The leading economies in the world agreed to spare the largest American companies to pay more corporate tax abroad, throwing in doubt the state of the highest global tax tax in more than a century.
The agreement between Washington and other members of the G7 group of leading countries could basically change the sights 2021. to set a global minimum tax to break the avoidance of multinational.
The G7 Saturday agreed on Saturday, “a secondary solution” of taxation that would release American companies from some parts of the new global tax regime due to taxes paying in the United States.
The G7 added that the agreement will “facilitate further progress to stabilize the international tax system”, including “constructive dialogue” on preserving the “tax sovereignty of all countries”.
New arrangements must be discussed in the coming weeks on OecdAn international organization that reached the minimum tax of 2021. years, but dominated by members of the G7, according to the people who are familiar with discussions.
Mathias Cormann, the General Secretary of the OECD, described the G7 statement as a “important milestone in international tax cooperation”.
“This is slam of nagging for the United States,” said Robert Golder, a tax lawyer and the editor of contributions to tax analysts, news for tax professionals. “I think they celebrate high fists in the treasury.”
The mixture arrived after the United States included provisions in the premium “large account of Trump”, which would allow us to avenge us to revenge allegedly discriminatory taxation in second place.
Making a statement G7, Secretary of Vault Scott Besent said that he would request Congress to remove revenge measures for revenge on American legislation due to the upcoming changes in the OECD agreement.
He added that these revisions will save US $ 100 billion tax payments to foreign governments in the coming decade.
The UK Chanciation Rachel Reeves said on Saturday that G7 agreed that “there is a job to do in solving aggressive tax planning and avoiding and providing field to play levels.”
“The right environment for this work that will happen is without a deferred taxation that hangs over these conversations, so the removal of Section 899 is welcome,” she added.
Markus Meinzer, Director of Policy at the Tax Justice Network, a group of campaigns, marked the G7 “hectic cave” which would leave the minimum tax contract “Dead.”
He added: “Now they try to break free by writing to others, which would completely arrange tax completely useless. The ship with a hull of American size in his trunk will not float.”
But Manal Corvin, the head of the OECD tax, the G7 statement described the G7 statement as ungodly, adding that any proposal should approve 147 countries at the OECD level.
“G7 can not cause this call,” she added.
The OECD agreement on the establishment of a global minimum tax reached more than 135 countries 2021. years in order to prevent tax evasion by the multinational and updated international tax system for digital age.
She founded a minimal tax rate of 15 percent global profit to the largest multinational and elsewhere, which were reflected several countries last year.
According to the provisions, which was particularly disassembled by Republicans in the United States, the OECD agreement has enabled other countries to collect US tax complements that are considered “Underwater”.
But OECD rejects the idea that other countries can now return from a global minimum tax – or that American companies will be in advantage of companies from other countries that adopted the regime.
“If anything, where we have previously been uncertainty and the impossibility of moving forward due to different retaliation threats, which made it very difficult and risky leaving (minimum tax),” Corvin said.
She claimed that every idea of the American tax system “light contact” was “not necessarily true”, maintaining that there were “many ways” in which it was a strectress.
The French official added that the G7 Accord “gave several nodes for the United States, (PO) that their tax law helps to harmonize” with the OECD contract “which is a concession”, but … it is worth “.
But Joseph Stiglitz, the Nobel Economy Laureates, who also said to the G7 Accord Indications that the governments “put the interests of multinational means in front of those of small and medium-sized enterprises, their citizens and average people around the planet.”
He added: “It is unacceptable that some governments choose to give up public revenues – especially now and just from the most powerful economic actors.”
The G7 statement has also provided for continuous discussion on the taxation of the digital economy. Taxes for digital services was a point of tension between the United States and other countries that wanted them to increase imposes on American technological giants.
Donald Trump, US President said Friday to canceled trading negotiations with Canada after Ottawa said This would impose a new tax on technological companies.
