London The G7 finance ministers’ agreement on a comprehensive tax reform was hailed as historic, but obstacles to its implementation remain. The British government apparently wants to make sure that big banks are not subject to the new digital tax. “Our position is that we want to exempt financial companies from the rule,” a government official told the Financial Times (FT). EU countries would see it the same way.
The G7 agreed last weekend that companies with a certain minimum turnover and a profit margin of at least ten percent should pay corporate tax in the countries where they generate turnover. A minimum tax rate of 15 percent should also apply worldwide.
British host Rishi Sunak hailed a “historic deal”, and Federal Finance Minister Olaf Scholz even spoke of a “revolution”. But the G7’s decision is only an intermediate step. At the G20 summit in July, the major emerging countries have yet to agree, and then an agreement has to be reached among the 140 OECD countries.
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