Greetings and Happy Tuesday! This is Tax Roast, a weekly newsletter that brings you the latest updates and insights from the international tax world from tax experts (and coffee enthusiast) who are walking the tax advisory path.

And do not forget to check out our coffee of the week, because there is no tax news without a good cup of coffee :)

International Tax Update

United States / IRS waives underpayment penalties

The IRS is waiving underpayment penalties for the first quarterly estimated income tax payment for the corporate alternative minimum tax (CAMT) that is due on or before 15 April 2024 or, in the case of a fiscal year taxpayer with a taxable year beginning in February 2024, 15 May 2024. This was released through a NOTICE.

Germany / Draft Bill on Modernization of Electricity and Energy Tax Law

The Ministry of Finance has published a draft bill on the modernization of electricity and energy tax law. The bill on the modernization and reduction of bureaucracy in electricity and energy tax law (Gesetz zur Modernisierung und zum Bürokratieabbau im Strom- und Energiesteuerrecht) aims to comprehensively adapt electricity and energy tax law to current developments, modernize it and reduce bureaucracy. Futher information can be found HERE.

Peru / Rules on profit distributions from JVs amended

The Peruvian Ministry of Economy has amended the regulation dealing with profit distributions from joint ventures, as a result of the amendments introduced to the Income Tax Law in 2023. The decree can be accessed HERE. Inter alia the decree introduces the following provisions to the Regulations of the Peruvian Income Tax Law:

• the income distributed by the associated party of a joint venture agreement is included in the definition of "profit", thus subject to the general provisions applicable to profit distributions;

• the rate applicable on dividends or any other form of profit distribution (i.e. 5%) also applies to the distribution made by the associated party of a joint venture agreement, regardless of the tax rate applicable to the associating party

Japan / GloBE Tax Return Form released

Japan has released amendments to the ministerial rules to introduce a tax return form covering the Japanese global minimum tax (the so-called income inclusion rule, or IIR).

To file a tax return regarding the Japanese IIR, a taxpayer must submit a form named "Appended Table 20". Appended Table 20 is a simple one-page form that lists the taxpayer's name and other identifying information, as well as the amount of tax due under the Japanese IIR. In this form, a taxpayer must also indicate whether it is the ultimate parent entity, an intermediate parent entity, or a partially owned parent entity.

In addition, the taxpayer must complete the "Supplementary Tables 1, 2, 3, and 4" and attach them to the Appended Table 20. These tables are designed to present the details of the calculation process for the amount of tax due under the Japanese IIR.

Fun Tax Fact :)

Leadership principles for top managers at Big Multi Inc. 🏢

Rule #13 - Voice mail

If you get a call from someone, don’t answer it. People don’t call each other for nothing - they call you because they want you to do something for them. This no way to live and work. That’s why people have voice mail for, so they can screen through all their calls and judge whether it is worth calling back or not.

If somebody leaves a voice mail for you, and it sounds like impending work, respond during your lunch hour when you know the person won’t take your call. In this way you can send a strong signal that you are hardworking and conscientious.

Also, not replying your voice mail for couple days can actually work for your favor. It happens so many times that the caller decides to solve the problem themselves. You will be surprised to see just how many times you will hear “Ignore my last message, I took care of it.”

Tax Roast of the week

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Why is there a long spoon served with latte macchiato?

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