In 2018, around a third of the profits of US multinationals were booked in Luxembourg, the Netherlands and Ireland, although these countries only accounted for five per cent of their sales. Reuters
In 2018, around a third of the profits of US multinationals were booked in Luxembourg, the Netherlands and Ireland, although these countries only accounted for five per cent of their sales. Reuters
In 2018, around a third of the profits of US multinationals were booked in Luxembourg, the Netherlands and Ireland, although these countries only accounted for five per cent of their sales. Reuters
In 2018, around a third of the profits of US multinationals were booked in Luxembourg, the Netherlands and Ireland, although these countries only accounted for five per cent of their sales. Reuters

Who will win and lose from minimum tax on multinationals?


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G20 finance ministers meeting in Italy will discuss a reform of taxation on multinational companies that is meant to stop nations from using ultra-low tax rates to attract businesses.

The world's top economies would be the biggest gainers of the OECD-brokered preliminary deal, while tax havens would be the biggest losers.

Big countries to win

The US, Germany, France ... the world's biggest countries are where multinationals do most of their business but are less and less likely to have their tax homes.

These countries stand to benefit from a measure that would redistribute part of the corporate taxes raised to nations where multinationals actually make their profits.

The imposition of a minimum rate of 15 per cent (with fewer possibilities to lower it) would also increase the amount of tax money to be distributed.

The US stands to benefit from a measure that would redistribute part of the corporate taxes raised to nations where multinationals actually make their profits. Reuters
The US stands to benefit from a measure that would redistribute part of the corporate taxes raised to nations where multinationals actually make their profits. Reuters

According to the OECD, which led negotiations that produced a draft tax reform agreement among 131 nations, setting a minimum effective tax rate of 15 per cent would generate an additional €150 billion ($175bn) in revenue per year.

Many nations have rates higher than 15 per cent on paper, but with so many exemptions that companies end paying much less. Most of these exemptions would be closed, so companies would end up having to pay at least 15 per cent.

The CAE, a body charged with providing economic analysis for the French government, has calculated that Paris would likely get an extra €6bn in tax revenue per year.

Germany would likely receive €8.3bn and the US nearly €15bn.

China would also likely benefit as it is expected to be able to continue to provide certain tax incentives to support business development.

The details on what tax incentives might remain have yet to be finalised, however.

Tax havens to lose

Countries that set their tax rates low to lure businesses, including tax havens that charge little to no tax, stand to lose the most.

While Barbados and Saint Vincent and the Grenadines have balked at the deal, other tax havens like Panama, Bermuda and the British Virgin Islands have nonetheless signed up.

"They've realised that they don't have the capacity to block an international deal and calculated that it's in their interest to be cooperative," said Nicolas Veron, an economist at the Peterson Institute for International Economics in Washington and the Bruegel Institute in Brussels.

"Countries which attracted shell companies for years will suffer from the reform and will have to find other development strategies," said Farid Toubal, a specialist on the subject at Paris Dauphine University.

Countries like Barbados that set their tax rates low to lure businesses, including tax havens that charge little to no tax, stand to lose the most. Getty
Countries like Barbados that set their tax rates low to lure businesses, including tax havens that charge little to no tax, stand to lose the most. Getty

Worried European countries

European countries like Ireland, which lured Apple and Google with the possibility of lowering effective tax rates to practically nothing, would see a windfall of revenue if they join the reform.

But that is only if these companies stay and continue to book their profits there.

Countries like the Netherlands, Luxembourg and Switzerland are in a similar boat.

"Beyond the impact on public finances, it's clear that the reform process could affect these countries' economies and employment, particularly if multinationals relocate profits and investments as a result," said economist Ricardo Amaro at Oxford Economics.

Countries which attracted shell companies for years will suffer from the reform and will have to find other development strategies
Farid Toubal,
Paris Dauphine University

In 2018, around a third of the profits of US multinationals were booked in the Netherlands, Ireland and Luxembourg, although these countries only accounted for five per cent of their sales, Mr Amaro said.

But Ireland, which has invested heavily in recent years in IT infrastructure and education, and become a centre for the pharmaceutical industry, would likely keep many multinationals, even if it raised rates.

"Certainly the shell companies will leave, but the production base will stay as Ireland has other advantages, they speak English, it is part of the immense European market," said Paris Dauphine University's Mr Toubal.

Exemptions for emerging nations

Non-governmental groups that analyse tax optimisation strategies used by multinationals, like Oxfam, have criticised the OECD-brokered deal for letting rich countries keep most of the additional tax revenue.

"The world's poorest countries will recover less than three per cent – despite being home to over a third of the world's population," Oxfam International's executive director Gabriela Bucher said.

European countries like Ireland, which lured Apple and Google with the possibility of lowering effective tax rates to practically nothing, would see a windfall of revenue if they join the reform. Tourism Ireland
European countries like Ireland, which lured Apple and Google with the possibility of lowering effective tax rates to practically nothing, would see a windfall of revenue if they join the reform. Tourism Ireland

But the draft deal that emerged at the beginning of July does contain some sweeteners for emerging nations.

They will benefit from the measures that redistribute some tax revenues to countries where profits are generated.

Developing countries will also be able to maintain some tax incentives to lure in manufacturing, although details have yet to be agreed.

Scoreline

Al Wasl 1 (Caio Canedo 90 1')

Al Ain 2 (Ismail Ahmed 3', Marcus Berg 50')

Red cards: Ismail Ahmed (Al Ain) 77'

The specs

Engine: 4.0-litre, six-cylinder

Transmission: six-speed manual

Power: 395bhp

Torque: 420Nm

Price: from Dh321,200

On sale: now

Under-21 European Championship Final

Germany 1 Spain 0
Weiser (40')

BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES

SolarWinds supply chain attack: Came to light in December 2020 but had taken root for several months, compromising major tech companies, governments and its entities

Microsoft Exchange server exploitation: March 2021; attackers used a vulnerability to steal emails

Kaseya attack: July 2021; ransomware hit perpetrated REvil, resulting in severe downtime for more than 1,000 companies

Log4j breach: December 2021; attackers exploited the Java-written code to inflitrate businesses and governments

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Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
How much do leading UAE’s UK curriculum schools charge for Year 6?
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  2. Kings School Al Barsha (Dubai) – Dh71,905
  3. Brighton College Abu Dhabi - Dh68,560
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*Annual tuition fees covering the 2024/2025 academic year

SQUADS

India
Virat Kohli (captain), Rohit Sharma (vice-captain), Shikhar Dhawan, Ajinkya Rahane, Manish Pandey, Kedar Jadhav, Dinesh Karthik, Mahendra Singh Dhoni (wicketkeeper), Hardik Pandya, Axar Patel, Kuldeep Yadav, Yuzvendra Chahal, Jasprit Bumrah, Bhuvneshwar Kumar, Shardul Thakur

New Zealand
Kane Williamson (captain), Martin Guptill, Colin Munro, Ross Taylor, Tom Latham (wicketkeeper), Henry Nicholls, Ish Sodhi, George Worker, Glenn Phillips, Matt Henry, Colin de Grandhomme, Mitchell Santner, Tim Southee, Adam Milne, Trent Boult

UAE currency: the story behind the money in your pockets
Four motivational quotes from Alicia's Dubai talk

“The only thing we need is to know that we have faith. Faith and hope in our own dreams. The belief that, when we keep going we’re going to find our way. That’s all we got.”

“Sometimes we try so hard to keep things inside. We try so hard to pretend it’s not really bothering us. In some ways, that hurts us more. You don’t realise how dishonest you are with yourself sometimes, but I realised that if I spoke it, I could let it go.”

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“It’s time to stop holding back. It’s time to do it on your terms. It’s time to shine in the most unbelievable way. It’s time to let go of negativity and find your tribe, find those people that lift you up, because everybody else is just in your way.”

The National in Davos

We are bringing you the inside story from the World Economic Forum's Annual Meeting in Davos, a gathering of hundreds of world leaders, top executives and billionaires.

UAE currency: the story behind the money in your pockets
COMPANY PROFILE

Name: Lamsa

Founder: Badr Ward

Launched: 2014

Employees: 60

Based: Abu Dhabi

Sector: EdTech

Funding to date: $15 million

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  • Place a sun reflector in your windshield when not driving
  • Park in shaded or covered areas
  • Add tint to windows
  • Wrap your car to change the exterior colour
  • Pick light interiors - choose colours such as beige and cream for seats and dashboard furniture
  • Avoid leather interiors as these absorb more heat
The specs
  • Engine: 3.9-litre twin-turbo V8
  • Power: 640hp
  • Torque: 760nm
  • On sale: 2026
  • Price: Not announced yet
UAE currency: the story behind the money in your pockets
The specs

Engine: Turbocharged four-cylinder 2.7-litre

Power: 325hp

Torque: 500Nm

Transmission: 10-speed automatic

Price: From Dh189,700

On sale: now

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The team

Photographer: Mateusz Stefanowski at Art Factory 
Videographer: Jear Valasquez 
Fashion director: Sarah Maisey
Make-up: Gulum Erzincan at Art Factory 
Model: Randa at Art Factory Videographer’s assistant: Zanong Magat 
Photographer’s assistant: Sophia Shlykova 
With thanks to Jubail Mangrove Park, Jubail Island, Abu Dhabi 

 
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%3A%3C%2Fstrong%3E%20Eco%20Way%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20December%202023%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Ivan%20Kroshnyi%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Electric%20vehicles%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Bootstrapped%20with%20undisclosed%20funding.%20Looking%20to%20raise%20funds%20from%20outside%3Cbr%3E%3C%2Fp%3E%0A
ENGLAND SQUAD

Goalkeepers: Jack Butland, Jordan Pickford, Nick Pope 
Defenders: John Stones, Harry Maguire, Phil Jones, Kyle Walker, Kieran Trippier, Gary Cahill, Ashley Young, Danny Rose, Trent Alexander-Arnold 
Midfielders: Eric Dier, Jordan Henderson, Dele Alli, Jesse Lingard, Raheem Sterling, Ruben Loftus-Cheek, Fabian Delph 
Forwards: Harry Kane, Jamie Vardy, Marcus Rashford, Danny Welbeck

COMPANY%20PROFILE
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How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less
Ain Dubai in numbers

126: The length in metres of the legs supporting the structure

1 football pitch: The length of each permanent spoke is longer than a professional soccer pitch

16 A380 Airbuses: The equivalent weight of the wheel rim.

9,000 tonnes: The amount of steel used to construct the project.

5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place

192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.

Lexus LX700h specs

Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor

Power: 464hp at 5,200rpm

Torque: 790Nm from 2,000-3,600rpm

Transmission: 10-speed auto

Fuel consumption: 11.7L/100km

On sale: Now

Price: From Dh590,000

Anti-semitic attacks
The annual report by the Community Security Trust, which advises the Jewish community on security , warned on Thursday that anti-Semitic incidents in Britain had reached a record high.

It found there had been 2,255 anti-Semitic incidents reported in 2021, a rise of 34 per cent from the previous year.

The report detailed the convictions of a number of people for anti-Semitic crimes, including one man who was jailed for setting up a neo-Nazi group which had encouraged “the eradication of Jewish people” and another who had posted anti-Semitic homemade videos on social media. 

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Send “thenational” to the following numbers or call the hotline on: 0502955999
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Handicap Dh 190,000 1,400m
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Handicap Dh 175,000 1,600m
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10pm: Handicap Dh 165,000 1,600m
Winner: Untold Secret, Xavier Ziani, Sandeep Jadhav

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

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Stormy seas

Weather warnings show that Storm Eunice is soon to make landfall. The videographer and I are scrambling to return to the other side of the Channel before it does. As we race to the port of Calais, I see miles of wire fencing topped with barbed wire all around it, a silent ‘Keep Out’ sign for those who, unlike us, aren’t lucky enough to have the right to move freely and safely across borders.

We set sail on a giant ferry whose length dwarfs the dinghies migrants use by nearly a 100 times. Despite the windy rain lashing at the portholes, we arrive safely in Dover; grateful but acutely aware of the miserable conditions the people we’ve left behind are in and of the privilege of choice. 

Updated: July 09, 2021, 10:18 AM`