The G7 is close to taxing the world’s largest companies

The group of seven leading economies is close to a corporate tax agreement, which paves the way for a global deal at the end of the year to set new rules for levying taxes on the world’s largest companies.

The G7 pact could be signed as early as Friday, following the recent rise of high-ranking officials, և it will be a powerful force և a precondition for the formal negotiations at the EC EC in Paris և for a larger G20 leadership deal.

The EC EC agreement is likely to lead to major international shocks corporate taxation for a century, severely restricting the ability of companies to transfer low-tax powers, ensuring that US digital giants pay more taxes in the countries where they sell.

Under Biden, the United States is working hard to get the G7 to reach its own consensus as a way to boost the EC EC negotiations so that a final deal can be reached in the coming months.

In: USA Last week, it lowered its ambitions for a global corporate tax rate from 21 percent to an effective interest rate of 15 percent to raise its international appeal.

It also assured other countries that it was serious in its proposal to allow part of the global profits of the largest multinational corporations to be taxed based on the location of the sale, that the two “pillars” of the deal were inseparable.

In recent weeks, the United States has become increasingly convinced that it has most of the G7 in its plans, which was built on plans drawn up by the OECD last year. Germany և Italy have been strong supporters of the world minimum tax. G20 Italian Finance Minister Daniele Franco said on Friday that the latest US proposal was “another important step” and that the prospects for a global deal on international tax reform were “now concrete”.

France և Great Britain put more weight on the place of payment of taxes. International officials describe Britain as “difficult” in the negotiations. But in London, ministers and officials say they want to make sure both elements of the deal are a priority. The US administration is working hard to change the way corporate taxes are paid through Congress.

UK officials said over the weekend that their position had not changed, but those close to the talks said that something of an “agreement” that had originally been in the G7 last week seemed likely.

The G7 has no official role in the process, but the United States, Japan, Germany, the United Kingdom, France, Italy and Canada are building a powerful bloc in other forums. On Friday, the group will hold a virtual meeting of the Ministers of Finance, and on June 4: 5 in London, a personal meeting, where it is possible to reach an agreement with the main elements of the deal.

If the deal can be reached informally by the finance ministers, the G7 leaders could formally sign it at the Cornwall summit on June 11-13, presenting a program to the 139 countries negotiating an “inclusive framework” in the ICC.

As a sign of growing interest in the chances of a global corporate tax deal, US National Security Adviser Ake Sullivan wrote on Twitter on Saturday: “The world is closer to the world minimum tax than ever before. It is wonderful to hear the positive response to our proposal եմ I thank Secretary Yellen մեր our partners around the world for their work in this area. That’s what it’s like, the world has to go downhill to finish the race. “

The G20 has said it wants to make a deal by the summer, and progress in the G7 still makes this ambitious schedule possible, although officials close to the talks say October could be a more realistic date for a full international agreement.

Countries with low corporate tax rates have not yet signed the agreement. Irish Finance Minister Pascal Donoho emphasized that smaller countries should be able to continue to use the tax as a competitive tool.

The Irish Treasury Department said on Monday that “potential decisions have not yet been discussed at the political level by 139 finance ministers”. [OECD] Inclusive framework, including implementation period և legal basis [for the proposals]»

Additional message from Laura Noonan in Dublin

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