Crypto Is a New Type of Personal Property, UK Commission Finds
The UK Law Commission released its final report on digital assets on June 28, commissioned by the government in March 2020 and followed by an extensive consultation with industry, legal firms, and others.
Australia Starts Targeted Global Minimum Tax Consultations
The Australian government is consulting with multinational enterprises over the next few months on its plan to implement global minimum tax rules under pillar 2 of the OECD’s two-pillar global tax system revamp.
U.N. Report Ignores OECD's Positive Impact, OECD Official Says
A U.N. report that proposes options to move multilateral tax negotiations from the OECD to the United Nations ignores the positive impact of OECD work on developing countries, according to a top OECD official.
European Battery Company Announces Move to U.S., Citing IRA
A Nordic battery manufacturer incorporated in Luxembourg has announced plans to move its holding company to the United States, reporting that Inflation Reduction Act incentives will enable it to generate billions in additional cash flow.
Europe’s Thriving Businesses Face Mounting Windfall Tax Hit
European governments are increasingly turning to windfall taxes to raise revenue and tackle public anger over companies making high profits during the cost-of-living crisis. The taxes are being imposed on a variety of sectors, including energy and banks.
Japan Steadily Adopts Global Minimum Tax but Still Has Work to Do
Japan is steadily adopting the 15% global minimum tax proposed by the OECD. In March, the Japanese Diet legislated the 2023 tax reform package providing its basic framework, followed by governmental and ministerial regulations issued by the Cabinet and the Ministry of Finance in June.
U.N. Proposes Options for Inclusive Global Tax Negotiations
The United Nations has identified three systems — two of which would include legally binding provisions — that it could host to promote inclusivity for developing countries in international tax cooperation, according to a draft report.
UN Chief Wants Greater Role in Setting Global Tax Agenda
UN Secretary-General António Guterres has called for the UN to play a bigger role in shaping global tax policy. Guterres said that the OECD, which has traditionally led global tax discussions, is too exclusive and opaque.
Swiss Cantons Could Raise $600 Million Under Global Minimum Tax
Half of Switzerland’s cantons are expected to raise CHF 530 million (about $606 million) collectively in the first year of implementation of global minimum tax rules under pillar 2 of the OECD’s global tax reform plan.
Russia Suspends Tax Treaty Benefits With 38 Jurisdictions
Russian President Vladimir Putin signed a decree that suspends double taxation treaty benefits with countries it calls “unfriendly” because of the sanctions they have imposed on Russia after it invaded Ukraine.
Swiss to See More Than $600 Million Under Global Minimum Tax
Switzerland is set to generate more than CHF 530 million ($600 million) in additional tax revenue in the first year under a 15% minimum tax rate, according to an update from the Swiss Federal Department of Finance.
Debunking 5 Republican Arguments Against the Global Minimum Tax
Republicans oppose the global minimum tax, arguing that it would hurt American businesses and workers and that it would violate the Constitution. Proponents dismiss these claims, arguing Republicans oppose the tax because they want to help corporations get to the lowest tax rate possible, even at the expense of the federal budget, other taxpayers, and the ability of governments worldwide to build fair and efficient tax systems.
Canada Consults on New Pillar 2 Legislation, Revised DST Bill
The Canadian Department of Finance is seeking public input on new draft legislation that would implement OECD global minimum tax rules and on an amended bill providing for a controversial digital services tax.
Canada Moves Forward With New Tech Tax
On August 4, Canada released an explanatory note about the Digital Services Tax Act, which goes into effect as soon as January. It is a 3 percent tax on the revenues of large technology companies, including those with online marketplaces, like Walmart and Amazon, and social media platforms, like Meta.
Canada Issues Digital Tax Draft After Global Deal Hold-Out
Canada is seeking feedback on a revised version of its digital services tax after declining to sign on to an OECD-penned outcome statement that included an extension of the moratorium on new digital service taxes to the end of 2024.
West African Tax Forum Cautions Members on OECD Global Tax Deal
It’s important to scrutinize the OECD’s two-pillar global tax reform plan and carefully weigh its economic implications before committing to implement it, the West African Tax Administration Forum told its members.
Germany to Raise Modest Tax Revenues Under OECD Global Tax Plan
Germany stands to benefit under both pillars of the OECD’s global tax reform plan, but its tax revenue gains might not be very high, according to research commissioned by the German Ministry of Finance.
Luxembourg Government Approves Global Minimum Tax Bill
Luxembourg’s Council of Government has approved draft legislation to transpose into domestic law the EU’s directive implementing global minimum tax rules under pillar 2 of the OECD’s two-pillar corporate tax reform plan.
Ways and Means GOP Demand 'Robust Consultations' on Pillars
Thirteen House Ways and Means Committee Republicans signed a July 31 letter accusing Treasury of failing to consult with Congress over global tax negotiations that they claim will cost taxpayers at least $56 billion.
Luxembourg Global Minimum Tax Rules Sent for Parliament Approval
Luxembourg approved a legislative proposal to implement the global minimum tax rules. The proposal introduces two new tax rules, a top-up tax and an undertaxed profits rule, to ensure that multinational companies are taxed at a rate of at least 15%.
German Revenue Set for ‘Moderate’ Gains From Global Tax Reform
Germany is expected to see a moderate increase in tax revenue from the OECD-led global tax reform, with additional revenue of between €2.75 billion and €3.9 billion per year between 2024 and 2026. However, the revenue increase could be lower if multinational groups escape the scope of the reform.
GOP, Chamber Ramp Up Pressure on Treasury Over OECD Tax Deal
Republicans and the US Chamber of Commerce are urging the Treasury Department to reexamine its positions on key provisions of the global tax deal, including the global minimum tax. They argue that the deal could harm US businesses and want Treasury to seek more input from Congress.
Chips, China, Taiwan, and Tax Preferences
Mindy Herzfeld examines how recent congressional efforts to bypass traditional tax treaty requirements for encouraging semiconductor chip trade with Taiwan could be models for innovative international tax agreements.
African Cross-Border Trade Growth Demands Tax Transparency
Nana Ama Sarfo reviews the OECD's latest Tax Transparency in Africa report and notes how developments in trade and beneficial ownership transparency could help advance tax transparency on the continent.
The South Centre Warns Against OECD Global Tax Reform Plan
Developing countries should think long and hard before signing on to an OECD-brokered two-pillar global corporate tax reform plan while also considering alternative measures, an intergovernmental policy research organization said.
Developing Countries Cast Doubt on Benefits of Global Tax Treaty
Some developing countries are reluctant to ratify the OECD-led global tax pact until other OECD countries, especially the US, choose to do so. They believe the pact will yield a small amount of revenue and that they risk losing their taxing rights if they ratify it before developed countries do.
Vietnam May Ease Global Minimum Tax Burden for Firms
Vietnam's investment ministry is considering ways to compensate foreign investors who will be affected by the global minimum tax. The measures include providing financial support, training and R&D assistance, and tax breaks.
Ireland Consults Further on Global Minimum Tax Rule Adoption
Ireland’s Department of Finance is asking for more public input on new aspects of its plan to transpose the EU’s pillar 2 directive, incorporating features of the OECD’s second tranche of pillar 2 administrative guidance.
Ireland Seeks More Feedback on Implementing Global Minimum Tax
Ireland is seeking feedback on the six main areas of draft legislation implementing the OECD's 15% global minimum tax. The draft legislation includes safe harbor rules for transitional CbCR and UTPR reporting.
Latam Nations Create Tax Cooperation Forum, in Challenge to OECD
Latin American countries have created a new forum to cooperate on tax issues in response to concerns that the OECD's global tax agreement does not benefit developing countries enough. The forum will be facilitated by the United Nations Economic Commission for Latin America and the Caribbean.
Vietnam Proposes Global Minimum Tax Rules to Apply in 2024
The Vietnamese government will send a draft resolution to the National Assembly proposing the application of global minimum tax rules under pillar 2 of the OECD’s two-pillar global tax reform plan starting January 1, 2024.
Israel Approves New Tax Benefits for Technology Investors
Israel's parliament approved tax breaks for investors in Israeli tech startups to boost investment in the sector. Tax credits are available to private investors in pre-seed and seed rounds, as well as tax relief for companies that acquire tech firms and foreign banks that offer loans to Israeli tech startups.
Semiconductor Industry Presses IRS to Expand Tax Credit Rules
The US semiconductor industry is urging the IRS and Treasury to broaden eligibility for the tax credit for research and manufacturing of semiconductors. The industry wants more of the supply chain to benefit.
GOP Lawmakers Tell Accounting Board to Nix Tax Disclosure Plan
Republican lawmakers want the Financial Accounting Standards Board to withdraw its proposal to force companies to report more details about how much they pay in income taxes and where. The lawmakers said the proposal would expose US multinational companies to enhanced review and tax audits by foreign governments and put them at a competitive disadvantage.
OECD Business Advisory Group Seeks More Minimum Tax Consultations
Businesses want more opportunities to address complexities in the global minimum tax following new guidance from the OECD. They say the guidance is complex and challenging to implement and call for more simplification measures.
Subsidy Wars Heat Up With US Allies Forced to Pay Up or Lose Out
The US is waging a subsidy war with China in an attempt to maintain its technological lead. The European Union is responding with plans to invest billions of euros in clean energy and semiconductor manufacturing.
Nations Could Lose Trillions Without UN Tax System, Group Says
Tax Justice Network says the UN needs to be involved in global tax administration to help stop $4.7 trillion in lost taxes to multinational companies and wealthy individuals over the next decade.