An important stage in the negotiations at the OECD before the G20

An important stage in the negotiations at the OECD before the G20

Following the G7’s “historic” agreement on the global taxation of multinational corporations, discussions continue at the OECD this week to reach a consensus between the 139 countries.

The Paris-based Organization for Economic Cooperation and Development (OECD), which advocates for the G20 to establish this global minimum tax, and the better distribution of tax revenue from multinational corporations, especially digital ones, will meet on Wednesday and Thursday. To address the general forms of reform.

The moment of truth is the meeting of the G20 finance ministers in Venice on July 9-10, which will pave the way for a final agreement by the end of the year.

“I believe we have never been in close contact with a contract,” said OECD tax mr June Pascal St.-Amans.

“There is a dynamic (Joe) biden, it is very strong and the Europeans need a deal. I think everyone understands that a contract is better than a contract. Gafa taxes, unilateral taxes, American retaliation, ”he told the BFM business. .

Less than 15%

The reform aims to end tax competition at a time when states have spent huge sums to fight the epidemic, especially the digital giants.

Inspired by the United States, the G7 in London drafted a framework in early June to set world tax rates on “at least 15%” companies and a fair distribution of the right to tax profits. Multinational companies established in many countries.

The Chancellor of the Exchequer, Riche Sunak, described the meeting as “historic” by an agreement of the seven great powers (United Kingdom, France, Italy, Canada, Japan, Germany and the United States).

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It remains to extend the consensus to all the countries involved in the negotiations.

However, the 15% rate proposed by the United States was not unanimous – including by the US Congress, which is opposed by Republicans.

Within the European Union, tax competition, such as Ireland or Hungary, which is one of the engines of their attraction, has expressed their reluctance.

Poland, a long-time refinery, backed the project last week. A decisive supporter greeted French Finance Minister Bruno Le Meyer.

“Red line”

In the words of US Treasury Secretary Janet Yellen, convincing China of its concern about the project will also be a challenge.

The two sources said that the Asian giant had reduced corporate tax rates on some innovative activities and did not want the minimum rate to exceed 15 per cent.

The United Kingdom wants to exclude its economic zone from the 1st pillar of the reform, which changes the share of taxing rights not only to the place of taxation but also to the country where the turnover is realized.

Other points have yet to be determined on the basis of the future minimum tax or on the number of companies affected by the distribution of new rights to be taxed.

The US proposal targets the top 100 multinational companies. The G24, an intergovernmental group that brings together 24 emerging countries, including Argentina, Brazil and India, estimated inadequate numbers at the end of May.

France also wants to ensure that all digital giants are affected by the reform. It’s a red line for Paris, surrounded by Bruno Le Meyer.

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Questions have been raised about Amazon, a part of which, like distribution, is not enough to come within the scope of the update, and unlike the + cloud +, the American giant is making significant profits.

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