The Head of the G20 club’s financial club from a large economy has supported an important step to stop multinational companies to shift into low tax havens and win back hundreds of billions of dollars in lost income, the design of communiques shows.
The agreement in talks in the City of Italy Venice will be arranged to be completed on Saturday and close eight years of fighting on this issue. The aim was for state leaders to give him a final thanks to the October Summit in Rome.
The pact for building a minimum minimum global tax rate of 15% is an effort to squeeze more money from technology giants such as Amazon and Google and other multinational companies that can shop for the most interesting tax base.
While the tax manufacturing refers to the gap in the proposal and wanting more ambitious crackdown, this step is a rare case of cross-border coordination in tax issues and can strip a lot of their attraction tax.
“We invite all members who have not joined the International Agreement to do so,” The communique seen by Reuters said about a number of countries that still opposed the move.
Two sources said the statement was expected to be released at the end of the conversation on Saturday without change.
It will represent political support for this month’s agreement among 131 countries in talks organized by Paris-based organizations for economic cooperation and development.
Momentum for the accelerated agreement this year with strong support from Biden administration in the United States and many public treasures around the world stretched by massive fiscal support needed to protect the economy that was hit by a pandemic.
Geoffrey Okamoto, deputy director of the implementing international monetary fund, call it “net victory for the world” but said the work was still needed to simplify the agreement for countries, especially poorer, to take it.
“It must be quite simple for most of the world to truly apply and manage it,” he told Reuters.
Carbon friction
If all plans, new tax rules must be translated into binding laws throughout the world before the end of 2023. However, the fight at the US Congress over President Joe Biden increases in corporate tax increases and American rich people have not been able to create obstacles.
Equally, there may be difficulties because European Union members declare Ireland, Estonia and Hungary are among countries that have not registered.
“I am sure that in the end we will come to a shared decision in the EU,” said the German Finance Minister Olaf Scholz told DLF radio stations before successive.
The meeting of the G20 Minister of Finance and Central Bankers in Venice was their first face-to-face meeting since the commencement of Pandemi Covid-19.
G20 members contributed more than 80% of world gross domestic product, 75% of global trade and 60% of the planet’s population, including Big-Hitter United States, Japan, England, France, Germany and India.
In the addition of previous concepts, communiques said support measures were being carried out by rich countries to protect their economy from pandemic damage to be in line with the commitment of the central bank to maintain stable inflation.
“We will continue to maintain recovery, avoiding premature withdrawal of support steps, while remaining consistent with the central bank’s mandate – including price stability,” read.
Concerns have increased recently that ultra-loose monetary policy in many countries after a pandemic can release a surge in inflation, it might test the commitment of the main central bank to maintain a stable price.
The statement also urged a faster distribution of Covid-19 vaccines, drugs and tests around the world, but did not make new commitments for that purpose, and request international monetary funds to come up with ways for countries to direct resources IMF towards the IMF countries.