Weekly Global Updates: August 6-12, 2016

Sovos
August 12, 2016

This blog was last updated on August 2, 2021

This past week we continued to see a stream of updates to global regulations around the world. Check out our weekly roundup of global updates, straight from our Sovos Compliance tax experts. Sweden Will Use CRS Schema This morning the OECD’s jurisdiction page was updated to indicate that Sweden will require its Reporting FIs to use the schema provided by the OECD.  Sweden is an early adopter jurisdiction and will require its FIs to report by May 15, 2017. IRS IDES Technical FAQs Gets Updated Today the IRS added four new questions to its IDES Technical FAQ page. The first question, (A18), concerns how Direct Reporting NFFEs from Model 1 Option 2 countries should register. The second question (B12), addresses how to report nil payments. The third question (C25) deals with the situation whereby an FI must send a correction after January 1, 2017.  In those instances, IRS instructs the FI to use v2.0 of the schema. Finally, the IRS added a question (C26), the IRS informs of a workaround created to address the situation where there are multiple DocRefIds in the system for tax year 2014.  In these scenarios, use FATCA1 and for Individual Account Holders, enter either “CORRECTTY2014, “AMENDTY2014,” or “VOIDTY2014,” as appropriate.  If there is a middle name, then it may be entered after the above has been inserted.  Moreover, for an entity, use the above elements at the beginning of the name.  As an example, “CORRECTTY2014 ABC Inc.” The IRS has also indicated that it will have a testing window in Fall 2016 for the new xml schema. IRS Releases Cambodia Competent Authority Arrangement The IRS has released the Competent Authority Arrangement with Cambodia. The purpose of the Arrangement is to describe how each country’s tax authority will administer the FATCA reporting scheme, including the timing of the data exchange, and confidentiality agreements. Cayman Islands Extend Their FATCA and CDOT Due Dates The Cayman Islands has extended AEOI reporting until Friday September 2.  Previously, the due date was Wednesday August 10.  The new due date is “in recognition of the AEOI Portal issues Users have experienced.”  Mexico Publishes List of Participating Jurisdictions Mexico has published its list of participating jurisdictions.  If a jurisdiction is not listed, then FIs are required to do the pass through to all investment entities.  Norway Updates AEOI Guidance Norway has updated their guidance for both FATCA and CRS.  The new guidance (version 1.1) replaces their previously released guidance (version 1.0) from April.  A list of the updates can be found on page 7.  For CRS, Norway is an early adopter jurisdiction, and so Norwegian FIs will to begin CRS reporting next year.  Norway’s due date for both FATCA and CRS is February 10.  Brazil Updates its Filing Manual Brazil recently updated its Filing Manual from version 1.03 to version 1.04.  Sample changes from the new filing manual include updates to the permissible use of digital certificates, clarifications on the use of payment type codes; and technical solutions admissibility of additional encryption functionality.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Sovos

Sovos is a global provider of tax, compliance and trust solutions and services that enable businesses to navigate an increasingly regulated world with true confidence. Purpose-built for always-on compliance capabilities, our scalable IT-driven solutions meet the demands of an evolving and complex global regulatory landscape. Sovos’ cloud-based software platform provides an unparalleled level of integration with business applications and government compliance processes. More than 100,000 customers in 100+ countries – including half the Fortune 500 – trust Sovos for their compliance needs. Sovos annually processes more than three billion transactions across 19,000 global tax jurisdictions. Bolstered by a robust partner program more than 400 strong, Sovos brings to bear an unrivaled global network for companies across industries and geographies. Founded in 1979, Sovos has operations across the Americas and Europe, and is owned by Hg and TA Associates.
Share this post

form 1099-k reporting
North America Tax Information Reporting
November 25, 2024
Form 1099-K Reporting: What TPSOs Should Know

This blog was last updated on November 25, 2024 As tax year 2024 approaches, third-party settlement organizations (TPSOs) are keeping a close watch on IRS guidance regarding their obligations under the IRS’s Form 1099-K reporting requirements. Recent changes to the 1099-K reporting threshold, coupled with delayed enforcement and conflicting guidance, have left many TPSOs uncertain […]

2025 tax filing season
North America Tax Information Reporting
November 21, 2024
Top 5 FAQs to Prepare for the 2025 Tax Filing Season

This blog was last updated on November 21, 2024 While “spooky season” may be over for most of us, the scariest time of year for many businesses is right around the corner: tax filing season. As they brace themselves for the flood of forms, regulatory updates, and tight deadlines, the fear of missing a critical […]

dtc shipping law updates
North America ShipCompliant
November 13, 2024
DtC Shipping Laws: Key Updates for Alcohol Shippers

This blog was last updated on November 13, 2024 When engaging in direct-to-consumer (DtC) shipping of alcohol, compliance with different state laws is paramount and so keeping up with law changes is critical. In 2024, the rules in several states for DtC have already been adjusted or will change soon. Here is a review of […]

sales tax vs. use taxes
North America Sales & Use Tax
November 8, 2024
Sales Tax vs. Use Tax, Explained. Who Reports What, and When?

This blog was last updated on November 19, 2024 One of the core concepts in sales tax compliance is also one of the most frequently misunderstood: the differences between sales tax and use tax. These tax types may look similar on the surface, but knowing the differences is essential for staying compliant and avoiding costly […]

2025 bond project
North America Tax Information Reporting
November 4, 2024
2025 NAIC Bond Project – The Insurer’s Guide

This blog was last updated on November 14, 2024 The regulatory landscape for insurance companies is undergoing significant changes with the Principles-Based Bond Project which is set to take effect on January 1, 2025. These changes, driven by the National Association of Insurance Commissioners (NAIC), will impact how insurance companies classify and value bond investments, […]