Transaction tax

The German Treasury has said the global tax transaction will soon be over.


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London – German Treasury Minister Olaf Scholz told CNBC on Friday that the deal on global tax reform would be concluded “immediately”, adding that he hopes the changes will take effect by 2023. ..

“We’re really on the road now [to a deal]Scholz told CNBC Annette Weissbach. “When 20 countries agree on the same idea of ​​imposing international minimum taxes, we will come to an agreement here at the G20.”

“It will be a process that will end soon,” he added.

Taxation is in the spotlight this weekend as finance ministers and central bankers from 20 of the world’s most advanced economies meet in Venice, Italy. Their goal is to launch a deal that forces the world’s largest multinational to pay more taxes.

It comes after 130 countries and jurisdictions were agreed last week to sign up to the June G7 proposal for a global minimum corporate tax rate.

Under this agreement, multinational companies can not only pay most of the obligations of the country in which they are headquartered, but may also be forced to pay a tax rate of at least 15% wherever they do business. . This has allowed giant companies to shift their profits to countries with very low tax rates and other accounting incentives.

“”Spain’s Economy Minister Nadia Calbino said on Friday that the change in the US administration was a big step forward in this area and that we need to come to an agreement here in Venice right now. “

President Joe Biden Since taking office, the administration has promoted a global tax deal. Taxation is seen as a way to find new funds to cope with the financial shock of the coronavirus pandemic, while dealing with inequalities.

Dutch Finance Minister Wopke Hoekstra also told CNBC he was “optimistic” about this weekend’s deal.

“I’ve heard from colleagues that in reality everyone is so positive about it that they can probably make more progress,” he said.

Opposition to trade

However, some countries, particularly Ireland and Hungary, are still skeptical of the deal, and it’s unclear whether Biden will be able to convince Congress of the benefits of the deal.

Germany’s Scholz said he was confident the negotiations would be successful when asked what would be proposed to convince Ireland and Hungary to sign the deal. But he did not provide specific details.

Ireland is known to offer a low corporate tax rate of 12.5%, and recent global tax treaties have potentially called this into question. Hungary is in a similar situation with a corporate tax rate of 9%.

Speaking to CNBC in June, Irish Treasury Minister Paschal Donohoe He said he wanted to find a “compromise” with an international partner.

Another open question is the Commission’s plan to introduce digital taxation in the near future.

When the G7 agreed on a global corporate tax rate last month, it was also decided to end the taxation of digital services to avoid double taxation. EU leaders, who have vowed to find a new source of revenue to pay off debt incurred during the Covid crisis, will come up with a new EU-wide digital tax proposal.

The Commission says this will supplement global corporate tax rates, but the US fears the EU plans may hinder progress.

French Treasury Minister Bruno Le Mer spoke to CNBC earlier this week and said: “I think we have to explain. [to] The US government is behind digital taxation, ”he added. This “has nothing to do with the taxation of digital giants”.

– CNBC Sam meredith Contributed to this report.

The German Treasury has said the global tax transaction will soon be over.

Source link The German Treasury has said the global tax transaction will be completed soon.

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