March 7, 2014 Taxation in China
BEIJING – Low income earners in China may soon feel some financial reprieve, as the government mulls raising the tax free threshold and giving some concessions for unavoidable personal expenses.
In a press conference held during the annual National People’s Congress on March 6th, the Finance Minister of China Lou Jiwei revealed that the government is currently looking at the possibility of changing the current regulations of personal income taxes, to fairly reduce income inequality in China.
Lou Jiwei indicated that one of the key changes under consideration at the moment by the government of China is raising the tax-free threshold on personal incomes from RMB 3 500 per month to as much as RMB 5 000 per month.
However, the Finance Minister specifically noted that an increase of the thr...Read More
March 6, 2014 International Tax Cooperation
WASHINGTON D.C. – The IMF is looking into how the tax policies of different countries can potentially interact to unintentionally facilitate tax evasion, aggressive tax planning, and excessive profit shifting.
On March 3rd the International Monetary Fund announced that it has launched a public consultation to be run over the course of this month on the topic of spillovers in international taxation, and is now calling for input from governments, academic researchers, think tanks, and from the private sector.
The consultation will address the issue of international tax evasion committed by wealthy individuals, and the common practice of multinational corporations to exploit the loopholes arising from the differences between the tax regimes in various jurisdictions.
Launching the new consul...Read More
March 5, 2014 Taxation in Hong Kong
HONG KONG – The cost of social programs in Hong Kong will inevitably rise over the next 30 years, and the government should implement tax changes now to be ready to support the ageing population.
On March 3rd a working group, set up by the government of Hong Kong in July 2013, released its anticipated report on the potential directions for economic and fiscal development of the territory over the next 30 years, and on the tax and administrative changes which need to be implemented to facilitate such plans.
The report indicated that after 2018 the economic output of the special administrative region may begin to diminish as the combined effects of an ageing population and local housing constraints put a limit on the effective workforce, and this process will put additional pressure on alr...Read More
March 4, 2014 Taxation in EU
LONDON – A new study into fuel duties in the EU has shown a disparity in taxation between different countries, with the UK leading the pack as one of the hardest taxed in the region.
On March 3rd the UK based non-government organization RAC Foundation released a new report detailing the taxes and duties on the retail sale of petrol and diesel fuel in the countries of the EU.
According to the information in the newly published report, the highest tax burdens on diesel fuel in the EU are faced by motorists in Sweden, the UK, and the Netherlands, where taxes and duties make up 62 percent, 61 percent, and 61 percent of the retail price of fuel, respectively.
Correspondingly, the highest taxes on petrol are indicated to be the in the UK, Sweden and Italy, with respective rates of 59 percent, 5...Read More