The G7 economies are optimistic about striking a TAX deal on multinational companies. Finance Ministers from G7 economies are working to introduce a global minimum TAX rate for corporations. The TAX agreement will bring companies like Microsoft and Amazon to the TAX Net. The move of bringing companies in minimum global TAX will help to deal with debts. The global minimum TAX rate of 15% will help curb the TAX burden accumulated during the Pandemic. German Finance Minister, Olaf Scholz is optimistic about the TAX agreement. The minimum global rate for corporations will help to deal with challenges. The agreement holds greater importance for the future of this world.
The Covid-19 crisis has put immense pressure on countries all around the world. Countries have spent millions for protecting Public Health and Economies. The new TAX rate will help countries to fund their tasks. There are some countries in the EU with low corporates TAXES. Ireland is among the lowest corporate TAX rates. Also, the French Finance Minister insists Ireland becomes part of this agreement. The current corporate TAX rate of Ireland is 12.5%.
Many EU member countries didn’t initially encourage the decision. However, the TAX rates are imperative to the future of the countries. The ministers said, 15% rate is a fair starting point for increasing TAX rates. However, it is better to increase the TAX rates to more than 15%. Leaders show confidence in reaching the agreement for a new TAX rate. Countries in the counterparts of EU have cosigned the agreement for the international TAX system.
