The outlook for tax policy around the world
For all their cultural differences, governments around the world share a common objective: they want their country to be viewed as an attractive place to do business, to attract jobs and capital in an increasingly competitive global business arena.
At the same time, they want to increase the amount of revenue they bring in to run their governments, build or maintain infrastructure, fund social programs – and now to address growing deficit problems.
Trends in tax policy
Commonly-cited trends in tax policy include:
- Corporate income tax rate reductions
- A shift towards consumption taxes
- A widening of the tax base and a
- Renewed focus on providing the best-in-class incentives mechanisms
But what else?
But what else is occurring, and what differences are there between the major geographic regions of the world? How are countries in Europe managing to develop policy while operating under the umbrella of the European Union? Are there policy trends in the diverse range of countries that make up the Americas? Does one size of policy fit all in Asia Pacific, or are there major differences between the countries?
Companies entering into or operating in countries around the world need to be proactive in analyzing and factoring into policy shifts into their decision-making processes. Otherwise, trade-offs made in the evolution of tax policy can have a detrimental effect on their effective tax rate.
Staying connected and responsive to tax policy change is a key imperative for international business, and so we are very happy to share with you our 2011 tax policy outlooks for the: