German Finance Minister Olaf Schultz announced the news of the agreement that would change the world after the meeting of the Group of Seven, which began in London on Friday, where, among other things, global taxes were imposed on large multinational companies based on a single tax rate. schedule of work. The proposal would impose minimum global taxes on the world’s 100 largest and most profitable companies, including technologists such as Amazon, Apple and Microsoft, who will pay taxes in the future not only where they are located, but also in those countries. Also in the countries in which they do business. Schulz is confident of a tax rate of at least 15 percent, which, according to press reports, all politicians in the Group of Seven support.
According to the German Finance Minister, this ratio and the development of a common position will help pay off debts incurred during the pandemic.
– Olaf Scholz (@OlafScholz) June 5, 2021
For more than four years, France, Germany, Italy and Spain have worked together to create an international tax system for the twenty-first century. It’s a multi-round story, but now it’s time to make a deal
– This came in a joint statement of the finance ministers of the four countries. Politicians stressed that introducing a fairer and more efficient international tax system was a priority even before last year’s economic crisis, but the pandemic situation has made negotiation even more urgent.
The two-day meeting will be chaired by British Chancellor of the Exchequer and Royal Adviser Rishi Sunak. This is the first time since the start of the pandemic that politicians have represented a group of developed countries. He told Sun before the meeting began that he believed they could make significant progress in tackling the world’s most pressing economic challenges. The weekend talks are also expected to pave the way for the 47th G7 summit to be held in the UK on June 11-13.
We are on the verge of concluding a historic agreement that will show the world that the G7 continues to act as a global power in setting the rules of the game for the international system of the twenty-first century.
– said Bruno Le Maire, French Finance Minister.
Schulz added that countries that had previously opposed the new international tax system needed to understand that the new concept represented a major breakthrough that they needed to agree on as soon as possible. Accordingly, the French Finance Minister invited Ireland to join the initiative, as it has the lowest tax rate in the European Union, at only 12.5%. So far, there is no common position on the part of the G7 that the minimum global tax rate will follow the 15 percent rate proposed by the United States or be at least 15 percent. Incidentally, the administration led by US President Joe Biden had previously proposed a 21 percent limit.
All companies involved must be subject to the new rules without exception
Reuters quoted Schulz as saying.
There will be no easy procession
Japanese Finance Minister Aszu Taro said earlier this week that he did not expect agreement on this issue at this meeting, and US Treasury Secretary Janet Yellen also said earlier that a common position could be reached with colleagues at the next meeting. However, the issue of global minimum taxes is further complicated by the US announcement on Wednesday that it will impose tariffs on $2 billion worth of imported products, including those of UK origin, in retaliation for taxes imposed on US technicians. . Meanwhile, the measure has been suspended for 180 days, citing the weekend’s G7 meeting and the G-20 meeting at the end of July.