New Delhi: Top Financial Officers representing most of the world economy have supported the revision of international taxation which includes Levy a 15% global minimum company to prevent large Tech Giants companies from using low-level tax havens.
The Minister of Finance from the 20-state group supports plans at a meeting on Saturday in Venice.
Italy hosted a meeting because he held a spinning chair G-20, which formed more than 80% of the world economy.
US Treasury Secretary Janet Yellen said the proposal would end the “international tax competition that defeated themselves” where countries have lowered their tariffs to attract companies.
He said it was “a race that was not won by anyone.
What he did was to seize our resources, we need to invest in our people, labor, infrastructure.” The next step includes more work in the main details in Paris-based organizations for work Economic and development and later a final decision at the president’s G20 Meeting and Prime Minister in Rome 30-31 October.
If applied, the plan can reshape the global economy, but resistance increases from business, which can immediately deal with higher tax bills, as well as from small countries, but pivotal, low taxes such as Ireland, who will see their economic model turned upside down , Implementation, it is expected that in the beginning of 2023, it will also depend on actions at the national level.
The state will impose minimum tax requirements into their own law.
Other parts can require formal agreements.
The draft proposal was approved on July 1 in talks among more than 130 countries organized by the OECD.
The international tax proposal aims to prevent the largest companies in the world to use accounting and legal schemes to divert their profits to countries where little or no taxes are due – and where companies can do a little or no actual business.
Under the minimum, companies that escape from tax abroad will pay them at home.
It will eliminate incentives to use Havens tax or to set it.
From 2000-2018, US companies ordered half of all foreign advantages in seven low tax jurisdictions: Bermuda, Cayman Islands, Ireland, Luxembourg, the Netherlands, Singapore and Switzerland.
The second part of the tax plan is to allow countries to impose taxes on the benefits of the benefits of companies that have profit without physical presence, such as through online retail or digital ads.
The section appeared after France, followed by other countries, imposing digital service taxes on US technology giants such as Amazon and Google.
The US government considers the national tax as an unfair trade practice and suggests the threat of retaliation for the import of the countries to the US through higher import taxes.
Under the tax agreement, these countries must bring down or refrain from a national tax for the global approach, theoretically ending trade disputes with the US.
The US technology company then will only face one tax regime, instead of many different national digital taxes.