Deloitte tax partner Vicky Wang addressed the impact of global minimum tax rate on Biztalk
International and M&A Tax Leader, Vicky Wang, has been invited to a Biz Talk hosted by CGTN recently on the global minimum tax rate. She commented during the interview:
One way or another, there will be a minimum tax globally. For those jurisdictions that join the program but still have to use tax incentives as a way to attract foreign investment due to for example scarce resources or lack of talents, they could still give incentives such as collecting the minimum tax first and then giving it back in the form of subsidies.
Some tech giants are supportive as they have been publicly criticized in the past and facing compliance burdens around the world on unilateral tax measures, e.g., digital services tax. If the world comes together and eliminate those unilateral taxes as a result of the globally agreed minimum tax, perhaps it is indeed a a relief for those tech giants.
Companies headquartered in Hong Kong or Singapore that have genuine business needs to operate there will continue to do so as tax is only one of the reasons amongst many other attractive factors.
Where does this 15% come from? What is the outlook of the impacts from the proposed min tax regime? Check out more what the panellists have to say during the interview.