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French Finance Bill 2024 Moves to Adopt Global Minimum Tax Rules
The French government is moving to adopt the EU’s pillar 2 directive, implementing global anti-base-erosion rules and a domestic minimum top-up tax, according to its 2024 draft finance bill.
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Hungary Makes Moves Toward Global Minimum Tax Adoption
Hungary’s finance minister has started talks with large Hungarian companies about ensuring the country remains competitive as it prepares draft legislation in the fall for transposing the EU’s global minimum tax directive into domestic law.
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Italy Offers Banks Get-Out Clause on Divisive Windfall Tax
The Italian government modified a controversial windfall tax on banks, giving lenders an option to avoid paying if they set aside additional capital reserves.
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Deputy U.S. Trade Rep Presses Canada on Digital Tax Plan
The Office of the U.S. Trade Representative has again pushed back against Canada’s plans to introduce a digital services tax, days after American lawmakers warned that the tax, if imposed, might damage Canada-U.S. trade relations.
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Global Carbon Pricing Challenge Gains New Members at U.N. Summit
Government officials from Norway and Denmark announced that their countries are joining the Canadian-led global carbon pricing challenge and emphasized the importance of international cooperation on carbon taxes to effectively reduce emissions.
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U.S. Issues Final Rules to Keep Chip Funds Out of China
The Biden administration on September 22 issued final rules that would prohibit chip companies vying for a new infusion of federal cash from carrying out certain business expansions, partnerships and research in China, in what it described as an effort to protect United States national security.
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Plowgian to U.N.: Don't Torpedo Global Tax Deal
A senior Treasury official has cautioned against efforts by the U.N. to pursue a separate multinational tax agreement, arguing that it would fundamentally undermine the progress made by the OECD’s inclusive framework.
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IRS Considers Extension on Rollback of Foreign Tax Credit Rules
The IRS is considering extending the period in which taxpayers can rely on old foreign tax credit rules, while the agency mulls changes to newer rules.
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World Leaders Call on UN to Start Developing Global Tax Norms
Several world leaders at a United Nations high-level panel said that the OECD is not the preferred organization to lead the international tax cooperation agenda, but existing work should not be duplicated.
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Gentiloni Warns Against the Search for Pillar 2 Loopholes
EU Tax Commissioner Paolo Gentiloni told members of the European Parliament that the EU will have to work hard to avoid a situation in which private actors or jurisdictions find loopholes in pillar 2 of the OECD's global tax plan.
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W&M Republicans Push for Pillar 2 Slowdown While Promoting GILTI
House Republican taxwriters are hoping other countries will delay implementation of pillar 2 of the OECD global tax deal while they separately encourage leaders to implement versions of the United States’ global intangible low-taxed income regime.
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House Lawmakers Seek Pressure Against Canada’s Digital Tax Plans
A bipartisan group of House Ways and Means Committee members called on the Treasury, the US Trade Representative, and the Organization for Economic Cooperation and Development to push back on Canada’s decision to impose a digital services tax.
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Dutch Budget Offers Fix for Global Minimum Tax Shortfalls
The Dutch tax plan presented to Parliament on Tuesday highlighted ways to make up for uncertain tax revenues from the global minimum tax to start in 2024.
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Slow EU Pillar 2 Adoption Is a Challenge, Says EU Official
Although some EU member states have started transposing the EU’s global minimum tax directive into their domestic law, others aren’t acting as quickly, and time is running out, according to a European Commission official.
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The Biggest Casualty of Pillar 2's Bias for State Subsidies? The U.S.
Stephen A. Bonovich considers the inexplicable and unexplained decision to design pillar 2 to attack various forms of tax rate competition but ignore state subsidies, even though tax academicians, officials, and practitioners have long concluded that such a design is highly irrational and gives rise to market distortions — the exact opposite of what pillar 2 seeks to achieve. He also looks at the practical implications of ignoring those views for the United States, the EU, and China.
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Global Minimum Levy Won’t Stop EU Tax Competition, Report Says
Introduction of the 15% global minimum tax will lead jurisdictions to seek new ways of offering tax breaks to attract companies, according to a report on launch of the tax in the European Union.
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Multinationals Report Large Tax Benefits From Transfers of IP to Switzerland
Martin A. Sullivan uses data from Form 10-K reports to illustrate some policy shortcomings of recent tax reform efforts, focusing on intellectual property transfers and Switzerland’s status as a tax haven.
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Ireland Opens Consultation on Tax Breaks for Dividend Income
Ireland is considering a plan to offer corporate tax breaks for dividend income and foreign branches.
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Caribbean Policy Cries for Change Following the Global Minimum Tax
Bruce Zagaris breaks down the effect changes in global tax trends have had on Caribbean nations and examines measures to encourage growth in the region.
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Senate Committee Backs Bill to Deepen U.S. Economic Ties With Taiwan
The Senate Finance Committee on September 14 passed a bill that would deepen economic ties between the United States and Taiwan and effectively create a tax treaty that is expected to pave the way for more Taiwanese investment in the American semiconductor industry.
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It's Time for the United States to Move On From the DST Feud
Ryan Finley asserts that the apparent failure of the United States’ global crusade against digital services taxes should prompt a reassessment of U.S. policy.
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Some Open Questions on the U.N. Tax Cooperation Effort
Nana Ama Sarfo outlines some open questions generated by the U.N. secretary-general's recent report on international tax cooperation.
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US Backs Simpler Transfer Pricing Reform in Global Tax Deal
The US reiterated its preference Tuesday for what it says is an easier method for determining which transactions will be affected by new streamlined global transfer pricing rules.
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G-20 Leaders Call for Finalizing Pillar 1 Tax Treaty, Amount B
Countries should work quickly on pillar 1 of the OECD’s two-pillar tax reform plan, including unblocking progress on the amount A multilateral convention and completing amount B transfer pricing simplification rules, G-20 leaders said.
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U.S. Trade Group Pans Canada's DST for Undermining OECD Process
Canada's digital services tax legislation could weaken the two-pillar plan to modernize corporate tax rules from the OECD/G-20 inclusive framework on base erosion and profit shifting, according to a U.S. trade group.
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G20 Leaders Call for Transfer Pricing, Crypto Fixes in Tax Deal
The Group of 20 leaders are calling for a resolution on remaining issues in the global tax deal, including tackling transfer pricing and crypto issues.
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Tech Groups Urge Canada to Drop DST and Refocus on OECD Tax Deal
The Canadian government should withdraw its plans for a digital services tax to avoid creating “perverse incentives” for countries to undermine a major OECD global tax reform agreement, tech companies said.
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European Commission Draws Lessons From Past Failures With BEFIT
The European Commission says it used “valuable insights gained from many years of negotiations” on corporate tax proposals — including those that failed — to design its much-awaited proposal for a common corporate tax framework.
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Fixing or Nixing GLOBE
Sol Picciotto explores the origins of the global anti-base-erosion tax, the main element of pillar 2, its current implementation, and the role the United States could play in supporting or opposing these international tax reforms.
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Global Minimum Tax to Reduce Low-Taxed Profit by 70%, OECD Says
In a tax report delivered to the G20 Friday, the Organization for Economic Cooperation and Development said that the 15% global minimum tax is expected to rake in $200 billion annually, and that by 2025 more than 90% of multinational corporations making over 750 million euros ($803 million) will be subject to it.
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House Republicans Urge Germany to Repeal ‘Discriminatory’ IP Tax
Nine House Republicans pressed the German Minister of Finance to repeal Germany’s century old tax on intellectual property income that’s recently troubled US companies.
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African Countries Seek to Craft Tax System for Whole Continent
African countries are partnering with three donors to develop a digital tax system for the continent’s governments to own following years of costly, piecemeal updates to their tax administration tools.
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New Corporate Minimum Tax Ushers In Confusion and a Lobbying Blitz
The new corporate minimum tax has become a challenge for the Biden administration, which has faced intense lobbying from industries that could be on the hook for billions of dollars in new taxes. Those groups have been flooding the Treasury Department with letters asking for lenient interpretations of the law and trying to create new loopholes before their tax bills come due next year.
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BEFIT to Apply to Pillar 2 Groups, Align Transfer Pricing Rules
A proposed EU common corporate tax system would apply to the same large multinational and domestic groups in scope of pillar 2 and harmonize transfer pricing rules across the bloc.
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Ireland Amends Patent Box in Response to Pillar 2 Rule
The Irish government has increased the effective tax rate of its knowledge development box, responding to the treaty-based subject-to-tax rule under pillar 2 of the OECD-brokered tax reform plan.
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Tax Pros Fear High Court Will Go Too Far in Transition-Tax Case
Tax practitioners are getting increasingly anxious about a major foreign income tax case before the Supreme Court that they fear could tear down wide swaths of the tax code, as a deadline approaches for parties to weigh in.
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Global Tax Deal and Taiwan Top Congress’ Fall Tax To-Do List
Congressional tax-writers start their trek back to Washington this week with plans to consider a Taiwan tax bill, scrutinize the global tax deal, and hash out funding for the IRS.
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Pillar 2 and IP Boxes: A New Chance to Scrap a Flawed Policy
Ryan Finley explains why pillar 2 adoption should prompt a reassessment of patent boxes and other income-based tax incentives for intellectual property.
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Did FDII Raise Revenue for the U.S. Treasury?
Martin A. Sullivan considers whether the foreign-derived intangible income provisions of the Tax Cuts and Jobs Act did, in fact, raise revenue for the U.S. fisc.
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Technology Group Wants Amount B Extended to Digital Services
The OECD/G-20 inclusive framework on base erosion and profit shifting should expand the scope of amount B of pillar 1 to include digital services, according to the Information Technology Industry Council.
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Moore Outcome Could Mean a Whole Lot Less Revenue
Observers have long warned that an expansive Supreme Court decision in Moore v. United States could have catastrophic repercussions for the tax code. Now, the Tax Foundation has put a price tag on it.
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Italian Tax Reform Law Enabling Pillar 2 Adoption Goes Live
Italy’s new law enabling the government to implement sweeping tax system reforms has taken effect, paving the way for the transposition of the EU’s global minimum tax directive.
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FASB Approves Expanded Tax Disclosure Requirements for Companies Despite Opposition
Companies will have to disclose more details about the income taxes they pay to government authorities under new requirements approved by the Financial Accounting Standards Board, a move to provide investors with greater transparency.
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German Coalition Agrees to Cut Corporate Taxes by €7 Billion a Year
Germany’s ruling coalition has agreed to cut corporate taxes by approximately €7 billion a year to stimulate the economy and promote long-term investment during a slowdown in business activity.
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New Zealand Pushes Ahead With Digital Services Tax for 2025
The New Zealand government will soon propose legislation for a digital services tax, citing slow progress on an OECD global tax reform agreement aimed at addressing the tax challenges of the digital economy.
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Silicon Valley Asks IRS to Extend Foreign Tax Credit Relief
A prominent interest group representing scores of large multinational companies is asking the IRS to go further with its temporary relief from foreign tax credit rules that businesses have sharply criticized.
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Pillar 2 Tax Discourse Helps ASEAN Readiness, Ministers Say
A recent discussion among Association of Southeast Asian Nations members about OECD-brokered global minimum tax rules and their implications for investment incentives will help countries in the region prepare accordingly, finance ministers said.
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Tax Cropping Up in More Nontax Proposals
A draft European Parliament report states that taxation has a role to play in the insolvency framework, reflecting the growing presence of tax issues in nontax proposals at the EU level.
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Cruising the World With Pillar 2
Mindy Herzfeld takes another world tour to reexamine the latest developments in OECD pillar 2 implementation.
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Businesses Pushing Back on Design of Amount B Under Pillar 1
Businesses digging into the details of the OECD’s public consultation document on simplifying the arm’s-length principle are pointing out critical gaps and open issues in amount B‘s design and asking questions about data transparency.