Global Minimum Tax Peer Review Key to Clarifying Credit Allowance
The US is looking at consistent implementation of the global minimum tax rules across countries through a peer review process to ensure its foreign tax credit can be distributed appropriately to companies in regimes that qualify under the review.
Top Treasury Official Argues for US to Adopt Global Minimum Tax
Acting Deputy Assistant Secretary for International Affairs at the Treasury, Scott Levine, said the US should adopt an income inclusion rule or reform its current global intangible low-taxed income rule, known as GILTI, so that it is compliant with the global minimum tax rules and provides more tax certainty to corporations.
Norway’s Carbon Tax Exemptions May Be State Aid, Watchdog Warns
Norway may have breached state aid rules by granting carbon tax exemptions for some waste incineration and some industrial uses of natural gas and liquefied petroleum gas, the authority that oversees Norway’s compliance with European Union single market rules said.
OECD Misses Deadline for Deal on Final Global Tax Treaty
The OECD continues negotiations over the global tax treaty, after missing a March 31 deadline to agree on the convention’s final text. Issues that remain unresolved include withholding taxes and the definition of digital service taxes.
HMRC undermining innovation by failing to award R&D tax credits, say start-ups
UK start-ups and small businesses have accused HM Revenue & Customs of putting economic growth and innovation at risk by rejecting legitimate claims for research and development tax relief, delaying payments and clawing back credits. The result has left companies exploring options to move overseas or scrapping plans to create jobs or invest.
New Zealand Adopts Global Minimum Tax as Part of Omnibus Law
New Zealand finalized a law that will introduce the global minimum corporate income tax of 15%, via an income inclusion rule and an undertaxed profits rule. The income inclusion rule will apply to New Zealand-headquartered multinationals, and the undertaxed profits rule will apply a top-up tax on foreign companies that operate in New Zealand but are taxed below 15% in their home jurisdictions.
OECD Mulls Using Risk Assessment Tool for Global Tax Deal
The OECD is considering using one of its existing tools to provide taxpayers the ability to gain more certainty about their positions if they are subject to the global minimum tax and other provisions under the global tax deal.
Ecommerce tariffs will kick in from 2026, says WTO chief
The first customs duties on digital products such as online films and software downloads will hit consumers and businesses in 2026, increasing prices in some countries, the head of the World Trade Organization has predicted.
China Files WTO Complaint Over US Electric-Vehicle Subsidies
China filed a complaint to the World Trade Organization alleging the US’ Inflation Reduction Act and associated rules are “discriminatory” and have “seriously distorted” the global EV supply chain by blocking electric-vehicle manufacturers from sourcing materials from China and other foreign adversaries.
Netherlands Suggests Topics UN Should Tackle in Tax Convention
The Netherlands is recommending that work on the United Nations tax treaty meet sustainable development goals and be consistent with the Organization for Economic Cooperation and Development’s tax work without duplicating it.
Italy Suggests Revamping Digital Tax If OECD Treaty Not Agreed
Italian Finance Minister Giancarlo Giorgetti told the country’s Chamber of Deputies on Wednesday that signing the Organization for Economic Cooperation and Development’s treaty looks problematic because of the political dynamics in some large countries, including the US, that are crucial to finalizing the deal.
UK Eyes Carbon Tax Rollout in 2027, Seeks Comments on Process
The UK government aims to introduce its carbon border tax on Jan. 1, 2027, and is seeking feedback on its design, implementation, and administration—including the scope of products and ways to calculate emissions.
EU Could Axe Unanimity Rule For Tax Files, Commission Suggests
The EU commission says rules on voting procedures do not need to be changed, but EU countries could agree to activate a procedure allowed by the rules under which a unanimous decision could be taken to permit qualified majority decisions in some areas currently subject to unanimity, including tax.
UAE Wants Corporate Feedback On Global Minimum Tax Policy
The United Arab Emirates is consulting on the global minimum tax framework, including policy options for the extraterritorial rules. The UAE wants feedback on how the framework interacts with the country’s new corporate tax system and implementation of rules which ensure the top-up tax is collected on foreign in-scope entities too.
Australia Tax Info Reporting Plan Gets Pushback From Tax Groups
Australia should exempt multinational companies from reporting tax information from each country where they have operations if they’re not required to report it at home, tax and accounting firms told the Treasury department.
Transfer Pricing Under Global Minimum Tax Poses Double Tax Risk
If companies make transfer pricing adjustments after the end of the year, as many do, they could be disqualified from using a safe harbor that simplifies the global minimum tax’s calculations and reduces their tax liabilities.
France Starts Offering Big Tax Credit To Aid Green Investments
France started offering its green industry tax credit to companies to offset costs up to €350 million ($381 million) per qualified investment in energy. The tax credit is expected to generate €23 billion in investments, create 40,000 jobs, and cut 35 million tons of CO2 emissions by 2030.
Digital Taxes on Developing Nations’ Wish List on UN Framework
Developing countries laying out recommendations for a new framework convention at the United Nations are seeking protocols to address the taxation of digital services, environmental taxes, exchange of information for both services and wealth, and illicit financial flows.
Global Minimum Tax Won’t Limit Developing Country Investment
Pierce O’Reilly, head of business and international taxes at the Organization for Economic Cooperation and Development, noted that the minimum tax’s substance-based income exclusion rule will continue to support investment into low-capacity countries that tend to offer significant corporate investments.
OECD Transfer Pricing Rules Undercut Developing Country Benefits
Low-capacity jurisdictions may not benefit from the OECD’s optional framework to simplify transfer pricing for some business transactions, because of a lack of data and administrative resources available to determine the revenue companies owe from such transfer pricing.
Spotify to Raise Prices in France to Offset Costs From A New Tax
Spotify Premium subscribers in France will soon get a price increase due to additional costs on music streaming services imposed by the government, as part of the CNM Tax, the company says in a statement.
House GOP Lawmakers Say Global Tax Treaty Bad for US, Business
US Republican lawmakers say the OECD’s multilateral tax treaty produces a loss of revenue to other countries, including China, and express concern the treaty is not effective to curb the proliferation of digital services taxes.
UK to Replace ‘Non-Dom’ Regime With Residency Based System
The UK government will abolish the non-dom tax status and replace it with a "modern, simpler and fairer residency-based system," Chancellor of the Exchequer Jeremy Hunt says in an effort to raise tax revenues.
UK Aims for New Tax Credits, Tax Avoidance Rules in 2024 Budget
The UK proposed a variety of tax breaks for small businesses in its Spring 2024 budget released Wednesday, along with plans to curb tax avoidance, implement reporting rules for crypto assets and new measures to regulate tax advisors.
WTO Extends Moratorium on E-Commerce Tariffs for Two Years
The World Trade Organization agreed to extend a moratorium on e-commerce tariffs for two years after marathon negotiations in Abu Dhabi, while failing to secure deals on other contentious trade issues including a crackdown on agriculture and fisheries subsidies.
Australia Urged to Align Software Tax Rule With Global Standards
According to the National Foreign Trade Counsel and other industry groups, Australia’s draft ruling to tax payments for software and intellectual property is “overly broad”. The ruling targets goods and services that are often made up of many components, and applying a withholding tax to the entire payment is overreaching.
World-first carbon border tax shows teething problems
The EU’s carbon border adjustment mechanism taxes carbon-intensive imports to prevent a flood of cheap imports from countries with highly polluting industries, but only a fraction of EU companies expected to report emissions did so by an early deadline.
Global Tax Treaty To Meet Deadline, OECD Tells G20 Ministers
The OECD is on track to finish its multilateral tax treaty to reallocate taxing rights by March, and the global minimum tax will start in more than 35 countries this year. Estimates provide the treaty will reallocate $200 billion per year and increase revenues by at least $155 billion annually.
Warren Tax Guru Makes G-20 Case to Soak Global Billionaires
Gabriel Zucman, who helped Elizabeth Warren develop a wealth tax plan for her 2020 US presidential campaign, is promoting a proposal for a global minimum wealth tax aimed at international coordination to tax the rich and fight poverty.
Africa Group Says Hold Off on Adopting OECD Transfer Pricing Rules
A group representing West African tax administrations is concerned the OECD’s recently published guidance on transfer pricing rules lack a definition for low-capacity jurisdictions and qualitative scoping criteria.
Brazil Politics: Government, Congress Aim for Deal on Tax Bill
The government is facing dissatisfaction over its ongoing efforts to end a payroll tax exemption as it aims to boost revenues and achieve its zero-deficit target for 2024. The Finance Ministry and Congress are trying to reach a deal to give companies more time to adapt to full taxation.