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Hi folks,
to reduce my workload by anserwing all the time the same question about the Global Minimum Corporate Tax of at least 15% - I want to answer this question one time in a thread.
What does this mean about our Dubai Free Zone companies and their 0 % taxation? Should we be worried?
->NO!
New minimum tax rate would apply to companies with annual revenue of more than 750 million euros ($866 million)+
Also, it doesn't mean that all companies with revenue over 750m eur have to pay 15 % tax. This rule is only for multinationals and affects how they can move profits between countries.
Also, it is not yet clear if this 15% is legally achievable in a lot of countries.
Funny detail is that countries that signed it had to revoke their digital taxes on the big tech companies, and that there is a 10 year transition period. I get the idea that this was mostly done to get the digital taxes revoked with big tech companies lobbying in the US, and therefor they came up with this plan and socialist Europe fell for it, there is one actually going to pay this tax, they will find ways to get around it if it is even put into place.
Very easy to Make, Rules very hard to implement it.
People will find loop holes this scheme.
For the two country agree on some common minimum ground are hard. What to say about 180 counties.
Most country runs on crony capitalism, tech company different story but For tradition company .
I do not think they will pay 15%. or even 1%.
