German Finance Minister Olaf Scholz said the measure on the global minimum income tax should enter into force as soon as possible. “Our goal is for the agreement to enter into force in 2023,” he said. The last open questions are to be clarified by October this year, when the G20 summit will take place.
The worldwide taxation of large multinational companies of at least 15 percent of profits is often described as a milestone towards greater tax justice. So far, 131 countries have approved it. According to the OECD, this minimum rate could increase global tax revenues by approximately $ 150 billion (CZK 3.3 trillion) per year.
The European Commission has said that the new rules will “bring justice and stability to the international corporate tax system” and that they will allow the largest companies to pay taxes wherever they do business. “A global minimum tax of at least 15 percent will help curb aggressive tax planning and stop competition for the lowest possible corporate taxes,” the EU executive said.
The change in global taxation was supported by the finance ministers of the group of the most developed G7 countries at the beginning of June. This is the first major revision of global tax rules in the last generation. The aim is to update the tax system to match the digital age. The main requirement is that large digital companies pay taxes where they do business and not where they have registered subsidiaries.
G20 members also warned today that the economic recovery from the covid-19 pandemic “could negatively affect, in particular, the spread of new coronavirus variants and the different rates of vaccination.” They called for faster distribution of vaccines, but made no commitment in this regard.
The members of the G20 are Argentina, Australia, USA, Canada, Japan, Britain, France, Germany, China, Russia, Indonesia, India, Italy, Mexico, South Africa, Saudi Arabia, South Korea, Turkey and the EU. The group represents 80 percent of the world’s gross domestic product and 75 percent of global trade.
New rules for the global tax from the countries of the European Union were not supported by Ireland, Estonia and Hungary, from non-European countries such as Kenya, Nigeria or Sri Lanka.
Source: E15.cz by www.e15.cz.
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