France wants a higher minimum tax rate for global companies than the minimum 15 percent proposed so far. This was stated by French Finance Minister Bruno Le Myre during the G20 summit currently being held in Venice, Italy. Le Myre hopes to reach the top tax agreement among the world’s leading trading nations.
Le Myre said he was “very confident” that an “underground” agreement could be reached on international taxes. “France is betting more than 15 percent,” Le Myre said.
Earlier, G7 finance ministers (France, Italy, Japan, Canada, Germany, the United Kingdom and the United States) reached historically broad consensus on a minimum corporate tax rate. This includes the fact that the profits of large companies in the countries where they are manufactured may be subject to additional taxes.
It is unclear whether the G20, including Russia and China, will agree. Negotiations are likely to continue over the summer and a final decision is not expected until October. Beijing, for example, wants to focus on the interests and concerns of all parties. The United States does not want to give special treatment to China or other countries. That could weaken the tax plan. There is still talk of how and when countries will withdraw digital taxes once the agreement is finalized.
Of the 139 countries that discussed the plans with the Organization for Economic Co-operation and Development (OECD), the tax plan for 130 countries has already received support. One of those signatories is the Netherlands. “The Netherlands is a strong supporter of the global minimum rate. International action must be taken to prevent tax evasion and stifle betting. The G7 agreement, formerly the OECD and now the G20, plays a key role in this,” said Finance Minister Wobke Hokstra, who attended the summit on behalf of the Netherlands. The Netherlands is not a formal member of the G20, but the European Union.
The G20 countries represent 80 percent of world trade.
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