Corporate Tax

136 nations have agreed on a worldwide minimal tax price for firms. What now?

Last month, 136 countries reached a global agreement that would tax large corporations at a rate of at least 15 percent. POLITICO’s Ryan Heath speaks with OECD’s Pascal Saint-Amans, who negotiated the historic deal, on the stage of the annual web summit in Lisbon, Portugal, about when the tax will come into effect and what loopholes he is in high alert is. Plus: Saint Amans courts for a Biden cabinet member who supports a global carbon pricing system.

Trying to get the world leaders on the same page

“You have to pull it. You have to take care of cats. You have 140 countries – China, USA, Europe, tax havens, African countries; many split into all of that. And you are not even in a room – you are on the zoom because we had COVID on the last mile of this negotiation. So a lot of political calls – from ministers to ministers and I tried to stage this with the convincing argument that if you don’t agree, it will be chaos. And the other big compelling argument is that President Biden made this his top priority, his top economic priority. And of course when you have US firepower you have more results. ”- Pascal Saint-Amans, Director of the Center for Tax Policy and Administration of the Organization for Economic Co-operation and Development (OECD)

In the implementation phase

“We need countries that ratify the multilateral agreement. We need the US Congress, which is always reluctant to ratify multilateral matters, especially in the tax area. But still this deal is so big that he’s a page turner. “

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