“The detailed implementation plan and remaining issues will be completed by October 2021,” a statement from 130 of the 139 participants said. According to AFP, neither Ireland nor Hungary, among other countries, have signed the agreement.
“The Organization for Economic Co-operation and Development has just announced that 130 countries have agreed on a new international tax. I welcome this huge step. It is the most important international tax agreement reached in the past 100 years,” French Finance Minister Bruno Le Maire told a press conference.
“This is the biggest advance in international taxation in the last 10, 20 or 30 years,” said German Finance Minister Olaf Scholz. “It really is a huge breakthrough that will change everything,” he said.
According to him, the goal is to ensure that the finance ministers of the Group of 20 major economies, at their next meeting on July 9-10, will sponsor the plan. It was endorsed by the finance ministers of the Group of Seven leading industrialized nations early last month.
The meeting, organized by the Organization for Economic Co-operation and Development, is the first major review of global tax rules in the last generation. The goal is to modernize the tax system to fit the digital age. The main requirement is that large digital companies pay taxes where they do business and not where they have registered subsidiaries.
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