bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 21.05.2018 | Name days: Ingmārs, Ernestīne, Akvelīna

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

Week in Lithuania. Liberal Movement to turn to court over VSD statements

The board of Lithuania's Liberal Movement has decided to turn to court over information published by the State Security Department, allegedly damaging the party's reputation.

BNN summary of the week: distorted state administration, Liepājas metalurgs recovery, and Latvia unemployment level

BNN offers a summary of this week’s topical news in a variety of categories: Change; Growth; Business; Fight; Future; Opinion

New approach to combating drunk drivers – forced correction programme

Latvia’s Justice Ministry reports that the administrative penalties reform proposes introducing stricter punishments for drunk drivers. If a person is caught drunk driving, their license would be confiscated. On top of that, to recover the license, that person would have to pass a social correction programme.

Latvian MEP to «cause a scandal» where he can to stop school reform

Members of the European Parliament Andrejs Mamikins and Miroslavs Mitrofanovs have gathered support from 114 of their fellow MEPs to request the Latvian government and Saeima to review the already approved amendments to the Education Law and General Education Law that govern realization of the national minorities’ school reform, as confirmed by Mamikins.

Germany criticises U.S. attempts to block Nord Stream 2 gas pipeline

As to the controversial Nord Stram 2 Russian gas pipeline via Baltic sea to Germany, the German Economy has evaluated that American attempts to block it could be aimed at increasing U.S. a planned Russia-Germany gas pipeline to increase its own energy exports.

Number of complaints about taxi services at Riga International Airport on a rise

The number of complaints about taxi services at Riga International Airport continues to increase, said the airport’s board chairperson Ilona Līce in an interview to 900 seconds programme of LNT.

Ryanair sees Estonia as important market, considers local hub option

Irish low-fare airline Ryanair considers Estonia an important market, the firm's chief executive Michael O'Leary noted while visiting Tallinn earlier in the week.

Minister: UN should act to call violators of international law to justice

«The United Nation Security Council, as the main institution maintaining peace and security, has a special responsibility, because its activities affect compliance with international law,» says Latvia’s Foreign Affairs Minister Edgars Rinkēvičs.

Banks to report private persons whose account turnover exceeds EUR 15,000

From 18 May onward, banks will have to report private persons whose annual account turnover exceeds EUR 15,000, as provided by the Cabinet of Ministers’ supported order, under which the State Revenue Service is to be provided with information about a private person’s turnover and balance.

Baltic States request expanding NATO’s battalion with air and naval forces

Baltic States plan to request expanding international NATO battalion with air and naval forces, as confirmed by Lithuanian Foreign Affairs Minister Lino Linkevičiaus, who met with US President’s National Security Advisor John R. Bolton in Washington alongside his Latvian and Estonian colleagues.

Poland uncovers Russian hybrid war networks

Poland has detained a Russian national suspected of working with accomplices to stimulate social tension with neighbouring Ukraine and neutralised two Russian hybrid war networks, the Polish Internal Security agency has stated.

Weather in Latvia to remain moderately warm in Latvia; precipitation to be low

On Friday, 18 May, some areas of Latvia will experience thunderstorms. However, starting from the end of the week, weather will become dry again with little precipitation. Rain cloud will form above Latvia in the second half of the week, as reported by Latvian Environment, Geology and Meteorology Centre.

Construction output rise in Latvia was more rapid than EU’s average level in Q4 2017

Compared to last year’s October-December, Latvia’s construction output in Q4 2017 grew 19.9%, which is a much more rapid rise than the average in the European Union, according to data published by Eurostat on Thursday, 17 May.

Latvian Saeima’s committee does not support Kušners’ re-approval in Bank of Latvia council

On Thursday, 17 May, Saeima’s Budget and Finance Committee decided not to recommend Edvards Kušners for a repeated term in the council of the Bank of Latvia.

Control Service Chief: wages in the service should be twice as large

Wages in the Anti-Money Laundering or Control Service should be equal to what is paid to people working in the Finance and Capital Market Commission, so twice as large as it is now, said Control Service’s Chief Ilze Znotiņa in an interview to Ir magazine.

SEB Bank’s factoring portfolio up 41% in the first quarter of 2018

In addition, similar to the volume of goods and services of Latvia’s exporting companies, which had increased unexpectedly rapidly in Q1 2018 – by 15%, there has also been a significant increase for the number of factoring deals.

Latvia experienced a rapid increase in registration of new cars in January-April period

In the first four months of 2018, Latvia has experienced a more rapid increase of newly registered cars than the average in the European Union, according to information from European Automobile Manufacturers' Association.

In Slovak Kuciak's investigation, phone of his colleague journalist confiscated

As Slovak law enforcement continues to investigate the murder of Ján Kuciak, prosecutors have confiscated the smart phone of a colleague of the investigative journalist – a move condemned by the country's media organisations.

Nurses’ wages up 50-70%, but still far from competitive

Wages of nurses of Pauls Stradins Clinical University Hospital have grown 50-60%. However, there is still a long way to go before they become competitive, said Stradins Hospital’s head nurse Eva Cela in an interview to Latvijas Radio.

Head of powerful Seimas committee: certain media outlets can be stripped of licenses

In a new twist of the prolonged scandal over the influence of the powerful business holding MG Baltic on Lithuania‘s politics for years through its own television channels LNK, BTV, TV1, Info TV and Liuks!, Vytautas Bakas, chairman of the powerful parliamentary Committee on National Security and Defence in a TV interview poured gasoline on the fire, proposing that certain media organisations acting against the state's interests must have their licenses revoked.

Second Rail Baltica railway line construction project announced in Latvia

Continuing the realization of activities associated with Rail Baltica project, RB Rail has announced the next procurement process, as confirmed by the company.

Tartu railway fire partly stops trains at Estonian second city

In Estonia, railway traffic to an from the city of Tartu has partly stopped and been substituted with buses after a signal box fire.

Coface: signs in business sector point towards economic decline risks

There is currently a rather optimistic situation across all business sectors and the country’s economy as a whole. However, considering the positive environment, the question for how long this period of economic growth will continue remains topical, notes international credit risk insurance company Coface manager in Baltic States Mantvīds Štareika.

Argentine prepares for Russia with advice to approach «Russian girls»

«How to stand a chance with a Russian girl» - the Argentine Football Association has been criticised for giving such advice in a manual to journalists travelling to the football World Cup in Russia.

KPV LV: Latvia has too many industry councils, which distorts state administration

Latvia has too many industry councils, which distorts state administration. The coalition council should be liquidated entirely, says KPV LV co-chairman Atis Zakatistovs.

Newest comments