International news

New members appointed to UN Tax Committee

  • On July 21, the UN Secretary General Antonio Guterres appointed 25 tax experts to serve as members on the UN Committee of Experts on International Cooperation in Tax Matters for the 2021 to 2025 term. The UN tax committee works on international trade and investment policies, with a special focus on developing countries. “The UN Tax Committee has been impressive, technically unpacking salient tax matters and new areas, such as taxation of the digitalized economy,” said Logan Wort, Executive Director of the African Tax Administration Forum.

Ireland opens public consultation on OECD minimum tax

  • Ireland is one of three EU members to reject the global minimum tax agreed to by more than 130 countries earlier this month. On July 20, the Irish Department of Finance released the Consultation on OECD International Tax Proposals. The Department of Finance invites the public to comment on a series of questions related to the proposed global minimum tax agreement currently being discussed at the OECD/G20 BEPS Inclusive Framework. The consultation period will run from July 20, 2021 to September 10, 2021.

OECD Tax Director Saint-Amans outlines next steps for global tax agreement

  • On a July 16 OECD podcast, Director of the OECD’s Center for Tax Policy and Administration Pascal Saint-Amans said, “the next step [for the global tax agreement] is finalizing the political deal in October. There is not much to do, just a few numbers to firm up,” Saint-Amans said. “We aim to complete these by year-end, or very early in [2022], so that countries can enact the legal changes by the end of 2022 for concrete implementation in 2023,” he added.

Gibraltar increasing corporate tax rate in anticipation of OECD minimum tax

  • On July 20, in a budget address, Gibraltar Chief Minister Picardo said, “any company commencing a financial period after [July 20, 2021] will now pay corporate tax at 12.5% and not 10%. This means that if the new global agenda prospers, when we are required by the OECD to move to 15% the increase will be less significant.”

United States news

New Mexico updates guidance regarding taxation of marketplace sales

  • The New Mexico Taxation and Revenue Department recently updated FYI-206, describing the gross receipts tax collection responsibilities for online marketplace providers and marketplace without physical presence in New Mexico. Marketplace providers and marketplace sellers with at least $100,000 of taxable gross receipts in New Mexico in the previous calendar year have a tax collection obligation. Marketplace sellers that make taxable sales through marketplaces have gross receipts subject to tax, even if the marketplace provider has the same taxable gross receipts. However, to offset the potential double-taxation, the marketplace seller is allowed a deduction for those receipts on which the marketplace provider pays the gross receipts tax. Additionally, beginning July 1, 2021, New Mexico began destination sourcing, so tax rates are based on the location where the buyer receives the property.

Mississippi proposes to amend rule for taxing digital photography

  • The Mississippi Department of Revenue proposes to amend its regulation for Photographers and Film Developers to specify that certain digital products would be subject to sales tax. Under the proposed regulation, photographs, pictures, videos, discs, other tangible personal property and “specified digital products” sold by photographers and videographers are taxable. The proposed amendments would be effective October 1, 2021. The Mississippi Department of Revenue has appealed to the Mississippi Supreme Court a chancery court decision reversing a sales tax assessment against a wedding photographer. That decision noted that no statute subjects digital photography to sales tax, and that the regulation did not authorize the Department to impose tax on the wedding photographer in the case.