FINANCE

EU officials note a breakthrough for the 15% global tax treaty


Valdis Dombrovskis, executive vice president of the European Commission for the Economy who works for the people.

BERND VON JUTRCZENKA | AFP | Getty Images

PARIS – A global deal on corporate taxes could be completed before the end of this month, the EU’s top trade chief told CNBC on Wednesday.

Global governments have been engaged in tough negotiations to bring in a handful of countries in line with an international agreement on corporate taxes. The G-7 and G-20 countries backed an agreement earlier this summer that, if implemented, would force multinational companies to pay taxes where they operate – and where they do not have a headquarters – and impose a minimum corporate rate of 15%. .

Some countries, especially Hungary and Ireland, where corporate taxes are below 15%, have expressed skepticism about the deal. However, talks led by the Organization for Economic Co-operation and Development (OECD) appear to be fruitful.

“We hope the OECD treaty will be finalized in October. We are working with EU member states to make sure everyone is on board about the international tax treaty,” European Commission Vice President for Trade Valdis Dombrovskis told CNBC on Wednesday.

“And we are ready to put forward legal proposals to ensure the uniform implementation of this agreement across the EU.”

On Tuesday, Luxembourg Finance Minister Pierre Gramegna also told CNBC: “We are very close. [a] The agreement, in a few days, will involve all countries. “

Ireland has indicated in the last few hours that recent changes to the agreement are welcome. According to the Financial Times, the country’s deputy prime minister, Leo Varadkar, said the new article “responds a lot if not all of his country’s concerns.”

Meanwhile, Irish Environment Minister Eamonn Ryan said he was optimistic and confident that Ireland would be part of the solution in this regard. The country’s finance minister, Pascal Donoho, told Luxembourg that he would discuss the revised tax agreement at a cabinet meeting on Thursday and then express his views.

Despite Ireland’s comments, Estonia and Hungary are among the countries that have yet to ratify the agreement.



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