Regulatory Analysis

Posted March 6, 2018 by Erik Wallin
New Mexico Allows for Evidence of Exemption Entitlement Other than a Nontaxable Transaction Certificate

On March 2, 2018, New Mexico Governor, Susana Martinez, signed House Bill 194 into law thereby allowing purchasers to provide evidence other than a nontaxable transaction certificate to prove eligibility for a gross receipts deduction. Permitted alternative evidence includes: invoices or contracts identifying the nature of the transaction, documentation of the purchaser's use or disposition of […]

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Posted February 26, 2018 by Paul Ogawa
Oregon Releases 2018 Plain Paper Specifications

The State of Oregon Employment Department recently released their 2018 Plain Paper Specifications. These specifications are used to create substitute versions of Form 132 and other print resources.   There is only one change to the 2018 version of the specifications, which is: The Column Positions for “State Withholding Taxes” and “Page Total Withholding Taxes” […]

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Posted February 26, 2018 by Adam Rivera
IRS Releases 2018 General Instructions for Certain Information Returns

The IRS has released the 2018 General Instructions for Certain Information Returns. These instructions provide filers with information they need to help file a variety of 1099 and 5498 forms. There are a number of changes from the previous revision: Backup withholding rate has changes to 24% from 28% For Form W-2, only one extension […]

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Posted February 26, 2018 by Paul Ogawa
Hawaii Publishes Updated Employer’s Tax Guide

The State of Hawaii Department of Taxation recently published an updated version of Booklet A, Employer’s Tax Guide. This publication provides detailed information on filing and paying withholding tax in the state of Hawaii.   This publication was last updated in 2013, so there are several updates to the language of the publication. These changes […]

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Posted February 26, 2018 by Sovos
South Africa Announces 2018 Budget Measures

South Africa's Finance Minister, Malusi Gigaba, presented the 2018 Budget to the National Assembly February 21, 2018. In his speech, Minister Gigaba announced several tax measures to address the budget deficit currently faced by the South African Ministry of Finance. Notably, the Minister has proposed an increase in the VAT rate from 14% to 15%. […]

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Posted February 23, 2018 by Sovos
UK Parliament Debates Major Post-Brexit Bill For Cross-Border Supplies of Goods

The UK Parliament is currently debating a bill that could greatly impact how businesses in the UK handle cross-border supplies of goods post-Brexit. The bill, titled Taxation (Cross-Border Trade) Bill 2017-19, had it's second reading in front of the House of Commons on January 8, 2018, and is now open for further debate. The primary […]

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Posted February 20, 2018 by Yujin Weng
Singapore Budget Introduces Important GST Changes

On February 19, Singapore released its 2018 Budget which includes two significant changes to its Goods and Services tax (GST), including rules that will require foreign suppliers of services to register to collect and remit tax. Imported services will be subject to the GST starting on January 1, 2020 Business buyers of services (both digital […]

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Posted February 20, 2018 by Ramón Frias
Mexico Postpones the Supplement of Payments Again

The Mexican Tax Administration (SAT) decided to postpone again the date to implement the Complemento de Pagos (Supplement of Payments). Apparently, the new postponement is caused by the new technical difficulties in the integration of the new Complemento de Pagos with other aspects of the CFDI and the Contabilidad Electronica. This new Complemento was previously […]

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Posted February 20, 2018 by Ramón Frias
Spain releases the new Version 1.1 of the SII

The Spanish tax administration published yesterday all the technical documentation required for the implementation of version 1.1 of the Immediate Supply of Information system, locally known as SII. This new version 1.1 will be effective July 1, 2018, and is intended to correct several problems that have been spotted during the first seven months of […]

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Posted February 20, 2018 by Tom Hospod
Massachusetts Publishes Technical Information Release 18-2, Individual Mandate Penalties for 2018

The Massachusetts Department of Revenue has released TIR 18-2, which contains the penalty schedule for individuals who fail to obtain health insurance in 2018, as mandated by Massachusetts law. Individuals who are able to afford health insurance coverage, but fail to obtain it, will be subject to penalties for each month of noncompliance. Penalties will be […]

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Posted February 20, 2018 by Tom Hospod
IRS Releases 2018 Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities

The IRS has published its 2018 version of Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities. This publication provides substantive guidance to those with Form 1042-S filing obligations under FATCA and for payments to nonresident aliens (Chapter 4 and 3 withholding, respectively). There are several revisions and updates of which filers should be aware: […]

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Posted February 20, 2018 by Adam Rivera
IRS Announces New Regular and Backup Withholding Rate for 2018 Form W-2G

The IRS announced a new and regular backup withholding rate for the 2018 Form W-2G. Form W-2G is used to report gambling winnings and any federal income tax withheld on those winnings.   Effective for taxable years beginning after December 31, 2017, the withholding rate applicable to winnings of $5,000 or more from sweepstakes, wagering […]

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Posted February 20, 2018 by Nicolette Chasse
North Carolina Updates 2018 Specifications for 1099s

North Carolina's Department of Revenue recently updated Form eNC3, the Specifications for 1099 Reporting.  There have been no changes to the specifications.  The DOR has changed the deadline for Form 1099-K from March 31 to January 31.   To read the specifications in full, please follow the link.

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Posted February 20, 2018 by Paul Ogawa
Hawaii Publishes Updated Withholding Forms and Publications

The State of Hawaii Department of Taxation recently published a number of updated forms used for withholding tax reporting and payment purposes. These forms and slips have been updated, but include only minimal changes for Tax Year 2017/Filing Year 2018.   HW-2: State Income Tax Withheld and Wages Paid There were no changes made to […]

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Posted February 20, 2018 by Nicolette Chasse
Maine Publishes 2018 Version of Form W-3ME, Reconciliation of Income Tax

Maine's Revenue Services recently published a 2018 version of Form W-3ME, the Reconciliation of Maine Income Tax Withheld in 2018. There are no changes to the form itself.  Electronic copies of payee statements must be filed with the Maine Revenue Services no later than January 31.  The filing date is still February 28.   To […]

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Posted February 19, 2018 by Ramón Frias
Panama Tax Administration Releases eInvoicing Resolution

The Panama Tax Administration (DGI) has issued a massive regulation detailing the requirements surrounding a new eInvoicing mandate that will be imposed on select taxpayers pursuant to a six month pilot program. The pilot will ultimately set the stage for a comprehensive eInvoicing requirement. The new publication (Resolution 201-0697/2018) which is more than 200 pages […]

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Posted February 19, 2018 by Ramón Frias
Colombia Officially Adopts eInvoicing Mandate with Accelerated Effective Date

The Colombian Tax Administration (DIAN) definitively declared its intention to impose a wide-ranging eInvoicing mandate via the issuance of Resolution 000010/2018. In summary, the resolution requires large taxpayers to issue and report electronic invoices by September 1, 2018, with an effective date substantially sooner than expected. This resolution comes as no surprise as the DIAN […]

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Posted February 19, 2018 by Erik Wallin
Pennsylvania Requires Remote Sellers and Market Place Facilitators to Collect or Provide Notice

Pennsylvania has recently enacted legislation requiring certain remote sellers, marketplace facilitators, and referrers to choose between either collecting and remitting Pennsylvania sales tax or complying with notice and reporting requirements.  If any of the aforementioned do not collect and remit sales tax, notice must be provided to the purchaser regarding the sales and use tax, […]

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