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130 countries negotiating under the aegis of the Organization for Economic Co-operation and Development (OECD) announced Thursday that they had reached an agreement providing for a minimum tax rate of at least 15%. Several countries, including France, Germany, the United Kingdom, and the United States hailed this agreement described as “historic”.
A “historic day for economic diplomacy”. This is how the US Secretary of the Treasury, Janet Yellen, welcomed the agreement reached Thursday, July 1 at the OECD for the establishment of a harmonized global corporate tax system, with a minimum rate of at least 15 %.
130 states negotiating under the aegis of the Organization for Economic Co-operation and Development (OECD) announced in a press release this reform of the taxation of multinationals.
“After years of intense work and negotiations, this historic package of measures will ensure that large multinational companies pay their fair share of taxes all over the world,” said Mathias Cormann, the OECD Secretary General who heads these negotiations, cited in a press release.
A small group of countries, including Ireland and Hungary, very reluctant to the proposed agreement that was under negotiation, did not sign the declaration reached today, according to the list provided by the Organization.
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More tax justice
The joint declaration, which is based on the agreement reached at the G7 at the beginning of June, also provides for a “more equitable” distribution of the profits between the countries where the head offices of the companies are located and those where they actually carry out their activity, even without physical presence. This component targets in particular the digital giants.
For the French Minister of the Economy Bruno Le Maire, this is “the most important international tax agreement concluded for a century”, while his German counterpart Olaf Scholz spoke of a “colossal step towards greater justice tax “.
“This two-pillar plan will be of great help to states as they need to mobilize the tax revenues necessary to restore their budgets and public finances while investing in essential public services, infrastructure and measures required for post-recovery recovery. COVID is strong and lasting, “said the OECD in its press release.
The participants in the negotiations have given themselves until next October to “complete the technical work” and to prepare “an effective implementation plan in 2023”.
With AFP and Reuters