As might be expected as governments look to rebuild their COVID-buffeted economies, and to replenish their tax coffers, anti-avoidance measures are becoming the order of the day, chief among which is the proposed global minimum corporate tax rate put forward by the Biden administration.
The proposal was first discussed seriously earlier this year alongside domestic plans to increase the general and minimum tax rates (to 28 percent and 21 percent respectively), and the US authorities appear keen to press ahead in order to prevent the United States from falling out of step with the rest of the world in this regard, at a cost to its international competitiveness.
In a statement released on May 20, commenting on the progress made so far in international tax reform talks, the US Treasury announced that: “Over the last two days, leaders from the Office of … Read More »
In Cyprus, the Government has announced plans to introduce legislation in parliament to waive penalties for certain taxpayers with overdue value-added tax liabilities.
The Ministry of Finance explained that: “As part of measures to support companies facing liquidity problems due to the COVID-19 pandemic, the Ministry of Finance announces that it intends to immediately submit a bill to the House of Representatives, which will include arrangements for not imposing any penalties or interest on taxable persons for VAT payable on May 10, June 10, and July 10, 2021.”
These amounts would be payable instead on August 10, September 10, and October 10, respectively, it said.
To benefit from the concessions, monthly value-added tax returns must be filed by the existing deadlines, and the measure will cover only those entities engaged in economic activities most impacted by the COVID-19 pandemic and related restrictions.
For more … Read More »
In China, the authorities unveiled plans to boost the manufacturing sector, by expediting VAT refunds for advanced manufacturing ventures with a good history of compliance that have accumulated input tax credits.
The policy, announced in Announcement No. 15 of 2021 in Chinese, applies with effect from April 1, 2021, and enables taxpayers engaged in specified activities to receive a VAT refund in May 2021 to the extent they have accumulated excess input tax credits compared with the value of such credits as at March 31, 2019.
The policy is designed to benefit producers and retailers of non-metallic mineral products; specialist equipment, including railway, ship, and aerospace businesses; high-tech electronic equipment; medicines; and chemical fibres, among others.
For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look
With the international drive towards tax fairness in a post-COVID world in mind, the global minimum tax rate proposals floated by the Biden administration in the US have attracted some serious attention, not least from the Irish Government, which has traditionally benefited from its competitive corporate tax rate.
Commenting recently on the suggestion, Irish Finance Minister Paschal Donohoe stated that Ireland remains committed to international tax reform discussions but expressed concerns about the plans.
Donohoe made the comments, at a seminar on international taxation at which he observed that there is “new momentum in these discussions,” which is “driven by the strong desire to achieve certainty combined with renewed energy from the new US administration, against the significant backdrop of the pandemic as we look to recovery”.
However, he defended Ireland’s 12.5 percent corporate tax rate, and argued that countries would need to … Read More »