Even though 137 countries have agreed to the global tax deal, there is still hard work to be done as nations seek to implement the changes. Adopting a part of the agreement known as Pillar One could be particularly difficult in certain countries, potentially even more so than implementing the minimum tax rate.
Chinese Premier Li Keqiang made the case for tax cuts at a recent meeting, noting that it is necessary to take steps "to ensure a stable economic start in the first quarter and stabilize the macro economy." Meanwhile, analysts note that China might opt to delay the expansion of its property taxes given headwinds facing the country's economy and its real estate sector.
Singapore is reportedly considering an increase of its goods and services tax, a key move as countries look to bolster their funds after spending to mitigate the impact of the pandemic. Prime Minister Lee Hsien Loong noted the draft budget to be issued next month "will lay the basis for sound and sustainable government finances for the next stage of Singapore's development."
A new tax credit under development in Canada is meant to incentivize the use of carbon capture, utilization and storage. However, debate continues about the impact of the credit and a decision to exclude projects that involve a process known as enhanced oil recovery.
German Finance Minister Christian Lindner indicated the government will provide tax relief for companies and individuals. "We will relieve people and small and medium-sized businesses by significantly more than 30 billion euros," Lindner said.
Ireland collected a record corporate tax haul last year, helping to push the country's deficit to a lower-than-expected tally of around 4% of the economy. Meanwhile, data shows that many firms deferred taxes at the end of last year as part of a government arrangement to combat the impact of the coronavirus.
The opposition Labour Party in the UK is calling on the government to address rising energy bills by levying a windfall tax on oil and gas companies. However, cabinet minister Nadhim Zahawi was critical of the idea in a recent radio interview.
This article summarizes tax reforms in Mexico, touching on issues including corporate reorganizations, real estate acquisitions and reporting requirements for information on beneficial owners.
The Financial Accounting Standards Board could revamp priorities this year under a process known as an agenda consultation, with some finance executives and investors asking for guidance related to environmental, social and governance issues and cryptocurrency. The standard-setting body also plans to continue work on ongoing projects, such as expense disclosures and goodwill accounting.
In a move expected to encounter resistance, the Securities and Exchange Commission aims to require large private firms to regularly disclose financial data and information about operations, according to sources and to an SEC rulemaking agenda. The SEC might also strengthen qualifications for investors to access private markets.
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