Commenting on the global tax deal involving 136 countries including all OECD and G20 countries for a 15% minimum corporate tax rate and taxing rights on USD 125 billion of profit , ETUC’s Liina Carr commented
“We need the EU to put its full weight behind the deal and to come out with more ambitious proposals of its own. This should include a minimum corporate tax rate, a common corporate tax base and a common formula for the reallocation of profits within the EU single market. After all, the European Commission has said an OECD deal would be complementary to the EU’s tax agenda – not a substitute. Now it has to act.”
“The OECD deal is an important first step, but full of loopholes. The minimum corporate tax rate is very low and will cover a limited number of multinationals. The reallocation of taxing rights of multinationals’ profits with global sales above USD 20bn is limited and will be based on where consumers are located only. Together with the withdrawal of digital service taxes, it will benefit rich countries far more than it does developing nations.
“It Is not even aimed at stopping global tax competition, but hopefully it will generate new tax revenues for countries and undermines tax havens. It’s a step forward, even if President Biden will have a very tough job getting it passed by Congress.
“The world needs to put political pressure on the USA, and on EU politicians, to deliver for us all if they want to be world leaders.”