It deserves to be handed down to posterity for the consequences of what happened or its consequences: this is how Trekani defines the most historic adjective used yesterday to greet the OECD agreement. 136 countries in the global tax rate of 15% for multinational corporations. This is a historic agreement, because setting a minimum limit that would help limit tax competition would force multinational corporations to pay a good portion of the tax where they make a profit. At the same time, the Organization for Economic Co-operation and Development estimates that this will allow countries around the world to collect a total of $ 150 billion in additional revenue. Not only for the benefit of the tax authorities in different states but also for the benefit of the taxpayers and domestic businesses.
I welcome the agreement for comprehensive tax reform. This is a historic moment. An important step towards improving our global tax system. The European Commission has strongly supported this international effort, with Ursula von Der Lane, President of the European Commission, urging all companies to pay their fair share.
Major technology groups such as Apple, Amazon, Google, and Facebook, in particular (but not only), have chosen Ireland as their European base for the 12.5% corporate tax rate, the lowest in the developed world. .
Acceleration arrived in the next few days, thanks to Ireland’s initiative on Thursday, followed by a few hours in Estonia and then on Friday in Hungary. Of the 140 countries involved, only Pakistan, Nigeria, Kenya and Sri Lanka are excluded. OECD Secretary Mathias Korman said the minimum tax would make our international tax system more fair and efficient. A great victory for effective and balanced multinationalism. It is a far-reaching agreement that ensures that the international tax system is appropriate for the digitized global economy. Even EU Commissioner Paulo Gentiloni describes the international agreement on global tax reform as historic, declaring itself proud of the support of EU countries. Pluralism is back, he wrote on Twitter.
Janet Yellen’s success in prioritizing the imposition of a minimum tax on multinational corporations during her first year as Treasury Minister is thanks to a change in the new U.S. administration. Today’s agreement represents a generational achievement for economic diplomacy, said the former federal central banker. Instead, the U.S. has imposed a two-year moratorium on imposing new taxes on large companies’ technology, and President Joe Biden is seeking to win a favorable vote in Congress to approve the deal. For the new tax to take effect in 2023, the signatories to the 2022 agreement must sign a multinational convention. The provision will be presented at the G20 Finance Ministers’ meeting in Washington on October 13. Expect light. Mario Draghi hosted the G20 summit in Rome later this month.
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