KPMG’s Week in Tax: 26-30 October

KPMG’s Week in Tax: 26-30 October

Tax developments in the United States this week include the following:

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  • The U.S. Congress passed a “budget agreement”—a bill that suspends the limit on public debt through March 15, 2017, and increases defense and discretionary spending for fiscal years 2016 and 2017 above the levels set by the Budget Control Act of 2011. Revenue offsets include two partnership tax provisions.
  • The House elected Paul Ryan (R-WI) to be its Speaker. After being sworn in, Ryan resigned his seats on the Committee on Ways and Means and the Joint Committee on Taxation. As a result, there will be a new chairman of the House Ways and Means Committee. Rep. Sam Johnson (R-TX) will serve as interim chairman.
  • The Senate Foreign Relations Committee held a hearing on pending income tax treaties and Protocols with Switzerland, Luxembourg, Hungary, Chile, OECD, Spain, Poland, and Japan. These agreements were signed in 2009, 2010, and 2013, and have been pending U.S. ratification since then.
  • Treasury and the IRS are considering issuing regulations to exclude from the excise tax certain amounts attributable to mileage awards (“frequent flyer miles”) that are redeemed for goods and services other than taxable air transportation.

Read TaxNewsFlash-United States

Global tax news

  • Canada: The newly elected federal government campaigned for certain tax changes—including rate increases for individual income tax—that can be expected in 2016.
  • Canada: There are no proposed changes to Alberta’s individual (personal) or corporate income tax rates in the 2015 budget.
  • Dominican Republic: Guidance for logistics centers and logistics operators establishes the framework for operations at international cargo terminals in the Dominican Republic.

Read TaxNewsFlash-Americas

 

  • China: The State Council announced enhancements and improvements to the research and development (R&D) “super deduction” and to the innovation demonstration zones regime.
  • India: The Central Board of Excise and Customs issued guidance that expands the requirements for importers and exporters to file customs documents electronically using a “digital signature certificate.”
  • Japan: There are new reporting requirements for individual taxpayers, whose income exceeds JPY20 million (approximately U.S. $166,000), to report assets and liabilities.

Read TaxNewsFlash-Asia Pacific

 

  • Tax treaties: Income tax treaties have entered into force between (1) Italy and Hong Kong, and (2) the Netherlands and Germany.
  • Poland: Beginning in 2016, companies will have an opportunity to benefit from new tax relief measures with respect to their eligible R&D activities.

Read TaxNewsFlash-Europe

 

  • Australia: A Federal Court decision has key implications for transfer pricing of intercompany financing transactions, as well as implication for other broader intercompany arrangements.
  • Singapore: The due date for filing certain transfer pricing documentation in Singapore is 30 November 2015.
  • Hungary: The transfer pricing documentation concept in Hungary based on Master file and Local file—similar to the system currently recommended by OECD in the BEPS project—is already established, although the expected timeframe for the implementation of BEPS Action 13 into Hungarian law is unclear.

Read TaxNewsFlash-Transfer Pricing

FATCA

  • Australia: The Australian Taxation Office (ATO) recently engaged in the first automatic sharing of financial account information with the U.S. tax authority (IRS).

Read TaxNewsFlash-FATCA

 

Read these and other items reported this week at the TaxNewsFlash United States and Global websites.

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