Corporate Tax News

From 1 January 2024, MNCs establishing regional headquarters in Saudi Arabia can benefit from a 30-year tax incentive package, including an exemption from corporate and withholding tax. 

On the Pillar Two front, Canada’s 2024 federal budget reaffirms the government’s intention to implement the global minimum tax. Malta has transposed the EU minimum taxation directive into its domestic law and the tax authorities have issued guidance on the measures. South Africa anticipates a notable increase in corporate tax revenue from the rollout of Pillar Two rules. In an effort to offset any negative consequences of the global minimum tax, Singapore has announced a new refundable investment credit to encourage companies to make significant investments in key economic sectors and new growth areas. The Bytes column includes Pillar Two updates on the Czech Republic, Denmark, Estonia, Greece, Iceland, Isle of Man, Japan, Luxembourg, Poland and Sweden.

What types of activity create a taxable presence continues to be a vexing question for countries around the world. The Colombian government has released guidance on its significant economic presence rules that apply from 1 January 2024. A tribunal in India has ruled that the physical presence of employees or other personnel in India is essential to create a services PE and, in the absence of virtual service PE provisions in an applicable tax treaty, services provided remotely do not give rise to a virtual service PE in India. 

Learn about these developments and much more in Corporate Tax News.