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.
Companies Want Broad Irish Dividend Exemption Amid Global Tax
Companies told Ireland’s finance ministry to broaden its proposal to exempt dividends from corporation tax to include the profits of foreign branches of Irish companies too, a move to draw more business operations to the country with a global minimum tax in place.
OECD Forum Deems Hong Kong, UAE Tax Regimes ‘Not Harmful’
Countries involved in the OECD’s project to reduce base erosion and profit shifting determined the tax regimes in Hong Kong and the United Arab Emirates aren’t harmful, according to an update from the organization released Tuesday.
Chile Brings in $1 Billion From Digital Services Tax
Under Chile’s 19% digital services tax, foreign companies providing digital services to clients in Chile voluntarily register with the tax authority and pay sales tax. Those that don’t are subject to a withholding tax for services provided to Chilean residents.
Australia Projects to Raise $243 Million From Global Minimum Tax
The country expects to generate A$160 million in fiscal year 2025-26 and A$210 million in fiscal year 2026-27 from the 15% tax on Australian multinational parent and subsidiary companies with at least 750 million euros in annual global revenue.
Latvia to Delay Full Global Minimum Tax Roll Out Until 2029
As a country with only a handful of ultimate parent entities of groups that qualify for minimum taxation, Latvia is allowed a deferral of full European Union rules ensuring a global minimum level of taxation for multinational groups and large national groups.
Software Royalty Withholding Tax Rules Clarified by Australia
The Australian government’s new draft ruling details scenarios when payments for software will count as royalties and copyright that are liable for tax, based on case law and new examples of modern software distribution arrangements. The ruling is expected to apply to situations both before and after it is finalized.
Collaboration Is Gateway to Success Under New Global Tax Rules
Ann-Maree Wolff of Business at OECD explains challenges of the new global minimum tax rules and what multinational enterprises and governments can do to successfully implement the new reporting system.
Growing income inequality is driving public mistrust
Governments can address economic inequality by raising funds and redistributing income and wealth through increases in tax progressivity, implementing wealth taxation measures, and enacting windfall taxation on extreme profits generated by corporations.
UN Experts Renew Charge That OECD Tax Pact Violates Human Rights
The 2021 global tax agreement could have “a discriminatory impact” by hurting predominantly non-white nations’ ability to collect taxes and pay for vital services for their people, according to nine experts who have been appointed by the UN Human Rights Council to report and advise on human rights issues.
New Philippine Finance Chief to Push Tax Bills, More Revenue
Philippine Finance Secretary, Ralph Recto, pledged to focus on boosting tax collection and sustaining current spending as he took over the job on Friday in the first revamp of President Ferdinand Marcos Jr.’s economic team since he assumed power in 2022.
Global minimum tax will put the squeeze on investors’ returns
New international tax rules will force multinational companies to pay an extra 6.5% to 8.1% in tax, according to the OECD. The impact will be felt most acutely by companies that use tax havens, euphemistically known as investment hubs.
US Rejects Renegotiating Major Parts of Global Tax Treaty
After soliciting public feedback on the OECD’s multilateral tax treaty in case any important issues were missed, the US does not plan to reopen negotiations of the document, according to a Treasury Department official. However, some consideration as to the definition of terms in the treaty may be made.
Global minimum tax will boost revenues for tax havens, says OECD
Countries categorized as “investment hubs”, such as Ireland and the Netherlands, will have the largest expected gains from the reforms, with corporate income tax revenues rising from 14 per cent minimum to up to 34 per cent.
Colombia Looks to Lower Corporate Tax Rate to 30% in Years Ahead
Following President Gustavo Petro’s calls for a lower corporate tax rate, Colombia’s finance minister said the government is revising a proposal to gradually reduce the corporate tax rate from 35% to 30% in the coming years.
Businesses Warn of Disputes in Global Minimum Tax Peer Review
The possibility that countries will interpret the highly complex global minimum tax rules differently and adopt inconsistent legislation raises concern amongst businesses. Disagreements between countries’ interpretation of the rules may lead to double-taxation problems for businesses.
A step forward in global corporate taxation
The OECD’s global minimum tax of 15% goes into effect this week in several dozen countries. Although the US and China are not part of the economies employing the global minimum tax, enactment in some of the world’s largest economies will raise vital proceeds for governments and end a “race to the bottom” on corporate tax.
Global minimum tax on multinationals goes live to raise up to $220bn
Enactment of the OECD’s global minimum tax only needs a critical mass of countries to implement it and result in an increase in annual tax revenue of 9%, while still creating favorable international tax competition in the form of tax credits, grants and subsidies.