The OECD has published detailed rules to assist in the implementation of a landmark reform to the international tax system, which will ensure Multinational Enterprises (MNEs) will be subject to a minimum 15% tax rate from 2023. The agreement has been signed by 136 countries representing more than 90 percent of global GDP.
By Bernhard Schwechel, FACT GmbH
The agreement builds on the twopillar approach outlined by the OECD and aims to tackle the challenges arising from an increasingly globalized and digital economy. Under Pillar One, the largest and most profitable multinational firms will be required to pay tax in the countries where they do business, rather than simply where the countries have headquarters or hold intangible property.
By Diego Lasalvia and Ana Fernández, CARLE & ANDRIOLI Contadores Públicos
The Free Zones continue to be attractive to many international or local companies which establish operations here to provide global services and conduct commercial or industrial activities, highlighting regional logistics operations.
By Bhavesh Jindal, Ashwani & Associates
With the advent of technology and single table office scenarios in the current pandemic driven economy, the veil of location and time barriers has dropped. This has given rise to work from home (WFH) culture and a workforce that can operate from anywhere, at any time.
By Roberto M. Cagnazzo, Three & Partners
The Italian Tax Agency has recently answered to a tax ruling on the regime applicable to the distribution of the reserves of profits of a company in favour of a resident individual holding the right of usufruct on the shares of that company.
By Cédric-Olivier Jenoure and Sascha Wohlgemuth, Bratschi Ltd.
Multiple novelties and changes in the Swiss tax at source hold risks for companies and groups concerning the correct declaration of the income of employees who are foreign residents without settlement permits. Companies, as employers who are liable for the payment of the tax, must take the following into account:
By Deborah Nadav, Citroen Wells Chartered Accountants
Since 01 April 2015, the UK has had one flat rate of corporation tax, currently 19%. This is set to change effective 01 April 2023, with the Finance Act 2021 reintroducing the small profits rate. The main rate of corporation tax will increase to 25% for companies with profits over GBP 250,000 and a small profits rate of 19% will apply to most companies with profits up to GBP 50,000. Companies earning profits of between GBP 50,000 and GBP 250,000 will apply marginal relief.