Several smaller states have expressed opposition to the plan. This has not been easy for the finance ministers of some G7 member states, and criticism at home has increased since the deal was announced against them. However, even if the current governments of the United States, Canada, Great Britain, France, Italy, Germany and Japan implement them, the order will have to be approved by a broader G20 group next month, including China, Brazil and Russia. Then the Organization for Economic Cooperation and Development. The Czech government supports in principle the uniform taxation of large corporations, but wants to wait for a broader global agreement.
Current corporate tax: 19 percent
Finance Minister Alena Shillerov (Yes) welcomes the international effort for uniform taxation of digital giants. “Nevertheless, I feel more of this initiative as a partial solution to the current problems. As the implementation of similar significant changes globally takes more than several months, I will continue to push for the immediate introduction of the digital tax as a temporary solution, nationally as soon as possible,” Schiller E15 Daily said.
Current corporate tax rate: 15 to 26.5 percent
Paris has been reluctant to accept previous plans for balanced corporate taxation. In recent weeks, however, the French have changed their minds and agreed with other G7 members. “We all agree that digital, giants, Google, Amazon, Facebook and Microsoft are making substantial profits and should be taxed like any other business in the world,” said French Finance Minister Bruno Le Myre.
Current corporate tax rate: 12.5 percent
So far, the Irish economy has benefited from a lower corporate tax, which is less than the country’s required 15 per cent. Dublin therefore logically rejected the uniform taxation of the giant corporations. However, the current unity in the Irish political scene is beginning to crumble, as shadow finance minister Get Nash told a British newspaper on Wednesday. Financial TimesA slight increase in the tax rate would not harm Ireland, and called on the government to hold a national dialogue on the matter.
Current corporate tax rate: 27.9 percent
Italy, which will hold the G20 presidency this year, is one of the countries that will agree to the proposal. Italian Economy and Finance Minister Daniel Franco has vowed to do everything in his power to ensure that the agreement is reached not only within the G7 but also at the summit of the world’s twenty most advanced economies. It takes place in Venice, Italy in July.
Current corporate tax: 9 percent
Hungarian Prime Minister Viktor Orban called the G7 plan “absurd.” Once the order is passed, Budapest will consider alternative measures. Hungary has the lowest corporate tax in the European Union. As a result, the government has attracted significant foreign investment in its automotive and manufacturing industries. GDP and employment growth have accelerated, keeping Orban’s right-wing government in power for more than a decade.
Current corporate tax rate: 29.65 percent
The Germans have strongly supported the uniform taxation of mega companies in the negotiations so far, and have enthusiastically welcomed the G7 deal. “This is very good news for tax justice and solidarity and bad news for tax havens. Companies can no longer avoid their obligations by paying in countries with the lowest taxes,” said Union Finance Minister Olaf Scholes.
Current corporate tax rate: 15 to 25 percent
The Dutch government has not yet taken a formal position on world taxation. In the past, the Netherlands has been used by multinational corporations as one of its taxes. Therefore, it was expected that Amsterdam would criticize the project. However, Treasury Administrator Hans Wiegelfeef pointed out in recent talks that the Dutch would submit if the world powers agreed.
Current corporate tax rate: 9 to 19 percent
The poles are strictly rejecting the global corporate tax, and this week has made it clear that we will do everything possible to keep this plan from being accomplished. “The G7 should not be allowed to dictate what the tax rate should be in our country,” he told the newspaper on Wednesday. Financial Times Tadeusz Kościński, Minister of Finance of Poland. According to him, economically weaker states need a lower rate to attract technological innovations from abroad.
Current corporate tax: 21 percent
The United States, led by Secretary of State Janet Yellen, proposed and implemented the World Tax. Yellen wants the tax rate to increase to 25 percent in the future. However, its Democrats may have trouble issuing orders through the US Congress. Many Republican senators said they would not vote on the plan this week. “This is bad for America,” says Republican John Barroso.
Current corporate tax: 19 percent
The local government initially had reservations about the minimum tax for companies. It agreed only after the proposal for a flat rate was reduced from 21 to 15 per cent. However, UK Treasury Secretary Rishi Sunak on Wednesday said he was working to exempt London from the introduction of the global tax. According to the agency Bloomberg Brexit is trying to accommodate the big banks in the British capital that have been damaged. “However, most of them have already paid an average of 23 percent in 2019,” Bloomberg said.
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