Global Scans · Tax · Weekly Summary

• The Global Minimum Tax initiative aims to standardise corporate tax rates, but could make Indonesia's tax breaks for R&D less attractive to multinational companies, affecting foreign investment in R&D. East Asia Forum
• The increased income threshold for a reduced naturalization fee will enable the United States to further benefit from newly naturalized citizens, including their greater civic involvement and tax revenues. Federal Register
• In Michigan, the value of the Earned Income Tax Credit for Working Families will increase from six to thirty percent of the federal credit. Diario AS
• Scheduled for implementation in 2024, the global tax reform is expected to reduce tax competition between jurisdictions and provide a unique opportunity to reform tax incentives, especially for developing economies, to attract genuine investment. ASEAN+3 Macroeconomic Research Office - AMRO ASIA
• On income tax, the Scottish Government plans to introduce a new 45% rate on Scottish taxpayers' relevant taxable income (including employment income) between £75,000 - £125,140, and to increase the top rate of income tax to 48%. KPMG
• The French government will drop plans to reduce tax breaks on diesel fuel for agricultural use. The Telegraph
• More than 11 million Australians will receive bigger tax cuts in a bid by the Albanese government to convince voters to back a sweeping overhaul of the stage 3 tax package. The Sydney Morning Herald
• Germany's top court on Tuesday stripped a neo-Nazi party of the right to public financing and the tax advantages normally extended to political organizations, a decision that could provide a blueprint for government efforts to head off a resurgence of the far right. Foundation for Defense of Democracies
• In summary, Brazil's economic outlook for 2024 presents opportunities peppered with risks, mainly related to the credibility of the tax reform, the evolution of fiscal measures, and the effects of the global economy. Deloitte Insights
• The U.S. is less than 10 months away from a presidential election that could have significant impacts on energy policy and the implementation of clean energy tax credits and federal loan guarantees. Yahoo Finance
• UK household incomes are expected to improve in 2024 and the coming year will see a turning point for the UK's stagnant economy thanks to falling inflation, interest rate cuts and tax cuts. TRADING U
• According to the EY ITem Club's new Winter Forecast, the UK's prolonged period of economic stagnation should begin to ease in 2024 as slowing inflation, interest rate cuts and tax reductions give the economy momentum in 2024 and 2025. Vox Markets
• Tax: Lawmakers hope to pass a long-awaited deal addressing issues, strongly supported by the business community, to modify tax incentives for Research and Development activities, along with expanding the Child Tax Credit and advancing legislation to provide double taxation relief to Taiwan. National Law Review
• The UK should invest £26bn a year in a low-carbon economy to revive prosperity instead of planning tax giveaways that will only lead to further stagnation, leading economists have advised. The Guardian
• UK household incomes are expected to improve in 2024 and the year ahead is set to see a turning point for Britain's stagnating economy thanks to falling inflation, interest rate cuts and tax reductions. Kent Online
• The IMF argues that the turnover tax imposed on banks and large companies places an undue burden on companies with low margins and could reduce financial intermediation. Romania Insider
• In the short term, the changes in EV tax credits are expected to cause a shortage of affordable EVs in the U.S., given China's role as a major supplier of EV battery materials and components. Forbes
• Globally governments are expected to raise an extra $ 155-192 billion per year in corporate tax income, an increase of 6.5-8.1%, the OECD said, trimming its estimate from $220 billion previously. IFC Review
• Israeli deductions of Palestinian tax revenues, which violate existing agreements and risk leading to the collapse of the Palestinian Authority, have compounded the financial problems facing the Palestinian Authority. IFC Review
• A wealth tax on British millionaires and billionaires at a rate of between one to 2% on net wealth above £10 million could generate £22 billion each year. The Independent
• Revenue from Michigan's corporate income tax and the Michigan Business Tax are forecasted to bring in $2 billion in the next three years, an increase analysts said was very strong. Michigan Advance
• Since India has no domestic carbon pricing scheme in place, it poses a greater risk to export competitiveness, as other countries with a carbon pricing system in place might have to pay less carbon tax or get exemptions. Legacy IAS Academy

Last updated: 05 February 2024