| Top News, Sept. 18-22, 2023 |
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| | UAE Says It's Not Ready for Global Minimum Tax |
- The United Arab Emirates says it isn’t ready to impose a 15% global minimum tax on multinational companies in 2024 under so-called Pillar 2 rules in the OECD-brokered global tax agreement, but instead will hold a public consultation on them.
- The rules, part of the OECD's two-pillar program to adapt international taxation to digitalization of the global economy, aim to ensure that big multinational enterprises pay a minimum level of tax in jurisdictions where they operate and earn income. There's no consensus on when the rules should be implemented, but the OECD has suggested they should be in place by the end of this year. (OECD.org)
- Raj Bal, global tax leader of Aramex, a Dubai-based multinational logistics, courier and package delivery company based in Dubai, said in a LinkedIn comment that the UAE government announced the delay during the regional Pillar 2 forum held last week by the OECD and the UAE ministry of finance. (LinkedIn)
- Also commenting on LinkedIn, London-based Clifford Chance Director of Tax, Julian Feiner, citing Bal’s post, said a qualified domestic minimum tax looks to be the UAE’s preferred option to the Pillar 2 rules next year. “The delay would mean that in 2024 UAE profits could be subject to top-up taxes offshore in parent jurisdictions which implement IIR [income inclusion rules],” Feiner wrote.
- Sumeet Dhul, at Europcar, UK head of reporting for tax and pensions, said that, considering the UAE's unique circumstances and industries, the UAE's move could be aimed at negotiating better terms or exemptions in the OECD global minimum tax agreement.
- It may also be to "allow time to prepare for these changes and ensure a smooth transition or possibly to explore alternative economic strategies to reduce its dependence on tax-related incentives for businesses," Dhul said.
- The UAE announcement came days after it released guidelines for its new corporate tax regime. (Tax.gov.ae)
- According to a local report, UAE Minister of State for Financial Affairs Mohamed Hadi Al Hussaini told the regional forum that the UAE continues to support international efforts to address tax base erosion and profit shifting, including the global minimum tax. (WAE.ae)
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Author: Rick Mitchell Published: Sept. 22 |
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| | Ireland Consults on Proposed Corporate Tax Break for Foreign-Sourced Dividends |
- Ireland's finance ministry is taking comments until Dec. 13 on its proposal to introduce a corporate tax participation exemption for foreign-sourced dividends starting in 2025.
- The proposal, to appear in the government’s 2024 finance bill, aims to keep Irish tax policies competitive and attractive for business after the country implements the global minimum tax on multinationals, according to a report.
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Author: Rick Mitchell Published: Sept. 19 |
French Assembly Member Hires Ex-Airbnb Lobbyist |
- A powerful French National Assembly member raised eyebrows by hiring a former AirBnb lobbyist as an adviser. The hire comes as Parliament gets ready to debate the government’s draft 2024 budget bill. Among tax measures in the text, at least one could have a significant affect on the giant online hospitality platform. (MediaPart)
- The French government this summer outlined tax changes in the 2023 budget law to boost the supply of long-term housing.
- The draft 2024 budget could contain more measures to boost supply. (Le Figaro)
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Author: LegalAvocado Roundup Published: Sept. 22 |
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| | Countries Mull Taxes on Big, Heavy EVs |
- France and Norway are among countries that could impose taxes on extremely large and heavy electric vehicles to counter their safety risks and carbon footprint.
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Author: LegalAvocado Roundup Published: Sept. 22 |
Koreans Report $98 Billion in Foreign Crypto Assets |
- Korean individuals and companies have reported about $98.4 billion (131 trillion won) in overseas cryptocurrency assets to the country’s tax authority in 2023 under a reporting requirement that took effect earlier this year.
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Author: LegalAvocado Roundup Published: Sept. 21 |
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Laterals, Moves - Ryan Transactional Risk, which provides specialized insurance solutions to M&A deal firms, added tax attorney Jenny Wong as vice president of North American tax insurance, based in New York, where she’ll play key role on transfer pricing insurance. She ‘s been at PwC, and in-house at Enstar Group, AIG, HSBC, and Barclays Investment Bank. She arrives from Atlantic Global Risk, where she was executive director. (RyanSpecialty.com)
- Holland & Knight added transactional tax attorney Liz Young as partner in Washington in its tax credit syndication group. She arrives after nine years at Nixon Peabody, where she was a partner. (HKLaw.com)
- Crowell & Moring hired benefits and compensation lawyer Joe Urwitz as partner in Washington in its tax group. He arrives from Orrick Herrington & Sutcliffe, where he was partner, and was previously partner at McDermott Will & Emery. (Crowell.com)
- Orrick hired away Greenberg Traurig renewable energies tax attorney John Eliason, who co-led Greenberg’s energy project finance practice. He joins Orrick as partner on its energy and infrastructure team. (Orrick.com)
- EY Law’s Spanish unit EY Abogados hired longtime Baker McKenzie tax adviser Ana Royuela as partner in Barcelona. At Baker McKenzie for over 23 years, including close to 14 as partner, Royuela led the firm’s value added tax practice for the Europe, Middle East, and Africa region. (Iberian Lawyer)
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