Tax

• [New] Canadian Prime Minister Justin Trudeau's Liberal government is aiming to cut carbon emissions from 730 megatons per year to 503 megatons by 2030, and has imposed measures including a carbon tax that will steadily ramp up to C$170 a ton.
• [New] The Indian Budget has proposed to clarify that the minimum alternative tax will not apply to foreign investors receiving dividend income from Indian companies.
• [New] By the end of 2021, under United Nations' guidance, governments everywhere plan to find a way to impose a global carbon tax regime that will increase energy costs everywhere.
• [New] The maximum eligible investment for the Small Business Venture Capital Tax Credit will rise from $450,000 to $500,000, and the maximum tax credit allowable against Manitoba income tax will increase from $67,500 to $120,000; and.
• [New] The new US administration hopes to pay for its huge stimulus and infrastructure programme with higher corporate taxes and does not want to undermine its international competitive position.
• [New] The currents tax rates being discussed could have an impact on S&P 500 earnings of up to 10%, but it is quite likely that the eventual deal is watered down somewhat and maybe even spread out over a couple of years.
• [New] If the US is successful in forcing tax havens to raise their taxes so they will be less free just like America, it will be easier for the US to raise taxes even higher knowing there is no alternative.
• [New] Kenya's National Treasury has exempted cash strapped Kenya Airways from paying a minimum tax of 1% of its gross turnover, meaning the flag carrier will now only pay income taxes when it returns to profitability.
• [New] The federal government has announced a plan to increase the price of carbon emissions, for the purposes of the carbon taxes applied in the Canadian provinces, to C$170 per ton by 2030.
• [New] A fact sheet for Biden's American Jobs Plan says that energy efficient homes should be paid for through targeted tax credits, formula funding, grants, and project-based rental assistance.
• [New] There will be buyer rebates and tax sweeteners for American-made electric cars, and grant programmes for state and local governments and the private sector to build a national network of 500,000 chargers by 2030.
• [New] Before the American Rescue Plan the structure of the child tax credit was so regressive that it left behind a third of American children, twenty-seven million children in America.
• [New] To offset the nearly $2.7 trillion of new proposals, the American Jobs Plan includes a number of tax increases on corporations.
• [New] A significant number of Senate Democrats want to pay for at least part of the infrastructure package, but tying it to tax reform will slow the entire process and make 2022 Democratic candidates vulnerable to charges that they are raising taxes during a pandemic.
• [New] Alongside the American Jobs Plan, Biden is proposing to fix the corporate tax code so that it incentivises job creation and investment in the USA, stops unfair and wasteful profit shifting to tax havens, and ensures that large corporations are paying their fair share.
• [New] The U.K. government recently announced a plan to raise corporate tax rates to 25% in 2023, from 19%, for businesses with profits over 250,000 pounds ($345,000).
• [New] Tax structures will be tweaked to attract foreign investors to set up their regional offices in Thailand such as reducing corporate income tax for them, as well as improving privileges and benefits for regional hubs, retirees, self-employed people and start-ups.
• [New] There are other provisions under the AJP like a 15% minimum tax on book income of large corporations and making it more difficult for US companies to invert, but raising the overall tax rate will have the biggest impact.
• [New] The Netherlands increased the income tax rate levied on the presumptive return on the value of household savings to 31% in combination with an increase of the tax free threshold to EUR50000, which is expected to decrease tax revenues.
• [New] The OECD will undertake significant work in the future to help countries reassess their tax and spending policies in the longer run to support inclusive and sustainable economic growth.
• Advanced economies could use more progressive income taxes, inheritance and property taxes, and taxes on excess corporate profits to help reduce inequalities exposed by the COVID-19 pandemic.

Last updated: 11 April 2021