Blog

France Updates FATCA Guidance

France has updated its FATCA Guidance for this July’s reporting. Specific changes are highlighted in blue through out the publication, and a summary is provided on the second page. Filers should be mindful of any changes made to ensure that they will be able to send proper FATCA returns. In particular, there is guidance on […]

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The Final Countdown to Hungarian Real-Time Reporting?

[UPDATE – June 2017] The likely decision to postpone the implementation of changes in VAT reporting has now finally been announced. Hungary has now postponed the entry into force of this requirement by one year until July 2018 for two reasons: To actually get the technical specification published well in advance To give taxpayers and […]

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Total Control: Three Ways Global Tax Administrations Are Cracking Down on VAT Liability (Part III: Transitional Systems in the European Union)

In this conclusion to our three-part series on how tax authorities in VAT jurisdictions are using e-invoicing to control the VAT return process, we’ll look at some of the transitional systems E.U. governments are leveraging prior to or in lieu of mandating ex-post remittance/validation or ex-ante/real-time invoice validation. Governments are reporting increased VAT revenues as […]

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Pennsylvania Modifies Instructions for Completing Form PA-501, Employer Deposit Statement

The Pennsylvania Department of Revenue has revised its instructions for completing Form PA-501, Employer Deposit Statement of Employer Withholding Tax. There are clarifications and modifications to this instructions of which filers should take note: • “Gross Compensation” was clarified to mean “Total Compensation Subject to PA Tax.” • “Credits” was clarified to instruct filers to […]

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Supply Chain Financing: Key considerations for success in LATAM

For multinational organizations operating in Latin America, local supplier stability is crucial because production depends on the availability of resources. When there is a long window to receive payment for materials provided, the resulting impact on suppliers’ liquidity may impact their ability to provide resources in the future. Despite the compliance challenges that abound in […]

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Malta Delays CRS Reporting Deadline

The Maltese Inland Revenue Division has announced that the CRS deadline for tax year 2016 reporting has been moved from April 30, 2017 to June 30, 2017.

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Ohio issues new instructions for filing a Withholding Tax Application for Refund

The Ohio Department of Taxation (ODT) recently published new instructions which modify the way businesses request a refund when there is over-withholding. ODT still uses the Withholding Tax Application for Refund (Form WT-AR), but now limits the circumstances in which filers may use the form to request a refund. Generally, if over-withholding occurs, it will […]

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AEOI Updates: April 7-21

Automatic Exchange of Information (AEOI) legislation is constantly evolving worldwide as the standard is rolled out around the world. The Sovos research team continually monitors new regulations and updates across the globe and publishes them in our Taxport Compass tool. Here are some important changes that occurred in recent weeks: Germany Releases FATCA Schema Files […]

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60% of Filings Submitted to ‘Early Adopter’ Tax Jurisdictions for First CRS Exchange May be Rejected

Sovos is predicting the majority of transmittals submitted by qualifying financial institutions to early adopter tax jurisdictions in the next two months may be rejected and returned for correction and resubmission. As a result, institutions may require several rounds of resubmissions before their data is accepted. The majority of transmittals submitted by qualifying financial institutions […]

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Jersey Publishes Practical AEOI Guidance and CRS Information

Jersey’s tax authority has published Practical AEOI Guidance ahead of this year’s filing season in order to clarify certain issues and provide updates regarding account reporting and transmittals. The Practical Guidance addresses the following specific topics: • The release and change over to the US FATCA v2.0 schema • New elements in the US FATCA […]

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Mexico Updates Electronic Nil Reporting Guidance and Security Protocols

The Mexican Tax Administration Service has published an updated version of its electronic nil reporting guidance. The revised version makes clarifications on some matters addressed in the original publication. Additionally, the Service has updated its presentation on security protocols for creating XML files.

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Malta Publishes Revised Guidelines for CRS Implementation

The Maltese Inland Revenue Division has published an updated version of its CRS implementation guidelines for Financial Institutions. There is only one significant change of which filers should take note – regarding trustee-documented trusts: During 2017, consolidated reporting by trustees will only be supported through the upload of CRS XML data files using an IRD […]

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Liechtenstein Releases Additional XML Specifications

The Liechtenstein Tax Administration has released a document containing additional XML specifications, which will supplement the FATCA XML Schema v2.0 and CRS XML Schema that Liechtenstein FIs will use to report account information and receive notifications. Reporting Financial Institutions needs to be mindful that their own jurisdiction is allowed to implement their own changes to […]

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Italy Enacts FATCA Order and Modifies Deadline

The Italian Internal Revenue Service has published a newly enacted order relative to the implementation of FATCA for this year’s filing season. This order updates the technical annexes, replacing the previous ones that were used for the last year’s filing. The new specifications are intended to reflect the changes to the IRS FATCA XML Schema […]

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IRS Announces IDES Testing Session Dates

The IRS has announced that IDES will be open for the testing of FATCA files from Monday, June 19, 2017 at 8:00 AM EST until Friday, July 14, 2017 at 5:00 PM EST. The test session will be open to users who have completed IDES enrollment by Thursday, June 15, 2017 at 5:00 PM EST. […]

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Bahamas Announces Registration and Reporting Dates for 2017

The Bahamas Ministry of Finance has released information regarding the timeline for portal registration and reporting for this year’s filing season. The TIE Portal will open for registration and reporting on July 17, 2017 at 9:00am EST and will close on August 25, 2017 at 5:00pm EST. As a general reminder, FIs were required to […]

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IRS Publishes New Technical FAQ on TIN Reporting Format for Tax Year 2017

    The IRS’s International Data Exchange Service (IDES) has published an answer to a Frequently Asked Question regarding TIN reporting in 2018 – for Tax Year 2017 information. Beginning in 2018, Model 1 FFIs will no longer be permitted to use nine zeros in place of a U.S. TIN. Article 6(3)(b) of the Model […]

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ACA Regulatory Update: Why a “Good Faith” Reporting Year Doesn’t Zero Out Penalties

The Affordable Care Act Employer Mandate is in full force for tax years 2016 & 2017, despite the ongoing dialogue in Washington DC.  Although it is a “good faith” filing year, corrections and replacements are still required and penalties can be enforced. The Affordable Care Act Employer Mandate has been a crucial talking point for […]

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