2021. 07. 13. 07:00
“After an extraordinary détente in the G-20 talks on Saturday, we have decided to suspend our work on digital taxes,” Ferry said after US Treasury Secretary Janet Yellen asked the committee on Sunday to delay the proposal for the tax bill.
The spokesperson added that the successful conclusion of the process will require effort from all parties and the Committee is now focusing on that.
A proposal for a new tax on technology companies was to be announced by the board of directors on July 20 to provide some form of funding for the 750 billion euro recovery package to recover from the coronavirus. The US asked the committee to suspend the plan because it could undermine the global minimum tax agreement and complicate approval of it in US federal legislation.
The ministers of economy and finance of the 20 most economically advanced countries, the G-20 meeting in Venice last weekend, said that an agreement was reached on the global minimum tax. Janet Yellen urged European Union countries to sign a global agreement to reform corporate taxation, maintain budget support and increase spending to tackle economic uncertainty caused by the pandemic during a meeting of Eurogroup nations in Brussels on Monday.
“We need sustainable sources of income that are not based on more taxes on wages,” Yellen said. To avoid paying its fair share.
EU Commissioner for the Economy, Paolo Gentiloni, stated at the closing press conference of the Eurogroup meeting that “reaching an agreement on international corporate tax is a top priority for us, and the European Commission will work with the US government to achieve this. That is why we have decided to freeze the EU’s digital debt framework.” next to “. “In such an economic and social crisis, it is important to reach agreement on this historic issue,” he added.
The idea of a global minimum tax is based on two rules: the introduction of a minimum tax of at least 15 percent and a system that distributes this tax as fairly as possible.
Details will be worked out in the coming period by the Organization for Economic Co-operation and Development, the Organization for Economic Co-operation and Development, and then approved by the Group of Twenty at the Rome Summit in late October. Next, countries must incorporate the tax rate into their own laws.
Among the EU member states, neither Hungary nor Estonia supports the global proposal, and Ireland also opposes the initiative. The head of the Eurogroup, Pascal Donohue, Ireland’s finance minister, confirmed: Ireland supports a change in taxation for multinational companies, but opposes a lower tax rate of 15 per cent.