G7 countries agree minimum tax for large multinationals

Finance ministers from the G7, the richest group of countries in the world. they reached “a historic agreement” apply an overall tax rateUK Finance Minister Rishi Sunak announced on Saturday.

The officials reached an agreement “on the principle of Overall minimum rate of 15% for the taxation of large companies, to be applied country by country, “said the British Treasury in a message on Twitter and mentioned “a tightening of the fiscal pressure” which will make Big Tech multinationals pay “their fair share”.

The G7 brings together Canada, the United States, Japan, France, Germany, Italy and the United Kingdom.

Global companies such as Amazon, Google or Facebook will be most affected, because now they can legally pay taxes in a country with favorable tax conditions (eg Ireland) the activity they generate in other countries. With this change, rich countries are seeking to avoid a “race to the bottom” of fiscal policies.

In addition, this standard aims that companies pay in the countries where they sell your products and services and not where they declare their benefits.

“The fiscal dumping it cannot be an option in Europe or any country in the world. This practice would only lead to an even greater drop in the collection of corporate tax, more inequalities and the inability to finance basic public services», Affirmed a text signed by the Italian Daniele Franco, the Spanish Nadia Calviño, the French Bruno Le Maire and the German Olaf Scholz.

The initiative is “to adapt to the global digital age, but above all to making sure the right companies pay the right taxes in the right places and that’s a huge price for UK taxpayers, ”Sunak said.

The US Treasury Secretary pointed out that “this global minimum rate ends race to lower corporate tax and secures justice for the middle class and working people in the United States and around the world. “

The ministers thus prepared the final decision to be taken by the heads of state and government of the G-7 at the summit to be held. June 11 in the British coastal region of Cornwall.

Thus, despite the fact that the G7 has no formal role in the process of discussing the new international taxation, a pact within this group would mean a powerful push to reach an agreement in the formal negotiations taking place in this regard at the G20 and the OECD.

In this sense, the United States has lowered its aspirations for a minimum corporate tax at the global level, by reducing them by 21% to an effective rate of 15% in order to broaden the consensus in this regard.

the huge public spending With which countries have had to respond to the onslaught of the pandemic, it has accelerated the discussions held for years on a global agreement.

In an interview with the BBC in recent hours, German Minister Schol even referred to an agreement aimed at “changing the world”. Especially if it is subsequently also adopted in the largest G20 headquarters under the Italian presidency, to which also belong China or Russia, among others.

“If we share a minimum corporate tax, we will help stop the race to lower taxes we see today and ensure that our countries can financially support the necessary commitments, especially after all the money spent. to face the Covid emergency and defend people’s health. and the economy, ”said member of Angela Merkel’s cabinet.

With information from ANSA, DPA and EFE