Before the G20, Europe seeks unity in international taxes

Before the G20, Europe seeks unity in international taxes

A small group of countries, including France, is trying to persuade 27 people to vote in favor of a 15% global tax rate on the profits of big multinationals.

EU finance ministers on Thursday sought to resolve differences over multinational corporations’ international efforts to reform taxes. Ahead of the crucial meeting in July at the G20 in Venice, the Frenchman tried to line up the mayor hold outs in Bruno.

On June 5, the G7 countries reached an unprecedented agreement in London on a lower world tax rate of 15% for the profits of large multinational corporations and for better distribution of tax revenue between countries.

Convince the Europeans, then China

In the wake of this major political impetus, on July 9 and 10 in Venice, other great powers, including China, announced a struggle that would make it difficult to support the plan.

EU finance ministers discussed the issue at a meeting in Luxembourg on Thursday. “This diversion must be ensured at the G20 in Venice by mid-July, so it is important that we increase contacts,” French Minister Bruno Le Meyer announced when he arrived.

Germany, Italy, Spain and France

G7 members in the European Union, Germany, France and Italy support the agreement reached in London with the support of Spain, especially thanks to the commitment of the new US administration to Joe Biden. These countries want to end financial investment that is detrimental to the financing of public policies such as education or health.

But Ireland, which has built an economic model on low taxes and attracted many American multinationals, is reluctant, especially in the digital sector, and in many Central European countries, including Hungary.

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Le Meyer has announced that he will meet with his Italian counterpart, the President of the G20, and Irish Finance Minister Pascal Donohue, to find a global agreement (to find) the Europeans. He said he would visit Poland on Sunday and hold talks with Chinese, Indian and Russian countries next week. “There are still states that need to be convinced, but the best way to convince them is to negotiate with them,” he said. Le Meyer explained.

An agreement in 139 countries

In addition to the negotiations in the G20, agreements have to be signed with 139 countries within the framework of the OECD. “We know change is happening, and we want to be a part of that change,” Donald told reporters Thursday.

However, as a small country geographically far from the heart of Europe, Ireland felt that it “did not enjoy the benefits of localization and the economy at the level of other states and that taxation (as part of its offer to be competitive)”.

The theoretical tax rate is 12.5%, but in reality it is much lower, which has managed to attract the European headquarters of the Irish giants Facebook, Google and Apple. with AFP

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