The finance ministers of the G7 reached an agreement “on the principle of a minimum global rate of 15% for the taxation of large companies, applied country by country”. This is what the British Treasury wrote on Twitter, speaking of “a squeeze on tax avoidance” that will make Big Tech multinationals pay “their fair share”. According to the Treasury, “the major global companies, with profit margins of at least 10%, will see 20% of all profits above this threshold reallocated and taxed in the countries where they make sales.”
Yellen, an unprecedented agreement, will put an end to a low tax run
US Treasury Secretary Janet Yellen stresses the importance of an “unprecedented commitment that will end the race to the bottom in corporate taxation, ensuring equity for workers in the United States and around the world.” English Chancellor of the Exchequer Rishi Sunak speaks of “a historic agreement” on global taxation. The French Minister of Economy, Bruno Le Maire, echoes him: «Here we are. After 4 years of battle, a historic agreement was found with the G7 member states on the minimum corporate tax on companies and digital giants. France can be proud ».
Le Maire, a minimum global tax of 15% on companies is the starting point
According to Le Maire, the agreement reached at the G7 in London for a minimum global corporate tax of at least 15% “is a starting point. In the coming months we will fight to make it as high as possible. The battle will continue at the G20, at the OECD but today a historic milestone has been reached ».
Gentiloni, well understood in London, now a global agreement
EU Commissioner Paolo Gentiloni also commented on the agreement. «Today in London we have taken a big step towards an unprecedented global agreement on the reform of corporate taxation – he stressed -. It was a very positive meeting that allowed us to build bridges on crucial issues ». «The possibilities of a global agreement – he added – have increased considerably. We now need to go the last mile to expand this consensus to G20 members and all countries involved in the OECD inclusive framework. The Commission will actively contribute to these ongoing multilateral discussions to ensure that an ambitious agreement is reached in July, ‘concluded the Commissioner.