Tax & Accounting Blog

Iceland Plans to Raise VAT on Accomodations in 2013

Iceland Plans to Raise VAT on Accomodations in 2013

The government of Iceland has announced plans to increase the VAT rate on tourist accommodations from 7%  to 25.5% beginning May 2013. The increase will make VAT on accommodations in Iceland the highest in Europe. The plan has received harsh criticism from the Icelandic tourism industry. Source: http://www.icelandreview.com/icelandreview/daily_news/Higher_Taxes_on_Aviation_and_Accommodation_0_392624.news.aspxRead More

Information Reporting on Form 1042-S, A New Challenge for Accounts Payable – Part 8: Compensation for Service Fees Income Codes

Information Reporting on Form 1042-S, A New Challenge for Accounts Payable – Part 8: Compensation for Service Fees Income Codes

IRS Publication 515, Table 2, Compensation for Personal Services Performed in United States Exempt from Withholding and U.S. Income Tax Under Income Tax Treaties, assigns Income Codes to the categories of income described in the table and describes the various limitations that apply to each type of income. All of the following Income Codes … Read More

Indiana changes in state income tax withholding deposit and reporting

Indiana changes in state income tax withholding deposit and reporting

If you withhold Indiana personal income tax from retirement distributions, be alert for procedural changes in remitting and reporting to the Indiana Department of Revenue in 2013.  Effective January 1, 2013, all entities that withhold Indiana income tax must remit the withheld taxes electronically and file the withholding report WH-1 electronically.  Electronic filing and reporting … Read More

Form 1099: Pennsylvania has new requirement for 1099-MISC reporting for 2012

Form 1099: Pennsylvania has new requirement for 1099-MISC reporting for 2012

A new Pennsylvania tax law requires Form 1099-MISC reporting of some types of payments, beginning with reportable payments made in calendar year 2012 (reported in 2013).  Pennsylvania is not a participating state in the IRS Combined Federal/State Filing Program, so reportable 1099-MISC information will have to be filed directly to the Pennsylvania Department of Revenue. … Read More

FATCA: Switzerland and Japan sign statements for cooperation with the U.S. in FATCA implementation

FATCA: Switzerland and Japan sign statements for cooperation with the U.S. in FATCA implementation

The United States Treasury Department has issued a joint statement with Japan, and a joint statement with Switzerland, for intergovernmental cooperation in the implementation of the U.S. Foreign Account Tax Compliance Act (FATCA).   In both Japan and Switzerland, financial institutions may not be able to comply with all of the reporting, withholding and account closure … Read More

NEW W-8IMY FORM:  DRAFT RELEASED BY IRS

NEW W-8IMY FORM: DRAFT RELEASED BY IRS

The third in a series of revised Forms W-8 has been released, in draft form, by the IRS.  The draft Form W-8IMY, Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding, is part of the process of making the W-8 series of forms serve for purposes of compliance … Read More