Gov. Gavin Newsom unveiled a revised 2024-25 state budget and expressed reluctance to raise taxes, despite including indirect tax increases on businesses in the budget.
Tax rates for publicly-listed companies may remain unchanged in the upcoming fiscal year, with some changes in parlance that could affect the availing of lower tax rates. The base rate may see a rise for publicly listed companies, but compliance with cashless transactions could bring it back down to existing rates. Listed companies with free float up to 10% and above with cashless transactions would have tax rates of 20% and 22.5%. Noncompliance with the cashless transaction limit would result in higher tax rates. The government may also impose capital-gain taxes on individual investors for the first time if profits exceed Tk 4.0 million. The tax gap between listed and non-listed companies may be reduced by cutting corporate tax rates for non-listed companies by 2.5%. Capital-market experts believe that higher taxes and reducing the tax gap between listed and non-listed companies could discourage companies from entering the capital market. The government should focus on simplifying investment procedures rather than increasing taxes on the capital market.
California Gov. Gavin Newsom’s budget proposal to address the state’s billion deficit does not include higher taxes on workers or businesses. Newsom’s plan includes indirect tax increases on businesses that could cost up to billion over the next four years, including banning businesses with annual revenue over million from deducting net operating losses and limiting business tax credits. Newsom also aims to reverse a ruling that could result in .3 billion in refunds for companies, nullifying the decision and applying it retroactively and prospectively. The proposal is part of Newsom’s efforts to address the state’s budget shortfall, which also includes deep spending cuts affecting immigration, education, and child care.
The Self Voluntary Declaration Programme (SVDP) by the Inland Revenue Board (IRB) and the Royal Malaysian Customs Department (RMCD) is an amnesty programme that allows taxpayers to declare undeclared or underdeclared income without penalties. The programme ends on May 31. Taxpayers can participate for income tax, real property gains tax, stamp duty, sales and service tax, and goods and services tax purposes. All taxpayers, including individuals and corporate taxpayers, are encouraged to review their past declarations and declare any understatements to avoid future audits. The declaration must be complete and supported with proper documentation. If fraudulent, the IRB or RMCD may open a case for investigation.
Fact: Governor Murphy has proposed a billion tax increase on New Jersey’s largest employers.
Companies in free zones in the UAE must meet certain criteria to be eligible for zero percent corporate income tax and become a qualifying free zone person (QFZP).
Lendlease is facing a big battle with major investors, with a showdown expected later this month.
Fact: European Union Member States are in the process of implementing the global minimum tax in line with a directive unanimously agreed to at the end of 2022.
Supporters of the EPIC consumption tax in Nebraska have gathered signatures from 5% of registered voters in 38 counties, aiming to replace income, property, and corporate taxes with a broader sales tax. They need a total of 123,000 signatures by July 3 to place the issue on the fall ballot. Governor Jim Pillen opposes the EPIC tax, calling it unworkable and advocating for a balanced approach to property tax relief. Former State Sen. Brett Lindstrom and others criticize the EPIC tax for potentially increasing sales taxes on various items and eliminating local control. Supporters argue that drastic changes are needed in the state’s tax system and believe the EPIC tax is the only solution that prioritizes taxpayers.
The Federal Tax Ombudsman has declared that the Corporate Tax Office in Islamabad is involved in maladministration for delaying tax refunds for the years 2013 and 2014. The FTO has ordered the FBR to settle the refund proceedings with compensation for the delay as per law.