Recent OECD Guidance on Minimum Tax Aligns With EU Tax Rule
The European Union reaffirmed its support for the international two-pillar tax deal and confirmed recent guidance on the global minimum tax aligns with the EU’s implementation of the rule, according to a statement issued by finance ministers.
Barbados to Adopt Pillar 2 Domestic Minimum Tax in 2024
The Barbados government will implement a domestic minimum top-up tax aligned with pillar 2 global minimum tax rules as part of a plan to overhaul its corporate tax system, according to Prime Minister Mia Mottley.
Countries’ Tax Info Needs To Be Made More Available, Forum Says
An international agency monitoring tax transparency reported most of its member countries are complying with tax information exchange standards, but the availability of certain information can be improved.
FTC Pillar 2 Guidance and Relief Extension to Be Issued Together
An IRS official has confirmed that the agency still plans to release foreign tax credit guidance on pillar 2 by year-end and expects to extend temporary relief from final FTC rules at the same time.
Possible Foreign Tax Credit Fix to Come After Minimum Tax Guidance
The IRS plans to go ahead with guidance on how foreign tax credit regulations interact with the new global minimum tax even though it’s still considering whether and how those regulations might be modified, an IRS official said Monday.
Ship Has Sailed on Pillar 2, EU Committee Warns U.S. Congress
Implementation of global minimum tax rules is happening, and there’s nothing the United States can do to stop it, members of the European Parliament subcommittee on tax matters told U.S. lawmakers.
Italy Adopts Novel Pillar 2 Dispute Resolution Measure
Italy has introduced an innovative dispute prevention and resolution provision based on the principle of reciprocity as part of its pillar 2 implementation strategy, according to a finance ministry official.
U.S. Economist Defends IRA Against Calls for Carbon Tax
A White House economist has responded to ExxonMobil’s support for a carbon tax by casting serious doubt on the possibility of achieving a global harmonized carbon market without any climate policy deviations.
Treasury Wants Different Pillar 2 Treatment for Research Credit
The United States considers the treatment of the nonrefundable research credit by the pillar 2 global minimum tax regime an important priority as countries begin to implement the legislation, a Treasury official said.
Argentina to Push Withholding Tax Absent Pillar 1 Progress
Argentina will be ready to present a proposal for a withholding tax mechanism on digital service providers if progress isn’t made soon on the signing of a multilateral convention implementing pillar 1, an Argentine official said.
German MOF at Odds With OECD Over Intangibles Pricing
The pricing of intangibles in related-party transactions will cause unsolvable disputes unless the OECD provides revised guidance, according to panelists at the annual Congress of the International Fiscal Association in Cancun, Mexico.
Bulgaria's Minimum Tax Must Have Substance Carveout, NFTC Says
If Bulgaria doesn’t join other EU member states in including a substance-based carveout in its proposed domestic minimum top-up tax, it will damage its ability to attract foreign investment, a trade group warned.
Plowgian Asks Taxpayers to Tell Treasury What MLC Draft Got Wrong
A senior Treasury official is offering greater detail on what public input the department is seeking in response to the amount A multilateral convention under pillar 1, including comments on what the draft document got wrong.
Puerto Rico Explores Global Minimum Tax, Talks With Industry
Puerto Rico is taking steps to be part of the global corporate tax deal’s minimum tax plan, island Treasury Secretary Francisco Parés Alicea said as he moved between meetings in Washington and New York this week to discuss the prospects with companies with a large presence in the local economy.
Reform US International Taxation Laws to Set a Global Example
Some recent developments should spur action by Congress to reform US tax laws that address international taxation. Congress did this in 2017 but in an ill-conceived way, and it should be revamped.
Developing Countries Helped to Build Two-Pillar Plan, OECD Says
During a debate at the EU’s annual tax symposium about the advantages of the OECD's global tax reform plan versus a U.N. tax convention, the OECD said developing countries helped to shape its tax pillars.
Firms Will Struggle With Pillar 2 and BEFIT, Business Rep Says
Global minimum tax rules and a common EU corporate tax system will likely overload companies’ capacity for compliance because the interplay between the regimes could be overly complex, a business representative warned.
Netherlands Urged to Seek Alternatives if Pillar 1 Tax Deal Fails
The Netherlands should consider other options in case countries can’t reach agreement soon on the amount A multilateral treaty under pillar 1 of the two-pillar global tax reform plan, a Dutch tax official told parliament.
OECD Weighing Pillar 2 Deferred Tax Asset Guidance
The inclusive framework on base erosion and profit shifting is considering issuing pillar 2 guidance on the treatment of deferred tax assets in jurisdictions with federal and subnational taxes, an OECD official said.
Tax Concessions Undermine Pillar 2 Tax Rules, EU Study Says
An initial projected revenue increase under pillar 2 global minimum tax rules has diminished because of negotiated concessions like a substance-based carveout and generous treatment of tax credits, according to a sweeping EU study.
NGOs Criticize EU's Reluctance to Join a U.N. Tax Convention
Nongovernmental organizations have expressed disappointment regarding the EU’s hesitancy about joining a legally binding U.N. tax convention, but EU officials said they believe it would duplicate and could undermine the OECD’s work.
Multilateralism Crisis Mustn't Spread to Tax, Colombian Adviser Says
Disagreements between the global north and south and debates over whether the U.N. or OECD should lead on tax matters could cause a breakdown in multilateral tax cooperation, a Colombian government adviser warned.
European Parliament Report Addresses Excess Profits, Inflation
In their compromise report on the role of tax policy in times of crisis, members of the European Parliament have called for a broader excess profits tax net and inflation-adjusted personal income tax brackets.
Bipartisan Taiwan Tax Bill Text Issued by Congress’s Tax Writers
Senate and House tax-writers seeking to encourage cross-border business collaboration between Taiwan and the US released bipartisan bill text Thursday outlining their plan to provide treaty-like benefits through the tax code.
Delegates Push Back on U.N. Work on Pillar 2 and Tax Incentives
The U.N. shouldn’t pursue further work on the potential effects of global minimum tax rules on tax incentives in the extractives industry because it would be inappropriate, several tax committee delegates said.
Nigeria Files Resolution to Work Toward UN Global Tax Convention
Nigeria filed a draft resolution calling for the United Nations to create an international tax convention, the next step toward the organization potentially assuming a greater role in global tax cooperation.
Works on Pillar 1 Convention Issues to Run Into 2024, Yellen Says
U.S. Treasury Secretary Janet Yellen indicated countries will work into 2024 to settle issues preventing the signing of the pillar 1 multilateral convention, which would mean a related digital tax freeze will soon expire.