G7 finance ministers make progress on tax deal, UK says

0

British Chancellor of the Exchequer Rishi Sunak arrives at The Sun’s Who Cares Wins Awards in London, Britain September 14, 2021. REUTERS / May James

LONDON, Sept. 29 (Reuters) – Group of Seven finance ministers said they had made progress on Wednesday to reach a common position on a landmark global deal on business taxation, days before it was must appeal to a wider international audience.

“Common agreement has been reached on some of the important open issues to support a final political agreement within the inclusive framework of the OECD in October,” the US Treasury Department said in a statement.

Britain – which is chairing the G7 this year – negotiated a framework agreement in June on a global minimum corporate tax rate of 15% and measures to make more money from tech giants such as Amazon, Google and Facebook.

Next week, the Organization for Economic Co-operation and Development, which has been trying to push through tax reform for years, wants full agreement on detailed proposals from 139 negotiating countries.

“Today’s Finance Ministers Meeting is a testament to the continued ambition and collaboration of the G7 countries to achieve historic global tax reform and ensure that businesses pay their fair share of tax in the countries where they operate. are doing business, ”said UK Finance Minister Rishi Sunak.

A spokesperson for the UK Finance Department said G7 finance ministers had reached “a common understanding (…) on some important outstanding issues” ahead of the OECD and G20 tax meetings this week. next.

Earlier, Japanese Finance Minister Taro Aso said there had been agreement on “certain points” under discussion. French Finance Minister Bruno LeMaire also cited the progress made on the main negotiating points. Read more

A sticking point previously was how exactly large multinationals should be taxed, with the United States fearing the measures would divert tax revenues from tech giants to Europe rather than their US headquarters.

Irish Finance Minister Paschal Donohoe – who attended the G7 meeting as chairman of a group of euro area finance ministers – said he expected the OECD to produce proposals updated in the coming days.

“Next week will be a critical time for negotiations that have been going on for years and will show whether a deal is possible by the end of next week,” Donohoe said.

Ireland, which has a corporate tax rate of just 12.5%, has so far refused to join the OECD proposals.

Reporting by David Milliken, editing by Andy Bruce and Lincoln Feast.

Our standards: Thomson Reuters Trust Principles.


Source link

Share.

About Author

Leave A Reply