Minimum tax, Europe’s yes to US proposal: to G20 deal

Minimum tax, Europe's yes to US proposal: to G20 deal

Joe Biden’s new U.S. government breaks the global crisis of imposing a minimum tax on multinationals, and the European Union approaches an agreement.
For the first time, the US is formally considering their proposal: companies will have to pay at least 15% to the tax authorities in all OECD countries, a revolution that will permanently weaken the bottom line of the jurisdiction that attracts the top companies. Taxes. Treasury Secretary Janet Yellen will continue the discussion as part of the G7 Finance Ministers’ Meeting.

OK to the US proposal from the European Union

The European Union is leading with Italy, France and Germany, and is expected to reach an agreement in principle on the economic G20 in Venice in early July.
Finance Minister Daniel Franco has assured that Italy, the current president, is making every effort to ensure the achievement of a political agreement there. “We hope to have a deal this summer,” Olaf Scholes, the German finance minister, told Lisbon’s Ana Mal formal euro group on the imposition of a minimum tax on multinational companies and web tax.
For Scholes, the US proposal is “really a big step forward”, leading to the path of web taxation, as the agreement on minimum taxation will help “tackle the tax competition at the bottom of the big digital platforms”.

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Franco: “Steps to International Tax Architecture”

“This is another important step towards a new international tax architecture agreement,” he said. For French colleague Bruno Le Meyer, the lowest rate would be 15% “good compromise”.

But the numbers are not written in stone. “The main issue is not the figures,” but “make a political deal as soon as possible, that is, during the G20 summit in Venice, Italy, in early July,” explained Le Myre, who has always been important. At that point, there was a compromise on the “pillar of digital taxation”.

Smaller countries are in doubt

While large European economies are satisfied with the U.S. move, and optimistic about the deal, smaller countries remain more skeptical, as they base their economies on tax schemes that are precisely in favor of multinational corporations, even though they are generally below the minimum limit and completely illegal.
Ireland, for example, charges 12.5%.

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