During the G20, “broad and cross-cutting” support was expressed for the agreement reached in the preliminary work on the application of a global minimum tax of 15% to multinationals.
Support for the global minimum rate was explicitly expressed by the United States and by countries such as Brazil, France and South Korea, the spokesmen indicated.
This historic agreement, almost achieved, is reflected after four years of intense debate and it is a system that will be based on two pillars and that will address the fiscal challenges posed by the digitization and globalization of the economy.
The mechanism, to be adopted by 2030, follows the path already outlined by the Organization for Economic Cooperation and Development (OECD) of a system based on two pillars.
The first establishes that the volume of the residual profit of the companies (the one that remains after the country where the headquarters is located has kept the tax corresponding to 10% of the profitability) will be distributed among the countries where the companies operate, and the second establishes a minimum corporate rate of 15% for companies with a turnover of at least 750 million euros.
“Many countries in the opening panel of the G20 have expressed their support for the initiative of the Italian presidency aimed at establishing a global Working Group for Health and Finance”, which first favors a closer collaboration between these two worlds , indicated the same informants.
Among others, the President of the Netherlands, Mark Rutte, explicitly mentioned the importance of this initiative.
The approval of the new number of Special Drawing Rights by the IMF and the innovative mechanism for its reallocation, as well as the extension of the Debt Service Suspension Initiative (DSSI) until the end of 2021, found ample space in the interventions of many leaders.
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