Regulatory Analysis

Posted 2 years ago by Sovos
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 […]

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Posted 2 years ago by Sovos
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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Posted 2 years ago by Sovos
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 […]

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Posted 2 years ago by Sovos
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 […]

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Posted 2 years ago by Sovos
Cayman Island Publishes List of Reportable Jurisdictions, Updates Participating Jurisdictions

The Tax Information Authority for the Cayman Islands has published its list of Reportable Jurisdictions in the Cayman Islands Gazette (beginning on page 15). This list is important because it instructs Reporting Financial Institutions which foreign account holders must be reported. In addition, Cayman’s list of Participating Jurisdictions has also been updated. The post Cayman […]

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Posted 2 years ago by Sovos
Sweden Updates FATCA Technical Guidance

Sweden has released a new version of the SKV 260 which provides a technical description of the XML file for FATCA should be formatted. The new guide applies to reports made for this year’s reporting. The format largely follows the IRS’s XML v.2.0 as outlined in the Publication 5124. However, Sweden has mandated that certain […]

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Posted 2 years ago by Sovos
IRS Publishes Additional FATCA Compliance FAQs

The IRS has published additional Frequently Asked Questions that address general compliance issues related to FATCA obligations. Specifically, the FAQs touch upon Foreign TIN and Date of Birth requirements. A withholding agent must obtain a foreign TIN for: • A foreign person claiming a reduced rate of withholding under an income tax treaty if […]

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Posted 2 years ago by Sovos
Europe: ECOFIN Debates VAT Modifications

The Economic and Financial Affairs Council of the European Union (ECOFIN) recently discussed two hot-button topics that could ultimately lead to changes in European VAT law. First, ECOFIN discussed whether Member States should be allowed to reduce-rate electronic publications. This option already exists for ‘physical’ books, newspapers, magazines, and the like, but EU authorities have […]

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Posted 2 years ago by Sovos
New Jersey Passes Sales Tax Exemption for Limousine Services

New Jersey’s limousine industry won a major legislative battle on February 10, 2017, when Governor Chris Christie signed into a law a bill eliminating sales tax on intra-state limousine services. The tax had been in force since 2006, surviving several challenges in the state legislature. It will officially be phased out on May 1, 2017. […]

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Posted 2 years ago by Sovos
Virginia to Exempt Aviation Parts Beginning July 1, 2018

On March 29, 2017 the Virginia Governor signed legislation that will exempt the sale of parts and engines used in the maintenance, repair or reconditioning of any manned or unmanned aircraft system. However, as a compromise measure intended to limit the fiscal impact of the new exemption, the rule will not come into effect until […]

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Posted 2 years ago by Sovos
Cayman Islands Releases CRS Guidance and Extends FATCA Deadline

Recently, the Cayman Islands published its version 2.0 for CRS Guidance. The Guidance is a very important document for CRS reporting as it contains important information for due diligence and reporting requirements. In particular, Cayman will require Reporting FIs to send separate reports for each of its jurisdictions where it maintains reportable accounts. Moreover, it […]

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Posted 2 years ago by Sovos
United Kingdom: Prime Minister Proposes “Snap” General Election

Prime Minister Theresa May has called for an early general election on June 8, claiming it’s the only way to guarantee certainty and stability in Brexit negotiations. The Prime Minister’s Conservative Party is currently polling far ahead of the opposition Labour Party, and her clear hope is that Conservatives will gain enough seats in Parliament […]

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Posted 2 years ago by Sovos
Germany Releases FATCA Schema Files & Guidance

Germany’s BZSt released both FATCA schema files (XSD files are provided in the [zip file|www.bzst.de/SharedDocs/Downloads/DE/FATCA_downloads/ELANKOM_Schema_FATCAXML2.0_230317_zip.zip?__blob=publicationFile]), and guidance ([Communications Manual Part III, version 2.0|www.bzst.de/DE/Steuern_International/FATCA/Kommunikationshandbuch/Kommunikationshandbuch_FATCA_Teil_III.pdf?__blob=publicationFile]). Both provide important information on how to properly create FATCA returns. Information about the releases can be found in the latest [Infobrief|www.bzst.de/DE/Steuern_International/FATCA/Infobrief/Aktuell/Infobrief_Aktuell.pdf?__blob=publicationFile]. In addition, Germany published guidance on notifications (“[Verarbeitungsprotokolle […]

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Posted 2 years ago by Sovos
SSA Releases 2017 Draft Form W-2 and Form W-2c Specifications

SSA has released Draft Form W-2 and Form W-2c Specifications for TY2017 Reporting. There are a number of changes from the previous revisions of the two form specifications. Form W-2 Changes Form W-2 has a new box 12 Code FF money field, Permitted Benefits Under a Qualified Small Employer Health Reimbursement Arrangement (Code […]

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Posted 2 years ago by Sovos
OECD Publishes Guidelines on Taxation of Services and Intangible Goods

The Organization for Economic Cooperation and Development (OECD), in newly-published 2017 Guidelines for VAT/GST, has opined on how they believe VAT should be assessed on services and intangibles. Their primary recommendations are that countries adopt regimes which: 1. Tax services and intangibles at the place of consumption; 2. Tax business-to-business (B2B) transactions at the […]

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Posted 2 years ago by Sovos
West Virginia Has New Guidance on Business Registration

West Virginia’s State Tax Department has released a new publication TSD-100, “West Virginia Business Taxes.” The publication provides guidance to Business who need to register for business tax purposes. The six page document is merely instructive and does not function as a legal document. The last time West Virginia published a similar document was November, […]

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Posted 2 years ago by Sovos
Pennsylvania Issues Revised SUT-17-001 for Software Support Services

On April 4, 2017, the Pennsylvania DOR revised SUT 17 001 to more narrowly define taxable software support services, stating that training and consulting services were not included unless the services otherwise met the definition of support. Generally, support services were defined to include “identifying the source of problems affecting the usability of the property […]

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Posted 2 years ago by Sovos
Belgium Updates CRS Business Rules and Example Scenarios

The Belgium Ministry of Finance recently published updated Business Rules and Example Scenarios to aid financial institutions in creating compliant CRS XML files for reporting purposes. These most recent updates include changes to important elements critical to a successful transmittal. The Business Rules, which lay out the multitude of requirements for each field in […]

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Posted 2 years ago by Sovos
IRS Releases Updated Publication 1281, Backup Withholding For Missing and Incorrect Name/TIN(S)

The IRS has released an updated version of Publication 1281, Backup Withholding For Missing and Incorrect Name/TIN(S). There are a couple of changes from the previous revision: • Form 1099-G payments made under IRC 6041 and 3406(b)(3)(A), which include taxable grants and agricultural payments, are now subject to backup withholding o New code for […]

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Posted 2 years ago by Sovos
Alabama’s Back to School Sales Tax Holiday Comes Early

Alabama has recently enacted legislation that permanently changes the date of the state’s Back to School Sales Tax Holiday. The Alabama Sales Tax Holiday, which has traditionally been held during the first weekend of August, will now take place during the third weekend of July. For more information, visit the DOR’s Web site. The post […]

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