On Wednesday, the finance ministers of a group of 20 major economies said they hoped to agree on a minimum tax rate on corporate profits by mid-year as part of a major overhaul of how to tax international businesses.
Treasury Ministers met virtually two days after Treasury Secretary Janet Yellen insisted: World’s lowest corporate tax rateCalls for international cooperation, essential for funding the Biden administration $ 2.3 trillion infrastructure proposal..
Italy’s finance minister, Daniele Franco, said after the meeting that Mr Yellen emphasized the need for a minimum interest rate and her proposal was in line with the G20’s ambitions.
Franco, who chaired the meeting, said the Finance Minister has not yet resolved some of the issues needed to successfully complete long-standing talks on a review of the international tax system, but has kept a voluntary deadline. He said he wanted to reach an agreement. At their next meeting.
“What we are seeing this year is accelerating the process and we expect the G20 to reach an agreement in July,” Franco said.
The G20 has been negotiating since October 2019 under a framework developed by the Organization for Economic Co-operation and Development based in Paris that includes not only the minimum tax rate, but also a new way to distribute taxable interests between countries. I will.
The new approach focuses more on where the company has customers than where it is headquartered, resulting in more taxation on US tech companies in Europe and other countries and less taxation in the United States. Taxes from Europe and other companies selling to American customers.
Franco said the G20 continues to focus on agreeing on both of these changes as a package.
The minimum tax rate seems to be widely supported by governments around the world, but one of the problems that can prove difficult to solve is the level at which the tax rate is set.
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G20 seeks agreement on global minimum tax rates by mid-2021
Source link G20 seeks agreement on global minimum tax rates by mid-2021