Accounting for Income Taxes

The October issue of Accounting for Income Taxes: Quarterly Hot Topics is live! This issue discusses several important tax developments and related ASC 740 considerations. Topics covered in this edition:

October 2022

Tax law developments

• US Federal
  • Inflation Reduction Act becomes law
  • "CHIPS" bill with tax break for domestic semiconductor makers becomes law
  • IRS issues proposed regulations under section 1256, reversing Wright        
• US Multistate
  
  • Multistate Tax Commission says states adopting its P.L. 86-272 Statement should also adopt its Factor Presence Nexus Standard
    
  • New state administrative/judicial/legislative updates:

    Alabama	Michigan	Tennessee
    Alaska	New Hampshire	Texas
    Arkansas	New Jersey	Vermont
    California	New York	Virginia
    Illinois	North Carolina	Washington
    Iowa	Oregon	West Virginia
    Maryland	Pennsylvania

• International
  • Multiple jurisdictions
    • OECD: Five EU member states issue joint release committing to implement Pillar Two in 2023
      
    • Brazil: Software license royalties paid to foreign indirect shareholder not deductible
      
    • France:
      • 2022 amended finance law and “purchasing power law” enacted
        
      • Foreign tax credits may offset tax due on dividend lump sum add-back
        
    • Germany: MOF grants another extension of the filing deadline for certain ORIP-related filings
      
    • India: CBDT issues guidance on exclusions from definition of virtual digital assets

Accounting developments

• FASB Issues Proposed ASU - Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method

Up-C structure services

• Other 

Archive

July 2022

April 2022

January 2022

October 2021

July 2021

April 2021

January 2021

October 2020