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| The G7 countries with developed economies have agreed to tax multinational companies, including Google and Amazon. |
Speaking to the media after the G7 summit in London, British Finance Minister Rishi Sathonik announced that the so-called G7 group had agreed to a "historic" agreement to tax multinational companies.
According to the British Broadcasting Corporation (BBC), the G7 finance ministers agreed at a meeting in London on a minimum 15% increase in corporate tax. Tax-affected people could include major technology companies such as Amazon and Google.
The taxes that will result from this agreement could result in billions of dollars in revenue for the governments of these countries, which will be able to repay the government loans taken during the economic crisis caused by the epidemic of Rule 19. Are
The agreement, reached between the United States, Britain, France, Germany, Canada, Italy and Japan, will also put pressure on a meeting of the economies of the 20 richest countries next month to decide whether to join multinational companies or There are all sorts of things to do. Tax.
Rishi Sonak said that the corporate tax system has been set up in such a way that global companies have to pay the same tax rate all over the world.
"After many years of debate, the G7 finance ministers have agreed on a landmark agreement to reform the global tax system to reshape it in today's digital age," he said. Coins. '
Why is there a need for a change in global taxes?
According to the BBC, governments have long considered how to levy and collect corporate taxes on multinational companies operating globally.
However, with the rise of big companies like Amazon and Facebook, this issue has become even more important.
So far, these multinational companies have established their headquarters in countries with low corporate tax rates and have declared their profits in those countries.
Because tax rates are lower in these countries, these companies pay lower taxes, while their profits come from doing business in another country. It is legal to pay such a low tax and such companies usually do so.
Rishi Sonak, the British finance minister, said the corporate tax system was designed to allow global companies to pay the same tax worldwide.
What is the agreement in this agreement?
The agreement reached between the finance ministers of the G7 countries aims to prevent this from happening in two ways.
The first is that the G-7 countries want to set a minimum tax rate globally so that the race to bring these companies back to their home countries does not begin.
Second, the terms and conditions set out in the agreement stipulate that these companies will pay taxes in the countries where they are registered, and in the countries where they are performing their services. Or they are selling their products.
The agreement also stipulates that the country in which the companies operate is taxed at 10 percent of their profits. This is called the "first pillar" principle.
According to the G7 announcement, more than 20% of the company's initial 10% profit will be accounted for by the country in which it is doing business.
Because of this agreement, if a company is already doing business in the UK, it will pay higher taxes here, which will help pay off government debts.
According to the second pillar of the agreement, all countries will not charge less than 15% tax.
The agreement will now be discussed at a meeting of G20 finance ministers and their central bank chiefs in July.
The Minister of Finance of the Republic of Ireland, Pascal Donohue, whose country currently imposes a corporate tax of 12.5% on these companies, said: But the interests of small and large countries and developing and developed countries must be taken into account. Equal destination
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