The seven major industrial nations in the world, which make up the G7, took the first step to apply a 15% tribute to multinational companies. The agreement was made in London, but has yet to be approved at the G20 finance ministers meeting next July.
The G7 reached what could be a historic agreement in principle. The great companies of the planet will be forced to pay a tax of 15% regardless of where they are based to pay taxes. An important step demanded by citizens and states for years that could mean a change in the tax model.
Rishi Sunak, head of the finance portfolio of the United Kingdom, the host country, said about the conclusions of the meeting that “after years of discussion, they have reached a historic agreement to reform the global tax system in order to adapt it to the current era. global digital “.
In this pact, which was made known through a statement, the members of the G7 pledged to ensure that international companies, especially technology companies, pay the stipulated tribute in the place where they obtain their benefits and not where their company is located. main office.
Larger, more profitable global tech companies often establish headquarters in territories where they can register a relatively low partnership rate, then file taxes on those profits.
The intention of the tax reform agreement is for governments to address tax evasion, and raise money to manage debts caused by financial difficulties as a result of the coronavirus pandemic.
Janet Yellen, Secretary of the United States Treasury, suggested that multinationals such as Amazon and Facebook could be included in this new corporate contribution. “It will include big profitable companies and those companies – Amazon and Facebook – I think, will qualify for almost any definition,” he stressed.
Big names like those mentioned or Google have billions of dollars of profit every year, however, criticism has been on them for years due to the low taxes they pay to the zero profitability that states obtain from their services in the countries.
More money for growth, jobs and inequality
The joint statement of the G7 finance ministers insists on the commitment to invest to promote growth, create more jobs, and improve inequalities. And that, as their economies reopen, they will try to reduce the uneven impact of the crisis by directing support where it is most needed.
Even though the United States expected to increase this tax by 21%, and not to the agreed 15%, Yellen’s reaction was positive. “The global minimum tax would also help the global economy prosper, leveling the playing field for businesses and encouraging countries to compete on positive foundations, such as educating and training our workforce and investing in research and development and infrastructure.” , he expressed.
This association of the richest countries in the world also agreed to help reduce the health and economic problems faced by the poorest nations due to Covid-19.
The global minimum tax would also help the global economy thrive, by leveling the playing field for businesses and encouraging countries to compete on positive bases, such as educating and training our work forces and investing in research and development and infrastructure.
– Secretary Janet Yellen (@SecYellen) June 5, 2021
Climate change included
Meanwhile, G7 members pledged to support a green global financial system so that all economic decisions are made with climate significance in mind.
The official note issued at the meeting indicates that they will make efforts to “achieve a relevant transformation of zero net commitments and environmental objectives in a way that is positive for growth, competitiveness and equity.”
Likewise, they are responsible for adequately integrating climate change and biodiversity loss into economic and financial decision-making.
With EFE and Reuters