Corporate Tax

World corporate tax deal may very well be reached in weeks, say Germany, France

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Germany and France said discussions on a global corporation tax rate agreement are on the home stretch and that an agreement can be reached in a matter of weeks.

The French Finance Minister Bruno Le Maire spoke out in favor of a US proposal to set the minimum rate at 15% and called it “an interesting and solid basis for discussion”.

“This is a political fight for which we have been fighting with Germany since 2017,” said Le Maire on Wednesday at a joint press conference with Federal Finance Minister Olaf Scholz. “We spared no efforts to move the discussions forward and find a compromise.”

The group of seven nations is entering into an agreement that could include a corporate tax rate as well as digital giants like Amazon.com Inc. and Apple Inc.

If the G7 finance ministers, who meet again on Friday and next week, find enough common ground, this could form the basis for a global agreement.

European governments, according to those familiar with the matter, are increasingly confident of reaching an initial agreement within the G7, while Japan also expects progress, a Treasury official said.

Scholz said a deal must ensure that digital companies pay a fair tax rate and that a tax deal can be reached “in a few weeks”.

Before it’s here, it’s in the Bloomberg Terminal.

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