Status: 05.06.2021 2:22 p.m.
The tax dumping of the Internet giants has long been a thorn in the side of the G7 finance ministers. At their meeting in London they now agreed to introduce a global minimum tax for large corporations.
The seven leading industrialized countries (G7) have agreed on a basic framework for global tax reform. A minimum tax of at least 15 percent is planned for large corporations.
Federal Finance Minister Olaf Scholz spoke of a historic agreement and a “tax revolution”. However, other countries would now have to be brought on board so that the agreement can actually be implemented.
G7 finance ministers agree on minimum tax rate
Vassili Golod, ARD London, daily news 6:00 p.m., 5 June 2021
“Bad news for tax havens”
Multinational corporations, including many Internet giants such as Google, Facebook and Amazon, pay comparatively little taxes thanks to clever profit shifting – and usually not where they make their sales. At the same time, they are the big winners of the corona crisis. The calls for fairer taxation of companies have therefore recently become louder, especially since the debts of many countries have skyrocketed because of the pandemic.
“Our intensive efforts over the past three years are bearing fruit,” said Scholz. This is bad news for tax havens. “Corporations will no longer be able to evade their tax liability by skilfully shifting their profits to low-tax countries. Stable tax revenues are important so that states can fulfill their tasks.”
The approval of the G20 states is to be secured
The G7 final declaration also states that countries in which large corporations generate their sales should benefit more than before from the tax payments made by the companies. That should do better for many emerging markets. It could help to secure the approval of the G20 countries – that is, the extended group with the most important emerging countries such as China, India and Brazil. The G20 meeting in Venice in July is likely to be decisive.
The British finance minister and G7 host Rishi Sunak said the global tax system, which largely dates back to the 1920s, urgently needed to be made fit for the digital age. This can now succeed. Digital taxes of individual countries are no longer necessary in a global solution. Many experts fear that there would be an even larger patchwork of national digital taxes if the negotiations at the G20 level failed.
G7 finance ministers agree on minimum tax
Christoph Prössl, ARD London, June 5, 2021 3:46 p.m.