Regulatory Analysis
The IRS recently issued final regulations relating to the withholding rate on certain periodic retirement and annuity payments. This change was initiated by Section 3405(a)(4) of the Tax Cuts and Jobs Act (“TCJA”) and in part replaces the default rate for withholding on periodic payments under Section 3405(a) of the Code. Originally based on treating […]
The North Carolina Department of Revenue recently published an important notice relating to information returns due for TY 2020: specifically, information relating to Forms 1099-NEC and 1099-MISC. First, Form 1099-NEC will now be required for TY 2020 if the statement reports North Carolina income tax withheld. These must be filed with the department as a […]
Kentucky recently released its 2020 Specifications for Electronic Submission of 1099 and W2G forms, adding specification details for filing forms 1099-NEC with the state. These specifications detail how to electronically submit forms 1099 and W2G to the state of Kentucky including the record formats. The document was updated with dates for the 2020 tax year. […]
Several months after a draft Decree on invoicing was published, the Vietnamese Government approved on 19 October 2020 the Decree 123/2020/ND-CP regulating invoices and documents. This Decree postpones the e-invoicing mandate until July 1, 2022. The new deadline is in line with the date of implementation of the rules concerning the e-invoicing system envisaged in […]
Leading up to the tax year 2020 filing season, Arizona has confirmed via e-mail that they will require 1099-NEC filing with their Department of Revenue. Presently Publication 701 indicates that all 1099s reporting Arizona income tax withheld are required for state reporting purposes. Further, Sovos has confirmed with the Department of Revenue that Form 1099-NEC will be […]
The Iowa Department of Revenue recently published an updated version of Publication 44-082, Electronic Reporting of Wage and Tax Statements and Information Returns. This publication provides instructions, information, and specifications for submitting W-2 and 1099 records to the Department electronically. Primarily the updates to these specifications and instructions involves the acceptance of Form 1099-NEC through […]
Important steps have recently been taken towards the long awaited adoption of VAT in Oman, making it the fourth Gulf State to introduce VAT as part of Gulf Union agreement. The Sultan of Oman has issued a Royal Decree (Decree) in relation to VAT implementation. According to the Decree, a 5% VAT rate will be […]
The Internal Revenue Service has provided guidance on whether forgiven Payroll Protection Program (PPP) loans require the issuance of a 1099-C, stating that Form 1099-C should not be filed where loans are forgiven under the CARES Act. The Payroll Protection Program issued forgivable loans to employers to encourage employee retention during 2020; these PPP loans […]
The Indiana Department of Revenue has published their updated W-2 and WH-3 Filing Requirements Booklet for tax year 2020. This booklet contains instructions and specifications for filing wage records (W-2) electronically with the state. There are a few minor changes to this publication, which are as follows: All references to the INtax filing portal were […]
The Kentucky Department of Revenue recently published an updated version of their Specifications for Electronic Submission of Annual Wage and Tax Information via Electronic Media or Web for Year 2020. This publication provides instructions and specifications for filing W-2 records electronically with the state. There are a couple of minor updates to the publication, which […]
India’s e-invoicing mandate is live as of yesterday with a last minute 30 day grace period granted for taxpayers in scope to obtain invoice reference numbers. The grace period ends in November and as of November the requirement to include the IRN and the QR code on the invoices will be enforced, meaning that invoices […]
Yesterday, on the actual go-live date of the myDATA reporting framework, the Greek authorities recategorised the roll-out from mandatory to a voluntary pilot program for 2020. The mandatory phase, which should have started yesterday, has instead been deferred to 1 January 2021. For more information about the announced changes, read our blog.
The Alabama Department of Revenue recently published its quarterly interest rates for the fourth quarter of 2020. Under Section 40-1-44 of the Code of Alabama 1975, this interest rate is used to calculate interest on underpayments and over payments (where applicable) of taxes due or payable. The interest rate for the fourth quarter of 2020 […]
Indian officials continue to provide updates to the e-invoicing reform that partially enters into force in less than a month’s time on 1 October. Most recently, new release notes have been published on the API Sandbox web page on 8 September 2020. The changes introduced include for example: • E-Commerce Operators (ECO) have been enabled […]
The Hungarian tax authority has published new documentation applicable to its real-time reporting system. The documents are now in version 3.0, as follows: XML Schema Definitions: OSA v3 Schemas (last updated 07 Sept/2020) API example XML: API example XML (last updated 07 Sept/2020) Web Application Description file: Application WADL (last updated 07 Sept/2020) According to the Minister of Finance, the version 2.0 can be […]
The Argentinean tax administration has enacted a new resolution Nº 4671/2020 postponing some of the effective dates of the implementation of the Digital VAT Ledger, locally known as “Libro de IVA Digital”. According to the Resolution, the new calendar of implementation will be as follows: For taxpayers with gross revenues during 2018 fiscal year between […]
On August 31, 2020, the 24 member states of the Streamlined Sales Tax Governing Board met in special session to consider a proposed new contract with those tax technology companies holding the designation of Certified Service Provider (CSP’s), including Sovos. The proposed contract was voted on favorably, with 23 states voting in favor and 1 […]
Starting September 16, 2020, the tax administration of Ecuador will begin to enforce the collection of VAT on digital services supplied by providers not domiciled or established in that country. As a result of decree 1114/2020, foreign suppliers have the option of registering at the tax administration and applying 12% on the provision of these […]