Current Taxation Trends in Emerging Markets
It is no news that Brazil, India and China are among the fastest growing economies. Most multinational companies opened shop in those countries looking for low cost manufacturing centres in order to remain competitive in a globalised economy. But now these economies are becoming more mature, their middle class is expanding very rapidly, and they are increasingly looked at as attractive markets. This trend has been reinforced with the current weak situation of traditional western markets.
Notwithstanding different paces and calendars and specific characteristics in each jurisdiction, common trends appear in the development in recent years of the tax systems in the three jurisdictions under analysis. They are moving from a tax system intended to attract foreign investment to one in which that is not the priority except in particular industrial sectors or regions. They now expect foreign enterprises investing in the country to make their fair contribution and are implementing anti-abuse provisions to counter perceived or potential tax avoidance. In this new context foreign investors must clearly align their tax structures and tax with the rationale of their underlying business, but they also expect increased legal certainty in those tax systems and a more cooperative relation with the tax administration.
For further information please contact:
Abigail Tarren, COO
T. +44 (0)207 715 5243