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| Tech giants should expect higher taxes |
The world's richest countries reached a historic agreement on Saturday to impose the world's lowest corporate tax on multinational companies, including tech giants such as Amazon, Apple and Microsoft.
After two days of talks in London, the G7 Treasury ministers announced that they had agreed to impose a general property tax of at least 15% on the company.
Changes are also being made to ensure that large companies, especially those with a strong online business, pay taxes in the countries where they are registered to sell, rather than just having an office.
Treasury Secretary Janet Yellen, who attended the London talks, welcomed the agreement. She wrote on Twitter: “Ministers have made an unprecedented and massive commitment to provide massive impetus to achieve a strong minimum global tax rate of at least 15%.
British Chancellor of the Exchequer Rishi Sunak, who chaired the meeting, described the meeting as a proud moment that will create a level playing field for businesses around the world.
Ministers from the G7 members - Canada, France, Germany, Italy and Japan - also signed the joint declaration.
Read the interpretation: This non-binding agreement solves the tax challenges arising from economic globalization, digitalization and the introduction of the world's lowest tax system.
Historical Tax Treaties:
President Joe Biden's initial global minimum tax rate - the taxes companies pay on their profits - was 21%. But the US Treasury proposed the 15% plan last month.
G20 leaders, including emerging economies such as China and India, may have to sign minimum taxes.
Due to the coronavirus pandemic, public coffers are running out in many countries. Many rich countries have borrowed hundreds of billions of dollars to prop up their economies. This is a vulnerability that must be urgently closed at this time.
This deal is a historic change after decades of unrestricted tax competition. The agreement helps restore balance between the state and big business.
Although technology giants are the hardest hit. However, other types of multinational corporations have fallen into the trap of global negotiations.
The United States is proposing a new global minimum tax for the world's 100 largest and most profitable companies.
Any final deal can have a significant impact on low-tax countries and tax havens. However, the national government can set any local corporate tax rate at any time.
However, if the company pays a lower price in a particular country. It is now possible for their governments to reduce taxes to a minimum, thus eliminating the benefit of shifting profits from one country to another.