Historical agreement between the great of the G7. “Global tax on multinationals” – Economy

Historical agreement between the great of the G7. “Global tax on multinationals” – Economy
Historical agreement between the great of the G7. “Global tax on multinationals” – Economy

The adjectives most used to define the agreement on the global taxation of multinationals, reached at the G7 in London by the Ministers of the Economy of the Great, are “historic” and “epochal”. The planetary minimum tax to contain the elusive tax practices of global companies, starting with the web giants, Big Tech, is set at “a minimum global rate of at least 15%, applied country by country”. But that’s not enough. According to the British Chancellor of the Exchequer, Rishi Sunak, author of the announcement and one of the directors of the agreement, “the largest 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 “. Which means, at least formally, the …

The most used adjectives to define the agreement on global taxation of multinationals, reached at G7 of London by the Ministers of the Economy of the Great, are “historical” and “epochal”. The planetary minimum tax to contain the elusive tax practices of global companies, starting with the web giants, Big Tech, is set at “a minimum global rate of at least 15%, applied country by country “. But that’s not enough. According to the English Chancellor of the Exchequer, Rishi Sunak, author of the announcement and one of the directors of the agreement,” 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 “. Which means, at least formally, the creation of a new planetary tax system founded on two “pillars”. The multinationals, primary objective of the reform, will have to pay more in each individual state in which they make profits (“pillar one”), but will still have to pay one global “minimum tax” (that of 15% proposed by Biden) which constitutes the “Pillar two”. With the consequence, however, that individual states will have to renounce their national web taxes, which have been threatened or introduced. Basically, a compromise between the two sides of the Atlantic.

On a concrete level, a solution of this magnitude, if implemented immediately, would lead to an increase of tax revenue of 2.7-3 billion in 2021 alone (which would rise to 7.7 at a rate of 21%, 11 billion at a rate of 25%). In all of Europe, revenues would grow by about 48-50 billion with taxation at 15%. We understand, therefore, the enthusiasm of the Brussels leaders (from Von der Leyen to Michel to Gentiloni, who played a key role in winning the compromise), as well as the euphoria of the Union’s finance ministers (from French Le Maire to the German Scholz, to our Daniele Franco) and to the English one in the face of the result obtained with the London agreement. Until the premier Mario Draghi which speaks of a “historic step towards greater equity and social justice for citizens”. Equally pleased is US Treasury Secretary Janet Yellen, who insists on “an unprecedented commitment that will end the race to the bottom in corporate taxation, ensuring fairness for workers.”

Words of honey also from the giants who would be affected by the new regime, from Google ad Amazon, but that would escape the threat of national web taxes. From Facebook they even make it known that they want “the international tax reform process to be successful”, although “this could mean that we will pay more taxes, and in different places”. Apparently, therefore, the only critical voice is that of the Irish finance minister Paschal Donohoe: from Ireland, a clear beneficiary of the current situation due to the presence of the European headquarters of the digital giants, he says that the agreement will necessarily have to meet the needs of “small and large countries, developed and developing”, recalling that there are 139 OECD countries. A hint that, however, has the value of a boulder and alone makes it clear that the road to global taxation is long and to be explored. First of all because the G7 protocol will be shared at the G20 scheduled in Venice for July, but also because the green light will be needed within the OECD. In short, it will take years. And, above all, it will be necessary for China (which has not the slightest interest) and Russia to agree and for the United States and Europe to have the same basic references: to give an example, for Biden the first pillar (more money in each state where the companies operate) would involve about a hundred companies, of which half the US and only eight hi-tech, leaving out banks and mining companies. For the OECD, on the other hand, the objective of the “pillar one” would be at least 2,300 multinationals.

© All rights reserved

PREV Covid-19, the Novavax vaccine is 90% effective
NEXT so the masks have increased the disputes in Volo- Corriere.it