Thursday, June 13, 2024

corporate tax | G7 agree minimum global tax rate of 15%

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Cole Hanson
Cole Hanson
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(Londres) Les ministres des Finances du G7 ont annoncé samedi un accord « historique » sur un impôt mondial minimum et une meilleure répartition des recettes fiscales provenant des multinationales, particulièrement les géants du numérique, à l’issue d’une de june d in London.

Veronique Dupont
France media agency

The Group of Seven is committed to the goal of setting a minimum global corporate tax rate of “at least 15%,” according to their joint statement, which also notes a commitment to a better distribution of rights to tax the profits of large multinational corporations.

Treasurer Rishi Sunak, Treasurer Rishi Sunak, described the agreement as a “historic” and “a proud moment” as he presided over the meeting as the host country of the Group of Seven.

The G7 superpowers (the United Kingdom, France, Italy, Canada, Japan, Germany, the United States), taking advantage of the US administration’s renewed interest in the issue since Joe Biden came to power, want to achieve a global goal. Corporate tax reform in the spirit of the work done within the Organization for Economic Co-operation and Development.

Elle vise largement les grandes entreprises de la technologie, souvent américaines, qui paient des impôts dérisoires malgré des profits de dizaines voire centaines de milliards de dollars, en se domiciliant dans des pays où le taux d’impôté les voire les étrès faesté, Bad.

In a statement Saturday, US Treasury Secretary Janet Yellen also received an “unprecedented commitment” from the Group of Seven finance ministers.

Photo by Alberto Bezzali, Agence France-Presse

US Treasury Secretary Janet Yellen

Mr. Sunak continued that the G7 financial agreement “is a first step and next month we have the G20 finance ministers to make further progress”, believing that the compromise reached on Saturday will allow “to inject justice into our global tax system”.

The G7 countries want to put an end to tax competition in the world, which, in their opinion, harms everyone at a time when the pandemic has emptied state coffers, while digital giants have benefited in particular from the crisis.

French Finance Minister Bruno Le Maire estimated, in a video posted on his Twitter account after the meeting, that “after four years of fighting, France has won its cause.”

“It’s a starting point and in the coming months we will fight for this lowest tax rate to be as high as possible,” he added.

For Gabriella Bucher of the NGO Oxfam, “setting a global minimum corporate tax rate of just 15% is too low” and “will do little to end a dangerous race to the bottom of corporate tax havens and the extensive use of tax havens.”

Long trip

Several countries including France, the United Kingdom, Italy and Spain have already implemented their own digital tax in the meantime, and discussions with the United States have also focused on the timetable for withdrawing these national measures in favor of international reform.

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“This is something we have been talking about for nearly a decade and for the first time today we have agreement on the concrete principles of what this reform should be. This is a huge step forward,” Rishi Sunak insisted.

But he admits that “we still have to go to the G20 and find an agreement with a larger group of countries, so it is difficult to say when we will reach a final agreement,” although he has softened.

This process should continue for several more years, when, in addition to the G-20, it will be necessary to persuade 140 countries to work on the tax reform project within the bosom of the OECD.

The challenge in particular will be persuading countries that have built their economies on very low corporate tax rates such as Ireland (12.5%), which has attracted the European headquarters of many multinational companies.

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