Global Minimum Tax Update
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- เผยแพร่เมื่อ 17 ก.ค. 2024
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We're giving you a little update about the Global Minimum Tax. What should you and shouldn't worry about and what is about to happen?
The update is mainly about countries that were previously resisting the global minimum tax (Hungary, Ireland, and Estonia), which now have given in and signed the agreement. Some people have taken this very seriously.
There is a 10 year grace period to apply this global minimum tax, which is quite a bit of time.
At this point in time, this will apply only to multinational companies that earn 750 million euros or more in revenue. However, it is quite likely that this is just the beginning and as time goes it will affect more and more businesses.
Is global minimum tax good for society and how will it affect businesses worldwide? Should you trust the media narrative when they speak about this topic? Almost certainly not. Most people out there have no clue about how international taxation works, and you can not expect to get accurate and complete information from the media.
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We are Offshore Citizen team. We help people become global: get a second passport, set up a second residency, pay less taxes, do banking abroad, etc.
We have lots of interesting articles on different topics, we have relevant information up to date.
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#GlobalMinimumTax #Update
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Thanks for the update. The UAE is beginning to look more attractive.
You're welcome!
Would you ever move there?
@@OffshoreCitizen Dubai is on my short list. Difficult to do immediately due to family. But it seems like negative world events are materializing faster than anyone could have predicted
First thing is first, the plan as drafted eliminates the digital presence taxes that countries like the UK have begun to impose. It also does not preclude local carve outs like Ireland's knowledge box. At the end of the day it is just a loophole with better window dressing to appease people who know absolutely nothing about taxes, ie the people who pay them.
Excellent information - and the biggest takeaways for me are that Janet Yellen (and her ilk) are propagandists doing the work of the big players and that the MSM is pure garbage on these types of issues (as well as most others.)
The real pandemic
Great commentary of events and the real meaning of things
Thanks! Glad you liked it😄
What's your take on the topic?
Thanks for the update, all good to know! I guess they can still raise the tax from 15% to whatever they decide, and also keep lowering the profit levels by which they decide which companies will fall into it.
G.I.L.T.I. already caused $58 billion a year in patent revenue to flow from Ireland back into taxation in the US. That means it was cheaper to pay 21% in the US because of the vastly improved deductions in the US than it was to pay 6.25% in Ireland under their patent regime.
The top line rate is meaningless. The deductions are what matter.
Thanks dawg
Always a pleasure!
Anything you'd like to watch next?
Is the UAE getting involved in this?
Interesting; both the politics of it, and the economics of it.
It sure is. Did you like how we covered the topic?
I do enjoy the tax and freedom rants - mirrors my thoughts.
Lol
So you liked the video?😄
@@OffshoreCitizen Still better than Andrew's.
Hi do you give advice on Bulgaria?
We've made many videos on Bulgaria. You can check this one out for tax planning th-cam.com/video/Q6Gm5SOZIjc/w-d-xo.html
🙏
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"A country could tax incomes generated Within its geographical borders ONLY!"
That is the Concept!
The horror!!!!! It's not Halloween yet 🤦🏻♂️
Lol
Any costume ideas?😄
@@OffshoreCitizen 😅 plenty of options to choose from. This past year+ have introduced lots of horror personalities/celebrities - mostly politicians making ridiculously terrifying rules. Perhaps one of them 😅😅😅
Let's not forget that Google & Facebook will also get to deduct dollar for dollar any foreign tax credits paid under this scenario against any profits earned overseas.
Oh and we don't have $750 million in revenue in the UK, how are you going to tax us. We don't exceed the threshold. That will be the loophole.😏
Well the $750 million is the global revenue but yes there's a minimum local threshold, though one change, which to be fair should be changed is how income gets allocated.
One question that no one ever asks, that needs to be asked. The world is basically made up of three groups of people.
Group 1: are people who believe they are elites and given the right to rule over others (whether by god or by a vote)
Group 2: are the super wealthy who work with the elites to maintain their wealth and power.
Group 3: are the rest of us who give most of our lives to the first two groups and believe that they must do so.
The question that needs to be asked to everyone is. What facts do you have that any person owes any other person anything? Be it taxes, be it allegiance etc. Why would any person believe such nonsense?
Because people are sheep and they need to be led. And because being responsible for one's own fate is terrifying for most people . It's so much more convenient to put this burden on someone else ( the leader).
Because such a life is drilled into you from birth, you know no different. Only those that choose to stand back and look at it all see the world/society for what it is.
But the powers that be try their hardest to keep the tunnel vision going.
@@jackosc4 exactly - i mean as little kids at school we all sing national anthems. Everything is about control and order. I mean it’s good not living in chaos, but a lot of the controls go beyond what we need to function well.
Well let's actually dive into this.
As far as the concept of "owes", I'm not sure that's really the point. What does it really mean to "owe" something?
Reminds me of an old Clint Eastwood movie where the line comes up "deserves ain't got nothing to do with it kid"
There are sometimes moralistic positions and arguments but they are highly subjective. Then there's mechanical arguments, which bear a bit more weight.
You were born. You did nothing to deserve this. Someone took care of you and raised you, fed you, clothed you, educated you, provided you with safety and some modicum of comfort. You didn't deserve any of that but you did benefit from it.
You might say "well I never asked for that" but the truth is you can't give it all back so you're the recipient of something that you didn't earn, didn't deserve, etc.
Now the truth is we all benefit from certain what might be called public goods. Go back in history a thousand years and you wouldn't have medical services, roads would suck, there'd be limited communication, etc. I suppose you could go live in the woods somewhere and give up all of those things and then frankly it's unlikely anyone is going to come after you for taxes or anything similar. But if you're on the internet you're choosing to do something different. You're choosing to take advantage of and benefit from those things.
Now, there's a social contract under which by being a part of this society there's an expectation that you're going to contribute back. We can debate the extent you contribute back or the form that contribution takes but there is some justice to the idea that we express gratitude for what we've been given and endeavor to contribute back. In fact if we want to be practical about surviving and thriving we'd best take on an attitude of giving as the reciprocity is beneficial to both parties.
There's also some truth to certain things that can't very well be charged in a transactional basis. Protection services are a good example of this. If you live in a country that's protected by military force it doesn't work mathematically or practically to have people opt in and out because they benefit equally regardless. We therefore have a central problem of how to fund public goods.
It's worth noting that the world is a better place because of public goods. Roads, the internet, rule of law, protection, etc. If you don't think so try going somewhere where these things don't exist or exist to a lesser extent. Someone is going out and doing real work to provide these things so those people need to be compensated for that work in order for those services to endure. So, how do you decide to pay for them? The system today is a combination of taxes and debt. Do you have a better idea of some way?
I tend to advocate that a person should work to legally optimize their taxes because it's not the optimal mode of contribution and certainly there's plenty of graft, corruption, and inefficiency in the provision of many of these services. This being said I wouldn't confuse that with the idea that you shouldn't, don't have an obligation, etc. to contribute to those things you are benefiting from.
It's a bit of the nature of life that we're going to benefit from things we didn't ask for and in turn the flip side is we're going to have to contribute to some things we didn't ask for. I don't think that's necessarily fair but I think it's better than the alternative, which is a purely transactional relationship.
Aside from my previous comment I'm going to push back on your underlying assumption. There's no such thing as a clear differentiation between most of these groups. There's no evil super wealthy out there. You've got people and you've got incentives. The fact is on a monetary basis the "super wealthy" tend to contribute far more in relation to what they receive than the majority. Just go the math and add up how much gets paid in taxes by some billionaire vs how much in the way of public services they consume and you'll see the ratio is very much off.
Now, most wealthy people tend to do lame boring things with their money. They don't use it to do much of interest in the world, it mostly sits in fairly stagnant investments and earns rents. Some use their resources as a lever to advance their values in the world. Frankly, probably more should do so. That's not corruption. That's not evil. That's sensible. More people should be doing so. You might disagree with them. That's part of what breeds innovation, lots of different ideas being tried out. I think it's dangerous to divide the world into arbitrary groups such as "the super wealthy" or "the elites". It ends to breed a victim, us vs them mindset.
Why do most people give most of their lives to others? Well, first let's be clear that it's not like it's not an exchange. If you go to work at a company you might be building someone else's dream but they are paying you for it. They are taking on the risk if something goes wrong and most often entrepreneurs don't win. Most people would rather trade perceived certainty and laziness (it's super hard to push yourself all the time and to innovate, etc.) for lower returns. It takes courage to think different. But what happens in practice is most people who go out and try to do their own thing find out really fast that it's super hard, it doesn't go the way they want and it's easier to just go back to letting someone else take that risk and just showing up. It's a sensible position but it has consequences.
So you're left with a trade given to you by nature. Either die or if you choose to live do so by following someone else or forge your own direction. The later is much harder and much more likely to result in failure but also has much higher upside if you do succeed. For most people the fear of pain and failure is greater than the allure of commitment and success.