Regulatory Analysis

Get the latest updates in regulatory analysis news

Posted 2 years ago by Sovos
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 […]

Read More
Posted 2 years ago by Sovos
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 […]

Read More
Posted 2 years ago by Sovos
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. The post Mexico Updates Electronic Nil Reporting Guidance and Security Protocols […]

Read More
Posted 2 years ago by Sovos
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 […]

Read More
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 […]

Read More
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. […]

Read More
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 […]

Read More
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 […]

Read More
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 […]

Read More
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 […]

Read More
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 […]

Read More
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 […]

Read More
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 […]

Read More
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 […]

Read More
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 […]

Read More
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 […]

Read More
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, […]

Read More
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 […]

Read More