bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Tuesday 21.02.2017 | Name days: Eleonora, Ariadne

Corporate income tax continues to decline worldwide

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIt is expected that the trend to reduce corporate income tax will continue around the world in 2016. Other tax rates, like those of VAT, will remain largely unchanged. There is a tendency noted for PIT to increase as certain countries continue recovering from the financial crisis, according to results of EY The Outlook for Global Tax Policy in 2016.

Significant changes are expected for the corporate income tax field – 7 out of 38 surveyed countries plan to reduce their standard CIT rate. For example, CIT rate in Norway is set to reduce from 27% to 25%, in Israel – from 26.5% to 25%, in Denmark – from 23.5% to 22%. Spain is expected to experience the most rapid decline this year – from 28% to 25%. One of the countries included in the survey – India – plans to increase the corporate income tax rate from 33.99% to 34.608%.

«We see that developed economies still want to establish more competitive tax systems and retain tax revenue – we currently observe the tendency for governments to slightly reduce CIT and the general tax burden, expanding the taxable income base at the same time. In Latvia’s case it is worth keeping in mind that the established 15% corporate income tax rate is already lower than rates found in developed economies. Another trend noticed among large economies is to reduce indirect and PIT tax rates,» – says EY partner in Latvia Ilona Butane.

In total, 34% of countries assessed by EY plan to reduce CIT, 45% of countries plan to keep CIT at its current level and 18% of countries plan to increase the tax rate this year. EY researchers note that this year’s reduction of CIT is higher than those of 2015 and 2014, when the general CIT rate decreased 16% and 26% (as opposed to 34% this year).

None of the 38 countries surveyed by EY have any plans to reduce the standard VAT rate this year. In addition, eight of the countries added to the list have plans to increase the general VAT burden in relation to the expansion of the range of taxable income.

Only two countries – Hungary and Norway – plan to reduce PIT this year. Canada, Malaysia, Mexico, Singapore and South African Republic have either already increased or plan to increase PIT this year.

EY’s survey included USA, Australia, Belgium, Brazil, Czech Republic, South Africa, Denmark, France, the Philippines, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Japan, New Zealand, Canada, China, Cyprus, Russia, Great Britain, Luxembourg, Malaysia, Mexico, Netherlands, Norway, Poland, Singapore, Slovakia, Spain, Switzerland, Taiwan, Thailand, Hungary, Germany and Vietnam.

Ref: 102.109.109.7835


Leave a reply

India’s second city outlaws disposable plastic

In Deli, India, which is home to over 16 million people, disposable plastic, including bags, cups and cutlery, has been banned.

Criminal process launched in relation to aircraft sliding off runway at Riga airport

Latvian State Police has launched a criminal process in relation to the incident that took place at Riga International Airport involving Vim Airlines aircraft.

Residents: situation with Latvia’s security and state defence has improved

Latvian residents’ concerns over state security have reduced, as noted in a study by SKDS ordered by Defence Ministry.

Estonian prime minister suggests giving citizenship to long-term residents

Non-citizens who have been living in Estonia for more than 25 years should be given citizenship, said Estonian Prime Minister Jüri Ratas in an interview to LTV programme De Facto.

Survey: residents intentionally try to pick services of small businesses

64% of Latvian residents intentionally try to pick services provided by small businesses, according to results of a survey performed by Swedbank Institute of Finances.

VAT reverse payment proposed for construction sector to combat grey economy

Representatives of the Cabinet of Ministers Grey Economy Combating Council, social and cooperation partners have reviewed the State Institutions’ work plan for limiting grey economy in 2016-2020. 60 specific goals were added to the project plan. Realizing those goals will help reduce grey economy to the average level across the EU by 2020.

Futuristic six-minute ride suggested for proposed Tallinn-Helsinki tunnel

As Estonia and Finland continue to discuss chances of building a transport tunnel under the Baltic Sea that would connect their capitals, an American company has suggested its solution that would ensure close-to-unbelievable maglev ride of six minutes for the 50 km distance.

Nekā Personīga: Harmony's influence – wife’s post in Live Riga taken by mother

After Saeima deputy Sandris Bergmanis wife left her post in Riga Tourism Development Agency’s Live Riga office left for a maternity leave, her place was quickly taken by Bergmanis’ mother, Nekā Personīga reports.

DNB: signing contracts with the bank over Skype will be a reality

By using Skype, the bank’s clients – private and legal persons – will be able to remotely receive all kinds of services: from informative consultations to signing of contracts, BNN was told by DNB Bank.

US Vice-President: we cannot imagine better allies than Baltics

Cooperation between Baltic States and United States of America remains strong, said Latvian President Raimonds Vejonis after his meeting with Baltic presidents and US Vice-President Mike Pence.

Kremlin opponent on way to recovery from suspected poisoning attack

To recover from possible poisoning attack, prominent Kremlin critic Vladimir Kara-Murza has left Russia to undergo rehabilitation treatment.

Rain and snow expected in Latvia this week

A wide low-atmospheric pressure area is currently found above Northern Europe. It will dictate weather conditions in Latvia this week: the sky will remain cloudy and precipitation will come often, as reported by the State Environmental, Geology and Meteorology Centre.

Ceasefire supposed to start in eastern Ukraine

According to an international agreement reached over the weekend in Munich, a ceasefire should start on Monday, February 20, in the Donbas war raging in eastern Ukraine.

Providus: parties delegate lesser-known members for municipal elections

Although it is currently unclear how many Saeima deputies will be taking part in municipal elections, the reason for such a step could be Saeima’s desire to realize its ambitions on a municipal level, says Providus researcher Iveta Kazoka.

Week in Lithuania: Armed Forces to offer diets for vegetarians

Following criticism over diet for vegetarians serving in Lithuania's Armed Forces, alternative menus have been worked out.

BNN summary of the week: higher wages, monopoly in Riga, no spanking in Lithuania

BNN offers a summary of this week’s topical news in a variety of categories, including change, business, fight, truth, growth and future.

KHL team was on board the aircraft that slid off runway at Riga airport

On Friday, 17 February, an incident involving Vim Airlines charter flight from Ufa took place at Riga International Airport. The aircraft slid on the runway before take-off.

List of Latvia’s most desired employers is unveiled

Latvenergo remains Latvia’s most desired employer for the fifth consecutive year. Latvijas Mobilais Telefons is on the second place and Rimi Latvia is on the third, according to results of a survey performed by cvmarket.lv.

Yield of cereals declines due to unfavourable meteorological conditions in Latvia

716.0 thousand hectares of land were covered with cereals in 2016 – 43.6 thousand hectares or 6.5 % more than in 2015, leading to the largest cereal cropland area observed since 1984.

Waze: Latvia is the seventh best country for driving a car

Latvia is the seventh best country in the world for driving a car, according to results of Waze’s Driver Satisfaction Index.

Largest expenses for Latvia’s birthday – funding for children to experience Latvia

The Latvian school bag is the biggest present to Latvian schoolchildren for Latvia’s 100th birthday, said Prime Minister Maris Kucinskis at a press-conference. EUR 13.5 million is planned to be allocated for the education programme. As part of it, children will be able to study outside of schools to learn about important affairs in Latvia.

Indian entrepreneurs to build pharmaceutical factory in Estonia

Pharmaceutical firm Bravo Group from India has announced plans to soon construct a pharmaceutical factory in Estonia.

Aircraft slides off runway before take-off at Riga International Airport

On Friday, 17 February, an incident took place at Riga International Airport involving Vim Airlines aircraft slid on runway before take-off.

Nordea and DNB bank hopes to become notable in Baltic pension segment

The newly-formed Nordea and DNB bank wishes to become an important player in the pension segment, the bank’s CEO Erki Razuke mentioned in an interview.

Cargo volumes in Estonian ports drop by third January-on-January

The amount of cargoes handled at Estonian ports managed by the state port company Tallinna Sadam has fell by 38.7% comparing January 2017 to January 2016.

Newest comments