G20 economy ministers endorse global tax deal

TEHRAN, Jul. 11 (MNA) – G20 economy ministers and central bankers meeting in Venice issued a joint communiqué endorsing a tax deal, which was agreed by G7 nations last month and backed by 130 countries at talks hosted by the OECD in Paris.

The world’s largest economies have thrown their weight behind a global tax reform deal that would impose a minimum levy on multinational corporations, however, the deal will ramp up pressure on a small number of holdout countries to sign on to the agreement, Finacial Times reported.

The communiqué called the deal “a historic agreement on a more stable and fairer international tax architecture” and the G20 invited “all members of the OECD . . . that have not yet joined the agreement to do so”.

It called on all countries in the negotiations to “swiftly address the remaining issues and finalize the design elements” by the next G20 meeting in October.

Janet Yellen, US Treasury secretary, said that the G20 would try to bring the holdouts, which include Ireland and Hungary, towards accepting the agreement, but added that
their assent was not needed to move forward.

Bruno Le Maire, France’s finance minister, called the tax deal “a once in a century tax revolution”.

The next steps for the October G20 meeting will be to fix a globally agreed minimum tax rate and work out how shares of profits from taxation will be allocated between countries.

Eight countries, including Ireland, Barbados, Hungary, and Estonia, have deferred agreeing to the 15 percent minimum levy, which is backed by the US, China, India, and most EU countries. Other holdouts include Sri Lanka, Nigeria, and Kenya.

Some low-tax jurisdictions and investment hubs, such as the Bahamas and Switzerland, have already signed on.

HJ/PR

News Code 175971

Tags

Your Comment

You are replying to: .
  • 2 + 7 =