Corporate Tax

Europe guarantees to persuade Eire to assist the worldwide corporate tax treaty

The EU has vowed to win over countries like Ireland on a global corporate tax deal.

European Commission Vice-President Valdis Dombrovskis said he would do his “biggest” to convince Ireland, Hungary and Estonia to sign a provisional agreement that 131 countries, including the 20 largest economies in the world, signed this month. was approved.

The so-called “inclusive framework” deal, brokered by the Paris-based Organization for Economic Cooperation and Development (OECD), includes new taxation rights for countries in which multinational corporations make sales, as well as a minimum rate of 15 percent.

Ireland supports the transfer of some taxation rights to other countries, but has reservations about the minimum rate.

“There are still some technical and political issues that need to be clarified before there is a final solution and a final agreement,” Dombrovskis told reporters in Brussels on Tuesday.

“On the part of the Commission, we will work to involve all EU Member States in this inclusive OECD framework.

“That will be a priority and we will indeed do our utmost to ensure that in the end the whole EU is on board.”

After meeting US Treasury Secretary Janet Yellen on Monday, Treasury Secretary Paschal Donohoe said he would “see if Ireland can be a part of it and if we can support it later in the year”.

However, he said more “work” needs to be done to “get to a better place”.

After separate meetings with Ms. Yellen, the Commission decided to put its plans for an EU-wide big tech tax on hold.

The Commission has promised to adopt the 15 percent rate in EU law by 2023, once the OECD sets the tax base and develops a formula for dividing multinational profits by country.

That should happen by the end of October, in time for a summit of the heads of state and government of the group of the 20 (G20) richest countries.

“I think we need quite a bit of communication and I believe we will find it too [a] Solution for these countries ”, said the Slovenian finance minister Andrej Sircelj, who currently heads the monthly meetings of the EU finance ministers.

Meanwhile, by the end of the week, the European Commission will target Ireland’s $ 1 billion.

EU finance ministers also need to approve Ireland’s plan before the money can be transferred, which Dombrovskis said could take place at a virtual meeting on July 26th.

The first 12 funding plans – from countries such as France, Germany, Italy and Spain – were approved by finance ministers on Tuesday.

However, a political dispute has broken out over Hungary’s plan, in which the EU is still considering whether to agree to it or not.

It follows Hungary’s introduction of a new law banning the portrayal or “promotion” of homosexuality under 18s last week, the latest in a long line of attacks on LGBTQI rights.

Commission President Ursula von der Leyen has called the law a “disgrace” and MEPs have asked her to consider suspending EU funding for Hungary, which is allowed in the event of violations of the “rule of law”.

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