February 3, 2023


Complete News World

Agreement at a rate of 15% in 136 countries

One hundred and thirty-six countries have agreed to impose a minimum tax of 15% on multinational corporations after rallies in Ireland, Estonia and Hungary.

The major reform of the international tax system finalized today at the OECD will ensure the use of a 15% minimum tax rate for multinational corporations from 2023 onwards.“OECD welcomes agreement in a statement”Historical“.

Additional revenue of ில்லியன் 150 billion

The OECD underscores that these 136 countries, which represent 90% of global GDP, could earn about ில்லியன் 150 billion in additional revenue from this minimum tax.

Kenya, Nigeria and Sri Lanka are involved in negotiations involving 140 countries, not the signatories. Pakistan, which was added to the list of previously signed countries, was not on the list on Friday.

International tax policy is complex, but the ambiguous language of today’s agreement obscures the simplicity and scale of the issues“US Secretary of the Treasury Janet Yellen responded and welcomed this.”Record“.

This is a big step towards making our tax system better“, Welcomed the President of the European Commission Ursula van der Leyen.

French Economy Minister Bruno Le Myre welcomed his part.A great, decisive achievementIn the first half of 2022, when he was the French president of the European Union, he confirmed that he wanted to translate this international agreement into law.

The agreement on key taxes of international taxation was reached in July. This time, it is a question of defining technical parameters, but the subject of bitter negotiations between states with very different national tax strategies.

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With the key lock of 15% meeting on Thursday in Ireland and Estonia on Thursday, the two countries were reluctant to include their first letters in the text.

Dublin, the European headquarters of Apple, Facebook and Google, has been assured that the minimum tax rate for groups with a turnover of more than 50 750 million will not exceed 15%. July agreement mentioned “At least“15%, left the door open for the hike.

On Friday, Hungary, the last country in the European Union, joined the agreement after receiving concessions.

Budapest, which proposes a corporate tax rate of 9%, is one of the states betting on tax attraction and still negotiated one of the key points in the debate: approved exemptions to calculate the tax base for multinational corporations.

Redistribution of tax revenue

The other major negotiations at the OECD were about the share of tax revenue that would be redistributed in countries where multinational corporations operate and have customers but no head office.

It is about the largest groups with a turnover of over 20 20 billion each year and high profits. In this scenario the share of taxed profit, the object of a prudent calculation, is set at 25% above the 10% profit level.

While it has been historically presented by many leaders, the text criticizes NGOs and some economists for its lack of ambition and the inequalities it causes.

According to NGO Oxfam, with a tax rate of 15%, the rich G7 countries and two-thirds of the European Union will benefit from the additional tax revenue. Poor countries will recover less than 3%.

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Regarding the redistribution of tax revenue to the states where multinational corporations operate, “The United States and Europe will mainly benefit from this“Daniel Bunn, head of international projects at the Tax Foundation in Washington, told AFP because multinationals.”Home to their headquarters and most customers“.

Hello “A big gesture forward“It allows”Remove some flaws“Joseph Stiglitz, winner of the Nobel Prize for Economics, regretted a deal on Thursday.”It does not adequately address the concerns of developing and developing countriesThe economist campaigned for a minimum tax of 25%.

The goal is to have the reform implemented by 2023, and it is time to change the law. But some questions remain unanswered, such as the ability of the US administration to force reform into the Congress administration.