Find out what governments worldwide are doing to help companies save taxes and minimize job cuts.

1. Surviving the Global Meltdown
Find out what governments worldwide are doing to help companies save
taxes and minimize job cuts. — Vyoma Nair
Many countries are becoming forward thinking and rolling pensate for relocating to France or have 30% of their global
out new measures or extending current ones to help compa- compensation tax exempt.
nies survive the global slump.
Luxembourg
Belgium Among many measures, reduction in corporate taxes is one
Belgium has various incentives to encourage R&D activities. aimed specifically at increasing employment — a tax credit
For example, the patent income deduction allowing royalties for hiring unemployed workers is extended for three more
to be taxed at 6.8% or even lower. years to December 31, 2011 and the tax credit increased
from 10% to 15%.
Another incentive, reducing employment costs, allows com-
panies that meet the qualifying criteria to retain a percent- Netherlands
age of the wages taxes withheld (i.e. not pay these over in full For taxable income less than 250,000 EUR, the corporate tax
to the tax authorities). The retention percentage is increased rate is being temporarily reduced to 20% retroactive from
to 65% from 25% for certain employees. January 1, 2008. This applies for the year 2008 only.
Brazil Norway
Regulations allow Brazilian legal entities to offset their Unfortunately, not all the changes are positive. Norway pro-
social contribution on net income (CSLL) liability by 25% of poses exit tax rules. Exit charges will apply if a company trans-
the book depreciation claimed on certain fixed assets. This fers its operating headquarters to another country, assets are
benefit, which ended in late 2008, has been extended to fixed transferred to a tax exempt country, or assets are transferred
assets acquired up to December 31, 2010. from a foreign companies’ Norwegian subsidiary.
Canada Switzerland
From early 2008, the corporate tax rate fell from 22.5% to The Canton of Vaud has introduced a credit of profit tax
19.5%. Tax will continue to reduce annually until the corpo- against capital tax. U.S. companies are particularly inter-
rate tax rate is 15% from January 01, 2012. ested in this since U.S. foreign tax credit only applies to profit
tax and not to capital tax.
France
To make France more attractive to foreign workers, they are For more information on how you can benefit from different
now allowed to either receive a tax exempt bonus to com- taxes regimes, please visit www.globaltaxexperts.com
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