China Passes New Tax Law to Lure in Business
President Donald Trump’s recent tax law appears to have sparked change not just in the United States, but throughout the world. China recently announced that it would grant tax exemption to both local and foreign companies operating within their borders. A piece by CNBC discussed the new law, noting the move signals China’s “determination to gain an edge in global competitiveness.”
China is not alone. The United Kingdom, France, Norway, and Argentina are also posturing to structure their tax regimes in a manner that would translate to an increase in investments and jobs. The National Review notes the British plan to cut corporate income tax by five percent while both Canada and Germany are preparing for the likely negative impact on their own economies as businesses shift to take advantage of these changes.
Thinking of taking advantage of these tax benefits? Business leaders are likely to keep an eye on these changes. Those that are considering expanding operations to foreign countries are wise to take a number of factors into account before making the move. Tax benefits are not the only factor that brings in business. Political stability and talent available in the region are also key factors. Look into these areas before moving forward with expansion.
It is also important to note that businesses that operate in many countries are required to meet various tax obligations. It is often wise to seek legal counsel to advise on these obligations and help ensure their operations are in compliance with applicable tax law.
