Global Tax Overview 2020
Globalization has eradicated the barriers initially encountered by business that interacted between different jurisdictions. This has been fueled by the ever growing technology that is adopted across all the business sectors.Tax remains a core function that multi-national corporations have to consider while executing their business activities across the globe.
However, 2020 is marked by many countries carrying out comprehensive tax reforms in a bid to support the residents amidst the drastic Covid 19 pandemic. Taxes, rescheduling of government spending, with focus on the medical and food sector. Many countries have eased their fiscal stance in a bid to sustain the economy by lowering taxes, rescheduling of government spending, with focus on the medical and food sector.
Most countries in Africa rely heavily on tax revenue from a small number of multinational corporations. A small number of large taxpayers account for over 50% of the total revenue of Zambia, Swaziland, Nigeria, Mozambique, Liberia and Burundi. A lot of effort have also been made to broaden tax base and to continue the fight against corporate tax avoidance. However, in order to contain the spread of the covid-19 pandemic, many countries had to put in place new regulations that included travel bans and a series of curfews in different places. This has hurt many business entities that heavily rely on the market that is already shut down by the governments. As much as the countries are following the necessary protocols to open up their economy, many business corporations have already switched their model of operations by adopting the use of technology as a set precedence and efficiency.
Governments have put in measures to help businesses recover in this hard times. This has been seen through a series of donations and stipends offered to the individuals and businesses across the region.
Corporate tax reduction in countries.
|Country||Corporate Tax||Country||Corporate Tax|
|United Kingdom||From 19% to 17%||Columbia||From 33% to 32%|
|Australia||From 27.5% to 26%||Zimbabwe||From 25% to 24.5%|
|Belgium||From 29% to 25%||Kenya||From 30% to 25%|
|Greece||From 28% to 24%|
From 20% to 5%
From 21% to 6%
From 16% to 14%
From 24% to 6.5%
From 22% to 4%
Some of the VAT changes
Countries like Mauritius have had to revisit some of the pending double tax treaties. Recently, they signed the DTA with Kenya. This awaits Kenya to sign and agree on the same. Other countries that are revaluating their DTA’s include India.
There has been an increased consideration by many countries formulating new regulations to govern the taxation of the digital economy. Recently, Kenya joined the group.
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