Corporate Taxes take Center Stage
Kitty Miv, Editor
18 September, 2021
There have been a number of strong words and bold moves recently in the area of corporate taxation, starting with Puerto Rico, where the territory's Governor, Pedro Pierluisi explained that the authorities are studying a potential reduction to the corporate income tax rate.
Writing on Twitter, Pierluisi said that the Government had tasked a panel to study tax reform options to lower the burden for all businesses across all sectors of the economy and introduce a simpler system.
In comments published by the El Vocero newspaper, he further suggested that Puerto Rico would target a corporate tax rate below the 28 percent federal rate US President Joe Biden plans to introduce, down from the current rate for businesses in Puerto Rico of 37.5 percent.
In Uzbekistan, meanwhile, the Government revealed its plans for sector-specific support with a move to reduce the rate of corporate income tax for cement producers. From October 1, 2021, the rate of corporate income tax for companies producing cement will fall from 20 percent to 15 percent.
In Estonia, the focus was on the international rather than the domestic, with the Estonian Government having met with representatives from the OECD and the US Government to discuss the country's opposition to the OECD's proposals for international tax reform, announced earlier this year. Seven territories that are members of the BEPS inclusive framework have yet to put their name to the communication, including Estonia and also Barbados, Hungary, Ireland, Kenya, Nigeria, and Sri Lanka.
Estonia's Minister of Finance, Keit Pentus-Rosimannus, emphasized in the recent meeting with the US Secretary of Commerce, Gina Raimondo, and the Secretary-General of OECD, Mathias Cormann. that Estonia is seeking an agreement that accommodates Estonia's investment-friendly corporate income tax system, but that all parties involved hope to have reached a compromise by October, when an implementation plan for the OECD's international tax reform program is expected to be finalized.
Last but not least for this week, in Greece, the Government announced that it intends to make permanent the two percent reduction to the country's corporate income tax rate.
In April 2021, the Greek Government announced that it would lower the rate of corporate tax to 22 percent from 24 percent for the 2021 tax year. This will now be extended indefinitely.
Further, the Government has extended value-added tax reliefs until June 2022 for transport, alcoholic beverages, and admissions to entertainment venues, gyms, and dance schools.
Until next week!
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