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Schulz: All G20 countries support global tax reform - Economy -

Schulz: All G20 countries support global tax reform – Economy –

German Finance Minister Schulz at the G20 meeting in Venice

According to German Finance Minister Olaf Scholz, the 20 major industrialized and industrialized nations (G20) support the planned global tax reform. The Social Democratic candidate for finance minister said on Saturday that all countries participating in the G20 meeting in Venice supported plans to impose global minimum taxation on companies. The task now is to implement the measures as quickly as possible so that they become effective as early as 2023.

“That’s a very, very short time.” But one has come a long way. “All of this is really a big step forward.” This will end the trend towards consistently lower taxes.

131 countries recently agreed to a global tax reform under the umbrella of the Organization of Industrialized Countries (OECD), which is supposed to adapt international rules for the digital age. A minimum tax of 15 percent is set to be imposed on large companies, and emerging countries are set to receive more tax revenue. Eight countries – including Ireland, Hungary and Estonia from Europe – refused to sign.

Meanwhile, US Treasury Secretary Janet Yellen has called for an end to European digital taxes if the planned global tax reform is to be implemented. You hope the international agreement on the redistribution of tax rights will make it possible to do away with existing digital taxes, Yellen said Saturday in Venice. The United States sees these taxes as discriminatory against American corporations.

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In the European Union, for example, France alone imposed a digital tax as early as 2019. Then the United States under US President Donald Trump threatened to impose punitive tariffs. A global tax reform is now planned, which will regulate, among other things, taxes for large digital companies. They no longer have to pay taxes only in the country where they have their official residence, but also where they do good business. At a working level, 131 countries have already agreed to this reform, and the G20 nations on Saturday also wanted to support it politically.

However, EU Economic Commissioner Paolo Gentiloni announced that the EU Commission will remain committed to its plans for a European digital tax for companies in the digital economy. “The European project for a digital tax for large companies will not be affected by this. We will present the proposal for this soon,” Gentiloni told Funke Media Group newspapers. He stressed at the same time: “Our plan is not directed against American companies.”