Although 130 countries have agreed to impose a minimum of 15% tax on multinationals on July 1, the chances of seeing a deal reached in the G20 over the weekend in Venice are increasing. In this sense the Minister of Economy Bruno Le Myre announced yesterday “The G20 We need to politically approve the tax reform of multinational corporations over the weekend. “. But be careful not to claim success too quickly. During a press conference on Tuesday, representatives of the U.S. Treasury said the United States would push for this tax – especially on Internet companies – to exceed the 15% agreed level last week.
However, the delegation noted that no decision was expected during the next round of talks with the help of the Organization for Economic Co-operation and Development (OECD). U.S. Treasury Secretary Janet Yellen Works in conjunction with committees of the US Congress to make necessary changes in the law for the implementation of international tax treaties.
This willingness of the United States to change the rate of the floor is not the only obstacle to signing the treaty. The 130 countries, which represent 90% of world GDP, need to reconsider their reasons for being reluctant at this time to recognize this minimum global tax rate on companies, such as Hungary, Ireland and Estonia.
The reform – aimed at punishing multinational corporations for not reporting to foreign tax services where customers and consumers are located – is actually causing great concern in these states with low levels of taxation. Interested in maintaining a taxing position to attract investment, they show lower rates: 9% for Hungary and 12.5% for Ireland or even tax only to pay dividends in practice, for example in Estonia. However, the march of these three European countries is essential to the EU because the adoption of the minimum tax by a European mandate requires the consensus of EU members.
At the same time, multinational corporations pursuing large-scale tax optimization and evasion also want to reduce the progress of negotiations. These giants are not interested in implementing this type of tool when a large portion of their profits are evaded from any taxation. According to the recent works of economist Gabriel Jugman entitled “The Victory of Injustice” (Written with Emmanuel Sauce, Gateway, 2020), 40% of the profits of multinational corporations are converted to taxation.
But some countries, such as France, Germany or the United Kingdom, which can get everything by implementing this tax, want to reach an agreement. “We have a responsibility to implement fair and effective international taxation.”, Announced yesterday as French Economy Minister. According to economists at the Economic Analysis Council (CAE) on June 29, France could earn 5. 5.9 billion in the short term and 9 1.9 billion in the long run by recovering profits from sales made in its region.