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.
EU Adopts CBAM Reporting Requirements
The European Commission has adopted rules governing reporting requirements during the phase-in of the carbon border adjustment mechanism. Several non-EU countries expressed concerns during the consultation on those rules.
Czech Government Greenlights Global Minimum Tax Bill
The Czech Republic has approved draft legislation to transpose into its domestic law an EU directive implementing a global minimum top-up taxation framework under the OECD’s two-pillar corporate tax system overhaul.
Global Minimum Tax May Add $629m to Vietnam State Budget: Report
Vietnam’s finance ministry estimates the implementation of the global minimum tax may add about $629m to state revenue by 2024, news website Nhip Song reports, citing information from the Ministry of Finance.
Rollback of Foreign Tax Credit Rules Helps Companies, For Now
For the moment, the government’s big rollback of foreign tax credit rules is a clear win for multinational drug makers, manufacturers, and companies doing business in Brazil. What happens next isn’t so clear.
New Tax-Credit Market Aims to Funnel Billions to Clean Energy
A government plan to let companies cut their taxes by financing clean-energy projects kicked off with a deal to help fund a $1.5 billion wind-energy transaction that officials hope will spur tens of billions of dollars in climate financing.
Finland Starts Consulting on Draft Global Minimum Tax Regime
The Finnish government is seeking feedback on proposed legislation that would transpose into domestic law the EU’s directive for implementing global anti-base-erosion rules under pillar 2 of the OECD’s two-pillar global tax reform plan.
Italy’s Deputy Prime Minister Pushes to Water Down Bank Windfall Tax
Italy's deputy prime minister, Antonio Tajani, said the government's bank windfall tax should not apply to smaller lenders and that it should be tax-deductible. The tax was announced last week and sent shockwaves through financial markets.
OECD Defends Record on Tax Policy in Response to UN Criticism
The OECD has a “proven record of enabling significant change,” Manal Corwin, the organization’s top tax official said in response to a United Nations draft report that argued it doesn’t adequately address the needs of developing countries.
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%.