- Argentina: The Federal Tax Authority has been dissolved and replaced by a new body called the National Agency for Collection and Customs Control (ARCA) with a view to simplifying the agency and making the collection of tax and customs duties more efficient.
- Australia: The Joint Select Committee on Social Media and Australian Society released a report on 24 October recommending that Australia establish a Digital Affairs Ministry and introduce a digital levy, such as a digital platform tax, as well as transparency requirements similar to the measures in the EU Digital Services Act.
- Canada: BDO Canada’s multi-part series on navigating the evolution of the EIFEL (Excessive Interest and Financing Expenses Limitation) rules provides a comprehensive overview of the changes from the initial proposal to the final legislation. The series delves into the complexities of modelling EIFEL with respect to non-capital and capital losses, highlighting the challenges taxpayers may face in calculating their EIFEL position. It also explores the potential impact of controlled foreign affiliates' activities on a taxpayer's EIFEL position, offering insights into the intricate interplay between international operations and these new tax rules.
- Chile: The Tax Compliance Bill, published in the official gazette on 24 October 2024, includes changes to the GAAR and introduces new rules to combat tax planning, new reporting obligations, new procedures for bank secrecy, etc. Some of the measures apply as from 1 November 2024, with other becoming effective on 1 January 2025.
A resolution issued by the tax authorities on the same day contains instructions for nonresident digital platform companies to appoint a Chilean representative. The representative must be resident or domiciled in Chile and must report their contact information to the tax authorities within two months from 24 October.
- Dominican Republic: The tax authorities have issued a notification about the company registration requirements. Under Dominican law, all companies and corporate taxpayers must register in the National Taxpayers Registry and designate an individual who is responsible for tax compliance. The individual must be appointed through a shareholders' vote or other similar corporate action and may not be a person unrelated to the administration or control of the business. Businesses that already are registered must designate a “responsible person” by the next ordinary meeting.
- European Union: The EU General Affairs Council on 8 October 2024 released its biannual update of the list of non-cooperative tax jurisdictions. Antigua and Barbuda have been removed, leaving 11 jurisdictions on the list (for prior coverage, see the tax alert dated 11 October 2024).
- Germany: Starting in November 2024, all economically active persons in Germany must have a business identification number (W-IdNr.) issued by the Federal Central Tax Office. The W-IdNr must be included on tax returns (but not the VAT return) and other documents submitted to the government, but it does not have to be included on electronically filed returns until 31 December 2026.
- Greece: The government is contemplating the introduction of a participation exemption for intragroup dividends and capital gains received by Greek resident legal entities from non-EU entities.
- Hong Kong: The Treasury Secretary has announced that tax incentives will be released before the end of 2024 to encourage the development of virtual assets (e.g., AI) and other investments.
- Iceland: A bill presented to parliament on 22 October includes a reduction of the support cap for innovative companies from ISK 1.1 million to ISK 1 million. The incentive for SMEs would drop from 35% to 34% of qualified costs and from 25% to 22.5% large companies.
- India: The Central Board of Direct Taxes clarified in a press release dated 20 August 2024 that taxpayers are required to obtain a tax clearance certificate (TCC) before departing the country only in specified limited circumstances. For example, a TCC is required when the person is involved in serious financial irregularities and their presence is required for an investigation or if the person has direct tax arrears exceeding INR 10 lakh.
- Indonesia: A regulation that applies as from 9 October 2024 extends the tax holiday incentive for new investments made in specific pioneer industries through 31 December 2025 (the incentive was due to expire on 9 October). See also the Pillar Two Implementation Update column for measures affecting the global minimum tax.
- Italy: A public consultation has been launched to assess and improve the tax credits for investments in R&D activities, technological innovation, design and ecological industrial transition. The consultation runs through 18 November 2024.
- Kenya: A new proposal has been released to introduce a significant economic presence tax that would be due by nonresident individuals earning income from services provided through a digital marketplace in Kenya. This proposal was originally included in the Finance Bill 2024, which was withdrawn by the president following widespread protests (for prior coverage, see the Bytes column in the July issue of Indirect Tax News).
- Kuwait: A decree published on 14 July 2024 addresses the exchange of information for tax purposes and puts a legal framework in place for the collection of information required to be reported. The decree also requires individuals and legal persons in Kuwait to provide information required by the Ministry of Finance (MOF) in response to a request from a foreign authority and introduces penalties for noncompliance. This development should help further enhance Kuwait’s implementation of the automatic exchange of financial account information standard, including the common reporting standards. The decree will be effective from the second day following the issuance of Executive Regulations, which should be released by 14 January 2025.
- Latvia: As from 1 November 2024, Antigua and Barbuda are removed from Latvia’s domestic list of low-tax jurisdictions, following updates to the EU list on 8 October (for prior coverage, see the tax alert dated 11 October 2024). Latvia’s list now contains 11 jurisdictions.
- Slovakia: The parliament is considering a bill to abolish the financial transaction tax that is scheduled to apply as from 1 January 2025, with the first tax period commencing in April 2025, to avoid detrimental effects on the domestic business climate. If enacted, the tax would be eliminated as from 1 March 2025.
- Suriname: As from 1 January 2025, corporate and individual income tax returns (as well as VAT and wage tax returns) must be submitted via an online portal of the tax authorities. Taxpayers can register on the portal starting on 1 November. Income tax returns for fiscal years up to 2024 must be submitted in hard copy.
- Trinidad and Tobago: Guidance issued by the Office of the Registrar General on 14 October addresses changes to the beneficial ownership regime. Companies listed in the Register of Companies are required to disclose all beneficial owners holding an interest in the company. The guidance discusses new registration requirements for firms, beneficial ownership disclosures and penalties.
- Turkey: As from 1 January 2025, the scope of payments subject to withholding tax is expanded to cover payments made by intermediary service providers and e-commerce intermediary service providers to their service providers, as well as payments made for goods and services related to sectors or activities determined by the president. These changes are included in a law approved by the parliament in August 2024.
- United Arab Emirates: The tax authorities have published a guide on tax residence, which covers how tax residence is determined for domestic law and tax treaty purposes and how a UAE tax resident can obtain a tax residency certificate. The guide is intended to be read in conjunction with the Corporate Income Tax Law that became effective in 2022.
- United Kingdom: Revised regulations released on 31 October update the rules that apply to digital platform operators.
- United States: The IRS released a notice on 28 October 2024 that addresses situations where a foreign financial institution in a jurisdiction covered by a Model 1 intergovernmental agreement and that reports information on US account holders to the IRS without including the relevant taxpayer identification number (TIN). The IRS will not flag these situations as noncompliant; instead, the institution will be able to use previously published numerical codes to indicate why a TIN was not available for the account being reported through 1017.
On 12 September 2024, after issuing multiple pieces of interim guidance, Treasury and the IRS released a large package of proposed regulations related to the corporate alternative minimum tax regime. The proposed regulations conform to many aspects of the interim guidance but expand it (see the tax alert prepared by BDO in the US).