Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Tax reform, digital taxation and BEPS drive challenges

01 May 2018
Issue: 4645 / Categories: News

Report on the ways countries pursue tax competitiveness.

Global and US tax reform as well as international policy changes in 2018, are providing catalysts for countries to pursue tax competitiveness in new ways, according to research from EY (

The report, The Outlook for Global Tax Policy in 2018, combined insights and forecasts from EY tax policy professionals in 41 jurisdictions worldwide.

It found that countries are continuing to look to stimulate economic activity and attract foreign direct investment by maintaining or lowering their corporate tax rates. The fall in the US rate of more than one-third to a federal and state combined average of about 26% is the biggest percentage reduction among the countries analysed in the report. The US rate is now below Organisation for Economic Co-operation and Development and G7 averages.

Other significant reductions were made by Argentina (from 35% to 30%), Colombia (40% to 37%), and Luxembourg (27% to 26%).

The report also found that research and development tax breaks and other incentives are resulting from the determination of governments to remain competitive, with 14 of 41 countries (34%) forecasting greater support for businesses in 2018.

The report also highlights the breadth of change in relation to digital taxation, encompassing direct tax changes (Greece, Italy, and the UK), indirect tax changes (Argentina, Singapore and Turkey), redefinitions of permanent establishment (Italy and India), and anti-avoidance measures targeting companies that may be data-intensive (New Zealand). Indeed, 15 of the 41 jurisdictions are forecasting higher tax burdens as a result of digitally focused changes in 2018.

Issue: 4645 / Categories: News
back to top icon