2023

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.

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.

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.

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.

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.

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.

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, 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.

Australia is moving forward with its plan to implement a carbon border tax in order to reach net zero emissions by 2050.

Technical concerns about a global tax treaty detailing how multinational companies’ residual profits will be reallocated are expected to be resolved by the fall, a top OECD official said Tuesday.

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.

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.

Mindy Herzfeld explains the current rift between the United States and the OECD and outlines potential steps to close the gap and encourage a better working relationship.

Nana Ama Sarfo takes a look at the OECD’s latest report on developing countries and the inclusive framework.

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.

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.

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.

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.

Australia is planning its consultation on the global minimum tax in three phases, the tax office announced on Friday.

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.

Poland is challenging the legal basis for the EU’s carbon border tax at the Court of Justice of the EU.

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 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.

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.

Bermuda is consulting on implementing a new corporate income tax regime in response to global minimum tax rules that are part of the OECD’s plan to modernize the international tax system.

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.

The United Nations should assume a bigger role in setting global tax rules, the UN’s secretary general said Tuesday in a draft version of a long-awaited report.

Russian President Vladimir Putin signed a decree suspending double taxation agreements with the US, UK, Japan, Australia, South Korea, Singapore, Canada, and most European countries.

Senate Finance Committee leaders are planning to mark up legislation this fall that would alleviate double taxation for US and Taiwan businesses via the tax code.

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.

Bermuda is proposing to establish its first-ever corporate income tax in 2025 in line with the global minimum tax rules agreed upon by more than 130 countries in 2021.

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.

Martin A. Sullivan explains how the pillar 2 global minimum tax could affect tax competition.

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.

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 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.

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.

Slovakia is seeking feedback on draft legislation that would implement a 15% minimum corporate tax rate. The proposal includes a domestic top-up tax and would take effect in December 2023.

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’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.

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 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%.

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.

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.

Lee A. Sheppard examines IRS Notice 2023-55, which provides relief from the foreign tax credit rules, addressing why taxpayers are happy about the notice.

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.

Ryan Finley explains that some countries' distrust of quantitative screens threatens to derail the OECD's simplified transfer pricing approach for baseline distributors under amount B.

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.

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.

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.