Deal Reached On Global Minimum Corporate Tax Rate Of At Least 15%

[JackAlabama]

If tax is not reason , I like to live in Nordic countries.
Only reason people choose to live in Dubai is Tax reason or some criminal Background.
Without Tax saving there is no benefit of Living in Dubai.
It become boring here. And who want to live in monarchy ruled country.

Somehow Government also know this.
That's why there is no chance that UAE impose or sign any treaty for Personal Income tax

Besides these points.
Dubai is quite nice city. It has quite an Asian vibe due to so many Asians working there and I think sometimes I am in Bangkok or Manila, but with all the crap/noise/dirt/hustle inherent to these cities.
I wonder how the perception will change when I live there for months to no end but I assume it to be similar to having lived in asian cities.
Nordic places have harsh weather and the people tend to be cold/standoff-ish whereas Dubai is a melting pot and many are immigrants.

 

[JackAlabama]

I thought the same about FATCA and CRS but here we are .

Does China/HK and Russia really report under CRS? They say so but in practice I wonder if anyone has first hand knowledge about that.

 

[BlueMist]

Only reason people choose to live in Dubai is Tax reason or some criminal Background.
Without Tax saving there is no benefit of Living in Dubai.
It become boring here. And who want to live in monarchy ruled country.

The truth is that majority of the residents here have no other option. The salary gap between here and their home countries can often be x5 or x10. And this is not only Pakistan, India, Bangladesh, Philippines, Egyptians. Such salary disproportions are also present in Central Europe. A qualified Western educated nurse can earn 5x more than what she gets in Poland for instance. There is no way Egyptian non surgeon doctor will earn $12k per month in Egypt, more like $2k if he is lucky. Talk to Egyptians professionals and you will immediately realize, they would come back to Egypt immediately if they would be able to earn 50% of their UAE salary. Problem is they are not able.

 

[JackAlabama]

The truth is that majority of the residents here have no other option. The salary gap between here and their home countries can often be x5 or x10. And this is not only Pakistan, India, Bangladesh, Philippines, Egyptians. Such salary disproportions are also present in Central Europe. A qualified Western educated nurse can earn 5x more than what she gets in Poland for instance. There is no way Egyptian non surgeon doctor will earn $12k per month in Egypt, more like $2k if he is lucky. Talk to Egyptians professionals and you will immediately realize, they would come back to Egypt immediately if they would be able to earn 50% of their UAE salary. Problem is they are not able.

Good points. And the other high salary places can be hard to immigrate to. Singapore become tough and Europe from non-Europe origin is quite hard to immigrate.

Also since 2020, Singapore, Hong Kong is tough to get in and Asia suffers from the covid paranoia quite a lot and they hammer quarantaine left and right. Europe is also pretty closed for any non-European. Panama is also meh with new curfews instituted the last days.
So Dubai stands out here.

 

[Goodman]

I thought the same about FATCA and CRS but here we are .

Look, CRS is about information exchange of foreign account holders and doesn't affect residents inside country and doesn't oblige residents to any payments, but when it's about real money tax, things may get different, of course globalists are trying everything, they have a lot of puppet states joined together, but I predict their plans will not work, because non G7 states are developing fast, G7 states are degrading and just trying catch whatever people and companies they can, I think it will fuel organised opposition and will work other way they think

 

[troubled soul]

Look, CRS is about information exchange of foreign account holders and doesn't affect residents inside country and doesn't oblige residents to any payments, but when it's about real money tax, things may get different, of course globalists are trying everything, they have a lot of puppet states joined together, but I predict their plans will not work, because non G7 states are developing fast, G7 states are degrading and just trying catch whatever people and companies they can, I think it will fuel organised opposition and will work other way they think

Can not agree more .
CRS does not effect UAE economy.
If you impose tax UAE will badly effected.

Thanks

 

[Martin Everson]

Look, CRS is about information exchange of foreign account holders and doesn't affect residents inside country and doesn't oblige residents to any payments, but when it's about real money tax, things may get different, of course globalists are trying everything, they have a lot of puppet states joined together, but I predict their plans will not work, because non G7 states are developing fast, G7 states are degrading and just trying catch whatever people and companies they can, I think it will fuel organised opposition and will work other way they think

Wishful thinking at best unfortunately. Greater than 15% corporate tax is what majority of countries have already. So not sure why they would be opposing such a tax rate that has zero impact on them . The only people that will be affected is zero tax countries hence a couple of Gulf states and some Caribbean islands which hold zero sway in the global order...lol.

 

[troubled soul]

Wishful thinking at best unfortunately. Greater than 15% corporate tax is what majority of countries have already. So not sure why they would be opposing such a tax rate that has zero impact on them . The only people that will be affected is zero tax countries hence a couple of Gulf states and some Caribbean islands which hold zero sway in the global order...lol.

Love to do Healthy Debate
Why G7’s global minimum corporate tax won’t work

Why G7’s global minimum corporate tax won’t work

The Group of 7 rich nations has agreed on a new global framework for ending low-tax havens by having a minimum corporate tax of 15%, and by sharing the excess profits of the 100 largest...

timesofindia.indiatimes.com

 

[Martin Everson]

Love to do Healthy Debate

Healthy debate is always good as there nothing worse than being in an echo chamber of one opinion .

Ok so his argument in article is it won't work because India offers tax breaks and he is not sure how it can be enforced anyway . Well we don't have the text of any agreement to answer this so devil will be in the detail of such an agreement.

More important is to understand that the headline tax rate of 15% does not mean much when most companies can delay every showing a profit for years like Amazon used to do. They will just simply re-invest earnings and can make their profits zero and effective tax rate zero....lol.

 

[backpacker]

most companies can delay every showing a profit for years like Amazon used to do. They will just simply re-invest earnings and can make their profits zero and effective tax rate zero....lol.

This is the most interesting part. Think the so-called Estonian model which has been copied by quite a number countries. It is even more harmful than simple re-investing. And this is a tax model initiated by an EU member state ....

 

[Silvio]

This is the most interesting part. Think the so-called Estonian model which has been copied by quite a number countries. It is even more harmful than simple re-investing. And this is a tax model initiated by an EU member state ....

Not exactly the same

Estonian model = you pay tax only on DISTRIBUTED dividends, but not on profits
Amazon model (or Uber\Dash\Palantir\etc) = you re-invest the profits into the business so you don't make any profit therefore there is nothing to tax you on

 

[22kay]

But isn't the whole point to receive dividends...? If a corporation has no profit, no dividends are paid out, so why have stocks in that company?

 

[jjrapy]

But isn't the whole point to receive dividends...? If a corporation has no profit, no dividends are paid out, so why have stocks in that company?

Not necessarily, you also get a profit from capital appreciation and then you sell the stock or part of your shares.

 

[22kay]

Yes, of course, but if you sell the share...you would need to buy new shares...and sell...and buy...

With dividends you just buy more shares and thus more dividends is generated - which seems to me be the easier way to passive income.

 

[jjrapy]

Yes, of course, but if you sell the share...you would need to buy new shares...and sell...and buy...

With dividends you just buy more shares and thus more dividends is generated - which seems to me be the easier way to passive income.

theoretically yes. It depends on your strategy’s approach. You have bonds and CD’s as passive income too.
But your reasoning is limited by the numbers of shares available, otherwise everyone will be doing the same and the business will keep issuing shares infinitely?
If the company doesn’t pay dividends but rather reinvest in itself, the number of your shares doesn’t increase but the value does. So it’s almost the same you will get by buying more share with the dividends. There is some literature that shows market returns are composed of capital appreciation+dividends, being capital appreciation responsible of I think it was 70-80% of the market returns historically.
Unless you have to use the dividends for daily expenses, that’s another history.
For someone with a buy-hold strategy makes sense, because you will start to sell your portfolio at your retirement.
Maybe for your case won’t make sense but at the end it’s all subjective.

 

[backpacker]

Not exactly the same

Of course, it is not exactly the same.
I compared two models which are perceived to be harmful in the context of this discussion.

 

[Martin Everson]

Ok we got too far off topic. Lets get back to thread subject

 

[Vampp]

Oh damn, just when I thought things can't get any shittier.

 

[troubled soul]

True, But Global Tax big country have problem for single tax.
Big country will not accept some term and condition of each other.
It takes time.
Do you think Putin agree with US term and condition ?
US impose restriction ban on Russia and Iran . They are still working.
In past US impose sanction on so many country. I do not see any country have significant loss for long term By this type of sanction.
I find US sanction is some kind of joke now a day.
There is no serious damage by imposing sanction.
It just satisfy ego of US politician. and they can brag "Who is your daddy".

In internet Age, If you are biggest country , biggest army all kind of money , power etc.
But It is hard to find one person hide in Mountain It takes 10 years to find one man.
You know who I am talking about.

I believe making Law is easy task. implementation is hard.
By Imposing Global minimum tax does not give guaranteed that big corp like Apple, Amazon, Google starting paying huge tax.
They will find one another way to save tax.

I am sure that without using any offshore entity , Only using USA entity , some strategy You can minimize your tax.

It is like forever going on cat-mouse fight.



Thanks

The government decided to ban sharing banking secrets with foreigners

Правительство решило запретить делиться банковской тайной с иностранцами

Банки по этому закону будут обязаны сообщать о запросах из-за рубежа об их клиентах в Росфинмониторинг и Центробанк. Удовлетворять запросы из-за границы они смогут только в случае их соответствия законам России

www.rbc.ru

Russia Decide to not to give details of bank account.
Tax is different things.
Putin

China’s Likely Bid for Tax Exemption Poses Risk to Global Accord

China’s likely exemption requests from the G7 tax deal could act as a barrier in reaching global consensus on the accord.

www.bloombergquint.com

China as not easily signing on to the global minimum tax
China and Russia is on its path to becoming next Tax Heaven , who knows?
Hong Kong is already ?


I really support china on this "China says small groups do not rule the world"

G7 forget about BRICS
BRICS - Wikipedia

BRICS country does not support .

Russia = President Vladimir Putin
India = Prime Minister Narendra Modi
China = President Xi Jinping


Modi, Putin and Xi are the most popular and ruthless leader in history of their respective country. You can check their profile. Their approval rating are sky high. There is an ego issue here you see.
Nobody can impose anything on them.

 

[jjrapy]

So brics will make their own economy
Maybe Rusia and China are powerful enough. The others highly doubt: Brazil India and south Africa