The first day of the G20 leaders summit in Rome achieved its first objective: the adoption, after lengthy negotiations, of a global minimum tax on multinationals for balance the international tax system.
“After four years of intense debate, a historic agreement has been reached on a solution based on two pillars to face the fiscal challenges that emerged with the digitization and globalization of the economy,” assured sources from the Italian presidency.
The G20 heads of state or government They agreed to a minimum global corporate tax of at least 15% to achieve a fairer tax system and prevent them from taking advantage of complacent tax regimes and not paying taxes where they operate.
One of the most enthusiastic was the President of the United States, Joe Biden, who signed the agreement and assured that in this way the international community “will help people by making companies contribute by paying their share” of taxes.
The reform should allow these 136 countries to represent 90% of the world’s Gross Domestic Product (GDP), generate about 150 billion dollars of additional income per year thanks to this minimum tax, which each nation must now legislate for its introduction as of 2023.
The measure is structured in two pillars. One of them is the minimum tax rate of “15%” for companies with more than 750 million euros per year (867 million dollars) in turnover.
The other pillar seeks to ensure that the income paid by large companies reaches the countries where they obtain their income and not where they have their headquarters, thus limiting the controversial tax optimization practices.
This measure will be applied to multinationals whose global turnover exceeds 20 billion euros (about 23 billion dollars) and whose profitability is higher than 10%
EFE and AFP
PHOTO: AP
MAAZ
