A weekly summary of the top weekly tax news, trends
and developments in the Americas

     This week's tax news from the Americas

• Salvadoran Congress approves tax amnesty program
  The Congress of El Salvador approved a tax amnesty program on 3 September 2024 that allows taxpayers to comply voluntarily with their outstanding tax, customs obligations, and traffic fines (i.e., fines under the Land Transport, Traffic, and Road Safety Law). The tax amnesty program only applies to penalties and interest, not the tax owed. Additionally, the amnesty program does not cover outstanding obligations for municipal taxes.

• US Tax Court allows a domestic corporation to claim IRC Section 245A DRD for IRC Section 78 dividend on IRC Section 965 inclusion from fiscal-year CFCs but reduces FTC claim
  In Varian Medical Systems, Inc. v. Commissioner, 163 T.C. No 4 (August 26, 2024), the US Tax Court held that a non-calendar corporation (the taxpayer) may claim a dividends-received deduction (an IRC Section 245A DRD) for a portion of its mandatory repatriation tax inclusion under IRC Section 965 (i.e., the IRC Section 78 gross-up relating to that inclusion). Specifically, the Court found that a plain reading of the statutory text mandated different effective dates for IRC Section 245A and amended IRC Section 78, which allowed an IRC Section 245A DRD to be claimed during the "gap" period. In reaching this conclusion, the Court did not follow Treas. Reg. Section 1.78-1, which was amended in 2019 to modify the effective date of IRC Section 78. The Court, however, also concluded that the taxpayer, under IRC Section 245A(d)(1), could not claim a foreign tax credit (FTC) for a portion of its deemed paid taxes to the extent attributable to the IRC Section 78 dividend.

     This week's newsletters

• Report on recent US international tax developments - 13 September 2024
  Our weekly report with brief summaries of all the week's US international tax developments and related activity.
• TaxMatters@EY – September 2024
  TaxMatters@EY is a monthly Canadian summary to help you get up to date on recent tax news, case developments, publications and more.

     Upcoming EY webcasts

• 17 September: How SAP RDP is addressing sustainability compliance and circularity
• 20 September: Tax in a time of transition: legislative, economic, regulatory and IRS developments - September 2024
• 24 September: Accounting for income taxes: a quarterly perspective - September 2024
• 26 September: What Q3 IFRS Quarterly Tax Developments could impact tax accounting
• 26 September: BorderCrossings . . . With EY transfer pricing and tax professionals

A calendar of all upcoming EY webcasts is available.

     Recent EY podcasts

• EY Podcast | Weekly US international cross-border taxation news for week ending 13 September 2024
• EY Transfer Pricing Roundup | Update on IRS transfer pricing compliance letters

All episodes of the EY Cross-Border Taxation Spotlight and
EY Talks Tax are available through Apple podcasts.

      This week's EY Global Tax Alerts

     Asia

• Taiwan announces proposal increasing AMT rate for certain MNEs from 12% to 15%

     Europe

• UK releases new Guidelines for Compliance | 'Help with common risks in transfer pricing approaches'

Additional resources

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About Americas Tax Roundup

Published by NTD's Tax Technical Knowledge Services Group, Washington, D.C.
Jennifer Brittenham, writer and editor

Distributed weekly to all Americas Tax personnel.