On 25 July 2023, Provisional Measure No. 1,182/2023 was issued, amending Law No. 13,756/2018, to discipline the operation of the fixed-odds lottery by the Union, that is, mainly to regulate the performance of sports betting sites in Brazil, among other minor points.
Through General Resolution 5393/23, AFIP (tax authority) regulated the provisional payment of the PAIS tax that applies to the importation of goods included in paragraphs (b) (sumptuary goods) and (e) (the rest of the goods, as set forth in Decree 377/23) of Decree 99/19.
In this issue, we focus on the FY2023 Tax Reform Enforcement Order and Enforcement Regulations and the Guidelines on Respecting Human Rights in Responsible Supply Chains.
On the tax side, the Cabinet Order Partially Amending the Order for Enforcement of the Income Tax Act and the Ministerial Order Partially Amending the Ordinance for Enforcement of the Income Tax Act in relation to the 2023 Tax Reforms were published in a special extra (No. 25) of the Official Gazette dated 31 March 2023.
On 24 July 2023, Decree No. 377/2023 was published in the Official Gazette. By means of the Decree, tax shall apply (i) at the rate of 25% on the acquisition of foreign currency for payments to be made for any type of service provided from abroad, with certain exceptions; (ii) at the rate of 7.5% on the acquisition of foreign currency for payments to be made for freight services and other transport services for import or export operations of goods; and (iii) at the rate of 7.5% on the acquisition of foreign currency for payments to be made for the import of goods (with certain exceptions).
It was recently announced that South Africa’s Health Promotion Levy on sugary beverages was to be extended to pure juice. The South African government is expected to publish a discussion paper on the levy soon. This is intended to aid consultation on the proposals to extend the levy to pure fruit juices and lower the four-gram threshold.
On 18 July 2023, HM Treasury and HMRC published draft tax legislation for inclusion in the Finance Bill 2024 and certain policy papers. The draft legislation is open for technical consultation until 12 September 2023. Finance Bill 2024 is expected to be introduced to Parliament in Autumn 2023 and to receive Royal Assent in Spring 2024.
The United States tax treaty with Chile has finally been approved by the Senate, over a decade after its original signature on 4 February 2010.
On 22 June 2023, the Senate voted 95-2 to pass the resolution of advice and consent to ratification of the Convention Between the Government of the United States of America and the Government of the Republic of Chile for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital. The treaty now heads to the President for official ratification.
Amount B was introduced as a “fixed return” on “baseline marketing and distribution activities” in the October 2020 Blueprint of Pillar One, and was seen as a critical component of the Pillar One deal
Following the long-awaited release of the consultation document on 8 December 2022 and subsequent public commentary received, the OECD/G20 Inclusive Framework on BEPS published a consultation document on Amount B on 17 July 2023, creating renewed momentum and putting Amount B back into the international tax spotlight.
On 9 June 2023, the White House released a memorandum of agreement between the Treasury Department and the Office of Management and Budget, which clarifies that tax regulations will not be subject to review by the Office of Information and Regulatory Affairs and, in doing so, supersedes and essentially reverses a 2018 memorandum of agreement from the Trump administration.
View the recorded sessions from our 2023 Virtual Global Trade Conference where international trade compliance lawyers from around the world reviewed major developments impacting international trade.