International Tax Newsletter - Americas

Americas Region

July 2018

This e-newsletter gives you an overview of international tax developments being reported globally by KPMG member firms in the Americas region between 1 July and 31 July 2018.

Barbados	Brazil	Canada
Chile	Colombia	Mexico
United States

For a full summary of global tax developments, visit kpmg.com/taxnewsflash.

To contact the International Tax Team email internationaltax@kpmg.com.

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Barbados

Proposed legislation

Corporate income tax / Tax amnesty - July 2018

Barbados is making several important tax system changes. Among other, the following changes were announced:

the increase of the corporate income tax rate to 30 percent (from 25 percent), effective July 1, 2018.
tax amnesty measures.

Brazil

Treaties

Social security agreement - 1 October 2018

A social security totalization agreement, signed by representatives of the governments of Brazil and the United States, has been promulgated in Brazil.

Canada

Tax legislation approved and regulatory update

GST/HST - 27June 2018

Finance recently announced that businesses that purchase qualifying taxable carbon emission allowances will now be required to self-assess GST/HST on such purchases and remit those taxes to the CRA.

GST/HST - July 2018

Certain general partners may have GST/HST liabilities for past management services.

Private companies - July 2018

Canada recently enacted changes affecting private corporations, their owners and family members, including a new tax on split income where adult family members are part of income splitting arrangements, and restrictions on the small business deduction where a private corporation in a corporate group earns passive investment income.

Tax accounting - July 2018

Tax changes may need to be reflected in the interim financial statements under IFRS.

Proposed legislation

Varies tax areas - January 2019

Quebec has announced new measures to harmonize with federal tax legislation.

Tax compliance - July 2018

Under the province's proposed new real estate rules, entities that own land in British Columbia will soon have to disclose information about individuals who own and control land.

Treaties

Tax information exchange - 19 June 2018

Finance has announced that its Tax Information Exchange Agreement with Grenada came into force.

Chile

Tax legislation approved and regulatory update

Various tax areas - July 2018

KPMG in Chile prepared a summary of recent tax developments, including guidance issued regarding VAT that applies to real estate leasing transactions.

Colombia

Tax legislation approved and regulatory update

Company law - June 2018

A new law adds a new entity to the list of legal organizations in Colombia. The new entity —commercial benefit and interest societies — is not, in the traditional sense, a new type of company or society.

Mexico

Tax legislation approved and regulatory update

VAT - 2017

The tax authority in late 2017 issued a rule to establish that during the “pre-operative period,” entities can include expenses and investments incurred before the first payment is made to the Mexican petroleum fund. This treatment has implications for VAT purposes.

Other

Various tax areas - 18 July 2018

According to the projections of the Bank of Mexico, the rate of inflation for 2018 could be between 4.5 percent and 5 percent, and the gross domestic product could increase 2.5 percent.