Germany could raise an additional $ 7 billion with global minimum tax rate – Ifo report

0


By Christian Kraemer

WASHINGTON, Oct. 13 (Reuters) – Germany can expect to raise an additional € 5-6 billion ($ 5.8 billion to $ 6.9 billion) in taxes from large corporations as part of the comprehensive the minimum tax concluded last week, according to an unpublished study by the influential Ifo institute. calculated.

Assuming that the landmark agreement between 136 countries, which sets a minimum overall tax rate of 15% for large companies from 2023, reduces the shifting of profits to low-tax countries in the medium to long term, positive effects for German taxation The authorities could reach 6 to 6.4 billion euros, he added.

The forecast was in a report, seen by Reuters on Wednesday, by the Ifo Institute, which aims to help shape the economic policy debate in Germany and Europe with research to inform decision-making by policymakers and leaders. business.

Olaf Scholz, German finance minister and Social Democrat candidate for chancellor, said the minimum tax rate would have a noticeable effect, although he gave no specific figures.

According to the May tax estimates, German tax revenues are expected to reach a total of 773 billion euros this year, of which 294 billion euros at the federal level.

Last week’s deal aims to end a four-decade “race to the bottom” by setting a floor for countries that have sought to attract investment and jobs by slightly taxing multinational companies, allowing them to look for low tax rates.

However, the agreed 15% floor is much lower than the corporate tax rate, which averages around 23.5% in industrialized countries. ($ 1 = 0.8648 euros)

(Reporting by Miranda Murray; Editing by Alexander Smith)


Share.

Comments are closed.