• Register
Return to: Home > News > Standards > BEPS implementation forces countries to find new business incentives, EY report suggests

BEPS implementation forces countries to find new business incentives, EY report suggests

While countries worldwide still pursue low rate strategies, the implementation of the G20/OECD Base Erosion and Profit Shifting (BEPS) recommendations are forcing governments to look for alternative forms of business incentives for competition, according to a report by EY.

EY’s Outlook for the global tax policy in 2017, combines the surveyed forecast of EY tax policy leaders in 50 countries as well as government proposals and known legislative changes.

EY global tax policy leader Chris Sanger said: “Governments are increasingly adopting incentives as a pragmatic means to compete amid coordinated change across the tax landscape. Incentives can encourage and sustain business investment, allowing governments to respond to the dual pressures of continued weak economic growth and the introduction of new measures and legislation in response to tax reform in Europe and globally.”

According to the report, out of the 50 countries surveyed 30% want to invest in broader business incentives to encourage or sustain investment with 27% more countries than in 2016 offering new or improved business incentives. Similarly, 22% of surveyed countries plan to introduce greater incentives for research and development (R&D) in 2017, with new or improved R&D incentives already being offered in 83% more countries than last year.

Another incentive looked at by EY’s report is change in corporate income tax rate. It highlighted that eight countries, representing 16% of the participants, already have laws in place which will lower their corporate income tax rates in 2017. However this is less than in previous years when 18% of countries reduced those rates in 2016 and 22% did so in 2015.

The eight countries which will be lowering their corporate income tax in 2017 are: France, Hungary, Israel, Italy, Luxembourg, Norway, Slovakia and the United Kingdom.

While 40 out of the 50 surveyed countries (80%) do not anticipate any changes to their corporate income tax, two countries (4%), Chile and Canada will slightly increase their rates.

The report can be accessed here.

Top Content

    Nigeria: building compliance and engagement

    Opportunities created by regulatory and legislative changes in Nigeria are tempered by the fragile state of the economy, although practitioners are generally confident that conditions will improve over the next few years if appropriate steps are taken. Paul Golden reports.

    read more

    Ghana: a quest for consistency

    Ghana’s current economic profile would suggest a fertile landscape for purveyors of accounting services. But inconsistent approaches to compliance and application of standards – coupled with problems in the banking sector and consequent liquidity constraints – have created a challenging environment. Paul Golden writes.

    read more

    Drone technology: audit takes to the skies

    The movement towards a digitised era has already impacted the auditing profession in a number of ways, from blockchain to artificial intelligence. Now firms are taking to sky and using drone technology in their audits. Mishelle Thurai speaks to Big Four firms to find out more.

    read more

    SBC: a new alliance joins the market

    Jonathan Minter speaks to Paul Tutin, chair of founding firm Streets Chartered Accountants, about why the business and its European partners took the decision to launch their own association.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.