India and the United States have signed an inter-governmental agreement (IGA) that will bring them into the fold of FATCA compliance. India’s Revenue Secretary Shaktikanta Das and US Ambassador Richard Verma signed the IGA on Thursday, July 9, 2015. The Purpose of FATCA The Foreign Account Tax Compliance Act (FATCA) is meant to help detect, […]
The Tax Department at Sovos Compliance is committed to providing our clients with timely and accurate taxability rates and rules. Simply put, for us its considered job #1. Historically, any number of jurisdictions will make legislative and regulatory changes in the area of sales tax effective on July 1, and sometimes political realities result in […]
As we recently examined, governments throughout Latin America are leading the way in regulatory solutions to combat VAT tax fraud and ensure they are collecting maximum taxes from multinational companies. E-invoicing requirements have expanded rapidly throughout this region, and governments are introducing new mandates that affect increasingly more business processes as they automate tax collections. […]
Recently, a boom in “on demand” services has caused a heated debate over the issue of 1099 versus W-2 reporting. Many start-up and application-based companies are finding themselves having to decide whether to declare workers as employees, thus reporting with a W-2, or as independent contractors, which requires the use of a 1099-MISC form. Aside […]
Did you know these retail facts? They could be affecting your business! The retail industry is a major source of revenue for taxing authorities and companies operating in this space must be particularly careful when it comes to small details. There are certain everyday occurrences that may not be at the forefront of a retailer’s […]
Early this morning, the Secretary of the Treasury of Puerto Rico published, on their website, Administrative Determination 15-13, which announced, that due to the severe summer drought, the sale of sanitizers, hand wipes and baby wipes are qualifying exempt items during the Back to School Sales Tax Holiday that started today, July 17, and will […]
Last month, Colombia’s Finance Minister, Mauricio Cardenas, officially announced the country’s impending e-invoice mandates in an interview with El Tiempo. Using regional neighbors Chile and Mexico as models, Colombia DIAN is tackling tax evasion and reducing government expenditures through a three-pronged approach that focuses on the implementation of e-invoicing, tighter scrutiny of tax-exempt nonprofit organizations […]
On June 29th, an update was passed to the Trade Preferences Extension Act. These changes greatly enhance the penalties ALL 1099 filers will be subject to for incorrectly reporting tax information. H.R. 1295, (now PL 114-27), doubles the annual maximum penalty cap from $1.5M to $3M for all 1099’s, and more than doubles the penalty […]
Even though the European Union called it a haven where wealthy individuals and large companies could store their funds with little or no tax levied against them, Grand Cayman is trying to show the rest of the world that it is financially transparent. The small island country is readying itself for the effort it will […]
There is major shift in the way governments in Latin America regulate businesses – particularly multinationals – that is distinct from anything else seen in global compliance. Unlike the United States and most European countries, which rely heavily on income taxes, Latin American governments and many other emerging markets generate the majority of their incomes […]
For the latest update on Amparo decisions in Mexico, and how that may impact your organization, please read our blog, Mexico’s Supreme Court Upholds Amparos, But Stay Is Temporary. The last phase of eContabilidad legislation has been put in place, with Polizas (journal entries) required for organizaions. As the deadline has passed, we wanted to use this […]
The second wave of Chile’s new e-invoicing and libros requirements is quickly approaching, and all companies operating here – even those that enacted e-invoicing processes last year during the first part of the rollout – must prepare. In 2014, companies with revenues of $4.2 million or greater were required to implement e-invoicing. Now, that mandate […]
Austria: Possible New Reduced VAT Rate On May 19, 2015, the Austrian Ministry of Finance proposed the Tax Reform Act of 2015, therein introducing a new reduced rate of 13% in 2016. Provided the changes are enacted, the delivery of various goods and services subject to the current reduced rate of 10% will be increased […]
Listen to the webinar replay to learn how multinationals operating in Mexico will soon be required to submit their first journal entry (polizas) reports as required under eContabilidad legislation. Starting on September 3rd, the Mexico tax authority will be comparing all VAT tax deductions to previously registered XML documents for procurement, payroll and travel & expenses. Simply […]
There has been a wealth of discussion in recent years regarding the elimination of tax havens. Consumers and taxpayers all over the world have recognized efforts made by financial institutions and governments to put an end to those individuals and businesses being silent or creative in how they maneuver their assets. However, tax avoidance is […]
In a 6-3 decision, the U.S. Supreme Court issued a ruling June 26 in the King v. Burwell case that upheld tax subsidies as provided by the Patient Protection and Affordable Care Act, also known as Obamacare. Chief Justice Roberts wrote the opinion. Voting in favor were justices Ginsburg, Sotomayor, Kagan, Kennedy and Breyer. Justice Antonin […]
Mexico will be putting your tax deductions under a microscope when new eContabilidad (eAccounting) requirements go into effect this September. The SAT, Mexico’s tax authority, will now have the ability to examine accounting reports and subsequent line item tax deductions, requiring added diligence in inbound procurement processes to ensure compliance. This scrutiny demands complete accuracy […]
The indirect tax system in Malaysia underwent a major reform earlier this year. On April 1, 2015, the goods and services tax (GST) was implemented, replacing both the sales tax imposed on goods and the service tax imposed on designated services. While the goods and services tax (GST) might sound like a merger of the […]