A contemporary glass constructing together with a historic constructing in Tallinn, Estonia.
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The company tax price in Estonia is already 20%.
Estonia’s President Kersti Kaljuride advised CNBC’s Rosanna Rockwood, “At present, there are not any firms in Estonia that really meet this newly proposed regulation.” Asia Tech x Singapore Summit on Tuesday.
“We’re discussing idea. We’re not stealing taxes from any nation on this planet,” she mentioned.
She later added that Estonia was “very clear” to the Tax Fee. “We’re not tax havens,” she mentioned.
Based on information from the Group for Financial Co-operation and Improvement (OECD), the Washington-based suppose tank tax basis, and consultancy KPMG, about 15 nations don’t impose normal company earnings tax. Amongst them are island nations reminiscent of Bermuda, the Cayman Islands and the British Virgin Islands. These are generally known as offshore “tax haven” jurisdictions the place giant companies shift earnings.
The president mentioned Estonia must know extra about how the world’s minimal taxes work earlier than supporting the proposal.
“We have to take a look at this technical debate about how this tax works precisely and see if we have to tune our system or if we will proceed.” She mentioned.
She identified that when the nation joined the European Union, there was concern that its tax system could be incompatible, however later turned out to be “absolutely appropriate.”
“We don’t know the expertise, so we will’t signal it but,” Kaljulaid mentioned.
She added that the talk couldn’t be hastened and it isn’t but clear what the regulation will probably be ultimately.
“However as soon as the applied sciences are identified and we will negotiate on these applied sciences, we’re assured that we are going to discover a method to show to the world that our tax system will truly work globally with this new system. “She mentioned. “I’m very optimistic.”
— — CNBC’s Yen Nee Lee contributed to this report.