2014 Global tax policy outlook
This guide summarizes countries’ tax policy outlook for 2014. Use the map or the menu to see the guide’s information for a country.
This guide summarizes countries’ tax policy outlook for 2014. Use the menu below to see the guide’s information for a country.
Across the world*, tax policies are adding tax burdens to virtually every type of tax imaginable. Whether it’s corporate, personal or indirect taxes, there’s been a rapid slowdown in the number of headline rate changes compared to 2012 and 2013.
Simultaneously, countries are unveiling greater numbers of new legislative measures designed to manipulate and expand the tax base in 2014 and beyond. Few of these measures will be beneficial to taxpayers.
In the area of corporate income taxes, 10 of the 61 countries we surveyed have (so far) announced statutory CIT rate reductions for 2014, and many seem to be targeting a rate of around 20% in the future. But while 16 of the 60 are forecasting a higher CIT burden for the year ahead, only three (France, India and Israel) have increased their headline tax corporate income tax rate.
This indicates that the increased burden will be the result of other changes to the tax base; known legislative changes (and proposals) for 2014 certainly seem to bear this out. The number and pace of changes designed to manipulate (i.e., broaden) the tax base has increased compared to prior years. Common measures for base manipulation in 2014 include (but are certainly not limited to):
- Increased tax enforcement, including increased more disclosure and transparency, renewed focus on audit activities and new or amended General Anti-Avoidance Rules (GAAR)
- Changes to R&D tax incentives
- Changes to incentives designed to encourage capital investment
- Significant transfer pricing changes
- Changes to interest and business expense deductibility – including a growing focus on payments made to “low tax” jurisdictions
- Decreases to the statutory corporate income tax rate
- Changes to the tax treatment of losses
- Changes to Controlled Foreign Company (CFC) rules
- Changes to thin capitalization rules
*We are adding more countries to the guide as their information becomes available. Over time 50+ countries will be included. Check back soon for details.