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Ireland and Estonia now have a minimum rate of 15 per cent for multinational companies. The agreement also introduces new laws requiring large technology companies to pay taxes in countries where they sell their products or services, even if they do not have a physical presence there.
Guilhermy Marquez da Fonseca, an economist who specializes in strategy and innovation, believes that the position of technology giants is fundamentally one of defense.
“This is basically a position of defense, but the truth is that there is already very little to defend. At this point, we expect Hungary to repeat the same joint agreement, and most countries have already reiterated their support for this protocol, including some countries that appear to be tax hubs such as Switzerland, so there is little to do with this. Part of the same tech giants“It simply came to our notice then.
The deal brings in new rules for big technologies like Google, Amazon, Facebook or Apple. According to a visiting professor of higher education, these technology companies “They have to pay taxes locally in the countries where they provide services, people use their networks / applications, and maintain offices not only in the countries where they maintain or their headquarters, but in most cases in the United States of America or where they live “.
Guilherme da Fonseca believes that companies will remain in these countries.Deductions, deductions, and tax benefits will be retained or adjusted, which means we now have a minimum rate of 15%, which means that companies cannot reduce or assess tax benefits. They will continue to happen, but companies will not be able to pay less than 15%“.
This is an agreement between the OECD countries, so “It is not clear or fluid that the same technologies will withdraw their presence in many countries that have entered there simply because of tax benefits.The economist defended, however, that the practical effect of this measure will only become apparent over time.
Ireland and Estonia have been reluctant to accept the 15% minimum tax rate for multinational companies because a large part of their competition is based on lower taxes.
“Ireland and Estonia repeated the agreement more than any other country, but in the end they did. Whether this is detrimental to them or not, wait for the practical impact of the measure, with its advent in this case, because Google, Facebook or Whatsapp will have to transfer their operations to other countries and countries, where a preference and lower corporate tax restrictions will apply. We are talking about laws that are common to all these countries“The economist ressed believing that Ireland and Estonia would benefit from other assistance measures to ensure the stability of technologies in their countries.
It should be noted that with the goal of eliminating tax centers, corporate tax rates are moving closer to global consolidation. In addition to Ireland and Estonia, more than 130 countries have signed the treaty.
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