Countries are divided on whether to comply with, fight against, or ignore the global minimum tax agreement known as Pillar Two. Compliance involves adopting three taxes to reach a 15% tax rate on corporate income, while fighting against it could lead to trade wars. Ignoring Pillar Two may result in businesses needing to engage in tax planning to protect themselves from liability.
The Cyprus Institute (CyI) won a Parliamentary Assembly of the Mediterranean (PAM) Award for its research and educational activities addressing the climate crisis in the Eastern Mediterranean and Middle East (EMME) region.
LG Chem recorded a Pillar Two current corporate income tax expense of 863 million won for the first quarter of this year.
– A third of Cypriots are “financially fragile” and unable to cover emergencies.
– Three in five respondents do not have enough money set aside to cover three months’ worth of living expenses.
– Young people, the unemployed, low-income households, and the elderly are the least financially resilient.
– Less than four in ten Cypriots have a “good level” of financial knowledge.
– People with higher levels of education and income are better able to weather financial impacts.
– Lack of understanding of basic financial concepts hinders saving, investing, and borrowing.
– Financial education is recommended to improve financial literacy and resilience.
– OECD recommends starting financial education from a young age in order to build positive habits and attitudes.
The global economy is growing faster than expected, with the US activity being resilient and inflation converging quickly with central banks’ targets, according to the OECD.
Tax transparency is becoming more common globally, with regulators, investors, and the public demanding greater visibility into corporate tax profiles. Companies are facing new tax reporting and disclosure requirements, such as expanded Financial Accounting Standards Board disclosures in the U.S. and public Country-by-Country Reporting legislation in the EU. Adapting to these changes and investing in suitable technology tools can help companies communicate their tax narrative effectively and enhance trust with stakeholders.
Last week, the world saw Iran’s attack on Israel amidst ongoing tensions in the Gaza Strip, highlighting the thin line between tension and conflict in the Middle East. Ino Afentouli, from Panteion University, emphasized that a regional conflict involving Iran and Israel would have adverse consequences for Cyprus and Greece. The conflict has halted economic cooperation and development plans in the region. Afentouli also mentioned that Cyprus could face increased migrant flows similar to those seen during the war in Syria. She emphasized the importance of solidarity with Israel for Cyprus and Greece, despite supporting the rights of the Palestinian people. The conflict could have significant impacts on Europe’s security and stability.
The International Ethics Standards Board for Accountants has released ethical standards for business tax planning in response to concerns about tax avoidance by multinational companies.
– OECD DAC unveiled early figures for 2023 Official Development Assistance (ODA) spending by donor countries.
– Donor countries are failing to meet the original objectives of ODA to promote human development and fight inequalities.
– EU ODA increase in 2023 is largely driven by inflated figures, with a substantial portion going to in-donor refugee costs.
– ODA levels to least developed countries (LDCs) have not recovered from cuts in 2022.
– EU donors keep failing to meet the targets of allocating at least 0.7% of their GNI to ODA by diverting funds for domestic interests.
The Organisation for Economic Cooperation and Development (OECD) has stated that UBS’s rescue takeover of Credit Suisse has introduced new risks and challenges for the Swiss economy, despite stabilizing financial stability. The merger, which was the largest bank merger since the global financial crisis, has significantly increased UBS’s size, making it a more dominant force in the Swiss banking sector. The OECD has raised concerns about UBS’s domestic dominance and the potential need for stronger financial regulation. The Financial Stability Board has also highlighted the risks posed by UBS’s failure to Switzerland and has called for stronger bank controls. The Swiss government is considering proposals to enhance regulations for big banks. The OECD report also mentions that the merger could lead to significant job losses but believes the Swiss labor market can absorb these losses. Additionally, the report notes that the Swiss housing market, while showing signs of cooling, still has vulnerabilities with properties being overvalued by up to 40%. The average price for an apartment in Switzerland has risen to over 1 million Swiss francs, with prices in Zurich reaching 1.8 million francs. The OECD forecasts that the Swiss economy will grow by 0.9% in 2024 and 1.4% in 2025, which is below the country’s long-term average growth rate.