Upcoming Transfer Pricing Due Dates in the Americas
– Argentina: August 31, 2023.
- Second Country by Country report due for ultimate parent entities with fiscal year ending on 06/23.
Argentina: Implementation of PAÍS Tax
On July 24, 2023, Decree 377/2023 was published, implementing an additional “tax for an inclusive and solidarity-based Argentina (“PAÍS”)”, applicable to payments in foreign currency, such as the acquisition of services abroad, freight services, and other transportation services for import or export operations of goods, as well as imports in general (except medicines and fire-fighting materials, among others).
To consult the decree, click here.
Brazil: New Transfer Pricing Provisions
A new Law, No. 14.596, published in the Official Journal of the Union (DOU), establishes a transfer pricing framework in Brazil that aligns with the guidelines provided by the Organization for Economic Cooperation and Development (OECD). This law aims to integrate Brazil into global value chains and mitigate situations of double taxation and double non-taxation. Taxpayers may opt for early adoption of this new system by informing the Brazilian Tax Administration between September 1 and 30, 2023. Starting January 1, 2024, compliance with the new law will be mandatory.
To consult the law, click here.
To read BaseFirma’s publication “Brazil’s Transfer Pricing Overhaul: A Narrowing Window for Action,” click here.
To listen to BaseFirma’s podcast episodes about Brazil’s alignment with the OECD Guidelines, click here.
Colombia: Guidance on RUB Beneficial Ownership Reporting
On July 27, FY 2023, the Colombian tax authority (DIAN) unveiled a new call scheduling service aimed at providing guidance and assistance related to the Single Registry of Beneficial Owners (RUB), through a specialized DIAN service agent. Calls can be scheduled within established operating days and hours.
To learn about the steps to follow, click here.
Costa Rica: alcohol tax update
On July 17, 2023, through Official Gazette 129, Resolution No. MH-DGH-RES-031-2023 was published, updating the amounts of specific tax per milliliter of absolute alcohol, previously established in Article 1 of Law No. 7972 dated December 22, 1999. This update is made by means of an adjustment of -0.60%, thus decreasing the amount of tax, as follows:
|Percentage of alcohol by volume||Tax (colons per alcohol milliliter)|
|Up to 15%||3,70|
|More than 15% and up to 30%||4,44|
|More than 30%||5,17|
To view the gazette, click here.
Dominican Republic: Special Transitory Treatment for the Examination, Management, and Recovery of Tax Debts
The executive branch of the Dominican Republic presented a bill, dated June 30, 2023, seeking to establish a special transitory treatment that allows for the declaration of the statute of limitations for tax debts, as well as establishing an abbreviated procedure for tax audits, payment facilities for tax debts, and amnesty for state tax debts. This bill would be effective until December 20, 2023.
To consult the project, click here.
Mexico: Pacific Alliance Double Taxation Avoidance Convention Goes into Effect
On July 2, 2023, after Colombia, Chile, Mexico, and Peru concluded the internal legal procedures for its ratification, it was announced that the “Convention for Standardizing the Tax Treatment in Agreements for Avoidance of Double Taxation between States of the Framework Agreement of the Pacific Alliance” will go into effect. The provisions of this convention will apply starting January 1, 2024.
Some of the main provisions are:
- Amendment of bilateral double taxation treaties signed between Pacific Alliance member countries (Colombia, Chile, Mexico, and Peru) to grant resident status to foreign pension funds for the purposes of the application of these treaties.
- Establishment of a standardized and favorable tax treatment for interest and capital gains from the sale of shares.
- Application of a maximum income tax rate of 10% to the gross amount of interest from a source of wealth of one of the participating countries.
- Pension funds recognized by the participating countries will be considered beneficial owners of the income they receive.
To read the press release, click here.
To read the convention, click here.
OECD: Outcome Statement on Pillar I and Pillar II approach – Digital Economy
Members of the OECD and G-20 Inclusive Framework released the Outcome Statement, summarizing the package of measures developed to address the fiscal challenges arising from the digitalization of the economy, as well as the outstanding issues of the Pillar I and Pillar II approach. This package comprises four sections: 1) Amount A and the multilateral agreement; 2) Amount B; 3) Taxability clause; and 4) Implementation assistance.
To consult the statement in Spanish, click here.
To consult the declaration in English, click here.