American news

Special instalment regime for tax debts in Peru: Terms, benefits, and exclusions

The recently published legislative decree no. 1634 introduces a special instalment programme for tax debts in Peru. It is managed by the Peruvian financial authority SUNAT and covers debts payable up to 31 December 2023. The Ecovis experts explain the details.

VAT on digital services in Peru: Implementation postponed to 1 December 2024

Providers and sellers of digital services who are not based in Peru will not have to register and pay 18% VAT to the Peruvian tax authorities until 1 December 2024 – a delay of two months. The Ecovis consultants know the details.

List of high-risk tax schemes Peru: The tax authorities expands the list under GAAR

On 9 July 2024, the Peruvian tax authority published an updated version (third version) of the list of high-risk tax planning models, which now includes 24 arrangements that can be challenged under the Peruvian general anti-avoidance rule. Taxpayers involved in such transactions must expect these structures to be challenged. The Ecovis experts explain the details.

Prohibition of Non-Compete Agreements: FTC’s new rule

On 23 April 2024, the US Federal Trade Commission (FTC) adopted a final rule, by a majority of one vote, that will prohibit companies nationwide from entering into or attempting to enforce non-compete agreements with employees or officers. The final rule will become effective 120 days after its publication in the Federal Register.

Digital Peru: The challenges of the digital economy and Pillar One

The OECD has issued new tax regulations for Pillar One and the Pillar One – Amount B. They aim to adapt to the ever-evolving digital economy and to avoid undesirable base erosion and profit shifting (BEPS).

Forging the Future of Work: How Exxeta Pioneers Global Remote Work Solutions, supported by ECOVIS Heidelberg

Under the guidance of Richard Hoffmann, Lawyer and Senior Partner, Ecovis Heidelberg has fostered a deep and enduring business relationship with Marcus Bingenheimer-Zimmermann, Director of People & Culture at Exxeta, previously the Head of Human Resources at the esteemed football...

VAT Brazil: Overview of the main points of the tax reform and next step

On 20 December 2023, Brazil approved brand-new legislation on consumption and transactional taxation. The main objective of the legal modifications is to simplify a host of levies on goods and services. After a transition period of 7 years (from 2026 to 2032), taxation will be based on a dual VAT system. The Ecovis experts explain the details of the VAT tax reform.

Law firms in Brazil: Vaz de Almeida recognised by the 4 major national seals of law

In 2023, the law firm and the experts at Vaz de Almeida Advogados were again awarded some of the most important national seals of Brazilian law. This significantly strengthens the position of the company, a member of ECOVIS International, on the South American market.

Real Estate Peru: Preoperative expenses and income tax

In cases where a company has carried out a specific real estate project and then chooses to continue with its economic purpose and carry out new projects, the question arises as to whether the expenses related to the latter can qualify as preoperative expenses under income tax law.

ICAP: A New Paradigm in Transfer Pricing Certainty

Transfer pricing is increasingly viewed as a top concern for tax audits. Disputes in this area can be expensive, time-consuming, and disruptive, and they can significantly affect the performance of multinational enterprises (MNEs). Previously, Advanced Price Agreements (APAs) were the...

Expectations for the Mexican Fiscal Year 2024

For the fiscal year 2024, no changes are expected to the Mexican tax framework. This means that there will be no new taxes created or existing tax rates increased. There will also be no changes to the Income Tax Law...

New Beneficial Ownership Reporting Requirements for Small Businesses

Starting on January 1, 2024, certain small businesses will be required to disclose information about their beneficial owners to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). The new requirements, implemented by the Corporate Transparency Act and...

Internal Control in Family Businesses

In the development of family businesses, it is important to review the complexities involved, beyond family desires, which can cover the business’s own concerns, needs, and interests, which must be based on three important pillars in society, such as family, ownership, and business.

Employer of record in Brazil: Operate in the country without setting up there

Companies can become active on the Brazilian market without setting up a business there. This is possible with the concept of the “employer of record” (EOR). Brazilian companies take over the activities of the company wanting to settle there. The Ecovis experts explain exactly how this works and how to create legal certainty.

Transfer pricing brazil: The tectonic shift in Brazil’s tax landscape

Brazil's recent adoption of the Organisation for Economic Cooperation and Development’s (OECD) standard transfer pricing rules heralds a transformative shift in the Latin American tax paradigm. Marcum LLP* provides an overview of the new rules, which apply from 1 January...

Relevant Criteria Regarding VAT in Mexico

Civil compensation is not a form of VAT payment. A few months ago, in March 2023, when resolving the contradiction of criteria 413/2022, the Second Chamber of the Supreme Court of Justice of the Nation (List of Communications ((scjn.gob.mx)) ruled...

The role of taxes in reducing informality and tax evasion in Peru

As we know, constitutionally, taxes are a fundamental tool for the economic and social development of any country, as their main function is to collect public revenues. In the case of Peru, taxes represent an important source of resources for...

Tax return in Honduras: Everything you need to know

In Honduras, tax filing is a mandatory process for all individuals and legal entities that generate income. In this article, we will explain everything you need to know to comply with this tax obligation. Who is required to declare taxes...

SPACs and key considerations for audit and financial reporting

Although special purpose acquisition companies or SPACS have been around for decades, the last 3 years have become more popular as they have proven to be a good opportunity for private companies to enter the public market, mainly in the...

Canary Islands: The best Tax System in Europe

Various motives make the Canaries a destination not to be overlooked. Their constant mild temperatures all year round, astonishing nature, rich history and mixed culture, excellent infrastructures and frequent connections by air and sea to all the main international ports...

The due date is approaching for the “BE-12 Benchmark Survey”: Foreign Direct Investment in the United States

All entities subject to the reporting requirements established by the Bureau of Economic Analysis (BEA) must file the annual BE-12 survey for benchmarking, which covers all fiscal years ended in 2022, no later than May 31, 2023 if paper filing,...

Modern U.S. Treaties: Taxpayers Must Meet the Limitation on Benefits Articles

Generally, tax treaties between two countries provide lower withholding tax rates on income generated by persons of one country in another country. The withholding tax rates provided by a tax treaty may differ on case-by-case basis depending on the parties...

An Exception to the Mirror Image

Income on One Side of a Debt Transaction Does Not Always Produce Loss on the Other A mirror image is usually reflected in the tax impacts for the two parties to a debt instrument transaction. When the holder recognizes interest...

Entities holding foreign securities (ETVE) in Spain

An opportunity to fiscally optimize the multinationals investments. ETVEs (“entities holding foreign securities”) were created in Spain in 1995 as another way to attract foreign investment, specifically to promote the establishment in Spain of holding entities which, based on the...

Transformation of payroll management services in Mexico

Recent changes in Mexican Labor and Tax Laws, related to the restrictions in engagement of personnel services (outsourcing banning) entitles an important business opportunity for consultancy Firms, since there are a lot of companies currently looking for support in implementation...

The “Great Resignation” – What do the workers want?

I wonder if you might have heard about “The Great Resignation”. This phenomenon apparently has happened because of the pandemic by covid-19 and it is about the massive quitting by workers around the world. I hope this newsletter might show...

M&A transaction with Belgian parent company to an company in Hungary with US subsidiary

We were contacted by an in-house attorney of a multi-national company based in Belgium regarding corporate/M&A legal services in the United States. The client provides technology solutions for a variety of applications, including energy storage and testing, automated systems, etc.

The four most relevant pillars for good corporate governance

Hand in hand with globalization, the concept of Corporate Governance has been implemented in an accelerated manner, understanding that it is undoubtedly a tool for competitiveness, where the objective is to ensure the proper management and administration of companies, protect...

What is inflation?

Inflation and deflation are economics terms used to describe an increase or decrease in the value of money, relative to the amount of goods and services that money can buy. Financially, inflation is the reduction in the value of the...

E-invoicing in Guatemala: Companies must act now

From 1 January 2023, companies in Guatemala will only be able to issue e-invoices. This is the only way tax documents may be issued from this date. (more…)

Controlling Beneficiaries

Validity As of January 1, 2022 Legal Basis Articles 32-B Ter, 32-B Quater and 32-B Quinquies of the Federal Tax Code (CFF) in correlation with rules 2.8.1.20 to 2.8.1.23 of Miscellaneous Tax Resolution 2022 (RMF) and articles 84- M and...

Navigating Foreign Pension Plans

Pension plans are a common investment tool for individuals. The reporting requirements for most U.S. pension plans are straightforward; however, foreign pension plans may have additional filing requirements that are not readily apparent. The individual owners of foreign pension plans...

The Evolution of Management

After more than 30 years of experience in accounting and auditing, I have heard countless recurring complaints from people who need to make timely financial decisions. Chief among the complaints, I often hear, “To prepare for a meeting of my...

Tax efficient transfer of U.S. real estate to U.S. recipients

The U.S. tax system imposes an estate tax on non-U.S. residents who die while owning U.S. assets. An exemption of $60,000 is available to non-U.S. residents to lower the U.S. estate tax base. U.S. estate tax is levied on the...

Relevant aspects of the 2022 miscellaneous tax resolution (RMF) in relation to the simplified trust regime for individuals (RESICO PF)

On December 27, 2021, the RMF 2022 was published in the Official Gazette of the Federation (DOF) which is effective as of January 1, 2022 (except in cases where a different date is indicated). Below are some of the most...

U.S. Tax Reform: International in the cross-hairs

U.S. businesses still interpreting 2017 tax legislation will soon need to respond to Biden Administration proposals to fund ambitious plans to rebuild infrastructure and assist families. In 2017, the U.S. tax base was expanded to include worldwide income through the...

Reform to NGO Law: Guatemala

In Guatemala, the legislation on non-profit entities has not been so severe, so the authorities considered it appropriate to start the supervision and control in a strategic way based on good practices, always respecting constitutional rights, as well as the...

The Evolution of Management

What I am about to narrate to you is the result of more than thirty years of experience in financial information analysis from the perspective of accounting, auditing, and the constant recurring complaints of people who need to make timely...

COVID-19 Implications to Business Groups

As a result of the COVID 19 health emergency, compliance with the market value principle becomes an important challenge for Business Groups, given the economic impacts that has been generated in most industries around the world during fiscal years 2020-2021...

COVID-19 Paid Leave Tax Credits – An Update

The Families First Coronavirus Response Act (the “FFCRA”), enacted by Congress on March 18, 2020, required most employers to provide employees with paid leave in certain situations connected with the COVID-19 pandemic (the “FFCRA Mandate”). To offset the cost of...

International Quality Standards for Auditors: Uruguay

The International Quality Control Standard 1 (ISQC) deals with the responsibilities that an audit firm has in relation to its quality control system of its assignments, whether they are audits, review of financial statements and other assignments related to granting...

Simplification of Administrative Procedures in Guatemala

The proposal or initiative of Law 5766 for the simplification of requirements for administrative procedures that we hope will be published in May 2021 follows the same philosophy that the most advanced economies in the region have implemented in the...

VAT on foreign services rendered

Those who provide services from abroad to residents in Colombia, as a general rule, will have the legal obligation to register with the Colombian tax authority as "service providers from abroad", in addition to passing on and collecting VAT on...

Audit considerations during Covid-19

Recently the IFAC (International Federation of Accountants), International Federation of Accountants in Spanish, issued certain considerations related to the safe audit of financial statements in times of Covid-19. These are situations that matter to the auditors but also to those...

Mexico Tax Reform 2021

For the Tax Reform of the 2021 fiscal year, the Executive presented on September 8, 2020, to the Congress of the Union, the respective Economic Package, which includes proposals for the fiscal Miscellaneous regarding the Income Tax Law (LISR ),...

Presidential Elections, Tax Chaos

The upcoming U.S. election on November 3 will not only seat a President for the next four years, it will also establish which party controls both houses of the U.S. Congress, and with control, the ability of the President and...

The Pareto Principle

Nowadays, time is conceived as a limited resource and, insofar as it is managed efficiently, it can become an investment rather than an expense, resulting in the generation of returns and tangible value.

Audit in a health emergency

The worldwide health emergency situ- ation, and particularly in Uruguay, has affect- ed practically all activities. The auditors’ work is no exception.

Mitigating the impact of GILTI

The Tax Cuts and Jobs Act (TCJA) of 2017 introduced a new IRC section 951A, which requires a United States Shareholder (U.S. Shareholder) of a Controlled Foreign Corporation (CFC) to include for each tax year, in gross income for U.S. tax purposes, her (or its) pro-rata share of the CFC’s GILTI income (CFC’s gross income after allowed exclusions and deductions).

Digital Tax: Chile

Law 21210 of February 24, 2020 in its article 35 A of the new paragraph 7 bis of the Law on Sales and Services Tax establishes that taxpayers not domiciled or residing in Chile that render services taxed according to the new letter n) of Article 8 of the Law on Sales and Service Tax

Modifications to the tax system in Paraguay

According to official data, Paraguay has a total population of 6,873,496 inhabitants. From this total, the total Economically Active Population (PEA) is 3,465,976, which corresponds to approximately 50% of the total population. As of December 31, 2019, the total number...

Use of data analysis for auditing

It is the beginning of a new year which leads to reflection and goal setting. As auditing professionals, it is important to question performance and how to keep improving in the vocation, which makes us wonder: is our firm inspired, or are we simply in the market to meet accounting, tax and legal regulations?

Market development of the cannabis in Peru

It has been three years since the incident which altered the perception and use of Cannabis in Peru. It is important to conduct an analysis of the current situation, both inside and outside of the country, in order to take...

Foreign Tax Credits and Various Operating Structures

For U.S. companies undergoing international expansion, there are a number of important issues to consider prior to commencing operations in a foreign jurisdiction. A principal consideration is the type of foreign entity through which the U.S. company will be conducting its activities in foreign markets, as this could materially affect overall taxation.