Global tax reform: G20 countries should approve minimum tax for companies

The leading industrial and emerging countries support Federal Finance Ministers Olaf Scholz according to the planned global tax reform. All countries at the G20 meeting in Venice would have backed the plans for a worldwide minimum tax for companies, said the SPD candidate for chancellor in a joint statement with the US Treasury Secretary Janet Yellen. "We worked really hard in the past few weeks, but we made it," said Scholz during the meeting.

The planned minimum tax of 15 percent and the new distribution of taxation rights among the states should be implemented as soon as possible. "Our goal is for the agreement to come into force in 2023," said the German finance minister. The final questions should be clarified by October this year. "That is very, very little time." But we have come a long way. "All of this is really great progress."

Under the umbrella of the industrial nations organization OECD 131 states around the world have already approved the plans at working level. The minimum tax of 15 percent is intended to prevent companies from relocating their headquarters to low-tax countries and to prevent states from lowering their corporate taxes in competition with one another.

In addition, international companies should not only pay taxes in their home countries in future, but also where they do good business. This affects, among other things, large digital corporations, which so far have often paid very little taxes overall - and often significantly less than medium-sized companies. Emerging countries should get more tax revenue. Eight countries - including Ireland from Europe, Hungary and Estonia - but refused to sign.

Scholz speaks out indirectly against the new EU digital levy

However, the EU Commission wants to present plans for a European digital levy shortly. According to the EU economic commissioner Paolo Gentiloni this will not be directed against American corporations and will not be comparable to a digital tax. According to experts, the United States the international negotiations on the minimum tax have recently been strongly promoted in order to prevent a patchwork of numerous national digital taxes or similar charges.

At the G20 meeting, US Treasury Secretary Yellen urged an end to European digital taxes if the planned global tax reform is to be implemented. She hoped that the international agreement on a redistribution of taxation rights would make it possible to get rid of existing digital taxes, she said. In the EU has about France Single-handedly introduced a digital tax in 2019. The US under US President <br><br>Donald Trump had then threatened with punitive tariffs

Scholz also campaigned for a global solution - and thus indirectly spoke out against a European special path. The OECD tax reform already contains new rules for the hundred largest and most profitable corporations in the world, which will also affect many Internet companies.

The planned OECD tax reform is good for all countries, said Yellen. This will result in more income and end the race to ever lower tax rates. You will continue to campaign for other countries to join the agreement. "We will try, but I should stress that it is not essential that all countries are on board."

Scholz recently also said that if German corporations abroad, for example, only pay two percent tax on their profits there, the difference to the new minimum tax will in future be Germany applicable.