The European Commissioner for the Budget, Johannes Hahn, requested this Tuesday to “extend” the agreement reached at the Group of Seven at the weekend to include the Group of Twenty and the Organization for Economic Co-operation and Development on the minimum corporate tax of 15%.
“The successful outcome of the G7 finance ministers meeting brings us closer to an unprecedented global agreement on corporate tax reform. We need to look for an opportunity to extend this consensus to all members of the G20 and OECD countries,” Han said in a statement. European Parliament plenary session.
The agreement will have to be ratified in the Group of Seven by the leaders of the world’s major economies – the United States, Canada, Germany, France, Italy, the United Kingdom and Japan – at the summit next Friday.
After the arrival of US President Joe Biden to the White House, the countries of the Organization for Economic Cooperation and Development are also seeking to reach an agreement on reforming the global tax system, adapting it to the digital age, which his predecessor Donald Trump prevented.
Discussions within the organization focus on setting effective minimum taxes for multinationals globally in order to prevent them from shifting their profits to tax havens or jurisdictions with more lax laws, as the G7 has just done.
And also in the way a percentage of corporate profits, particularly digital ones, are allocated to certain jurisdictions so that they pay taxes where they operate even if they do not have a physical presence.
Indeed, the European Union reached an agreement last week to force multinational companies that bill more than 750 million euros to report the amount they pay in taxes in each of its 27 member states, a transparent measure that seeks companies’ contribution to the Treasury in a way fair where they work.