AGI – Everyone has defined it “a historic agreement”: at the financial G7 in London, the first to have been held in the presence of the pandemic since the beginning of the pandemic, an agreement was reached on the principle a minimum global rate of “at least 15%” for the taxation of large companies, which will be applied country by country.
British Chancellor of the Exchequer Rishi Sunak, the landlord, called it a “squeeze on tax avoidance”, as well as a “first step that needs further progress in the G20” and OECD countries and which will create a “common ground” in taxation for all global companies.
All G7 countries have pledged to adopt this corporate tax on business profits, which according to Sunak will be adopted with reference to mega companies with margins higher than 10%. In addition, the British minister specifies that 20% of profits exceeding this 10% margin will be reallocated in the countries where sales are made and can help fight “tax havens”.
“Once we have a global solution” on the taxation on profits of multinationals as a whole, explains Sunak, the need for ad hoc taxation for the giants of the Web will disappear.
The Minister of Economy, Daniele Franco he appreciated the agreement and said it would be discussed “at the G20” in Venice in July, with the prospect of being enlarged. “We are confident that we will also find an agreement at the G20 level so that these pillars become a reference point for global taxation “, said Franco, specifying that the new rules are not aimed only at companies in the digital sector, but at all multinational companies.
According to French Finance Minister, Bruno Le Maire, who wants to raise the rate by 15%, the agreement is “a first step”.
“Today in London – he commented the EU Commissioner for Economy, Paolo Gentiloni – we have taken a big step towards an unprecedented global agreement on the reform of corporate taxation. The chances of a global agreement have greatly increased. We now have to go the last mile to expand this consensus to all G20 members and all countries involved in the OECD inclusive framework. ”
The US Treasury Secretary Janet Yellen is also satisfied, according to which the agreement “will put an end to the race to the bottom” between countries on taxation and “will ensure equity for the middle class and workers in the US and elsewhere”.
The German finance owner, Olaf Scholz, he reiterated the term “historic” and added that companies will no longer be able to evade taxes by making profits in low-tax countries. Furthermore, for Scholz, the next step will be to discuss the G7 agreement with a broader set of partners from the Organization for Economic Co-operation and Development and the G20. Involving China and Russia is the main goal. “The G7 decision on international tax justice is historic,” he said. “This is great news for tax justice and solidarity and bad news for tax havens around the world.”
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