This means that the G7 agreement on the global minimum tax / le mayor: “will be a tough fight”.
(dpa / AFP). Marcel Fratzher says Germany will be one of the biggest winners in imposing a global minimum tax on companies. Augsburger Olgmein, president of the German Institute for Economic Research (DIW), said billions of euros in extra tax revenue would flow into the treasury. On Saturday, G7 finance ministers agreed to impose a minimum 15 percent tax. French Finance Minister Bruno Le Meyer feared that the plan would be “difficult to implement”.
Write to family via WhatsApp or scroll through the Instagram feed on the tram – for many it is part of everyday life. As a result, Facebook is making money in almost every country in the world through data and advertising, including networks. However, most states receive nothing from this money. Because, so far, the big digital corporations are only paying where they are based on corporate taxes. It should be replaced with the minimum tax applicable globally.
The goal is for large international corporations to pay at least 15 percent tax everywhere. Many industrialized countries already have high tax rates (graphic). Corporations choose their headquarters strategically: Facebook has its European headquarters in Dublin, for example, while Ireland levies only 12.5 percent corporate taxes. The reform provides that in the future companies will be taxed not only at their headquarters but also where they make money. This applies to corporations with a dividend of more than 10%. Profits above this margin should be taxed at 20 per cent in the respective countries. This affects not only the internet giants, but also other industries such as pharmaceutical companies.
“Today, seven of the most important industrialized nations support the idea of imposing a minimum tax on companies,” said Federal Reserve Minister Olaf Scholes (SPD). “This is good news for tax justice and solidarity, and bad news for tax authorities around the world.” In addition to Germany and Great Britain, France, the USA, Italy, Japan and Canada are among the seven major democratic economic powers (G7).
Oxfam says 15 percent is too low
Several attempts over the past few years have failed. Scholes is now talking about the tax revolution. The joy of the deal is not so great everywhere. “It is absurd for the G7 to claim that it will implement a broken global tax system by imposing a worldwide minimum tax rate similar to the lower tax rates at tax havens in Ireland, Switzerland and Singapore,” said Oxfam, the development organization’s executive director. International, Gabriela Books. Alas Kobam, head of the International Tax Justice Network, which campaigns for tax justice, believes the plans are unfair. Only rich countries will benefit. “By settling for a tax rate of less than 25 percent, G7 countries are ready to keep their citizens and the world active,” Cobam said.
The agreement looks like a milestone for reform, but there are still obstacles. The next step is to convince the group of the 20 most important industrial and emerging countries. At a meeting of G20 finance ministers in Venice in July, Le Meyer called for the ship to bring in “other great powers, especially Asians.” He is particularly concerned about China. “Let’s face it, this is going to be a tough fight.” However, he is confident that an implementation will succeed.
“There is no guarantee that the agreement will last with the G20 and that the tax rights will be divided between US corporations such as Amazon or Google,” said Fabio, deputy head of the Left Parliamentary Group. D. Masi. 15 percent compromise. The new U.S. administration recommended 21 percent and backed down. At this lower limit, it is hoped that the resistance of the opponents will not survive. However, the corporations did not bother 15 percent: Google and Amazon were positive, with a Facebook spokesperson welcoming the project on Twitter, although as a result the group will soon have to pay more taxes.