Global Minimum Tax and International Tax Cooperation
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Canada: Proposes Undertaxed Payments Rule (UTPR) and further amendments to Global Minimum Tax Act.
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Taiwan: Announces proposal to increase Alternative Minimum Tax (AMT) rate for certain MNEs from 12% to 15%.
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Philippines: Introduces 20% corporate tax rate for enterprises under Enhanced Deduction Regime to align with Pillar 2 requirements.
VAT Reforms and Digital Economy Taxation
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Nigeria: Presidential Committee proposes increase in standard VAT rate from 7.5% to 10% and reduction on essential items.
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Ghana: Launches second phase of VAT e-invoicing implementation.
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India: GST Council recommends rollout of pilot for B2C e-invoicing.
Investment Incentives and Economic Stimuli
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United Kingdom: Extends Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) scheme by 10 years to 2035.
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Russia: Lists eligible manufacturing activities for social security contribution reduction for SMEs.
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Venezuela: Further extends temporary exemption from VAT and customs duty on certain imports.
Digital Transformation of Tax Administration
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Greece: Plans to replace stamp duty with a new digital transaction fee of up to 3.6%.
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EU: Introduces Digital Product Passport (DPP) as part of Ecodesign for Sustainable Products Regulation (ESPR).
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Italy: Updates tax penalty regime, including changes related to e-invoicing violations.
Insights:
The global tax landscape is rapidly evolving towards a more unified approach, with the implementation of Pillar 2 driving significant corporate tax adjustments worldwide. This shift, exemplified by Canada’s UTPR proposal and Taiwan’s AMT rate increase, signals a new era of international tax cooperation, albeit with potential challenges for tax sovereignty and competitive tax policies.
VAT reforms, particularly in the digital economy, continue to gain momentum. The push towards e-invoicing in countries like Ghana and India reflects a global trend in digitalizing tax administration to enhance compliance and reduce fraud. However, Nigeria’s proposed VAT rate increase highlights the ongoing struggle to balance revenue needs with economic impact.
The introduction of digital transaction fees and product passports in the EU represents a significant step towards integrating sustainability and digital transformation in tax systems. This trend is likely to accelerate, potentially revolutionizing how businesses report and comply with tax obligations.
