London — Germany’s Treasury Minister Olaf Scholz told CNBC on Friday that the deal on global tax reform would be completed “immediately”, adding that he hopes the changes will come into effect by 2023. ..
“We are 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 taxation, we will reach an agreement here in the G20.”
“This will be a process that will soon end,” he added.
Taxation is in the limelight this weekend as finance ministers and central bankers from 20 of the world’s most advanced economies gather in Venice, Italy. Their purpose is to launch a deal that forces the world’s largest multinational corporation to pay more taxes.
This comes after 130 countries and jurisdictions Agreed last week Sign up for the G7’s June proposal for a global minimum corporate tax rate.
Under this agreement, multinational corporations may 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 allowed corporate giants to shift their profits to countries with very low tax rates and other accounting incentives.
“”Spain’s economic minister, Nadia Calbino, said on Friday that the change of US administration is a major step forward in this area and we need to reach an agreement here in Venice at this time. “
President Joe BidenSince taking office, the administration has promoted a global tax agreement.Taxation is seen as one way to find new funds to deal with the financial shock from Coronavirus pandemic, While dealing with inequality.
Dutch Finance Minister Wopke Hoekstra also told CNBC that he was “optimistic” about the deal this weekend.
“I’ve heard from colleagues that in reality everyone is so positive about this that they can probably make further progress,” he said.
However, some countries, especially Ireland and Hungary, are still skeptical of the deal, and it is unclear whether Biden can convince Congress about the benefits of the deal.
Germany’s Scholz said he was confident that the negotiations would be successful when asked what would be offered to convince Ireland and Hungary to sign the deal. But he didn’t provide any specific details.
Ireland is known for offering a low corporate tax rate of 12.5%, and recent global tax treaties have potentially challenged it. Hungary is in a similar position with a corporate tax rate of 9%.
Talking to CNBC in June, Ireland’s Treasury Minister Paschal Donohoe He said he wanted to find a “compromise” with an international partner.
Another open issue 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 taxation on digital services to avoid double taxation. The EU executives, who have promised to find a new source of income to pay off the debt incurred during the Covid crisis, will offer a new EU-wide digital levy proposal.
The Commission says this will complement global corporate tax rates, but the United States is concerned that EU plans may hinder progress.
France’s Treasury Minister Bruno Le Mer spoke to CNBC earlier this week and said, “I think we need to explain. [to] The US government is behind digital taxation, “he added. It “has nothing to do with taxing digital giants.”
— CNBC Sam Meredith Contributed to this report.
The German Treasury says the global tax transaction will be completed soon.
Source link The German Treasury says the global tax transaction will be completed soon.