EXPLAINER: How G20-backed corporate minimum tax would work
3 years, 1 month ago

EXPLAINER: How G20-backed corporate minimum tax would work

Associated Press  

ROME — Leaders at the Group of 20 summit in Rome are expressing broad support for sweeping changes in how big global companies are taxed. White House officials are saying the global minimum would result in almost $60 billion of added U.S. tax revenue. The basic idea is simple: Countries would legislate a minimum rate of at least 15% for very big companies with annual revenues over 750 million euros If company earnings go untaxed or lightly taxed in one of the world’s tax havens, their home country would impose a top-up tax that would bring the rate to 15%. U.S. participation in the minimum tax deal is crucial, simply because so many multinationals are headquartered there — 28% of the 2,000 biggest global companies. The EU Tax Observatory research consortium cautions that exemptions for companies with actual assets and employees in a given country could “exacerbate tax competition by giving firms incentives to move real activity to tax havens.” That means some tax competition among countries would still be possible when actual business operations — as opposed to shifty accounting — are involved.

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History of this topic

G20 leaders endorse global minimum tax on big businesses
3 years, 1 month ago

G20 leaders endorse global minimum tax on big businesses

Al Jazeera  

New tax rules will see the profits of large multinational corporations taxed at a rate of at least 15 percent. Leaders of the world’s 20 biggest economies have endorsed a global minimum tax of 15 percent on big multinational businesses. “Here at the G20, leaders representing 80% of the world’s GDP – allies and competitors alike – made clear their …

G-20 will back a global minimum corporate tax, a win for Biden, U.S. officials say
3 years, 1 month ago

G-20 will back a global minimum corporate tax, a win for Biden, U.S. officials say

LA Times  

President Biden and First Lady Jill Biden take part in a ceremony with Italian Prime Minister Mario Draghi in Rome on Friday, the eve of the start of the G-20 summit. World leaders are expected on Saturday to endorse plans for a global minimum tax on corporations during the first day of the G-20 summit, senior Biden administration officials said. …

Explained | Why do governments want a global minimum corporate tax rate?
3 years, 2 months ago

Explained | Why do governments want a global minimum corporate tax rate?

The Hindu  

The story so far: As many as 136 countries entered into an agreement earlier this month to redistribute taxing rights and impose a global minimum corporate tax on large multinational corporations. Why do governments want a global minimum corporate tax rate? Supporters of the global minimum corporate tax agreement believe that it will help stop the “race to the bottom” …

More than 130 countries reach deal on corporate minimum tax
3 years, 2 months ago

More than 130 countries reach deal on corporate minimum tax

Associated Press  

FRANKFURT, Germany — More than 130 countries have agreed on sweeping changes to how big global companies are taxed, including a 15% minimum corporate rate designed to deter multinationals from stashing profits in low-tax countries. One reason is that countries would agree to withdraw individual digital services taxes they have imposed on them in return for the right to tax …

Over 130 countries reach deal on how big global companies are taxed, including 15% minimum corporate rate
3 years, 2 months ago

Over 130 countries reach deal on how big global companies are taxed, including 15% minimum corporate rate

Firstpost  

The deal would allow countries to tax some of the earnings of companies located elsewhere that make money through online retailing, web advertising and other activities. More than 130 countries have agreed on sweeping changes to how big global companies are taxed, including a 15% minimum corporate rate designed to deter multinationals from stashing profits in low-tax countries. It would …

Global corporate-tax overhaul advances as 136 nations sign on
3 years, 2 months ago

Global corporate-tax overhaul advances as 136 nations sign on

LA Times  

The deal advanced after years of missed deadlines and wrangling over how to handle global tech firms such as Facebook and Google. The deal moves a step closer to ending what U.S. Treasury Secretary Janet L. Yellen calls a global “race to the bottom” among countries luring companies with ever-lower tax rates. “The alternative to this happening is that we …

Yellen: Compete on economic strengths, not low tax rates
3 years, 5 months ago

Yellen: Compete on economic strengths, not low tax rates

Associated Press  

U.S. Treasury Secretary Janet Yellen said Sunday that deterring the use of tax havens will let countries compete on economic fundamentals — instead of by offering ever-lower tax rates that deprive governments of money for infrastructure and education. Yellen spoke after finance ministers from the Group of 20 major economies endorsed a global minimum corporate tax of at least 15%, …

G20 finance ministers in Venice take up global tax proposal
3 years, 5 months ago

G20 finance ministers in Venice take up global tax proposal

Al Jazeera  

US President Joe Biden’s proposal for a global minimum corporate tax is being discussed at the G20 meeting this weekend. Countries have lowered their tax rates to attract the revenue, moves described by US Treasury Secretary Janet Yellen as a global “race to the bottom” that the proposal could stop. Asked how he would describe the deal to non-economists, he …

Global corp tax overhaul faces rocky road as India, Switzerland express reservations
3 years, 5 months ago

Global corp tax overhaul faces rocky road as India, Switzerland express reservations

Live Mint  

A long road strewn with potential political pitfalls lies ahead for countries seeking to end a race to the bottom on international corporate tax, even though 130 of them have agreed to overhaul the way multinationals are taxed. With ink barely dry on the agreement, jubilant politicians in higher-tax countries declared that what French Finance Minister Bruno Le Maire termed …

Global tax overhaul endorsed by 130 nations as deal gets closer
3 years, 5 months ago

Global tax overhaul endorsed by 130 nations as deal gets closer

Live Mint  

The world took a big step toward sweeping changes to global taxation as 130 countries and jurisdictions endorsed setting a minimum rate for corporations along with rules to share the spoils from multinational firms like Facebook Inc. and Alphabet Inc.’s Google. ‘Fair Share’ U.S. Treasury Secretary Janet Yellen lauded the news, saying it was “an historic day for economic diplomacy.” …

US wins backing for global minimum corporate tax rate
3 years, 5 months ago

US wins backing for global minimum corporate tax rate

Al Jazeera  

Officials from 130 countries and jurisdictions, including India and China, have agreed on the United States’ broad outline to overhaul the global corporate tax system. Officials from 130 countries and jurisdictions have thrown their support behind the United States’ proposal to require a minimum global tax for corporations starting at 15 percent, a key step in curbing corporate tax avoidance …

The G7 deal on minimum corporate tax is flawed
3 years, 6 months ago

The G7 deal on minimum corporate tax is flawed

Hindustan Times  

The global minimum corporate tax rate has been variously described as ‘historic’, ‘landmark,’ and a ‘gamechanger’. The Pillar 2 approach – on a global minimum corporate tax rate – will have no teeth of its own in the absence of fair and equitable reallocation of taxing rights in the context of the digital economy. When seen in this context, the …

Biden sells G-7 on global tax, but U.S. Congress is a hurdle
3 years, 6 months ago

Biden sells G-7 on global tax, but U.S. Congress is a hurdle

Associated Press  

President Joe Biden might have persuaded some of the world’s largest economies to hike taxes on corporations, but the U.S. Congress could be a far tougher sell. White House press secretary Jen Psaki said Friday that leaders of the Group of Seven — which also includes the United Kingdom, France, Canada, Germany, Italy and Japan — agreed with Biden on …

Biden sells G-7 on global tax, but U.S. Congress is a hurdle
3 years, 6 months ago

Biden sells G-7 on global tax, but U.S. Congress is a hurdle

Associated Press  

President Joe Biden might have persuaded some of the world’s largest economies to hike taxes on corporations, but the U.S. Congress could be a far tougher sell. White House press secretary Jen Psaki said Friday that leaders of the Group of Seven — which also includes the United Kingdom, France, Canada, Germany, Italy and Japan — agreed with Biden on …

How much tax some of the world’s richest pay
3 years, 6 months ago

How much tax some of the world’s richest pay

Live Mint  

Amazon.com Inc. founder Jeff Bezos has the resources to launch himself into space. “There is a window of opportunity, a turning point at which they are realizing they need tax power and they need to spend more.” The deal would bolster Biden’s own plans to boost taxes on corporations and the wealthy by raising rates, making heirs pay more, and …

G7 countries reach agreement to set "global minimum" tax rate for multinational corporations
3 years, 6 months ago

G7 countries reach agreement to set "global minimum" tax rate for multinational corporations

Salon  

This article originally appeared at Common Dreams. "The G7 has taken significant steps this weekend to end the existing harmful dynamic, making commitments today that provide tremendous momentum towards achieving a robust global minimum tax at a rate of at least 15%," U.S. Treasury Secretary Janet Yellen said Saturday. While arguing that the proposed 15% global minimum tax rate is …

G-7 back steps to deter tax dodging by multinational firms
3 years, 6 months ago

G-7 back steps to deter tax dodging by multinational firms

Associated Press  

LONDON — The Group of Seven wealthy democracies agreed Saturday to support a global minimum corporate tax of at least 15% to deter multinational companies from avoiding taxes by stashing profits in low-rate countries. British Treasury chief Rishi Sunak, the host, said the deal would “reform the global tax system to make it fit for the global digital age and …

G7 Strikes 'Historic' Agreement Over Global Corporate Tax, Targeting Tech Giants
3 years, 6 months ago

G7 Strikes 'Historic' Agreement Over Global Corporate Tax, Targeting Tech Giants

News 18  

Finance ministers from wealthy G7 nations on Saturday endorsed a global minimum corporate tax of at least 15 percent, rallying behind a US-backed plan targeting tech giants and other multinationals accused of not paying enough. US Treasury Secretary Janet Yellen hailed the “unprecedented commitment”, saying in a statement that a global minimum tax “would end the race to the bottom …

G-7 nations agree on new rules for taxing global companies
3 years, 6 months ago

G-7 nations agree on new rules for taxing global companies

Live Mint  

The Group of Seven leading rich countries agreed to back new rules for taxing businesses that operate internationally in a significant step toward a global agreement that would deliver the minimum rate sought by the Biden administration. Under the deal, G-7 members will back a global minimum tax rate on company profits and a new way of sharing the revenues …

G-7 nations sign landmark agreement, back minimum global corporate tax rate of 15%
3 years, 6 months ago

G-7 nations sign landmark agreement, back minimum global corporate tax rate of 15%

Firstpost  

The endorsement from the G-7 could help build momentum for a deal in wider talks among more than 140 countries being held in Paris as well as a G20 finance ministers meeting in Venice in July London: The world’s richest countries signed a landmark agreement on Saturday committing them to confronting corporate tax avoidance and making sure that giant tech …

The G-7 Nations Agree To Make Big Tech Companies Pay Their Fair Share Of Taxes
3 years, 6 months ago

The G-7 Nations Agree To Make Big Tech Companies Pay Their Fair Share Of Taxes

NPR  

The G-7 Nations Agree To Make Big Tech Companies Pay Their Fair Share Of Taxes Enlarge this image toggle caption Henry Nicholls/AP Henry Nicholls/AP LONDON — The Group of Seven wealthy democracies agreed Saturday to support a global minimum corporate tax rate of at least 15% in order to deter multinational companies from avoiding taxes by stashing profits in low-rate …

G7 nations reach historic deal to tax multinational corporations
3 years, 6 months ago

G7 nations reach historic deal to tax multinational corporations

Al Jazeera  

A group of the world’s richest nations agree on a minimum global corporate tax rate to close cross-border tax loopholes used by some corporations. Finance ministers from the Group of Seven rich nations reached a landmark accord on Saturday backing the creation of a global minimum corporate tax rate of at least 15 percent in an effort to close cross-border …

Biden tax proposal in focus at Group of 7 ministers’ meeting
3 years, 6 months ago

Biden tax proposal in focus at Group of 7 ministers’ meeting

Associated Press  

FRANKFURT, Germany — U.S. President Joe Biden’s proposals for deterring tax avoidance by multinational companies will be a major theme Friday when finance ministers from the Group of Seven wealthy democracies start talks on economic cooperation in London. Biden’s push to end what Treasury Secretary Janet Yellen has called a “race to the bottom” by low-tax countries has given new …

Biden’s corporate tax plan takes aim at income inequality
3 years, 7 months ago

Biden’s corporate tax plan takes aim at income inequality

Associated Press  

WASHINGTON — From John Kennedy to Ronald Reagan to Donald Trump, American presidents have taken aim at corporate America’s tax-avoidance schemes before — and mostly missed. Many analysts see Biden’s corporate tax plan as a gamechanger — if Congress embraces it. Penn Wharton’s analysts estimate that a 21% minimum global tax and other international provisions of Biden’s tax plan would …

Biden’s global corporate tax plans send mixed signals
3 years, 8 months ago

Biden’s global corporate tax plans send mixed signals

The Hindu  

U nited States President Joe Biden has declared his intention to go big on spending. To make clear that the plan is not mere rhetoric, the administration proposes that the total planned investment of $3 trillion or more will be financed with an increase in the corporate tax rate in the U.S. from 21 to 28 per cent, an effort …

Ireland and Netherlands set to suffer under new Biden tax plan
3 years, 8 months ago

Ireland and Netherlands set to suffer under new Biden tax plan

The Telegraph  

Ireland, the Netherlands and Switzerland are set to be the big losers under the Biden administration’s plans to link tax revenue from businesses to local sales. The US has reportedly proposed a clampdown on companies using certain countries to avoid paying higher tax as part of its plans for a huge global shake-up. It is part of the Biden administration’s …

Joe Biden defends his $2.5tn infrastructure bill and business tax hikes
3 years, 8 months ago

Joe Biden defends his $2.5tn infrastructure bill and business tax hikes

Daily Mail  

President Joe Biden launched a full-throated defense of his corporate tax hike to fund his $2.3 trillion dollar infrastructure plan, saying he was tired of ordinary Americans being fleeced. Biden's tax proposal would hike the corporate tax rate to 28 per cent, increase the de facto global minimum tax and crack down on companies that pay little or no income …

US plan for taxing multinationals boosts chances of global deal
3 years, 8 months ago

US plan for taxing multinationals boosts chances of global deal

CNN  

London CNN Business — For years, world leaders have been trying to launch a historic overhaul of global tax rules, aiming to tackle an unwieldy system rife with loopholeslong exploited by big business. The Biden administration’s decision to back a global minimum corporate tax rate while it pushes a massive $2 trillion infrastructure package in the United States has ignited …

Joe Biden confident that higher corporate tax will not drive companies out of U.S.
3 years, 8 months ago

Joe Biden confident that higher corporate tax will not drive companies out of U.S.

The Hindu  

U.S. President Joe Biden has exuded confidence that his proposal to hike the corporate tax is unlikely to drive companies out of the country. U.S. Treasury Secretary Janet Yellen told Chicago Council on Global Affairs that it’s important to work with other countries to end the pressures of tax competition and corporate tax-based erosion. “We’re working with G20 nations to …

U.S. Treasury Secretary calls for minimum global corporate income tax
3 years, 8 months ago

U.S. Treasury Secretary calls for minimum global corporate income tax

The Hindu  

U.S. Treasury Secretary Janet Yellen on Monday urged the adoption of a minimum global corporate income tax, an effort to offset any disadvantages that might arise from the Biden administration's proposed increase in the U.S. corporate tax rate. Citing a “thirty-year race to the bottom” in which countries have slashed corporate tax rates in an effort to attract multinational businesses, …

Biden lands back at the White House after Easter weekend with Jill at Camp David
3 years, 8 months ago

Biden lands back at the White House after Easter weekend with Jill at Camp David

Daily Mail  

President Joe Biden criticized Republicans who claim his $2.3trillion spending package has nothing to do with infrastructure and dismissed claims higher corporate taxes might push companies abroad as he returned from a weekend at Camp David. The president has proposed hiking the corporate tax rate in the US to 28 percent from 21 percent, which would partially undo the Trump …

Race to the bottom: Yellen makes case for global minimum tax rate
3 years, 8 months ago

Race to the bottom: Yellen makes case for global minimum tax rate

Al Jazeera  

The US Treasury secretary says a global minimum corporate tax rate will ensure firms pay their fair share — but critics say it’s not that simple. A global minimum corporate tax rate can help ensure everyone pays their fair share and will prevent companies from fleeing to countries with lower corporate tax rates, United States Treasury Secretary Janet Yellen said …

Biden plans to up corporate tax rates to fund infrastructure boom
3 years, 8 months ago

Biden plans to up corporate tax rates to fund infrastructure boom

Al Jazeera  

The corporate tax-cut party President Donald Trump kicked off will soon be over if his successor proves able to enact proposals to roll back half of the 2017 domestic income-tax reduction and to radically revamp levies on profits earned abroad. “They’re not just rolling back the tax cuts from 2017,” said David Noren, a former legislative counsel to the congressional …

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