Finance Secretary Ralph Recto is pushing for amendments to the CREATE Act to attract investments to the Philippines. The law has already reduced the corporate income tax rate to 25% and proposed changes include further reducing it to 20% for certain corporations. The goal is to enhance the business climate, generate more jobs, and lift millions of Filipinos out of poverty by 2028.
The latest publication from Vietnam Briefing, supported by Dezan Shira & Associates, is Corporate Tax Planning for Businesses in Vietnam in 2024. It discusses Vietnam’s corporate tax structure for 2024, key changes, incentives available for businesses, and the new top-up tax framework. Vietnam has a well-structured tax and accounting compliance framework and offers tax incentives to stimulate economic growth. The standard Corporate Income Tax rate in Vietnam is 20 percent, but there are tax breaks available for specific sectors and regions. Vietnam will implement a top-up corporate tax from 2024 to comply with the OECD’s global anti-base erosion Model Rules.
Sen. Warren reintroduced her “Ultra-Millionaires” wealth tax proposal to the Senate, inspired by the Administration’s Fiscal Year 2025 Budget which includes its own version of a wealth tax. The tax proposals are part of the upcoming contest for the White House and focus on tax avoidance by the wealthy. Business owners should familiarize themselves with the proposed changes to federal income tax and develop plans in response as there is a possibility that the Democrats may have another opportunity to turn their income tax agenda into law.
President Biden’s FY 2025 budget proposes tax hikes on businesses and high earners, amounting to a gross tax hike of over .1 trillion.
The European Commission released a report on Cyprus’ economy, noting that GDP is expected to grow and inflation to decrease. The report also highlighted risks related to interconnections with economies within and outside the EU, as well as vulnerabilities related to debt. The GDP growth rate in 2023 was 2.4%, down from 5.1% in 2022, with expectations of rebounding growth in 2024 and 2025. The Cypriot labor market remains robust, with employment rising and unemployment expected to fall. The country’s fiscal position is strong, with a surplus expected to be maintained. Cyprus’ high integration with EU and non-EU economies makes it susceptible to economic developments in those regions, posing risks to its economy.
Fact: India’s startups raised about 0 million in January and February, signaling a slow year after a six-year low of just billion in 2023.
Morningstar DBRS has confirmed Cyprus’ sovereign ratings at BBB (high) due to strong economic growth, but warned of exposure to geopolitical shocks and constraints from a small services sector. The stable trend balances favorable economic and fiscal developments against downside risks. Economic growth is driven by tourism, ICT relocations, and investment projects, with the Central Bank forecasting GDP growth to strengthen. Public debt has decreased, with further declines projected, and interest burden offset by favorable debt profile. Challenges include non-performing loans in the banking sector and low labor productivity. The ratings are supported by a stable political environment, sound fiscal policies, and EU membership.
The text discusses the impact of Directive (EU) 2019/2121, which amends Directive (EU) 2017/1132, on the legal and business environment in Cyprus. This Directive enhances the mobility of companies within the EU internal market by facilitating cross-border conversions, mergers, and divisions, thus acting as an extension of the freedom of establishment. It aims to promote economic growth, competitiveness, and stability within the European single market by harmonizing rules and procedures across member states. The Directive includes provisions to protect the interests of shareholders, employees, and creditors during cross-border operations. Its implementation in Cyprus is expected to increase cross-border business activity, enhance competitiveness, improve legal certainty, and ensure stakeholder protections, but it may also present challenges in terms of compliance and adaptation for Cypriot companies. The text also notes that the existing Companies Law in Cyprus, CAP 113, already regulates cross-border mergers and the transfer of company seats in line with the Directive, but the new provisions on cross-border divisions represent a significant development for the Cyprus legal corporate system.
Norway’s central bank maintained its benchmark interest rate at 4.50 percent, a 16-year high, and signaled a plan for a single rate cut within the year, which is fewer than most economists anticipated. Governor Ida Wolden Bache indicated a likely rate cut in autumn, possibly in September, with a potential second reduction by the end of March 2025. Following the announcement, the Norwegian crown strengthened against the euro. The forward rate curve for 2024 to 2026 remained largely unchanged, with an expected rate of 4.25 percent at the end of the current year. Norges Bank raised its forecast for economic growth, predicting mainland GDP growth in 2024 of 0.5 percent, up from a 0.1 percent expansion seen previously, with a 2025 estimate maintained at 1.2 percent. It expects core consumer prices to rise by 4.1 percent this year, less than the 4.8 percent previously seen. Core inflation was at 4.9 percent year-on-year in February, above the central bank’s goal of 2.0 percent.
The Bank of England left interest rates unchanged at 5.25%, a 16-year high, on Thursday. Critics and financial experts, including Nigel Green, CEO of the deVere Group, are calling for the central bank to reduce rates at their next opportunity to alleviate financial strains on businesses and households, enhance business profitability, make homeownership more accessible, boost consumer confidence and spending, and stimulate economic growth. Lower interest rates are also seen as beneficial for investors, as they tend to increase demand for risk assets like equities. Green argues that proactive rate cuts are essential to prevent economic downturns and mitigate recession risks, despite concerns that such actions could fuel inflation. He emphasizes that the Bank of England has the tools and expertise to manage inflation effectively while supporting growth through rate adjustments.