Finance Minister Keit Pentus-Rosimannus met with the Director General for Taxes and Customs Union, Mr Gerassimos Thomas, on Wednesday 24 November to discuss the ongoing international tax reform. According to the minister, the adoption by Estonia of the EU directive on the OECD-led global minimum tax depends heavily on the possibility of maintaining the current investor-friendly Estonian corporate tax system.
“With the European Union’s negotiations on the directive starting shortly, we want to ensure that the change only affects the large multinationals with a turnover of more than 750 million euros and leaves the rest of our existing system untouched,” said the minister. “Estonia values fair tax competition and simple, efficient tax rules that do not hinder economic growth.”
“We are keen to keep our current tax system as it promotes both job creation and innovation,” added the minister. “Our corporate tax revenue is already comparable to that of many large countries where nominal tax rates are much higher.”
In addition to the worldwide minimum tax, the EU is also planning to change the code of conduct on corporate taxation. The Code aims to prevent cross-border systems that are geared towards either full tax exemption or double non-taxation.
“We do not want the EU to open several tax disputes at the same time,” said the minister. “It would be sensible to wait for the outcome of one major reform – the global minimum tax – before moving on to the next debate.”
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Ministry of Finance of the Republic of Estonia published this content on November 25, 2021 and is solely responsible for the information contained therein. Distributed by public, unedited and unchanged, on November 25, 2021 09:49:01 AM UTC.