‘Minimum tax for companies to pay $ 150 billion’

According to Pascal Saint-Amans, director of the Center for Tax Policy in Think Tank, this is not just a sum. He emphasizes that the move could be a step towards further streamlining globalization and ensuring greater justice in the global taxation sector.

The G7, a group of seven rich countries, including the United States and Germany, has recently reached an outline agreement on a global minimum tax for companies. It was proposed that the minimum rate for large companies should be at least 15 per cent. The current average for this type of tax is about 6 to 7 percent.

More rights

If such a minimum is actually set, European countries would have a greater right to tax American countries like Facebook and Amazon. But we are not there yet. In the coming weeks, negotiators from about 140 countries will come up with a plan under the watchful eye of the OECD. The plan will be discussed at next month’s G20 summit. It is a group of nineteen important industrialized nations and the European Union.

In addition to negotiating a global minimum rate, the OECD also operates as an organization to better distribute taxation to multinational corporations, especially large technology companies between countries. For example, it concerns how exactly you should make a profit from cloud services. Now companies often pay a lot of taxes on so-called taxpayers, while at the same time making sure that their profits are kept to a minimum in countries with higher tax rates.

Saint-Ammans is hopeful that an agreement can be reached within the G20 soon. “We’ve been getting very little sleep for a month and the next two weeks will be very important,” he said. “But I think we can do it.”