July 13, 2024

Global Minimum Tax – VoxEurop

Global Minimum Tax – VoxEurop

On June 5, the finance ministers of the Group of Seven nations (Canada, France, Germany, Italy, Japan, Great Britain and the United States) voted at their meeting in London on what was called a “historic” agreement to introduce a minimum tax rate. on corporate profits.

With this agreement, we can ensure that businesses, wherever they operate, operate on the same terms,” said Rishi Sunak, UK Chancellor of the Exchequer.

This measure targets multinational companies (including GAFA: Google, Apple, Facebook and Amazon), which often pay less than 5% tax through tax optimization. However, the declaration not only sparked enthusiasm in Europe: Hungary, Cyprus and Ireland, which have a tax rate of less than 13%, stressed that taxation is a matter of national sovereignty.

According to a simulation published by the European Tax Observatory, a tax rate of 15% will allow EU countries to collect 50 billion euros in additional taxes in 2021, which is 7% of their health expenditures, Le Monde reports. The agreement will be ratified by US President Joe Biden and the other heads of state and government of the Group of Seven, and then the G20 countries must ratify it in Venice next July.

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