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BEPS shifts focus to business incentives

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EY’s Outlook for global tax policy in 2017, which combines insights and forecasts from 50 countries worldwide, finds that of the 50 countries surveyed, 30% intend to invest in broader business incentives to stimulate or sustain investment, including generous research and development meas

EY’s Outlook for global tax policy in 2017, which combines insights and forecasts from 50 countries worldwide, finds that of the 50 countries surveyed, 30% intend to invest in broader business incentives to stimulate or sustain investment, including generous research and development measures.

Eight countries, seven of them in Europe, confirm that laws are now in place that will drive lower corporate income tax rates this year.

Eleven countries forecast a higher business tax burden overall in 2017, driven by increasing tax enforcement and new transfer pricing rules under the OECD’s BEPS guidelines. Specific factors include:

  • 7 countries cite the tightening of controlled foreign company rules;
  • 8 countries cite interest deductibility changes;
  • 7 countries cite hybrid mismatch rule changes.

Nine jurisdictions forecast a higher indirect tax burden, as the worldwide spread of VAT and GST continues and technology is adopted more widely by tax administrations.

See https://go.ey.com/2oyiZWP.

Issue: 1352
Categories: News
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