EU could raise 17 170 billion by raising global corporate taxes by 25%

EU could raise 17 170 billion by raising global corporate taxes by 25%

Flags of the European Union and France (pictured). – Nicholas Messiah / Zippa

If the minimum global corporate tax (CIT) rate currently negotiated by the OECD is set at 25%, the European Union (EU) will raise $ 170 billion in additional tax revenue this year. The European Tax Observatory published on Tuesday. In this case, the European Union as a whole raised CIT-related revenues from approximately $ 340 billion to $ 510 billion by 2021, an increase of 50%.

Germany $ 30 billion, France $ 26 billion, Belgium $ 19 billion, Spain $ 12.4 billion and Italy $ 11 billion. Even Ireland, which has applied 12.5%, one of the lowest corporate tax rates in the European Union, will benefit from such an increase in tax rates: Dublin will receive 14 14 billion.

“No reason to stop 15 or 17%”

On the other hand, if the retention rate in the context of the current negotiations is 15%, that is, the floor proposed by US President Joe Biden, the gains of the European Union will not exceed 50 billion euros, and France 4.3 billion. That’s why “there’s no reason to stop at 15 or 17%,” said Gabriel Sukman, an economist and director of the Observatory, noting that 15% is “ridiculously low rates”, not just the current world average. 22%, but “much higher” than the rates implemented by the G7 countries.

The European Tax Observatory, co-funded by the European Union and hosted by the Paris School of Economics, is responsible for developing studies and formulating recommendations on taxation. His Put the website online this Tuesday By providing a simulator everyone can “catch the tax with this question”.

“Every penny counts”

“The launch of the European Taxation Observatory represents another important step on the path to better taxation,” he welcomed at a press conference in Brussels with Finance Commissioner Paulo Gentiloni. The fight against tax evasion, tax evasion and aggressive tax optimization is a priority for the Commission and for me personally, ”he said.

Europe has made progress towards greater economic transparency in the context of “post-pandemic recovery, massive investment in the ecological and digital transition areas,” especially under pressure from the journalistic inquiry, the commissioner pointed out. However, “every penny counts for the state purse,” he said.

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