Leading economies in the world have agreed with an agreement to spare the largest companies in the United States to pay more corporate taxes abroad, throwing themselves in doubt about the status of the largest global tax deal for more than a century.
Agreement between Washington and other G7 members of leading countries can basically fundamentally change the landmark of 2021 to establish a global minimum Tax To break down by avoiding multinational companies.
The G7 He said on Saturday, agreed to a “side by side solution” of taxation that will release US companies from some parts of the new global tax regime because of the taxes they pay in the United States.
The G7 added that the agreement “would facilitate further progress in stabilizing the international tax system”, including “constructive dialogue” to preserve the “tax sovereignty of all countries”.
New arrangements should be discussed in the coming weeks of OECDThe international organization that has reached the minimum tax consent of 2021, but dominated by G7 members, according to people familiar with discussions.
Matthias Kurman, OECD secretary -general, described the G7 statement as “an important milestone in international collaboration with taxes”.
“This is a poor dunk for the United States,” said Robert Gulder, a tax lawyer and editor who contributes to tax analysts, a news service for tax professionals. “I think they celebrate by doing five in the finance ministry.”
The change came after the United States included provisions in President Donald Trump’s “big beautiful account”, called Part 899, which would allow the United States to avenge the alleged discriminatory taxation elsewhere by imposing “revenge tax” for foreign investment.
Prior to the G7 statement, the Secretary of the Finance Ministry, Scott Besen, said he would ask Congress to remove tax measures for retaliation from US legislation over the upcoming changes to the OECD agreement.
He added that those audits would save US companies $ 100 billion in tax payments to foreign governments over the next decade.
UK Chancellor Rachel Reeves said on Saturday that the G7 had agreed that “work should be completed in dealing with aggressive planning and tax avoidance and securing a level playing field.”
“The proper environment for this work to happen is without the prospect of retaliatory taxation that hangs above these conversations, so the removal of section 899 is welcome,” she added.
Marcus Meinzer, Director of the Tax Justice Network Policy, a campaign group, marked the G7 agreement as a “hasty cave” that will leave the minimum Dead Tax Agreement.
He added: “The United States is trying to free up by destroying others, which will make the tax agreement completely useless.
But Manal Corvin, head of the OECD tax, described the G7 statement as non -binding, adding that each proposal would have to be approved by 147 countries at the OECD level.
“The G7 cannot call this call on its own,” she added.
The OECD agreement to establish a global minimum tax has been reached more than 135 countries in 2021 to prevent a tax avoidance from multinational companies and to update the International Digital Tax System.
Established a minimum tax rate of 15 % of the global profit of the largest multinational US companies and elsewhere, which was implemented by several countries last year.
According to the provisions that have particularly angered Republicans in the United States, the OECD agreement has allowed other countries to cut taxes on US companies, which are considered to be “taken”.
But the OECD rejects the idea that other countries can now withdraw from the global minimum tax – or that US companies would have the advantage of businesses from other countries that adopted the regime.
“If nothing else where we were formerly uncertainty and the inability to move forward due to various threats of revenge, it made it difficult and risked leaving (minimal tax),” Corvin said.
She argues that every idea for the US tax system to be “easy touch” is not “accurate”, claiming that there are “many ways” that it was tighter.
One French officer added that the G7 Accord “made several knots in the United States, (with) saying their tax law helps them comply with the OECD agreement” which is a concession, but … worth it “.
But Josephosef Stiglitz, Laureate for the Nobel Economics, who is also the co -chair of the Independent Commission for Reform of the Corporation International Taxation, said the G7 agreement is an indication that governments “put the interests of multinational companies before small and medium -sized businesses.”
He added: “It is unacceptable that some governments choose to give up public revenue – especially now, and precisely the most powerful economic actors.”
The G7 statement also provides for continuous discussions on taxation of the digital economy. Digital taxes are a point of tension between the United States and other countries that want to raise the taxes of US tech giants.
US President Donald Trump said on Friday that he was canceling trade talks with Canada after Ottawa said Woulde impose a new tax on technology companies.
Source link
