Historic G7 agreement to apply a global tax to large companies

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

According to the Treasury, “The world’s largest companies, with profit margins of at least 10%, will see 20% of all profits above that threshold reallocated and taxed in the countries where they sell.”.

Now the measures will first have to find wider approval at a G20 meeting -which includes several emerging economies- to be held next month in Venice. “It’s complicated and it’s a first step,” Sunak said.

It was precisely the huge public spending with which countries had to respond to the onslaught of the pandemic that accelerated the debates held for years.

The decision is in line with the need for a fair and efficient tax system in the age of the digital economy.

The G-7 finance ministers have moved forward and established a historic pre-agreement on a minimum corporate tax to combat tax dumping practices practiced primarily by businesses. large tech companies.

With the necessary distancing measures, ministers have started to prepare the final decision to be taken by the G-7 heads of state and government at the summit to be held on 11 June in the UK’s coastal region of Cornwall.

“Tax dumping cannot be an option in Europe or in any country in the world. This practice would only lead to an even greater drop in corporate tax collection, more inequalities and the inability to pay taxes. fund 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 US Secretary of the Treasury, Janet Yellen, called the agreement “Unprecedented commitment”.

“This global minimum tax will end the downward spiral of corporate taxation and bring justice to the middle class and working people in the United States and around the world.Yellen said in his statement.