WLG colleagues in the Tax & Private Wealth Group met on April 15 to discuss global tax updates and opportunities for collaboration.
Here are the key takeaways from the updates provided:
Singapore:
- Implemented OECD Pillar Two, actively reviewing policy in light of current trade tensions
- Introduced corporate tax rebates and extended international business expansion incentives
- Launched stock market stimulation initiatives with tax incentives for new listings
- Competitive family office regime with high-threshold requirements
Malaysia:
- Introduced a 2% dividend tax for individual shareholders with annual dividend income over RM100,000
- Implemented capital gains tax with a 10% rate on unlisted shares
- Launched special family office incentives in Johor's Forest City (0% tax for 10 years)
- Comparative family office strategy positioning against Singapore
Philippines:
- Significant tax code amendments through the "Ease of Paying Taxes” Act
- Uniform VAT implementation now requires tax payment upon invoice issuance
- Introduced 12% VAT on digital services for non-resident providers
- Mandatory online registration for digital service providers
- Preparing a potential excise tax on single-use plastics and stock transaction tax adjustments
Poland/EU:
- Adopted the DAC Nine directive to simplify Pillar Two implementation
- Standardizing top-up tax reporting through centralized filing
- Implemented local minimum tax regime with sector-specific waivers
Canada:
- Potential US tax policy risks, including Section 891 allowing double tax rates on countries with "unfair” taxes
- Ongoing trade tensions with potential 25% tariffs on certain goods
- Proposed US legislation for an additional 20% withholding on US-source income for non-residents
South Africa:
- Proposed VAT rate increases (0.5% increments in 2025 and 2026)
- Increased tax authority scrutiny on high-net-worth individuals and trust structures
- Growing trend of asset externalization to tax-efficient jurisdictions like Dubai
Cross-Jurisdictional Insights:
- Emerging global trend of digital service taxation
- Increasing importance of the Principal Purpose Test in treaty interpretation
- Growing geopolitical impact on international tax strategies
- Jurisdictional competition for high-net-worth capital through targeted incentives
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