What do you expect from the global minimum tax? jaw knot

Global minimum tax On stage in group of twenty economics 15% on multinationals: agreement confirmed.

The debate on major global economic and financial issues revolves around a proposal Drink tax at 15% to multinational companies.

There is an expectation for further strengthening of the agreement proposed in the Group of Seven leading industrialized countries and then reached at the Organization for Economic Cooperation and Development on July 1 among 130 countries. The European Union, the United States and individual powers such as Germany and France seem willing to support a common solution to taxing tech giant And not only.

In the name of the new pluralism, the Venice G-20 economy can agree to the turning point. What to expect and what knots to untie Global minimum tax?

Comprehensive minimum tax: what the G20 will decide

There is some optimism on the topic of global minimum tax during the ongoing meetings in Venice of group of twenty economics.

Senior officials from the United States, Germany and France have expressed confidence that the proposed comprehensive tax deal can overcome political hurdles in Washington and within the European Union in time to be completed in October.

The words of the US Treasury Secretary softens July 10 went in this positive direction:

“There is still a lot of work to be done, but I am really confident that with the growing consensus, we are on the way to tax system which will be just for all our citizens.”

So what will the current G-20 decide on the complex issue of a global minimum tax for multinational corporations?

The starting point is last week’s agreement to impose more taxes on it multinational companies In the places where you work and establish aMinimum corporate rate.

There are two main aspects to global—potential—historical reform minimum tax. First, companies with a turnover of more than $750 million are expected to receive a profit tax of at least 15th%.

Then there is the so-called Pillar Two of taxing large multinational corporations. These are companies with turnover 20 billion dollars Operating margins above 10% of revenue: The proposal is that profits equal to 20-30% of profits over 10%, will be taxed in the states where the companies generate revenue.

These percentage ranges have yet to be determined. Overall, it is estimated that such reforms in these two base points applied globally could generate $250 billion annually.

Global Compact on Minimum Tax: Issues to be resolved

The group of twenty economics It is an opportunity to soften some of the controversial views on the issue.

The United States and the European Union, for example, emerged at odds over the issue of digital tax, valid in some European countries, including Italy.

The United States of America They would like to abolish the web tax while introducing a global minimum tax for multinational corporations. It should be remembered that the latter mainly affects American giants such as Facebook and Google.

On the other hand, the old continent pays to preserve it. Moreover, there will not yet be a complete agreement on which business sectors will be involved global taxes. So far, giants have been included in the historical proposal TechniqueMedicines and fashion. Mining, finance and transportation giants will be excluded.

Finally, Europe is not heading in the same direction on this subject. Ireland, Hungary, Estonia and Cyprus have expressed opposition to the ongoing reform.

The group of twenty economics Will these doubts be resolved? We are both waiting for new steps forward on Minimum global taxation for multinational corporationsMeanwhile, the minimum rate of 15% has been confirmed.