The world’s largest economies are emphasizing global tax reform agreements that impose minimum taxes on multinational corporations, putting pressure on a small number of holding countries to sign the agreement.
The G20 Minister of Economy and Central Bankers’ Meeting in Venice on Saturday issued a joint communiqué to approve tax agreements. G7 countries agreed last month And it was boosted by 130 countries in a meeting hosted by the OECD earlier this month in Paris.
The communiqué said the deal was “a historic agreement on a more stable and fairer international tax system” and that the G20 “invited all members of the OECD.” .. .. I haven’t participated in the contract to participate yet. “
He called on all negotiating countries to “quickly address the remaining issues and complete the design elements” by the next G20 meeting in October.
US Treasury Secretary Janet Yellen said the G20 would try to get smaller holdout countries, including Ireland and Hungary, to accept the deal, but this was not essential to move forward.
“It is not mandatory for all countries to participate,” she said.
Bruno Le Mer, French Finance Minister, called the tax transaction “a once-in-a-century tax revolution.”
“International taxation reforms have been agreed and there is no turning back,” he said.
The next step in the October G20 meeting is to revise the globally agreed minimum tax rate and consider how the share of tax benefits will be distributed among countries.
Eight countries, including Ireland, Barbados, Hungary and Estonia, have postponed a 15% minimum levy agreement backed by the United States, China, India and most EU countries. Other holdouts include Sri Lanka, Nigeria, Kenya, St. Vincent and the Grenadines.
Some low tax jurisdictions and investment hubs, such as the Bahamas and Switzerland, are already registered.
Peru was initially unregistered because there was no government in place at the time the agreement was reached, but it is now registered and has 131 signatories.
Political support for the G20 will give momentum to efforts to reach a final agreement expected to be implemented by 2023, but important technical issues remain and could be resolved this weekend. Is low.
These include various so-called carve-out agreements that allow some countries to use opt-outs from transactions to encourage investment.
Another hurdle is expected to be Republican opposition in the US Congress. President Joe Biden may require parliamentary approval for at least some of the elements of the proposal.
Kevin Brady, a top Republican member of the House’s Commission on Methods and Means, described the deal as “a dangerous economic surrender to send US employment abroad.”