Global Scans · Tax · Weekly Summary

• [New] Budget 2024 will continue to cut taxes for Canada's growing small businesses by gradually phasing out their access to the small business tax rate. Canada Coop
• [New] Other taxes were announced including a digital services tax and a global minimum tax of 15% on the profits of large multinational corporations, which could lift revenues by $5.9 billion and $6.6 billion, respectively. financialpost
• [New] There were concerns that investments via Mauritius could face heightened scrutiny by tax authorities, including the potential coverage of past investments under the amended protocol. Mint
• [New] New arrivals will benefit from 100% relief on foreign income and gains for their first four years as a UK tax resident, and there will be transitional arrangements in place for current non-doms. The Guardian
• [New] Every year there's speculation that Ottawa could increase the capital gains inclusion rate, which is the amount of capital gains from the sale of investments subject to tax. The Globe and Mail
• [New] The risk of the EU losing new clean tech investment at a time when it's most needed has been compounded by the US Inflation Reduction Act, which includes $500 billion in new green spending and tax breaks over a decade. Fortune Europe
• [New] The eligible business income threshold for small business tax will remain at $600,000, which is the highest threshold in Canada. Government of Saskatchewan
• In Germany, individuals will have the power to change their legal name and gender designation through a simple registration process with the tax authorities. Gay Nation
• In fiscal year 2024-25, 60% of households in Alberta, Ontario, Saskatchewan, Newfoundland and Labrador, Nova Scotia, Prince Edward Island and Manitoba will pay more in carbon taxes than what they receive in rebates, after accounting for both direct and indirect costs of the carbon tax. The One Hundredth Monkey
• The latest adjustment in the carbon tax will see a uniform increase in fuel prices across Canada, except in provinces with unique carbon pricing systems. NetNewsLedger
• A border tax on food will see inflation soar and cause food shortages when it is introduced at the end of April. Yahoo News
• Beginning in 2024, a nuclear production tax credit included in the federal Inflation Reduction Act will provide nuclear generators with nine years of financial support through 2032. The Washington Post
• The UK could decide that it's going to synchronise its carbon markets and its carbon border taxes legally with the EU. Financial Times
• Even though a UK resident US taxpayer will not need to pay UK taxes, they can still benefit from the treaty (including, for example, the reduced 15% US withholding tax rate on dividends). CRS
• Staying in the UK for more than four years will subject their worldwide FIG to UK tax, and staying more than ten years will bring their entire worldwide estate within scope of UK inheritance tax. Mishcon de Reya LLP
• Capital payments made to UK resident beneficiaries of non-UK trusts who are not eligible for the FIG regime will continue to match to relevant income and gains within the trust structure and will be taxable at their marginal tax rates. IFC Review
• Temporary Repatriation Facility Individuals who have previously claimed the remittance basis will be able to remit previously accrued foreign income and gains to the UK during the 2025-26 and 2026-27 tax years and pay tax at a rate of 12%. IFC Review
• If foreign income or gains have been used to acquire an asset (assessable under the remittance basis regime) bringing the proceeds to the UK could trigger a UK tax charge. IFC Review
• Once a taxpayer has been UK tax resident in 15 out of the previous 20 tax years, they will be deemed domiciled for UK tax purposes and no longer able to claim the remittance basis of taxation. IFC Review
• The existing duty rates on road fuel gases, which are lower than the equivalent rates on diesel, will continue to 2032, giving the haulage industry greater certainty over future tax rates and supports the decarbonization of the UK transport sector. GOV.UK
• New hydrogen tax credits proposed by the Biden administration will further reduce the Skai's operating costs over time. FutureFlight
• Qualifying individuals will not pay tax on FIG arising in the first four tax years after becoming UK tax resident following a period of 10 tax years of non-UK tax residence. Global Compliance News

Last updated: 22 April 2024