The Group of Seven (G7) is about to impose taxes on the world’s largest companies
The Group of Seven (G7) is approaching a corporate tax treaty for multinational companies, paving the way for global transactions later this year, creating new rules for the collection of taxes on the world’s largest companies.
After high-level officials have made progress in recent days, the G7 agreement can be signed as early as Friday, which will become a powerful force and a powerful force to reach an agreement in the formal negotiations held in the Paris OECD under the guidance of the broader G20. premise.
An OECD agreement may see the largest international restructuring Company tax For a century, this has severely limited the company’s ability to transfer profits to low-tax jurisdictions and ensured that US digital giants pay more taxes in their countries of sale.
Under the leadership of the Biden administration, the United States has been working hard to push the Group of Seven countries to reach its own consensus to stimulate negotiations in the OECD to reach a final agreement in the next few months.
This we Last week, the company scaled back its ambitions for the world’s lowest corporate tax rate, reducing its effective tax rate from 21% to 15% to increase its international appeal.
It also assured other countries that its proposal is serious, allowing a portion of the global profits of the largest multinational corporations to be taxed based on the location of sale, and that the two “pillars” of the deal are inseparable.
In recent weeks, the United States has become increasingly confident in adding most of the G7 plans to its plans, which are based on the blueprints developed by the OECD last year. Germany and Italy have always been staunch supporters of the world’s lowest tax rate. The Italian Minister of Finance Daniele Franco, chairman of the Group of Twenty (G20), said on Friday that the latest US proposal is “another important step” and the prospect of a global agreement on international tax reform.?? “Currently it is specific.”
France and the United Kingdom pay more attention to taxation locations. International officials called Britain “difficult” in the negotiations. But in London, ministers and officials insisted that they wanted to ensure that both elements of the transaction were given priority, and that the US government took the issue of promoting changes in corporate taxation locations through Congress seriously.
British officials said over the weekend that their position has not changed, but people close to the negotiations said that in the past week, some consensus has emerged, and the possibility of an agreement initially reached at the G7 summit is very high.
The G7 did not play a formal role in this process, but countries such as the United States, Japan, Germany, the United Kingdom, France, Italy, and Canada all have strong powers in other forums. Officials said the organization held a virtual meeting of finance ministers on Friday, and an in-person meeting in London from June 4 to 5 to agree on the main content of the transaction.
If the finance ministers can reach an agreement informally, the leaders of the Group of Seven countries can formally sign the agreement at the Cornwall summit on June 11-13, and negotiate with the 135 parties negotiated under the OECD “Inclusive Framework.” The country proposes a plan.
U.S. National Security Advisor Jake Sullivan said on Twitter on Saturday: “People are becoming more and more interested in the possibility of a global corporate tax deal. This is the world closer than ever to the lowest global tax rate. It’s a place. I’m very happy to hear that our suggestions have been positively welcomed, and thank Minister Yellen and our partners around the world for their work in this regard. This is the bottom line for leading the world to end this race.”
The Group of Twenty stated that it hopes to reach an agreement in the summer. The progress of the G7 makes this ambitious timetable still feasible, although officials who talked with it believed that October may be more important for reaching a complete international agreement. Realistic date.