Global Taxation Trends Impacting U.S. Companies

Catalog description

Sovereignty, statehood and taxing power were strategically inseparable since Antiquity. Globalization and digitalization mobilized businesses and created the ability for companies to deliver goods and services with limited or no physical presence at all. This new business mobility exacerbated the phenomenon of tax competition between jurisdictions. Jurisdictions engaged in a race-towards-the-bottom in order to attract genuine business activity or merely the multinational enterprises’ taxable bases without any meaningful shift in the location of underlying activities. At the same time, since tax is a major cost item, businesses not exploiting planning opportunities were placing themselves at a competitive disadvantage even if only a single competitor decided to go in that direction. Therefore, taxation can no longer be called as an exclusively sovereign business, but it needs to be seen and understand at an international level. In the past decade several measures at serval stages (US, G20, OECD, EU) have been made.