Tuesday, August 9

Tech titans, targeted by the global tax on multinationals

The tax will have a A minimum rate of 15% on the profits of multinationals to prevent them from continuing to move their tax office to a country where tax treatment is more favorable.

The agreement will also allow attributing to countries around the world the profits of more than 125 billion dollars achieved by 100 multinational companies among the largest and most profitable in the world, notes the OECD.

And according to an independent study, the tax will generate at least $ 60 billion in revenue a year for the United States alone.

The agreement is based on two pillars: the first foresees that companies with revenues of more than 20,000 million euros can also pay taxes in the countries where consumption occurs.

The second establishes that countries that host multinational headquarters can impose a minimum tax of at least 15% in each of the countries in which they operate.

With the new minimum tax, the European tax on digital services that had provoked criticism from the United States will disappear because it would especially affect large technology companies based abroad.

In the case of the implementation of the global tax in the next two years, European countries will offer companies a tax credit to reimburse the sums paid in excess of the global tax.

After the approval of the heads of State and Government, the minimum tax agreement must be transformed into law in the different countries, with the aim of implementing it in 2023. An obstacle still to be overcome, experts and analysts point out, is, however, the creation of a credible dispute resolution mechanism at the international level.

The plan for a global minimum tax on large corporations was proposed by US Secretary of the Treasury Janet Yellen last April as part of the policy of President Biden’s new administration.

The number one in the White House will still have to face Republican opposition in the Senate to the new rules.

So in June it received the support of the G7 and at the beginning of October it received the approval of 136 countries of the 140 of the Inclusive Framework of the OECD-G20.

The agreement was made possible, after years of intense negotiations, thanks to the accession of Ireland, Estonia and Hungary, which had long been staunchly opposed to the idea of ​​a global minimum tax for multinationals.