An agreement by wealthy nations aimed at squeezing more tax out of large multinational companies could hit some firms hard while leaving others - including some of the most frequent targets of lawmakers’ ire - relatively unscathed, according to a Reuters analysis.
The Reuters review of corporate filings by Google-owner Alphabet Inc suggests the company could see its taxes increase by less than US$600 million, or about 7per cent more than its US$7.8 billion global tax bill in 2020, if both proposed measures were applied. Google is among the companies that some lawmakers have criticized as paying too little tax.
The proposed rules themselves also face hurdles. In the United States, several top Republican politicians have voiced opposition to the deal. Details of the agreement are also due to be discussed by the wider Group of 20 countries next month. Applying that formula to Google could result in as much as US$540 million in additional taxes, according to the Reuters analysis.
The exact impact on each company’s tax bill would depend on how much income is actually reallocated. Also at issue is which country the profit is moved from and to - and therefore what the increase in tax rate is. If all the reallocated profit comes out of zero-tax jurisdictions, the impact could be greater.U.S. and UK officials say the other measure, involving a 15per cent global minimum tax, will have a bigger total impact on how much in taxes governments collect.
Excluding the impact of the first proposed measure, increasing the tax rate on overseas income to 15per cent would mean US$45 million of additional tax.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
Source: YahooSG - 🏆 3. / 71 Read more »
Source: YahooSG - 🏆 3. / 71 Read more »
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »