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US-Mexico-Canada Agreement

The US-Mexico-Canada Agreement (USMCA) which replaces the North America Free Trade Agreement (NAFTA) has been approved by the Senate on January 16, 2020 and the President Trump is expected to sign it shortly.

The USMCA retains most of the preferential tariff provisions in NAFTA, except for non-tariff measures in the areas of intellectual property rights and enforcement, automotive, logistics, and pharmaceuticals.  Once the USMCA is signed, enterprises can expect an stability going forward in the trades between the three countries, at least for the next 16 years (USMCA contains a sunset provision that takes effect in 16 years).

The text of the USMCA can be found at https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement/agreement-between.

주재원들의 1040-C 신고와 Certificate of compliance 수령 의무

현재 미국에는 많은 수의 주재원들이 거주하고 있고, 그들은 미국에서의 주재기간이 끝날 시, 미국을 떠나 자신의 국가로 돌아가는 경우가 일반적이다. 주재원들은 미국을 떠날시, 미국 IRS에 남아있는 납세와 세금 신고의 의무가 있는지 확인해보는것이 중요하다. 여러 납세와 세금 신고의 의무가 있겠지만, 가장 간과하기 쉬운 신고 의무 중 하나가 1040-C 제출을 통해 IRS로부터certificate of compliance를 받는 것이다. Form 1040-C신고와 certificate of compliance수령 의무를 준수하지 않는 것은 추후에 미국 입국시  문제가 될 수 있다.  Form 1040-C는 해당 과세연도에 신고해야할 소득이 있거나 납부해야할 소득세가 있는 외국인이 미국을 떠나게 될 경우, IRS에 제출해야하는 세무서류이다. 미국을 떠나는 외국인 주재원들은 Form 1040-C 신고를 통해 해당 과세연도에 신고해야할 소득에 대한 소득세가 납부되었거나 미래에 납부되어질 것을 IRS에 입증한 뒤,  certificate of compliance를IRS로부터 발행 받아야한다. 작성된 1040-C는 근처 IRS에 직접 방문해 신고 및 제출되어야한다. 또한, IRS방문 시, 아래 서류들을 지참해야한다.

  1. 미국 비자가 있는 여권
  2. 과거 2개년치의 개인세금보고
  3. 해당 과세연도의 세금납부 영수증
  4. 해당 과세연도의 누적 급여 명세서
  5. Social security card
  6. 미국 출국 비행기표 등

IRS 방문과 certificate of compliance발행은 미국 출국일로부터 최소 2주전 그리고 최대 30일전까지 가능하다. 중요한 것은, 추후에 IRS에서 해당 외국인의 미국 출국이 세금납부 혹은 징수에 영향을 줄 것으로 판단하면, 이미 발행된 certificate of compliance를 무효화시킬 수 있다는 것이다. 또한, 1040-C는 예상 소득 및 소득세에 기반되어 작성 및 신고 된 것일뿐,  최종 세금보고로 인정되지 않기 때문에, 해당 과세연도에 대한 세금보고를  추후 세금보고 기간시, 반드시 신고해야한다. 미국을 떠나거나 떠날 것으로 예상되는 외국인 주재원들은 Form 1040-C 신고와 certificate of compliance수령 절차에 대해 면밀히 살펴봐야 할 것이다.

ASU 2019-12: Simplifying Accounting for Income Taxes

FASB issued ASU 2019-12 (“ASU”) providing guidance to reduce complexity in certain areas of accounting for income taxes.  The new guidance is effective fiscal years beginning after December 15, 2020 for public entities and December 15, 2021 for all other entities.  The changes included in the ASU are summarized below:

Intraperiod Tax Allocation

US GAAP generally requires an “with-and-without” approach in allocating tax expense or benefit to continuing operation.  This approach sometimes result in a unexpected outcome in certain situations.  Under the current approach, a loss-making entity with no total tax expense may report an income tax benefit from continuing operation and an offsetting income tax expense from the other components (including discontinued operations and equity).  The new guidance provides that a loss-making entity, with no total tax expense generally will report no income tax benefit from continuing operations and no offsetting income tax expense from the other components.  In other words, in certain situations, the complex with-and-without allocation calculation may be omitted.

Converting Consolidation to Equity Method

Under current GAAP, when an entity transitions from consolidation to the equity method of accounting for a foreign investment, it does not recognize a deferred tax liability related to the transition-date outside-basis difference if it had been asserting indefinite reversal to its investment in the former subsidiary.  However, the new guidance removes this exception to the general principle of recognizing deferred tax liability on outside-basis difference in foreign investment and requires immediate recognition of deferred tax liability if it is no longer eligible to assert indefinite reversal.

Converting Equity Method to Consolidation

Under current GAAP, when an entity transitions from the equity method to consolidation for a foreign investment, it retains the deferred tax liability previously recognized event if it asserts indefinite reversal when the investment becomes a subsidiary.  However, under the new guidance, an entity will follow the general principle of GAAP when transition from the equity method to consolidation and derecognize the previously recognized deferred tax liability upon conversion if it no longer meets the indefinite reversal criteria.

Interim Period Tax Accounting

US GAAP generally requires an entity to estimate its annual effective tax rate and use the rate to calculate its income taxes on a year-to-date basis for interim reports.  An exception is provided under the current GAAP when the entity generates loss for an interim period in excess the anticipate loss for the current year.  In that situation, the year-to-date income tax benefit is limited to the amount that would is anticipated for the entire year.  The new guidance removes this exception and requires an entity to compute interim period tax benefit based on the estimated effective annual tax rate and the year-to-date loss.

Franchise Taxes

Non-income-based state franchise tax is reported above the line, not as tax expense, outside of the scope of income tax guidance.  However, taxes tax require payment equal to the higher of the non-income-based tax and the income-based tax are in the scope of income tax guidance, but only for the portion in excess of the non-income-based tax.  This requires an entity to first account for the none-income-based portion of the tax in pretax income and then apply current GAAP income tax guidance to the incremental income-based portion, if any.  However, under the new guidance, an entity is required to first account for these taxes as income taxes and then account for the non-income-based portion, if any, in pretax income.

For additional detail, please click the link below:

https://www.fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1176173929469&acceptedDisclaimer=true

Notice 2019-66: Partnership Tax Compliance Increase (Korean version)

Notice 2019-66:  Partnership Tax Compliance Increase

IRS는 2020 년 세금 연도부터 유효한, 파트너쉽에 대한 납세의무 요구 사항을 크게 높일 수있는 Notice 2019-66 ( the “Notice") 을 발표했습니다. 이 Notice는 파트너쉽 세금 보고서에 다음과 같은 정보를 요구합니다.

  • 마이너스 계정을 포함한 각 파트너의 과세기반 자본 계정 (tax basis capital accounts) 의 정보. 이 정보는 파트너쉽안에서 분배가 이뤄지거나 파트너 지분이 처분될 경우, IRS가 용이하게 식별 및 과세할 수있게 할 것입니다.
  • 할당된 각 파트너의 IRC Section 704 (c) 에 대한 미인식손익 (unrecognized gain/loss). 이 요구 사항에 따라 파트너쉽은 각 파트너의 built-in gains or losses를 계산하고 공개해야하므로 IRS는 파트너 간의 관련 손익이 적절히 할당되었는지 볼수 있습니다.
  • 각 파트너의 IRC Section 465 “at-risk activities”. 이러한 공개는 파트너의 Section 465의  at-risk limitation의 적용을 강화할 것입니다.

Please click on the link below for additional detail.

https://www.irs.gov/pub/irs-drop/n-19-66.pdf