After years of negotiations, the leading industrial nations have agreed on important pillars of the global digital tax. British Treasury Secretary Rishi Sunak announced this on Twitter after meeting his G7 counterparts in London on Saturday.
The breakthrough, which the German Finance Minister Olaf Scholz (SPD) described as the “tax revolution”, is an important basis for further agreement between the G20 countries.
Corporations like Google offer more to checkout
The aim is to ask digital companies like Apple or Google to pay more. So far, corporate taxes are only due at the company’s headquarters, but not in the countries where the corporations generate their sales. As a result, many companies moved their headquarters to countries with lower corporate taxes.
“The seven most important industrial nations have today put themselves behind the concept of minimum taxation for companies,” said Scholz of the DPA news agency. “This is very good news for tax justice and solidarity, and bad news for tax havens around the world.” Corporations could no longer evade their tax liability.
Get the G20 on board
In addition to Great Britain, Germany and the USA, France, Italy, Japan and Canada are also members of the G7, as the group of seven leading democratic economic powers call themselves. The next step is to get the extended group of the G20, which will meet in Italy in July, on board.
On the one hand, the reform is intended to regulate how many taxes multinational companies have to pay – and where. In addition, a global minimum tax is planned, which should not be less than 15 percent. The USA in particular exerted pressure here. This minimum tax is intended to put an end to the global race for the lowest tax rate. (SDA)
Published: 06/05/2021, 38 minutes ago
Last updated: June 5, 2021, 15 minutes ago