Corporate Tax

Germany welcomes US demand for a worldwide minimal tax fee of 15%

The German Finance Minister and Deputy Prime Minister Olaf Scholz informed the media that he will come to an informal meeting of the Eurogroup on May 21, 2021.

Carlos Costa | AFP | Getty Images

London – Germany on Friday very much welcomed the US proposal that companies around the world must pay at least 15% tax on their income.

The plan, released by the US Treasury Department on Thursday, states that international negotiations should be ambitious. In other words, it can eventually exceed 15%. The U.S. corporate tax rate is currently 21%, but President Joe Biden plans to raise it to 28% in hopes of higher tax rates in other parts of the world.

“This is a really big step forward,” said Federal Treasury Secretary Schortz in a US announcement on Friday morning. “I’m very happy this morning.”

Mr Schortz told reporters in Lisbon, Portugal. ..

“This is the best opportunity for global tax reform to counter (fight) the race to the bottom,” he added.

This problem can be contentious within the European Union, where different Member States have different corporate tax rates, which can attract well-known companies. For example, Ireland has a tax rate of 12.5% ​​but France has a tax rate of 31%.

The Guardian of the United Kingdom said in April that Irish Treasury Secretary Paschal Donohoe should allow lower taxes for smaller countries as they are not as capable as the larger ones.

Germany welcomes US demand for a global minimum tax rate of 15%

Quellelink Germany welcomes US demand for a worldwide minimum tax rate of 15%

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