Global Scans · Tax · Weekly Summary

• [New] Greater contribution from direct taxes beyond the hydropower sector, coupled with a more effective tax administration system, could bolster Bhutan's ability to generate increased revenues essential for its development. World Bank
• [New] By introducing digital systems, the Romanian tax authorities could simplify and speed up MAPs, and facilitate better collaboration with taxpayers, while also increasing confidence in the tax system. ITR
• [New] One key to Ukraine's recovery will be a robust, growing, and vibrant private sector; and an economy that creates jobs, increases exports, and generates tax revenues. U.S. Agency for International Development
• [New] In terms of risks, US tax credits and disbursements available under the Inflation Reduction Act may be threatened later in 2024 if a second Trump administration is elected. Lombard Odier
• [New] Holding to 3.5% will allow property taxpayers to see the full impact of provincial education tax cuts when the Manitoba government includes rebates on the tax bill this year. City of Winnipeg
• [New] The most significant new component of Tuesday's budget is a new revenue stream: an increase in taxes on capital gains for Canada's highest earners, projected to rake in $19.3 billion over the next five years. CTVNews
• [New] Indian tax authorities are likely to look beyond the tax residency certificate issued by Mauritius authorities and will be able to deny benefits of the India-Mauritius treaty to parties case-by-case. Mint
• [New] The NSTA's estimates took too little account of the impact of the UK windfall tax, which has restricted investment and will bring forward the timing of decommissioning programmes whilst reducing production from existing UK fields. The Telegraph
• [New] The EU, for example, recently announced the adoption of a law mandating minimum SAF usage, increasing to 70% of fuel blends by 2050, and the Inflation Reduction Act in the U.S. encourages the use of SAF via strong tax incentives. Global Flow Control
• Russian residents will have to provide the tax authorities with information on credited funds to electronic wallets in foreign financial organizations in the amount of 600 thousand rubles or more. TAdviser.ru
• A freeze in income tax thresholds until 2028 means that as people's wages increase they risk entering a higher bracket and paying more tax. BBC News
• Indigenous tourism will directly contribute $800 million in tax revenues to all three levels of government in Canada in 2024, underscoring its pivotal role in national economic sustainability. Indigenous Tourism Association of Canada
• Four out of ten producers said they think taxes impacting agriculture will rise following the fall 2024 election while half of respondents said they expect no change in agriculture's tax environment. Ag Economy Barometer
• In Texas, a property tax exemption for solar panels means that homeowners will not see an increase in their property taxes despite the added value the solar system brings to their home. EcoGen America
• Council taxes are rising by various amounts in Wales, from around 5% in Torfaen to more than 11% in Pembrokeshire, but the SNP has promised to freeze council tax across Scotland until 2025. Tivyside Advertiser
• The process for joining the ETS could be organised in stages: ramping up the existing very low carbon tax in Ukraine and making it more efficient, creating a Ukrainian pilot ETS modelled on the EU system, and joining the EU system. Bruegel | The Brussels-based economic think tank
• Budget 2024 will continue to cut taxes for Canada's growing small businesses by gradually phasing out their access to the small business tax rate. Canada Coop
• Other taxes were announced including a digital services tax and a global minimum tax of 15% on the profits of large multinational corporations, which could lift revenues by $5.9 billion and $6.6 billion, respectively. financialpost
• There were concerns that investments via Mauritius could face heightened scrutiny by tax authorities, including the potential coverage of past investments under the amended protocol. Mint
• New arrivals will benefit from 100% relief on foreign income and gains for their first four years as a UK tax resident, and there will be transitional arrangements in place for current non-doms. The Guardian
• Every year there's speculation that Ottawa could increase the capital gains inclusion rate, which is the amount of capital gains from the sale of investments subject to tax. The Globe and Mail
• The risk of the EU losing new clean tech investment at a time when it's most needed has been compounded by the US Inflation Reduction Act, which includes $500 billion in new green spending and tax breaks over a decade. Fortune Europe
• The eligible business income threshold for small business tax will remain at $600,000, which is the highest threshold in Canada. Government of Saskatchewan

Last updated: 06 May 2024