Venice: Minister of Finance G-20 The richest nations resumed discussions in Venice on Saturday to give the green light to a historic deal to tax multinationals more fairly.
Earlier this month, 131 countries agreed on a framework for reform, including a minimum global corporate tax rate of 15 percent and that could be implemented by 2023.
Historically hailed by those involved, it aims to halt the race to the bottom as countries compete to offer the lowest tax rates to attract investment, resulting in many multinationals paying ridiculous levels of tax. does.
“This minimum tax on companies should be ambitious,” said French Finance Minister Bruno Le Maire AFP In the G20 meeting on Friday, the 19 largest economy countries and European Union Represents a unique opportunity.
He said countries representing 85 percent of global wealth are demanding a deal for the 21st century that would allow fair taxation of the digital giants, largely avoiding taxation that no one can accept. is.
A final agreement on a minimum rate is not expected until the run-up to the G20 leaders’ summit in Rome in October.
But the Venice talks are an opportunity to shed more detail and pressure those who have not yet signed the agreement under the auspices of the Organization for Economic Co-operation and Development (OECD) a club of 38 wealthy economies.
The United States, France and Germany are among several countries pushing for higher rates, while aid agencies including oxfam It is also argued that 15 percent is too low.
But some countries also opposed it ME Member Ireland lured Apple and Google The rate is unlikely to change for Dublin with its lower tax rates.
“We are really on the way now” for a deal that will be “finalized soon”, German finance minister Olaf Scholzo told CNBC television.
The minimum rate is expected to affect less than 10,000 major companies with an annual turnover of more than 750 million euros ($890 million).
It is one of two so-called pillars of global tax reform that has been negotiated for years, and has gained new momentum under US President Joe Biden.
would give other countries the right to tax multinational companies on profits from their activities in the nation, and would initially apply to the top 100 or so companies.
It is targeted at technology giants such as Google, Amazon, Facebook and Apple, but could also affect companies such as energy giant BP, which is present in 85 countries.
According to a draft of the final statement obtained by AFP, which is still being discussed, G20 ministers will “support” the OECD’s “historic agreement on a more stable and fair international tax architecture”.
Earlier this month, 131 countries agreed on a framework for reform, including a minimum global corporate tax rate of 15 percent and that could be implemented by 2023.
Historically hailed by those involved, it aims to halt the race to the bottom as countries compete to offer the lowest tax rates to attract investment, resulting in many multinationals paying ridiculous levels of tax. does.
“This minimum tax on companies should be ambitious,” said French Finance Minister Bruno Le Maire AFP In the G20 meeting on Friday, the 19 largest economy countries and European Union Represents a unique opportunity.
He said countries representing 85 percent of global wealth are demanding a deal for the 21st century that would allow fair taxation of the digital giants, largely avoiding taxation that no one can accept. is.
A final agreement on a minimum rate is not expected until the run-up to the G20 leaders’ summit in Rome in October.
But the Venice talks are an opportunity to shed more detail and pressure those who have not yet signed the agreement under the auspices of the Organization for Economic Co-operation and Development (OECD) a club of 38 wealthy economies.
The United States, France and Germany are among several countries pushing for higher rates, while aid agencies including oxfam It is also argued that 15 percent is too low.
But some countries also opposed it ME Member Ireland lured Apple and Google The rate is unlikely to change for Dublin with its lower tax rates.
“We are really on the way now” for a deal that will be “finalized soon”, German finance minister Olaf Scholzo told CNBC television.
The minimum rate is expected to affect less than 10,000 major companies with an annual turnover of more than 750 million euros ($890 million).
It is one of two so-called pillars of global tax reform that has been negotiated for years, and has gained new momentum under US President Joe Biden.
would give other countries the right to tax multinational companies on profits from their activities in the nation, and would initially apply to the top 100 or so companies.
It is targeted at technology giants such as Google, Amazon, Facebook and Apple, but could also affect companies such as energy giant BP, which is present in 85 countries.
According to a draft of the final statement obtained by AFP, which is still being discussed, G20 ministers will “support” the OECD’s “historic agreement on a more stable and fair international tax architecture”.
.