Lee Thomas and Andrea Shall
Paris, July 6 (Reuters) – The implementation of the global corporate tax level will continue to be hampered by the green light given by 130 countries.
According to the Organization for Economic Co-operation and Development (OECD), most countries discussing international business tax reform have agreed to a corporate tax rate of at least 15%, but difficulties are emerging.
The ink on the deal is barely dry, and politicians in high-taxing countries have hailed the end of the “downward run” of tax competition.
In France, Finance and Finance Minister Bruno Le Meyer described it as “the most important international tax treaty in over a century.”
Other signatories to the agreement, India and Switzerland, have expressed reservations, suggesting that it be finalized.
Even if the G20 finance ministers approve the agreement, which is scheduled for the July 9-10 summit in Venice, countries will have to finalize the agreement by October so the tax terms can be changed, with the new rules coming into force in 2023 next year.
Many countries provide optimism varsannaletuttatinal implemented in 2023, to accept the amendment in relation to the international tax agreements, both past and low risk.
Within the European Union, the best solution for the implementation of the agreement is through a block-level law, with France’s rotating president in the first half of 2022.
But all member states, including Estonia, Hungary and Ireland, which do not support the proposed tax level, need to be fertilized first. Solidarity law governs European tax law.
The next three countries to verify the sources said talks sam’marddamuntakumenn ider restored to their position.
Another source commented that it was harder to convince the Hungarian people than the Irish and Estonians. Cyprus, which is excluded from the OECD talks but is a member of the European Union, needs membership.
Peter Vale, Dublin’s partner in Grant Thornton, an audit and financial advisory group, believes, however, that countries like Ireland do not have enough space to stop the deal from moving forward. In his opinion, these countries can be expected to play at the same level of rates.
Other problems may arise from Washington.
The European Commission is set to introduce a new tax on digital services this month to fund the community block’s 7 750 billion post-pandemic recovery plan.
As part of a comprehensive tax treaty, the U.S. government is urging countries that have already implemented a national tax on digital services to repeal their current legislation, including Washington Valley, which is particularly targeting silicon companies.
The European Commission, eager to avoid a new showdown with the United States, presents this new fee as a general levy and tax, which is of major concern to European companies.
In the United States, the US president, who controls both houses of Congress, has a greater chance of implementing a corporate tax of at least 15%.
However, amendments to bilateral tax treaties require a two-thirds majority in the Senate. Experts believe Joe Biden will be careful to avoid confrontation with Republicans. (Lee Thomas and Andrea salalum to the report, the French version of Art ude data cenja ou, edited by Sophie luyarr)