Global tax: EU reaches out to US, ‘rebels’ continue

Global tax: EU reaches out to US, 'rebels' continue

L ‘European Union In collaboration with the G20, it was decided to suspend the work on the digital tax to act on the proposal that emerged from the last G20.OECD, To reach a full understanding of the global minimum tax by October. The confirmation came from Polo Gentiloni, a spokesman for the European Commission and commissioner for economic affairs. It was handed over to a U.S. ally who had already spent a lot of money to secure the Venice Treaty in the coming months and had already prepared a program of obligations to personal jurisdiction to decide on its own to impose taxes. Big Tech.

The G20 signed a historic agreement in Venice this weekend to create a more sustainable and equitable international tax system that addresses the tax challenges posed by the digitization of the economy. This is an extraordinary result after years of negotiations, and the Commission has worked tirelessly for this, ”an EU spokesman explained. In short, the agreement stipulates that all large companies must pay at least 15% tax and pay taxes in the countries where the products and services are sold.

“I was informed Janet Yellen (Secretary of the U.S. Treasury, Ed.) Our decision to suspend the Commission’s recommendation to impose a tax on digital companies, ”Gentiloni later added. In fact, the decision was motivated by a desire to “work for years on the last mile of this historic agreement” on the imposition of global corporate tax, and he also discussed the policy coordination pandemic response that underscores the success of the meeting with Yellen. , Global Climate Change and Immunization. An agreement was born – the EU Commissioner concluded, “to end the race and restore tax rights where profits are made”.

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However, not all EU member states in Europe have shown compliance with the Venice Agreement. Estonia, Ireland and Hungary are the “rebellious” countries that have already repeatedly ressed their strong opposition to the global rebellion tax. Changing their minds is one of the goals of Janet Yellen’s visit to Brussels Euro group countries, EU Commission President Ursula von Der Lane and ECB President Christine Lagarde. “I will explain that the minimum tax is appropriate for everyone,” the US Secretary of the Treasury said at the closing press conference of the Venetian summit on Monday morning.

The reasons for avoiding the global minimum tax and the digital tax of the three countries are very different. If Ireland is indebted to a corporate tax system that is very conducive to economic success – multinational companies on the island will not charge more than 12.5 per cent –Hungary The question is also ideological. “It is absurd for an international organization like the OECD to claim the right to say what taxes should be levied on Hungary and not,” said Hungarian leader Orban. Estonia’s position is still different, it has been leading the competitive ranking for years and represents the true example of a digital society: here corporate tax rates are between 14 and 20, on the one hand it can accept global taxes and on the other, it does not require intervention.

Despite the profound differences that motivate the three countries to say “no”, tax issues must be unanimously acknowledged in the European context, and the veto of one of the three countries is sufficient when the European Union approves the global tax protocol. All rights reserved. However, Estonia, Ireland and Hungary are not the only problems to be solved in defining a global tax. The OECD has signed the agreement in recent weeks 130 in 139 countries: Tax bases such as Barbados, St. Vincent and the Grenadines and the larger states of Nigeria, Peru and Kenya are questionable.

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