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Global tax reviews gain momentum as the G20 boosts new tax collection – News

Without unanimous approval of the member states of the European Union, the agreement will be stalled. An EU Directive is required to set a minimum tax amount, which requires support from all 28 countries within the union. Ireland has previously hinted at opposition to or blocking the directive, making Hungary an even bigger hurdle given its relationship with unions that are putting pressure on Hungary over unrelated rule of law and corruption issues. There is a possibility.

Hungarian Prime Minister Victor Oban said taxes are a sovereign issue and recently called the proposed global minimum corporate tax “ridiculous.” Hungary’s low 9% enterprise rate helps to attract major European manufacturers, especially German automakers such as Mercedes and Audi.

France’s Treasury Minister Bruno Le Mer said on Saturday that it was important for all of Europe to support the proposal. He said the G20 countries are planning to meet with Ireland, Hungary and Estonia next week to address their concerns.

“Next week, we will discuss this with three countries that are still in doubt,” he said. “The momentum given by the G20 countries is clearly decisive, and I really think this breakthrough should bring all European countries together.”

Policy makers have also not yet determined the exact tax rate that companies will pay, pushing the US and France to exceed 15%, and negotiations continue on which companies will be taxed and who will be excluded. Has been done. The framework is currently exempt from financial services companies and mining industries such as oil and gas. The carve-out suggested by tax experts can open up major loopholes when companies try to redefine themselves to meet tax exemption requirements.

Domestic politics also agreed to join, but plans could hinder countries that need to turn their promises into law, including the United States, where Republicans signaled their disapproval, and plans are for US companies. Said it would hurt. The interests of large corporations are also paying close attention to the deal, suggesting plans to fight against those who put US companies at a disadvantage.

Neil Bradley, Chief Policy Officer of the US Chamber of Commerce, said: “Of course, that’s a big concern.”

Global tax reviews gain momentum as the G20 boosts new tax collection

Source link Global tax reviews gain momentum as the G20 boosts new tax collection



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