The idea of a US president imposing a minimum tax on corporate taxes is being imitated in Europe. The UK certainly agrees with those who support such a tax. This was announced again this week during a virtual meeting of members of the country hosting G7 Finance next week. UK Finance Minister Rishi Sunak has said his country is ready to sign an agreement with the United States within the framework of the G7. However, he ruled on Sunday that the US proposal was inadequate in the case of large technology companies.
“They need to understand why it’s important for us to impose a fair tax on tech companies. We need to make a deal, so I urge the United States and all G7 countries to come to the table, and to hold talks next week, and so on.” Told the mail.
Repeated disagreements between the United States and Europe
The GAFA (Google, Apple, Facebook, Amazon) tax is a recurring theme of disagreement between Washington and EU countries. Under President Donald Trump, they came close to a diplomatic event in which France unilaterally decided on the tax system submitted to Gaffay and the United States immediately sanctioned it through commercial retaliation.
Joe Biden surprised everyone by announcing from the first day of his presidency his desire to impose a minimum tax on companies globally. This will be discussed at G7 Finance next week. Debates are around 15% of the selected rate.
The United Kingdom defends the principle of taxation where companies generate revenue, not where they are registered. “Our position is important when it comes to paying taxes, and any agreement should ensure that digital companies pay taxes in the UK that reflect their economic activity,” Rishi Sunak spokesman said.
Division subject in Europe
The issue of the minimum corporate tax has revived an old debate in Europe, with France and Germany charging smaller countries economic waste at a much lower rate. According to OECD estimates, Irish tax companies make up 12% of their profits, Hungary 9% and the top two economies in the European Union 30%. The Netherlands and Luxembourg, two countries known for their highly competitive tax policies, have announced that they are ready to join the ranks of Paris and Berlin in favor of the minimum tax.
According to the NGO Tax Justice Network, European countries will lose $ 80 billion in tax revenue by 2020. According to the study, France’s deficit is $ 14 billion.