What are the recent changes to global tax regulations in 2024?.

In 2024, several significant changes to global tax regulations have been implemented, affecting both individuals and corporations. These changes include new compliance measures, shifts in tax rates, and increased transparency requirements aimed at combating tax evasion.

Key Facts

• Over 130 countries adopted the OECD’s global minimum tax rate of 15% in 2024.
• New digital services taxes have been introduced in various jurisdictions, targeting multinational tech companies.
• Enhanced information-sharing agreements have been established to support tax compliance across borders.
• The EU has rolled out stricter rules on tax incentives to prevent harmful tax competition.

Examples or Use Cases

• A corporation operating in multiple countries must now adjust its tax strategies to comply with the minimum tax rate.
• Freelancers and gig economy workers in the EU face new reporting requirements for income earned online.

FAQs

• What is the OECD global minimum tax? It is a tax aimed at ensuring that large multinational companies pay at least a 15% tax rate, regardless of where they operate.
• How do these changes affect small businesses? Small businesses may need to adapt to new compliance requirements but could benefit from reduced competition from larger firms benefitting from tax loopholes.