Dublin has not signed the text of the agreement negotiated within the framework of the OECD.
The minimum global tax for multinationals is a unique opportunity to end competition, the US Treasury Secretary reiterated to her Irish rival, while not signing the text of the agreement signed in the Dublin OECD framework.
Janet Yellen and Pascal Donohue expressed “creative” exchanges after a telephone interview Wednesday for digitization and globalization.
They agreed to continue “in the next communication”. But now, Ireland is sticking to its position and not signing the agreement.
The document, announced in early June, considers “historic” plans to impose a world tax of at least 15% on the profits of the largest international corporations and to more evenly distribute the taxing rights to these companies.
The G20 was approved in July by 134 countries so far, but not Ireland, which is growing at a favorable tax rate of 12.5%. Hungary and Estonia did not sign the text.
The 12.5% tax, which has been in place since 2003, allows Ireland to host the European headquarters of American companies, tech giants such as Apple or Google, and pharmaceuticals.
Ireland is not a member of the G7 and G20.
Janet Yellen ressed “the goal of stabilizing the international tax system.”
“The ultimate goal of all of us is to reach a fair agreement that provides security and stability for the international economic framework,” said Pascal Donohue. He added that Ireland will continue to work towards this goal.
Negotiations until the next G20
Earlier in September, French Economy Minister Bruno Le Meyer ressed that there was still work to be done, but said he was confident in the capabilities of the 27 member states (the European Union). To find an agreement on the subject “
The technical details of this reform need to be discussed within the framework of the OECD until October, before the next meeting of the G20 finance ministers in Washington, following the autumn meetings of the International Monetary Fund and the World Bank.
Implementation is scheduled for 2023.
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