Many countries and even the European Union are in favor
ROME – Finance and Finance Minister Daniel Franco in support of the US proposal for a global minimum rate for companies: I welcome the United Treasury proposal to introduce at least a global minimum tax rate. 15%. This is another important step towards a new international tax architecture agreement.
This was announced by the Minister of Finance and Finance after US Treasury Secretary Janet Yellen opened the discussion on the imposition of a minimum tax rate at the international level. The U.S. is aiming for a summer agreement on a global corporate minimum tax against companies, followed by the passing of a law within a year. In a note released by the MEF, Daniel Franco explained that the technical discussions at the OECD were well underway and that the possibility of a global and consensus-based solution on the two pillars of international tax reform was now certain. As the G20 Presidency, we are making every effort to reach a political agreement at the G20 meeting in Venice in July.
The World Finance G20 2021 will be hosted by Arsenal in Venice from 7 to 11 July. The US proposal is moderate to 15% instead of the initial estimate of 21%. The announcement comes after U.S. negotiators met with rivals from 24 countries within the OECD framework on the issue of tax reform for multinational corporations this week. The United States is seeking a deal as part of U.S. President Joe Biden’s financial agenda to raise the corporate tax rate from 21 percent to 28 percent and tax companies’ foreign profits to Americans.
The ‘Global Corporate Minimum Tax’ is introduced to avoid harmful competition between states by running down international taxes to attract companies and businesses.
Gentiloni also welcomes the proposal: The 15% new US proposal for a “global corporate tax” is a step towards reaching an agreement that, in principle, I believe is fully possible, but at the G20 level, we are still working very hard in the coming weeks. Clearly, the agreement reached in principle must be translated in detail.
In addition to Italy, France and Germany favor a 15% global tax. Paris and Berlin believe that Washington’s proposal to raise the minimum global tax on multinational corporations from 15% to 15% is a way to seize a deal, according to OECD and G20 offices.
French Finance Minister Bruno Le Meyer believes the US proposal to set a minimum rate of 15% for the profits of multinational companies is a good compromise. “The main question is not this figure,” but “make a political deal as soon as possible, that is, during the G20 meeting in Venice, Italy, in early July, Le Meyer made it clear that the importance of always reaching a compromise on the pillar of the digital tax at that point. France will not leave itself to reach an agreement in early July, we have been working on it for 4 years, he repeated.
German Foreign Minister Olaf Scholes also indicated Germany’s full readiness to end the game. This is a great opportunity to define a tax reform globally to reduce unfair competition and tackle tax competition to the bottom.
The new US proposal was approved by Japan. Finance Minister Torre Ace spoke of the progress, and talks are not over anyway. However, the contract still needs to be worked out.
Clutches come from all states where companies have grown their success and attractiveness at very low rates and reasonable tax deductions. This applies to countries such as Ireland or Hungary, which have a corporate tax rate of 12.5%.
Fisco, Franco, Global Tax, Company