Executive summary. NEW! EY Tax News Update: Global Edition
|
|
- Arron Bates
- 5 years ago
- Views:
Transcription
1 21 January 2019 Global Tax Alert US federal income tax considerations for taxpayers and QBUs using the Argentine peso as their functional currency and for certain Argentine pesodenominated transactions NEW! EY Tax News Update: Global Edition EY s new Tax News Update: Global Edition is a free, personalized subscription service that allows you to receive EY Global Tax Alerts, newsletters, events, and thought leadership published across all areas of tax. Access more information about the tool and registration here. Also available is our EY Global Tax Alert Library on ey.com. Executive summary All of the three-year cumulative inflation rates commonly used to evaluate Argentina s inflation exceeded 100% as of 30 June Consequently, entities with operations in Argentina were expected to begin accounting for Argentina s economy as highly inflationary no later than reporting periods beginning after 30 June 2018 for US GAAP. 1 For US tax purposes, the determination of whether a currency is hyperinflationary is generally made on a calendar-year basis (e.g., as of 1 January 2019), based on changes in the consumer price index (CPI) as reported by the International Monetary Fund (IMF) for the 36 calendar months immediately preceding the first day of the calendar year. In certain circumstances, the US GAAP determination regarding hyperinflation may be used in determining whether a currency is hyperinflationary for US federal income tax purposes. All US taxpayers with subsidiary, partnership, or branch operations in a hyperinflationary environment generally must: (1) use the US dollar as the functional currency for these operations; and (2) account for these operations using the US dollar approximate separate transaction method of accounting (DASTM) as described in Treasury Reg. Section These requirements are designed to reduce the distortions that can result from operating in a hyperinflationary environment. US taxpayers and their qualified business units
2 2 Global Tax Alert must make certain adjustments made upon adopting the US dollar and DASTM. These adjustments could affect the recognition of gain or loss under Internal Revenue Code 2 Section 987 and/or Section 988, Subpart F income, global intangible low-taxed income (GILTI), earnings and profits (E&P), and foreign tax credits. In addition, taxpayers with nonfunctional currency transactions denominated in the Argentine peso will need to consider special hyperinflationary currency rules and exceptions contained in the US federal income tax regulations. 3 The IMF has not reported CPI data for Argentina for the 36 month-period ended on 31 December 2018, to determine whether the Argentine peso should be considered hyperinflationary for US tax purposes for tax years beginning on or after 1 January Given the fact that the Argentine peso is considered highly inflationary for US GAAP and hyperinflationary for IFRS purposes as of July 2018 and assuming the economic environment remains constant or inflation increases through the end of 2018, taxpayers and other qualified business units that have been using the Argentine peso as their functional currency for US federal income tax purposes likely will be required to make complex transition adjustments and begin accounting for their Argentine operations in US dollars under DASTM for tax years beginning on or after 1 January Detailed discussion Overview Generally, Treas. Reg. Section requires a taxpayer and each of its qualified business units (QBUs) to make all US federal income tax determinations in its respective functional currency. Any taxpayer or QBU that would otherwise be required to use a hyperinflationary currency as its functional currency, however, must instead use the US dollar as its functional currency and compute income or loss or E&P under DASTM as described in Treas. Reg. Section US dollar functional currency A country s currency is considered hyperinflationary if the country has experienced cumulative compounded inflation of at least 100% during the three preceding calendar years. 5 Because all of the three-year cumulative inflation rates commonly used to evaluate Argentina s inflation exceeded 100% as of 30 June 2018, entities with operations in Argentina were expected to begin accounting for Argentina s economy as highly inflationary no later than reporting periods beginning after 30 June 2018 for US GAAP. Taxpayers and QBUs that use the Argentine peso as their functional currency for US federal income tax purposes likely will be required to adopt the US dollar as their functional currency in 2019, beginning on the first day of their 2019 tax year. This change is considered made with the consent of the Commissioner and does not require the filing of a Form 3115, as would ordinarily be the case with a change in functional currency. DASTM To reduce the distortion related to the use of a hyperinflationary currency to report earnings, US tax law requires the application of DASTM as a method of accounting rather than the profit and loss method. The goal of the DASTM rules is to simulate the use of the US dollar as functional currency by requiring the translation of all balance sheet and income statement items from local currency to US dollars at various rates. In general, the translation process involves: preparation of a local currency balance sheet reflecting US income tax principles; translation of assets and liabilities at various rates, depending on when the asset or liability was acquired or incurred and whether it is monetary or nonmonetary; translation of income statement items relating to assets and liabilities at the rates used to translate the corresponding items on the balance sheet; translation of other income statement items, depending on when they were earned or incurred; and translation of dividends at the rate in effect on the date of payment. This translation process is performed to the beginning and end of the tax year balance sheets. The difference between the net equity computed at the beginning-of-the-year and the end-of-the-year balance sheets represents the change in net worth, which constitutes the amount of E&P (or taxable income if the Argentine entity is a Section 987 QBU) for the current year. The difference between the income statement translated into US dollars, in accordance with the DASTM rules, and the change in net worth represents the amount of DASTM gain or loss for the current year. The DASTM gain or loss is then allocated to various classes of gross income earned by the foreign operation. This allocation process potentially affects the amount of Subpart F income or GILTI included in taxable income by US shareholders. As discussed previously, DASTM constitutes a method of accounting and must be used until the local currency qualifies as non-hyperinflationary for three consecutive years. 6 Recall
3 Global Tax Alert 3 that hyperinflationary status is determined based upon the previous three-year base period. For Argentina, assuming the Argentine peso is determined to be hyperinflationary for the 36-month period ending on 31 December 2018, this means that the Argentine peso would have to be nonhyperinflationary for the years 2019, 2020 and 2021 before taxpayers could transition from DASTM to the profit-andloss method of accounting and adopt the Argentine peso as functional currency for the tax year Tax year 2022 would be the earliest year taxpayers could transition their Argentine operations off DASTM. Adoption of DASTM Proposed regulations issued in January 1993 required US taxpayers to apply DASTM to all post-1986 years once a local currency was determined to be hyperinflationary. The IRS alleviated concerns regarding the record keeping required to comply with the proposed regulations and several other concerns by establishing certain adjustments that must be made upon the adoption of DASTM. These adjustments are designed to treat a QBU that operates in a country that has become hyperinflationary as subject to DASTM as of the transition date and are similar to the adjustments required upon a change in functional currency as provided in Treas. Reg. Section The transition date is defined as the later of: (1) the last day of the tax year ending before the three-year base period used to determine hyperinflationary status; or (2) the last day of the tax year that the QBU applied DASTM. 7 The period between the transition date and the date a currency is hyperinflationary is called the look-back period. 8 For calendar-year taxpayers and QBUs that use the Argentine peso as their functional currency, the transition date likely will be 31 December 2015 and the look-back period likely will consist of tax years 2016, 2017, and Separate adjustments must be made for controlled foreign corporations (CFCs), US shareholders, and QBU branches and partnerships upon the adoption of DASTM. CFC level adjustments Treas. Reg. Section provides three types of CFC level adjustments: (1) Section 988 transactions denominated in US dollars; (2) opening balance sheet; and (3) E&P adjustments. A foreign corporation must adjust E&P as of the transition date to reflect any unrealized exchange gain or loss with respect to Section 988 transactions denominated in the US dollar. This amount, however, is reduced by any gain or increased by any loss recognized during the look-back period with respect to such Section 988 transactions. Thus, for Argentine-peso CFCs, Section 988 gain or loss likely will be recognized as of 31 December 2015, for US dollardenominated Section 988 transactions. This amount is adjusted for Section 988 gains and losses recognized with respect to US dollar transactions during the years 2016, 2017, and 2018 of the Argentine CFC. The regulations provide that the tax basis balance sheet is translated into US dollars using the spot exchange rate on the transition date. 9 Thus, the balance sheet of Argentinepeso CFCs likely will need to be translated at the spot exchange rate on 31 December Assets and liabilities acquired during the look-back period (i.e., ) are translated into US dollars using the exchange rate on the acquisition date. 10 Additionally, the regulations provide that the post-1986 undistributed E&P of a foreign corporation adopting DASTM consists of the sum of: (1) the corporation s post-1986 undistributed E&P determined on the transition date and translated into US dollars using the spot exchange rate on the transition date; and (2) the sum of the E&P for each year in the look-back period as determined under DASTM, reduced by any distributions of post-1986 E&P during the look-back period. 11 Therefore, the amount of Argentine-peso E&P existing as of 31 December 2015, likely will need to be translated into US dollars at the spot exchange rate on that date. Further, DASTM likely will need to be applied to the years to determine E&P for each of those years. The sum of the 31 December 2015 US dollar E&P and the US dollar E&P amounts computed for the years 2016 through 2018 under DASTM will be the balance of US dollar E&P as of 1 January US shareholder level adjustments US shareholders of CFCs adopting DASTM are subject to three types of adjustments: (1) US shareholders may recognize Subpart F income related to exchange gains on Section 988 transactions calculated at the foreign corporation level; (2) US shareholders must recognize any exchange gain or loss related to previously taxed income (PTI) as if all PTI were distributed on the transition date; this amount, however, is reduced by any exchange gain or loss recognized with respect to PTI received during the look-back period; and (3) US shareholders must take into account any difference in Subpart F income resulting from
4 4 Global Tax Alert the recalculation of E&P for the look-back period. This positive or negative adjustment is reflected over four years beginning with the year of change, which likely will be the 2019 tax year for Argentine-peso QBUs. Such amounts retain their character for all US federal income tax purposes (including Sections 902, 959, 960, 961, 1248, and 6038). If an adjustment results in a loss for the tax year in a separate category, the overall foreign loss recapture rules of Section 904(f) and its regulations may apply. Additionally, the amount of foreign taxes deemed paid under Section 960 for any additional Subpart F income is calculated with reference to the pools of earnings and taxes as of the CFC s first day of the tax year in which DASTM applies. 12 Further, a US shareholder s GILTI inclusion amount likely will need to be recomputed for tax years beginning in 2018 to the extent a CFC or a QBU branch of a CFC must adopt DASTM. QBU adjustments The adjustments required for a QBU branch adopting DASTM are similar to those made by CFCs. 13 Taxpayers are to take these adjustments into account ratably over four years, beginning in the year of change. 14 A QBU branch that adopts DASTM must make four categories of adjustments. Three of these four adjustments parallel those adjustments required by CFCs that adopt DASTM. These three adjustments are as follows: (1) QBU branches must recognize any unrealized Section 988 gain or loss with respect to US dollar-denominated transactions held by the QBU branch as of the transition date; 15 (2) the opening balance sheet of a QBU branch is calculated using the same methodology as a CFC that adopts DASTM; 16 and (3) a QBU branch must recalculate its earnings applying the DASTM rules to each year in the look-back period. 17 The positive or negative difference between this cumulative amount and the cumulative earnings as calculated under the profit and loss method of accounting is taken into account by the taxpayer ratably over four tax years beginning in the year of change, which likely will be 2019 for Argentine-peso QBUs. 18 The fourth area of adjustment is unique to QBU branches adopting DASTM in that a QBU branch is treated as terminating on the transition date. The effect of the deemed termination is that any unrecognized Section 987 gain or loss must be recognized as of the transition date. Similar to the Section 988 adjustments, any Section 987 gain or loss recognized during the look-back period is reversed for purposes of calculating the amount as of the transition date. 19 Implications Argentine-peso taxpayers and QBUs likely will need to adopt the US dollar as their functional currency and comply with the DASTM rules for such QBUs as of 1 January The transition to DASTM likely will require a recalculation of the 1 January 2019 E&P balance for Argentine-peso CFCs, as well as potential recognition of Section 988 gains and losses related to US dollar-denominated Section 988 transactions, which include: US dollar-denominated cash, accounts payable, accounts receivable, notes payable, notes receivable, and derivatives. This may affect the amount of Subpart F income (which includes the Section 965 inclusion) includible from such CFCs, as well as deemed paid credits. Further, Argentine-peso QBU branches and partnerships likely will be required to adopt DASTM on 1 January 2019, and the result likely will generate Section 987 losses upon the adoption of the US dollar as functional currency. Further, DASTM likely will need to be applied to Argentine-peso QBUs for the 2019 tax year and future years until the Argentine peso is considered non-hyperinflationary for three consecutive years.
5 Global Tax Alert 5 Endnotes 1. See EY s To the Point, No , 12 July All Section references are to the Internal Revenue Code of 1986, and the regulations promulgated thereunder. 3. See, e.g., Treas. Reg. Sections (b)(15), -2(d)5), -2(e)(7), -4(e)(1), -5(a)(2) and 1.267(f)-1(e); Prop. Treas. Reg. Section (b)(4). 4. Treas. Reg. Section (b)(2)(ii). 5. Treas. Reg. Section (b)(2)(ii)(D). The three-year base period inflation is determined by reference to the consumer price index of the country, as reported in the monthly issues of the International Financial Statistics published by the International Monetary Fund. 6. Treas. Reg. Section (b)(2)(ii)(E). 7. Treas. Reg. Section (a). 8. Id. 9. Treas. Reg. Section (b)(3). 10. Id. 11. Treas. Reg. Section (b)(4)(ii). 12. Treas. Reg. Section (c). 13. Treas. Reg. Section (d). 14. Treas. Reg. Section (d)(1). 15. As in the case of a CFC, the Section 988 gain or loss recognized as of the transition date reflects the reversal of any Section 988 gain or loss recognized during the look-back period for the same Section 988 transactions. Treas. Reg. Section (d)(2). 16. Treas. Reg. Section (d)(5). 17. Treas. Reg. Section (d)(4). 18. Treas. Reg. Section (d)(1) and (4). 19. Treas. Reg. Section (d)(3).
6 6 Global Tax Alert For additional information with respect to this Alert, please contact the following: Ernst & Young LLP, International Tax Services Capital Markets, US David Golden, Washington, DC Doug Chestnut, Washington, DC Lee Holt, New York Lena Hines, Los Angeles Tim Wichman, Chicago Elizabeth Hale, Washington, DC Karla Johnsen, New York Colleen Zeller, New York Tim Kerr, Chicago Ernst & Young LLP, ITqS, US Maureen Garcia, Chicago Sue Lippe, Chicago Donna Siemaszko, New York International Tax Services Global ITS Leader, Jeffrey Michalak, Detroit ITS Director, Americas, Craig Hillier, Boston ITS Markets Leader, Americas, Stephen O Neil, New York National ITS Leader, Jose Murillo, Washington ITS Regional Contacts, Ernst & Young LLP (US) Central Colleen Warner, Chicago Northeast Jonny Lindroos, McLean, VA Southeast Scott Shell, Charlotte, NC Southwest Amy Ritchie, Austin West Sadler Nelson, San Jose, CA Financial Services Chris J Housman, New York Canada Ernst & Young LLP (Canada) Albert Anelli, Montreal
7 EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com EYGM Limited. All Rights Reserved. EYG no Gbl NY ED None This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice. ey.com
Executive summary. EY Global Tax Alert Library
28 December 2017 Global Tax Alert US proposed regulations may alleviate foreign currency tax asymmetries for CFCS and provide new mark-to-market election for certain foreign currency transactions EY Global
More informationUS: Proposed 956 regulations would limit foreign tax credit planning by reducing Section 956 inclusions for corporate US shareholders
5 November 2018 Global Tax Alert US: Proposed 956 regulations would limit foreign tax credit planning by reducing Section 956 inclusions for corporate US shareholders NEW! EY Tax News Update: Global Edition
More informationUS Treasury intends to delay application of final regulations under Section 987 by one year
4 October 2017 Global Tax Alert US Treasury intends to delay application of final regulations under Section 987 by one year Immediate pre-transition considerations remain for taxpayers EY Global Tax Alert
More informationExecutive summary. EY Global Tax Alert Library
13 December 2016 International Tax Alert Final and temporary US foreign currency regulations change determination of branch taxable income and recognition of Section 987 gain or loss and defer Section
More informationUS: Forthcoming proposed regulations will offer some clarity on Section 163(j) business interest expense limitation
9 April 2018 Global Tax Alert US: Forthcoming proposed regulations will offer some clarity on Section 163(j) business interest expense limitation EY Global Tax Alert Library Access both online and pdf
More informationUpdated 2019 US Section 1256 qualified board or exchange list
31 January 2019 Global Tax Alert Updated 2019 US Section 1256 qualified board or exchange list NEW! EY Tax News Update: Global Edition EY s new Tax News Update: Global Edition is a free, personalized email
More informationUS Treasury grants another extension of time for reporting signature authority (FBAR, Form 114) over certain foreign financial accounts
12 December 2018 Global Tax Alert US Treasury grants another extension of time for reporting signature authority (FBAR, Form 114) over certain foreign financial accounts NEW! EY Tax News Update: Global
More informationUpdated US list of foreign currency futures contracts starting point for Section 1256
31 January 2019 Global Tax Alert Updated US list of foreign currency futures contracts starting point for Section 1256 NEW! EY Tax News Update: Global Edition EY s new Tax News Update: Global Edition is
More informationUS proposed GILTI regulations implement international tax reform changes
17 September 2018 Global Tax Alert US proposed GILTI regulations implement international tax reform changes NEW! EY Tax News Update: Global Edition EY s new Tax News Update: Global Edition is a free, personalized
More informationUS DC Circuit rejects per se bar on bearer shares under Section 883 income exclusion for international shipping and aircraft corporations
21 August 2018 Global Tax Alert US DC Circuit rejects per se bar on bearer shares under Section 883 income exclusion for international shipping and aircraft corporations NEW! EY Tax News Update: Global
More informationUS IRS concludes gain recognition agreements and related filings not affected by short tax years
30 November 2017 Global Tax Alert US IRS concludes gain recognition agreements and related filings not affected by short tax years EY Global Tax Alert Library Access both online and pdf versions of all
More informationUS Tax Cuts and Jobs Act significantly affects US private companies with outbound investments
5 February 2018 Global Tax Alert US Tax Cuts and Jobs Act significantly affects US private companies with outbound investments EY Global Tax Alert Library Access both online and pdf versions of all EY
More informationUS IRS issues examination guidelines on Form 1120-F filing deadline waivers
2 March 2018 Global Tax Alert US IRS issues examination guidelines on Form 1120-F filing deadline waivers EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy
More informationUS IRS suspends application of new Section 1446(f) withholding requirement on dispositions of publicly traded partnership interests
12 January 2018 Global Tax Alert US IRS suspends application of new Section 1446(f) withholding requirement on dispositions of publicly traded partnership interests EY Global Tax Alert Library Access both
More informationExecutive summary. Detailed discussion. EY Global Tax Alert Library
22 December 2016 International Tax Alert US final regulations retroactively eliminate Section 367(d) s exception for foreign goodwill and going concern value and narrow Section 367(a) s active trade or
More informationUS Treasury grants yet another extension of time for reporting signature authority (FBAR, Form 114) over certain foreign financial accounts
11 January 2018 Global Tax Alert US Treasury grants yet another extension of time for reporting signature authority (FBAR, Form 114) over certain foreign financial accounts EY Global Tax Alert Library
More informationUS IRS issues interim guidance under new Section 1446(f) for sales of interests in non-publicly traded partnerships
12 April 2018 Global Tax Alert US IRS issues interim guidance under new Section 1446(f) for sales of interests in non-publicly traded partnerships EY Global Tax Alert Library Access both online and pdf
More informationIRS rules on effect of Section 302(a) redemption on post E&P and foreign income tax pools
8 November 2013 International Tax Alert IRS rules on effect of Section 302(a) redemption on post- 1986 E&P and foreign income tax pools Executive summary On 30 September 2013, the Internal Revenue Service
More informationUS Tax Court holds US parent s CFCs held US Property under Section 956 as result of intercompany transactions
2 August 2017 Global Tax Alert US Tax Court holds US parent s CFCs held US Property under Section 956 as result of intercompany transactions EY Global Tax Alert Library Access both online and pdf versions
More informationExecutive summary. EY Global Tax Alert Library
13 December 2016 International Tax Alert US Notice 2016-73 announces amendments to Section 367 regulations applying to certain cross-border triangular reorganizations and inbound nonrecognition transactions
More informationCertain growing activities qualify as production activities for purposes of foreign base company sales income rules
23 October 2013 International Tax Alert Certain growing activities qualify as production activities for purposes of foreign base company sales income rules Executive summary On 21 October 2013, the Internal
More informationChief Counsel Advice concludes that accrued but unpaid interest constitutes an obligation of a US person for purposes of Section 956
11 September 2014 International Tax Alert EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International-
More informationUS IRS issues proposed regulations on international rules under BBA partnership audit regime
7 December 2017 Global Tax Alert US IRS issues proposed regulations on international rules under BBA partnership audit regime EY Global Tax Alert Library Access both online and pdf versions of all EY Global
More informationUS IRS issues proposed regulations. and registered form rules. Executive summary. Detailed discussion. EY Global Tax Alert Library.
25 September 2017 Global Tax Alert US IRS issues proposed regulations on registrationrequired obligations and registered form rules EY Global Tax Alert Library Access both online and pdf versions of all
More informationUS Section 871(m) final and temporary regulations address dividend equivalents
30 January 2017 International Tax Alert US Section 871(m) final and temporary regulations address dividend equivalents EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax
More informationExecutive summary. EY Global Tax Alert Library
30 January 2017 International Tax Alert US temporary and proposed regulations deny nonrecognition treatment to contributions of appreciated property by US persons to certain partnerships with related foreign
More informationUS IRS guidance offers relief for financial institutions required to obtain and report taxpayer identification numbers
2 October 2017 Global Tax Alert US IRS guidance offers relief for financial institutions required to obtain and report taxpayer identification numbers EY Global Tax Alert Library Access both online and
More informationUS international tax provisions and implications of the Tax and Jobs Act
6 November 2017 Global Tax Alert US international tax provisions and implications of the Tax and Jobs Act EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy
More informationUpdated 2016 US IRC Section 1256 qualified board or exchange list
25 January 2016 International Tax Alert Updated 2016 US IRC Section 1256 qualified board or exchange list EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy
More informationUS IRS concludes subsidiary not eligible for dividends received deduction as transaction lacked economic substance
11 October 2016 International Tax Alert US IRS concludes subsidiary not eligible for dividends received deduction as transaction lacked economic substance EY Global Tax Alert Library Access both online
More informationInternational Tax Alert
30 April 2014 International Tax Alert EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International-
More informationIRS notes in AM that US shareholder must increase earnings and profits in the year of a Section 951(a)(1) inclusion
20 February 2015 International Tax Alert EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International-
More informationUS IRS and Treasury issue guidance offering RICs with Section 853 elections alternative methods for handling foreign tax refunds
22 January 2016 International Tax Alert US IRS and Treasury issue guidance offering RICs with Section 853 elections alternative methods for handling foreign tax refunds EY Global Tax Alert Library Access
More informationUS Tax Court refuses to follow IRS guidance subjecting foreign investors to US tax on dispositions of partnership investments
20 July 2017 Global Tax Alert US Tax Court refuses to follow IRS guidance subjecting foreign investors to US tax on dispositions of partnership investments EY Global Tax Alert Library Access both online
More informationIRS rules consent fee paid on contingent payment debt instrument may result in a taxable exchange
13 August 2014 International Tax Alert EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International-
More informationUS IRS and Treasury amend FIRPTA regulations to reflect PATH Act
23 February 2016 International Tax Alert US IRS and Treasury amend FIRPTA regulations to reflect PATH Act EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy
More informationIRS applies Section 904(f) recapture exception to intercompany asset transfer preceding deconsolidation of transferee member
12 January 2015 International Tax Alert EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International-
More informationTreasury and IRS finalize regulations under Section 909 foreign tax credit splitting events
13 February 2015 International Tax Alert EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International-
More informationUS IRS releases proposed Qualified Intermediary Agreement
7 July 2016 International Tax Alert US IRS releases proposed Qualified Intermediary Agreement EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your
More informationTreasury and IRS plan to change rules for claiming refunds and credits for certain withholding taxes
4 May 2015 International Tax Alert EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International-
More informationUS Tax Cuts and Jobs Act and its impact on technology sector
26 December 2017 Global Tax Alert US Tax Cuts and Jobs Act and its impact on technology sector EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your
More informationDEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1
Section 985. Functional Currency 26 CFR 1.985 1: Functional currency. T.D. 8765 DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 Change From Dollar Approximate Separate Transactions Method
More informationUS Senator Levin introduces bill to tighten inversion rules under Section 7874
2 June 2014 International Tax Alert EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International-
More informationUS regulations forthcoming on partnership nonrecognition of property contributions
19 August 2015 International Tax Alert EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International-
More informationIRS updates procedures for withholding foreign partnerships and withholding foreign trusts; coordinates rules with FATCA
15 August 2014 International Tax Alert EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International-
More informationIRS issues instructions to Form W-8BEN-E
30 June 2014 International Tax Alert EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International-
More informationUS House tax reform bill would significantly affect life sciences sector
13 November 2017 Global Tax Alert US House tax reform bill would significantly affect life sciences sector EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy
More informationIRS issues final, temporary and proposed regulations on determining PFIC ownership and annual filing requirements for PFIC shareholders
10 January 2014 International Tax Alert EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International-
More informationUS IRS issues FAA F recharacterizing intercompany referral fee income and reallocating intercompany referral fee expenses
26 August 2015 International Tax Alert EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International-
More informationUS IRS is focusing on FATCA Intergovernmental Agreements currently in effect
8 August 2016 International Tax Alert US IRS is focusing on FATCA Intergovernmental Agreements currently in effect EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts.
More informationIRS issues instructions for requester of Forms W-8BEN, W-8BEN-E, W-8ECI, W-8EXP, and W-8IMY
28 July 2014 International Tax Alert EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International-
More informationTreasury and IRS issues guidance on 2% tax on payments US government makes to foreign persons under certain contracts
27 April 2015 International Tax Alert EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International-
More informationUS tax reform: A guide to income tax accounting considerations
20 December 2017 Global Tax Alert US tax reform: A guide to income tax accounting considerations EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your
More informationUS IRS issues Section 871(m) transition rules
9 December 2016 International Tax Alert US IRS issues Section 871(m) transition rules EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser:
More informationInternational Tax Alert. Executive summary
19 May 2015 International Tax Alert EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International-
More informationA deeper look at forthcoming US Treasury regulations affecting certain inversion transactions
4 December 2015 International Tax Alert A deeper look at forthcoming US Treasury regulations affecting certain inversion transactions EY Global Tax Alert Library Access both online and pdf versions of
More informationCanada: Nunavut issues budget
30 May 2018 Global Tax Alert News from Americas Tax Center Canada: Nunavut issues budget 2018-19 NEW! EY Tax News Update: Global Edition EY s new Tax News Update: Global Edition is a free, personalized
More informationFY 2016 Budget international tax proposals have implications for inbound investors
17 February 2015 International Tax Alert EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International-
More informationThird Circuit US Court of Appeals holds UK windfall profits tax not a creditable income tax for US foreign tax credit purposes
5 January 2012 International Tax Alert Get the world to go! You can access corporate income tax rates of over 65 countries for multiple years using your mobile device: Type into your web browser: www.ey.mobi/its/rates
More informationTemporary regulations issued regarding treatment of certain stock of a foreign corporation under Section 7874
23 January 2014 International Tax Alert EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International-
More informationUnited States and Vietnam sign first income tax treaty
15 July 2015 International Tax Alert EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International-
More informationUS Senate Finance Committee Chairman s Mark of the Tax Cuts and Jobs Act: Energy sector implications
14 November 2017 Global Tax Alert US Senate Finance Committee Chairman s Mark of the Tax Cuts and Jobs Act: Energy sector implications EY Global Tax Alert Library Access both online and pdf versions of
More informationUruguay s Ministry of Economy formally proposes tax increases
25 July 2016 Global Tax Alert News from Americas Tax Center Uruguay s Ministry of Economy formally proposes tax increases EY Global Tax Alert Library The EY Americas Tax Center brings together the experience
More informationInternational Tax Update
International Tax Update Stephen Bates Jose Murillo Cynthia Yu 3 May 2016 Disclaimers This presentation is provided solely for the purpose of enhancing knowledge on tax matters. It does not provide tax
More informationReport released by top US Senate Finance Committee Republican calls for international tax reform
22 December 2014 International Tax Alert EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International-
More informationUK s bilateral APA program for financial transactions is in line with growing global approach
5 November 2018 Global Tax Alert News from Transfer Pricing UK s bilateral APA program for financial transactions is in line with growing global approach NEW! EY Tax News Update: Global Edition EY s new
More informationIRS rules on application of manufacturing exception where sales activities did not include taking of title
1 July 2013 IRS rules on application of manufacturing exception where sales activities did not include taking of title Executive summary In a private letter ruling (PLR 201325005), the Internal Revenue
More informationCFC income from software leases determined to be foreign personal holding company income
18 July 2013 CFC income from software leases determined to be foreign personal holding company income Executive summary On 15 July 2013, the Internal Revenue Service (the Service) released Field Attorney
More informationWhat you need to know about the final FFI Agreement
3 January 2014 International Tax Alert EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International-
More informationIRS issues guidance on treatment under Sections 482 and 901 of transactions with foreign branches or disregarded entities
12 December 2013 International Tax Alert News from Transfer Pricing EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/
More informationCanada: Yukon issues budget
28 April 2017 Global Tax Alert News from Americas Tax Center Canada: Yukon issues budget 2017-18 EY Global Tax Alert Library The EY Americas Tax Center brings together the experience and perspectives of
More informationNew anti-base erosion and anti-inversion international tax proposals included in the Administration s fiscal year 2015 Budget
28 March 2014 International Tax Alert EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International-
More informationOECD releases interim report on the tax challenges arising from digitalization
16 March 2018 Global Tax Alert OECD releases interim report on the tax challenges arising from digitalization EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts.
More informationPanama s Minister of Economy and Finance proposes bill for calculating income subject to preferential tax treatment under an IP regime
28 August 2018 Global Tax Alert News from Americas Tax Center Panama s Minister of Economy and Finance proposes bill for calculating income subject to preferential tax treatment under an IP regime NEW!
More informationUS Tax Cuts and Jobs Act and its impact on the energy sector
29 December 2017 Global Tax Alert US Tax Cuts and Jobs Act and its impact on the energy sector EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your
More informationSpain releases draft bill on Digital Services Tax
25 October 2018 Indirect Tax Alert Spain releases draft bill on Digital Services Tax NEW! EY Tax News Update: Global Edition EY s new Tax News Update: Global Edition is a free, personalized email subscription
More informationOECD releases the United States peer review report on implementation of BEPS Action 14 minimum standards
2 October 2017 Global Tax Alert OECD releases the United States peer review report on implementation of BEPS Action 14 minimum standards EY Global Tax Alert Library Access both online and pdf versions
More informationUK publishes response to consultation on corporate intangible fixed assets regime and draft legislation
14 November 2018 Global Tax Alert UK publishes response to consultation on corporate intangible fixed assets regime and draft legislation NEW! EY Tax News Update: Global Edition EY s new Tax News Update:
More informationHong Kong-India income tax treaty enters into force
6 December 2018 Global Tax Alert Hong Kong-India income tax treaty enters into force NEW! EY Tax News Update: Global Edition EY s new Tax News Update: Global Edition is a free, personalized email subscription
More informationPuerto Rico extends automatic extension period for filing a 2017 tax return from three months to six months
17 April 2018 Global Tax Alert News from Americas Tax Center Puerto Rico extends automatic extension period for filing a 2017 tax return from three months to six months EY Global Tax Alert Library The
More informationGhana enacts mandatory use of fiscal electronic device for VAT purposes
30 May 2018 Indirect Tax Alert Ghana enacts mandatory use of fiscal electronic device for VAT purposes NEW! EY Tax News Update: Global Edition EY s new Tax News Update: Global Edition is a free, personalized
More informationNew IRC 987 Regs and Foreign Currency Translation: Income Calculation for Qualified Business Units
FOR LIVE PROGRAM ONLY New IRC 987 Regs and Foreign Currency Translation: Income Calculation for Qualified Business Units THURSDAY, NOVEMBER 30, 2017, 1:00-2:50 pm Eastern IMPORTANT INFORMATION FOR THE
More informationUS IRS limits use of mandatory transfer pricing IDR and instructs examiners on penalties in transfer pricing cases
24 January 2018 Global Tax Alert News from Transfer Pricing US IRS limits use of mandatory transfer pricing IDR and instructs examiners on penalties in transfer pricing cases EY Global Tax Alert Library
More informationEgypt implements new transfer pricing guidelines
7 November 2018 Global Tax Alert News from Transfer Pricing Egypt implements new transfer pricing guidelines NEW! EY Tax News Update: Global Edition EY s new Tax News Update: Global Edition is a free,
More informationBelgium introduces 100% participation exemption
20 March 2018 Global Tax Alert Belgium introduces 100% participation exemption EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: www.ey.com/taxalerts
More informationUK publishes draft Finance Bill clauses and other documents
9 July 2018 Global Tax Alert UK publishes draft Finance Bill clauses and other documents NEW! EY Tax News Update: Global Edition EY s new Tax News Update: Global Edition is a free, personalized email subscription
More informationCanada: British Columbia introduces employer health tax legislation
25 October 2018 Indirect Tax Alert News from Americas Tax Center Canada: British Columbia introduces employer health tax legislation NEW! EY Tax News Update: Global Edition EY s new Tax News Update: Global
More informationCanada: Saskatchewan issues budget
11 April 2018 Global Tax Alert News from Americas Tax Center Canada: Saskatchewan issues budget 2018-19 EY Global Tax Alert Library The EY Americas Tax Center brings together the experience and perspectives
More informationCanada: Prince Edward Island issues budget
10 April 2018 Global Tax Alert News from Americas Tax Center Canada: Prince Edward Island issues budget 2018-19 EY Global Tax Alert Library The EY Americas Tax Center brings together the experience and
More informationIndonesia releases amendments to the anti-tax treaty abuse rules
6 December 2018 Global Tax Alert Indonesia releases amendments to the anti-tax treaty abuse rules NEW! EY Tax News Update: Global Edition EY s new Tax News Update: Global Edition is a free, personalized
More informationCanada: Quebec relaxes QST ITR restrictions
31 October 2017 Indirect Tax Alert News from Americas Tax Center Canada: Quebec relaxes QST ITR restrictions EY Global Tax Alert Library The EY Americas Tax Center brings together the experience and perspectives
More informationJordan amends Income Tax Law
27 December 2018 Global Tax Alert Jordan amends Income Tax Law NEW! EY Tax News Update: Global Edition EY s new Tax News Update: Global Edition is a free, personalized email subscription service that allows
More informationUS taxpayers seeking unilateral APAs with Mexico for maquiladoras will not be subject to double taxation as long as certain requirements are met
20 October 2016 International Tax Alert News from Transfer Pricing US taxpayers seeking unilateral APAs with Mexico for maquiladoras will not be subject to double taxation as long as certain requirements
More informationCanada amends taxation of investment income earned through a private corporation
14 December 2015 Global Tax Alert News from Americas Tax Center Canada amends taxation of investment income earned through a private corporation EY Global Tax Alert Library The EY Americas Tax Center brings
More informationFrench Government submits draft bill on digital services tax to Council of Ministers
8 March 2019 Indirect Tax Alert French Government submits draft bill on digital services tax to Council of Ministers NEW! EY Tax News Update: Global Edition EY s new Tax News Update: Global Edition is
More informationIreland s Country-by- Country reporting notification deadline is 31 December 2016
12 December 2016 Global Tax Alert News from Transfer Pricing Ireland s Country-by- Country reporting notification deadline is 31 December 2016 EY Global Tax Alert Library Access both online and pdf versions
More informationFrench Government releases draft Finance Bill for 2019
25 September 2018 Global Tax Alert French Government releases draft Finance Bill for 2019 NEW! EY Tax News Update: Global Edition EY s new Tax News Update: Global Edition is a free, personalized email
More informationUS Treasury Department releases 2016 US Model Treaty including new provisions to combat base erosion and profit shifting
26 February 2016 International Tax Alert US Treasury Department releases 2016 US Model Treaty including new provisions to combat base erosion and profit shifting EY Global Tax Alert Library Access both
More informationArgentina issues numerous pieces of guidance on various tax issues
14 November 2018 Global Tax Alert News from Americas Tax Center Argentina issues numerous pieces of guidance on various tax issues NEW! EY Tax News Update: Global Edition EY s new Tax News Update: Global
More informationDenmark publishes draft bill to implement EU ATAD
5 June 2018 Global Tax Alert Denmark publishes draft bill to implement EU ATAD NEW! EY Tax News Update: Global Edition EY s new Tax News Update: Global Edition is a free, personalized email subscription
More information