, and, in particular, how to determine their residence
See MoreUS: IRS Apologizes To Taxpayers for Poor Service
With its funding restricted within the 2014 Appropriations Bill, the United States Internal Revenue Service (IRS) Commissioner has indicated that taxpayers will have to exercise patience when trying to contact the agency. Among other problems the
See MoreUS signs an IGA with Canada to implement the FATCA
The United States signed an intergovernmental agreement (IGA) with Canada on 5 February 2014 to implement the Foreign Account Tax Compliance Act (FATCA). In 2010, the U.S. passed the Foreign Account Tax Compliance Act, to target non-compliance
See MoreUS Lawmakers Plead for Sales Tax Deduction Renewal
A bipartisan group of 57 Members has, in a letter to the House of Representatives Ways and Means Committee, sought a renewal of the United States state and local sales tax deduction, which expired on January 1, 2014. The state and local sales tax
See MoreUruguay: Extension of tax refund for exports
Uruguay has extended the 4% tax refund for exports of specific products to 30 June 2014 through Executive Decree 393/013. The aim of the measure is to protect different industries that were negatively affected by the decrease in international demand
See MoreUnited States – IRS releases transfer pricing audit “roadmap”
The IRS Large Business & International (LB&I) division has released a transfer pricing audit "roadmap" that is intended to be a practical, user-friendly toolkit organized around a notional 24-month audit time-line. The roadmap has been
See MorePeru approves tax treaties
The income tax treaties of Peru with Korea, Mexico, Portugal, and Switzerland recently obtained approval by the Peruvian Congress. The notices were published in the Official Gazette. Under the new treaties, relief for taxes withheld at source
See MoreCanada: FTA with Israel is under negotiation
A first round of negotiations for a Free Trade Agreement (FTA) between Canada and Israel was held from 3 to 9 February 2014, in
See MoreIGA agreement sign between Hungary and US to implement FATCA
On February 4, 2014, Hungary and the US signed an agreement to implement the U.S. Foreign Account Tax Compliance Act
See MoreChile changes foreign tax credit system
On 31 January 2014, the Chilean government published in the official Gazette Law 20.727, which makes changes to the country’s foreign tax credit (FTC) rules. The FTC amendments increase the availability of FTCs for indirectly owned foreign
See MoreBhutan approves a law to ratify the DTA signed with India
On February 6, 2014, Bhutan's National Council approved a law to ratify the Double Taxation Avoidance Agreement (DTA) signed with India. The DTA will provide tax stability to the residents of India and Bhutan and facilitate mutual economic
See MoreBahrain ratifies its TIEA with Canada
An Agreement between Canada and Bahrain for the exchange of information on tax matters which was signed on June 4, 2013 it was ratified by Bahrain on February 4, 2014. The Agreement provides for the mutual exchange of tax information that is
See MorePeru – Resolution changes withholding rate for VAT
On 1 February 2014 Peru’s tax administration issued a resolution concerning changes to the withholding rate for value added tax (VAT). This rate applies to the supplier, who must withhold the tax in respect of a transaction that is liable for VAT.
See MoreBrazil – Tax authority revises position on cross-border reimbursement arrangements
Brazil’s tax authority has issued a ruling to a taxpayer reflecting a change of position concerning cross-border cost reimbursement arrangements. Traditionally, the tax authority (Receita Federal do Brazil—RFB) has imposed a high tax burden of
See MoreBrazil – Ruling permits taxpayers to align their transfer pricing policies
According to a recent ruling by the Brazilian tax authority taxpayers should be able to better align their transfer pricing policies to eliminate potential contingent liabilities, reduce taxable adjustments, and/or eliminate the double taxation
See MoreUS: Senate democrat leader opposes Trade Promotion Authority renewal
The US Senate Majority Leader has expressed his opposition to the Trade Promotion Authority (TPA), despite the intention of President Obama to engage with Congress to pass the legislation providing for the renewal of the TPA. This opposition to the
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