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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
U.S. Tackles Crypto Tax Mess
The federal government is escalating efforts to make cryptocurrency investors comply with tax law, nearly 15 years after people started trading bitcoin. The Treasury Department proposed new rules Friday to make it harder for crypto investors to dodge income taxes when they sell digital assets and to simplify complicated tax messes for people who are trying to follow the law.
Pillar Two Questions for the US Can Result in Positive Answers
Analyzing the OECD’s Pillar Two proposal that all countries impose a 15% minimum tax on corporate income is like playing a multidimensional chess game. Each element of the proposal, and each country that adopts it, creates waves that affect all other players, both governments and corporate taxpayers.
ASEAN Investment Ministers Call for Global Minimum Tax Review
Members of the Association of Southeast Asian Nations must review global minimum tax rules because they will only benefit developed countries and will adversely affect incentives offered by developing countries, investment ministers said.
Critics of Biden’s Global Minimum Tax Deal Miss the Big Picture
The US Treasury Department recently won hard-fought victories in the global minimum tax multilateral negotiations, which US lawmakers and stakeholders should applaud. Instead, some of them are now attempting to use that win against Treasury negotiators.
Accounting Board Resists Backlash to Income Tax Reporting Plan
The US accounting standard setter said it would press on with a project that would force companies to detail the amount of income tax paid to state, federal, and foreign tax authorities. Companies would also be required to disclose the states, countries, and amounts paid if payments equal 5% or more of total tax payments.
Developing Countries Must Look Past Pillar 2, South Centre Says
Domestic minimum top-up taxes in line with the OECD’s pillar 2 plan won’t protect developing countries’ tax bases, but other options, like alternative minimum taxes, will, according to a South Centre policy brief.
Developing Countries Say OECD Tax Rules Don’t Guarantee Revenue
The 15% global minimum tax rules included as part of the OECD-led international tax deal favor developed nations, are burdensome to administer and do not guarantee the collection of more revenue, an advocacy group for developing nations said.
German Cabinet Approves Draft Global Minimum Tax Legislation
Germany has finalized its proposed bill for transposing into domestic law the EU’s directive implementing global minimum tax rules under pillar 2 of an OECD-brokered international corporate tax reform revamp.