Corporate Tax

G20 helps international company tax treaty

The French Economy and Finance Minister Bruno Le Maire will attend a press conference on April 8, 2021 at the Bercy Finance Ministry in Paris to mark the start of the 2020 income tax campaign. REUTERS / Sarah Meyssonnier

PARIS, July 6 (Reuters) – French Finance Minister Bruno Le Maire said Tuesday that his G20 colleagues were ready to give political support to a planned revision of the taxation of multinational corporations at a meeting this week.

Last week, 130 countries supported the biggest cross-border corporate tax changes in more than a generation, with new rules on corporate taxation and a tax rate of at least 15%. Continue reading

The package goes alongside the G20 finance ministers to give political approval at a meeting on Friday and Saturday in Venice.

“We now need to reach a political agreement based on the technical agreement reached by the OECD (Organization for Economic Co-operation and Development) steering group,” Le Maire told journalists.

Key details on a proposed global minimum corporate tax rate and exemptions from the deal would then have to be clarified before the next G20 meeting in October, he said.

In addition to the technical issues that have yet to be ironed out, there are a number of potential political pitfalls before the revision can take effect as planned in 2023. Continue reading

One such topic is plans by the European Commission to propose a digital services levy this month that could upset Washington, which already believes that an existing national digital service tax in some European countries discriminates US companies from Silicon Valley .

Le Maire said he understood US concerns, but the digital levy had nothing to do with taxing big tech companies and had a much broader application that would mainly affect online sales for European companies.

“There is nothing against Americans (in the plan) and I hope we can address Americans’ concerns,” said Le Maire, adding that the problem was raised with Treasury Secretary Janet Yellen at a meeting with her colleagues in the euro zone on Monday would be cleared.

Le Maire also said France would push at the G20 meeting for low-income countries to be given $ 100 billion by allowing rich countries to give them their unneeded IMF Special Drawing Rights.

Reporting by Leigh Thomas Editing by David Goodman and Bill Berkrot

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