Tax Reform tagged posts

Puerto Rico to Launch Tax Reform

February 12, 2015 Taxation in Peurto Rico

SAN JUAN – Puerto Rico is looking at introducing VAT, and using the newly collected funds to reduce income taxes and provide regular payments to low-income earners.

On February 11th the Governor of Puerto Rico Alejandro Garcia Padilla stated that the government will now consider enacting a significant tax reform in order to help boost the national economy, improve equality, and raise tax revenues.

The overhaul would revolve around the introduction of a Value Added Tax set at a rate of 16 percent, to replace the currently enforced sales tax at a rate of 7 percent.

It is believed that the change from sales tax to value added tax will remove some of the tax burden faced by individuals and place it on businesses, and would boost compliance levels from the currently estimated 56 percent to a l...

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Chile Approves Extensive Tax Reform

September 11, 2014 Taxation in Chile

CHILE – The government of Chile will use an array of new tax hikes to fund universal free education in the country.

On June 11th the Congress of Chile voted on and approved a new tax reform bill, which will raise taxes and provide funding for new projects aimed at reducing inequality in the country.

Under the conditions stipulated in the reform bill, the government will drop the current Taxable Profits Fund, which allows companies to obtain tax credits for reinvesting their profits.

Corporate tax system will also be overhauled, with companies now given the option of either paying 27 percent corporate income tax, with the ability to claim limited tax deductions for reinvesting some profits into pre-approved activities, or the alternative choice of paying a headline rate of 25 percent on cor...

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Caution Urged on Tax Reform in Philippines

September 4, 2014 Taxation in Philippines

Tax Reform in PhilippinesMANILA – While it is agreed that taxes in the Philippines are growing too fast, caution has been urged on implementing any tax cuts, as the reduction may cause significant revenue drops.

On September 3rd the undersecretary of the Department of Finance of the Philippines Jeremias Paul urged the members of the national House Ways and Means committee to re-examine and take a holistic approach to any tax reforms to be enacted in the country, claiming that the currently proposed round of income tax rate reductions may significantly reduce the country’s GDP.

Jeremias Paul claimed that if income tax rates were reduced, as is currently proposed, the loss in revenues would amount to between 0.3 percent and 1.5 percent of the national level of GDP.

The undersecretary’s comment come only days afte...

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Chile Approves Tax Reform

May 16, 2014 Taxation in Chile

tax reform in chileSANTIAGO – Chile is stepping closer to implementing an extensive tax reform to help raise funds needed to improve the national education system.

In a vote held on May 14th the lower house of Congress has given its approval to a proposal to extensively overhaul the national tax system, ultimately aimed at raising more tax revenues to fund new social programs and welfare measures.

The reform of the tax system is aimed at helping the government raise tax revenues by approximately USD 8.2 billion, with a significant portion of the new funds already earmarked to fund a complete overhaul of the national education system.

As part of the overhaul, the lower house approved an increase to the rate of corporate income tax rate from 20 percent to 25 percent by the end of 2017, along with the closing ...

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Australia Needs Tax Reforms

April 15, 2014 Taxation in Australia

Taxes in AustraliaSYDNEY – The tax burdens faced by Australian will continue to rise disproportionately, unless the national government moves to update and reform current tax regulations.

On April 14th PricewaterhouseCoopers Australia (PWC) released a new report demonstrating the immediate need for tax reform to stabilize the current economic environment and to prevent the negative effects of any further long-term decline in tax revenues.

In its newly published report, PWC underlined that, while Australia has demonstrated strong economic resilience over the last two decades, there are now indications that this growth is already tapering off and losing momentum, with no evidence that the diminishing pattern will be reversed.

According to projections completed by PWC, if the current levels of growth of ...

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