TOPIC

Global minimum tax

Global minimum tax
Latest news and updates on the proposed global minimum tax rate that aims to clamp down on tax evasion and prevent countries from competing by offering lower taxes to attract multinationals. Group of 7 (G7) leaders, Group of 20 (G20) finance ministers as well as the 132-member Organisation for Economic Co-operation and Development (OECD) have all backed setting a minimum global corporate tax rate of at least 15 per cent. The move aims to prevent multinationals - including tech giants like Google, Amazon and Apple - from shifting profits to low-tax jurisdictions and modernise the tax system for the digital economy.
The Inland Revenue Centre in Kai Tak on May 2. As traditional tax havens become less attractive to firms, Hong Kong rightly sees an opportunity to repurpose itself as a business-friendly place for companies to redomicile. Photo: Edmond So
Hong Kong economy

Editorial | Firms redomiciling in Hong Kong can only be good for business

Legal changes have made it easier for firms to redomicile in Hong Kong without changes to their operations. That is a good business move.

HKEX

Two China Resources units redomicile in Hong Kong from Cayman Islands

Banking & finance

Exclusive | BVI to study feasibility of global minimum tax rate next month: premier

Millionaires and billionaires

Outside In | Why global tax on super rich is least bad option to tackle crises

Amid the current wave of adversity, the wealthiest among us must acknowledge they are obliged to dig deeper into their pockets.

videocam
US congresswoman Alexandria Ocasio-Cortez, posing for a photo with fashion designer Aurora James, attends the Met Gala in New York City on September 13, 2021 wearing a dress printed with the words “tax the rich”. The slogan has been a rallying cry for Democrats as they seek to remake the social safety net in the US. Photo: Getty Images / AFP
Banking & finance

Opinion | Bretton Woods should heed the cries for fair play or go

The Global South is right to demand change of a global financial system that is neither ecologically nor financially sustainable.

videocam
Banking & finance

Opinion | Richer nations should not stand in the way of a fairer global tax system

Tax cooperation would help ease economic distortions from the ultra-wealthy and free up resources to advance social and environmental goals.

videocam
Advertisement
Advertisement
Advertisement
United States

Frustrated US says India, China hindering global corporate tax deal

Treasury Secretary Janet Yellen said New Delhi and Beijing not showing interest in finalising Pillar 1 of the OECD pact reached in principle in 2021.

5
US Secretary of the Treasury Janet Yellen attends a G7 finance leaders meeting in Italy on May 24. Photo: Reuters
Banking & finance

Hong Kong could get US$1.28 billion boost from global corporate minimum tax

Several hundred large multinational companies will be affected by the new tax rule, Commissioner of Inland Revenue says.

Asean

Opinion | Indonesia’s push to join OECD ‘rich man’s club’ is misguided

Indonesia’s plans for an accelerated accession come as global concerns grow over the OECD’s transparency and fairness towards developing nations, particularly in its tax policies.

videocam
Banking & finance

Global minimum tax may dent Hong Kong’s competitiveness, lawmaker warns

Hong Kong’s decision to implement the 15 per cent global minimum tax for large multinational companies from 2025 could undermine the city’s efforts to offer tax incentives to attract new businesses, says Robert Lee, who is also a broker.

videocam
Hong Kong’s government has issued a consultation paper to collect views on the implementation of the tax. Photo: Yik Yeung-man
Ukraine war

Letters | Millennials of the world are just not that into war

Readers discuss the younger generation’s position on conflict, and the Cayman Island’s commitment to tax cooperation.

A protester speaks to soldiers during a demonstration over the death of George Floyd in Hollywood on June 2, 2020. The US army did not meet its recruiting target in 2022. Photo: AFP
Singapore

Singapore and Hong Kong brace for minimum tax turbulence

A planned global minimum corporate tax of 15 per cent is a headache for the two Asian financial hubs, whose attraction owes much to their relatively low rates.

World Economic Forum

Make us pay more tax, millionaires group tells Davos forum

The ‘Patriotic Millionaires’ group said in an open letter that the wealthy should pay more for Covid-19 recovery.

videocam
Income inequality

Opinion | We need a global summit to tackle wealth inequalities

The least we can do is have a democratic, transparent and constructive dialogue on how those who can afford to, and who emit more carbon, should pay higher taxes to foster a more sustainable and inclusive world.

videocam
4
Activists from Amnesty international, Emergency and Oxfam stage a flash mob demonstration to denounce global vaccine inequalities, on October 29 in Rome, on the eve of the G20 World Leaders Summit. Photo: AFP
G20

G20 leaders endorse global minimum corporate tax deal

The summit also confronted a two-track global recovery and heard pleas to boost coronavirus vaccination rates in poor countries.

British Prime Minister Boris Johnson, French President Emmanuel Macron, German Chancellor Angela Merkel and US President Joe Biden are seen at the G20 summit in Rome. Photo: AP
G20

World leaders to talk climate, economy, vaccines at G20

Leaders from the major countries gather for the first face-to-face summit in two years, but a draft paper shows they are likely to only slightly toughen their pledges on climate action.

Income inequality

Macroscope | Global shift shows China’s ‘common prosperity’ goals are not unique

The breadth of Beijing’s reforms have received much attention, but policy proposals elsewhere show it is far from alone in seeking to put people before profit. However, governments also have to strike a balance between improving equality and achieving growth.

videocam
Advertisement
Advertisement
Advertisement
World Bank Group

G20 backs global minimum tax deal, pledges to sustain Covid-19 recovery

The Group of 20 (G20) major economies has vowed to support a sweeping overhaul of the global tax system, while keeping an eye on the ‘highly divergent’ pandemic recovery.

Ignazio Visco, governor of the Bank of Italy, speaks during a virtual Group of 20 news conference. Photo: Bloomberg
G20

Nearly 140 countries reach deal on global minimum corporate tax

The agreement will bring sweeping changes to how big multinational companies are taxed and deter them from stashing profits in offshore havens.

China economy

‘It’s now or never’ for new global tax rules as key OECD meeting looms

Members of the Organisation for Economic Co-operation and Development (OECD) will meet on Friday to discuss new global rules to share tax revenues.

China economy

New global tax rules ‘first step in the Long March’, ex-China official says

China is among 130 countries to back a plan by the Organisation for Economic Cooperation and Development to set a minimum corporate tax rate of at least 15 per cent.

In July, 130 countries backed a plan led by the Organisation for Economic Cooperation and Development to set a minimum corporate tax rate of at least 15 per cent and countries where big firms operate would get the right to tax between 20 per cent to 30 per cent of profits exceeding a 10 per cent margin. Photo: Shutterstock
China economy

China says it will continue to work for ‘fairer’ global minimum tax rate

The plan is being driven by the G20 and OECD and could make it harder for the likes of Apple, Google and Facebook to avoid paying tax in their home countries.

The scheme is intended to ensure firms pay minmum rate of 15 per cent. Photo: Shutterstock Images
China-Asean relations

New global tax regime seen pushing ‘exposed’ Asean nations closer to China

A 15 per cent minimum corporate tax has been hailed as a way to improve the fiscal positions of countries hit hard by the pandemic, but it could be years before tangible results are seen.

7
Hong Kong economy

Will Hong Kong remain Asia’s No 1 tax haven after new global reform?

A new proposal for a global minimum tax is being scrutinised by businesses in Hong Kong, where a range of concessions allow some companies to lower their effective rate below 15 per cent.

videocam
28
Inside Out & Outside In

Inside Out | Why the new global tax regime is unlikely to be clear, simple or good

Meant to extract more tax from the world’s richest multinationals, the proposed tax rules are already being strangled by talk of caveats and carve-outs. In short, the new rules would probably make little difference to total government revenues.

videocam
Italy’s Minister of Economy and Finance Daniele Franco stumbles after his speech at a G20 press conference in Venice on July 9. Global tax reform was at the top of the G20 meeting agenda as the world’s biggest economies seek to ensure multinational companies pay their fair share. Photo: AFP
G20

G20 to warn of coronavirus risks amid ‘great divergences’ in recovery

A Group of 20 draft statement says policymakers are far from ready to give the all-clear signal on the pandemic and pledge ‘to use all available policy tools for as long as required’

Daniele Franco, Italy's Minister of Economy and Finance, stumbles after his speech during a press conference on Friday at the G20 finance ministers and central bankers meeting in Venice. Global tax reform is at the top of the agenda as the world's biggest economies seek to ensure multinational companies pay their fair share. Photo: AFP
Brexit

Holdout Ireland faces mounting pressure to embrace global tax-reform plan

With its relatively low 12.5 per cent corporate tax, Ireland does not want to lose out on foreign direct investment by agreeing to impose a 15 per cent tax on multinationals, but analysts say it might have little choice in the end.

China economy

Why is China backing global minimum tax overhaul?

While important details need to be hammered out, China appears to have put aside any major reservations to support a minimum global tax rate of at least 15 per cent.

videocam
16
Advertisement
Advertisement
Advertisement
Help preserve 120 years of quality journalism.
SUPPORT NOW
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement