As some European countries consider adopting exit taxes to increase revenue, the International Chamber of Commerce issued a policy statement warning that exit taxes could seriously disrupt international business restructurings and movements of capital.
The ICC statement strongly advises against exit taxes regimes which generally seek to tax unrealized gains the moment a company’s seat or assets leave the country. USCIB contributed to the development of this statement.
“While the international community is currently debating a fundamental restructuring of the international taxation system, we see that as a means to increase their revenues more countries are considering levying additional taxes, such as exit taxes,” said Chirstian Kaeser, global head of tax at Siemens and chair of the ICC Commission on Taxation. “These taxes increase the risk of double taxation and thereby negatively impact investment and growth at a time when economic recovery is still fragile,”
The revised policy statement acknowledges recent developments, most notably the Organization for Economic Cooperation and Development (OECD) Base Erosion and Profit Shifting Project (BEPS) initiated by the G20. USCIB plays a leading role in OECD global tax discussions and recently held its annual International Tax Conference on BEPS.
Staff contact: Carol Doran Klein