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Economy. The G20 gives the green light to the tax reform of multinational corporations

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The G20 heads of state and government, who met at a summit in Rome on Saturday, gave the green light to multinational corporations’ tax reform. It specifically provides for a second 15% tax on the latter.

“Today, all G20 heads of state approved the historic agreement on new international tax laws, including the global minimum tax,” Treasury Secretary Janet Yellen said in a statement.

Revenue of $ 150 billion per year

The green light will be formalized in the final G20 press release on Sunday.

The OECD – led group of 136 countries, which represent more than 90 percent of world GDP, terminated the agreement in early October. Thanks to this minimum tax, reform should allow these countries to generate an additional $ 150 billion in revenue per year.

Re-allocate a portion of the tax on profits

Part of the agreement is a refund of a portion of the profit tax paid by multinational corporations to the countries in which they operate. So they do not have to pay taxes only where their headquarters are located.

Companies with a turnover of over 20 20 billion worldwide and profits exceeding 10% are in sight. After seven years, that limit is likely to drop to $ 10 billion.

Aim to reform: Prevent multinational companies, especially Gaffa (abbreviated as Google, Amazon, Facebook, Apple, the giants) from benefiting greatly from the Kovid-19 epidemic and imprisonment, from paying ridiculous taxes on their earnings. .

Tax Foreign Profit

Another part of the reform is the introduction of a minimum effective tax rate of 15% on the profits of multinational corporations. A state can tax the foreign profits of one of its national companies, which will tax it abroad at a lower rate than this minimum rate.

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European proposal for 2022

The mobilization of militants into the early October agreements between Ireland, Hungary and Estonia enabled the OECD to end negotiations during the Rome summit itself.

Their membership was crucial because France wants to take advantage of the rotating presidency of the Council of Europe from January 2022, requiring unanimity to adopt the minimum tax in line with a European proposal.

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