International review for April 2021

Biden’s tax agenda dominates this month’s headlines following proposals which, among other things, would increase the taxation of corporations, both at a national and an international level; however, given the Democrats’ narrow majority in Congress, compromises may be needed on some of the measures, including the proposed 28% corporation tax rate. Notably, the Biden administration has also thrown its weight behind a multilateral solution for a global minimum tax rate and put forward new proposals for international reform to the OECD. Meanwhile, progress has been made on tax transparency; there have also been updates on the EU mandatory disclosure rules; and the OECD has provided an update on treaty shopping and announced a consultation on proposed changes to the commentary on article 9 of the Model Tax Convention. Finally, one year on from the outbreak of the pandemic, tax rises are increasingly on the horizon for many countries.