By Doug Connolly, Multinational Corporate Tax
A draft statement for the next G20 finance ministers meeting on July 9-10 includes language expressing countries’ support for a global minimum tax and new rules for the distribution of multinational profits, according to a June 22 report. from Reuters.
“We endorse the core elements of the two pillars on Multinational Profit Reallocation and the Global Minimum Tax, as set out in the statement issued by the G20 / OECD Inclusive Framework on Base Erosion. taxation and profit shifting (BEPS), “the draft statement read. States.
The draft does not include a specific rate for the minimum tax, nor does it specify other details that were part of it in the G7 press release of June 5.
The G7 has accepted a minimum tax of at least 15% to be calculated country by country, as well as some details on the share of profits of multinationals to be reallocated. However, these details were also not included in the draft G7 communiquÃ© that was initially released before the June 5 deal.
Regarding the timetable, the draft G20 communiquÃ© states: âWe call on the inclusive G20 / OECD framework on BEPS to rapidly finalize the remaining technical work with a view to approving the implementation framework of the two pillars by now. our next meeting in October â.
Some of the G20 members outside the G7 – including Indonesia, Mexico and South Africa – have already signaled their support for a minimum tax of at least 15%. Questions remain as to the acceptability of such a rate for other G20 members, including China.
The G7 includes Canada, France, Germany, Italy, Japan, United Kingdom, and United States. The G20 also includes Argentina, Australia, Brazil, China, EU, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, South Korea and Turkey.