Leading economies are expected to agree on a common idea for taxpayers on Saturday to end the decade-long competition of corporate taxes that could bring more money to governments around the world.
Finance ministers from the G7 group had been discussing the agreement late Friday, at a London conference hosted by UK councilor Rishi Sunak.
Delegates to the conference said the G7 would agree to change international tax law for the first time in a century. The old system seeks to force the world’s largest corporations to pay their taxes to the commercial world, not just to their headquarters.
German Finance Minister Olaf Scholz told the BBC he was “absolutely confident” that the ministers would form a coalition. “We will have a partnership that will change the world,” he said.
Bruno Le Maire, France’s finance minister, said the cabinet was close to a “historic agreement” that would show the world that the G7 was still the world’s largest party in regulating sportsmanship in the 21st century.
One person who is most affected by the talks said he expects “excellent communication” when the talks are completed on Saturday.
Countries have been negotiating for a global tax since 2013. The OECD talks have left the US and European countries at loggerheads, especially over US corporate taxes, but hopes for unity have been high since Joe Biden replaced Donald Trump as US President. earlier this year I offer new ideas.
G7 finance ministers are expected to release a statement on Saturday outlining the agreement and supporting Biden’s call for all governments around the world at the world’s largest corporations.
Issues that are about to be settled include whether the global tax rate would be at the 15% rate set by the US or if it could be defined as “at least 15%”, depending on the parties concerned.
Two people familiar with the negotiations say the US is sticking to the “agreement” on when UK, France and Italy should withdraw their digital taxes in the event of an agreement.
The US wants this to happen soon, but France and the UK think this is not a start because it could leave digital giants paying lower taxes here for the US commitment, but before that legislation was passed by Congress.
“We hope to get along, but that’s all right,” said one stakeholder.
Treasure UK said there was “progress” but Sunak allies said there was still evidence of what companies could have and how much of their profits from around the world.
The US, meanwhile, is interested in a slight downward trend in the world as it could halt its technical giants moving their profits to less tax havens.
Most of the taxes that are being raised are supposed to come from US companies so the one quoted above said Janet Yellen, secretary of the US Treasury, “was doing business”.
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