why the global minimum tax bill could change everything

DECRYPTION

It’s a actual fiscal large bang that’s shaping up for the months to return. In america, the Biden administration gave the inexperienced mild for a worldwide minimal tax, a venture supported by the OECD for years however which was blocked by Donald Trump. It might carry tens of billions of euros annually into state coffers, now sheltered by multinationals in tax havens. Europe 1 explains how.

GAFA arrange their head places of work in tax havens

At present, many firms, significantly the largest and essentially the most worthwhile, particularly the well-known American GAFAs – Google, Apple, Fb and Amazon -, arrange their head places of work the place taxation may be very low. However these are international locations wherein these firms make little or no turnover, resembling, to quote solely the European examples, Eire or Luxembourg.

But when this reform passes, the apply turns into a lot much less attention-grabbing, since there can be a tax in all international locations – the concept being to make firms pay taxes wherever they make large income. If this measure enters into power, the GAFA will thus be obliged to pay taxes on the truth of what’s actually offered in France, and in all places else, which modifications every part.

Tens of 1000’s of euros could possibly be recovered

And such a tax would have an effect on all companies, not simply digital ones. It might, for instance, be a game-changer for the Starbucks group, which has additionally performed loads lately on tax optimization. Put finish to finish, tens of billions of euros might go into the coffers and represent a small support to assist pay the invoice for the Covid-19 – that is what additionally made it attainable to advance this reform.

However beware, a number of obstacles stay to be overcome for this reform to enter into power – particularly, the speed of this general tax should be outlined. On the OECD aspect, they are saying they hope to carry the venture to fruition by autumn.

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DECRYPTION

It’s a actual fiscal large bang that’s shaping up for the months to return. In america, the Biden administration gave the inexperienced mild for a worldwide minimal tax, a venture supported by the OECD for years however which was blocked by Donald Trump. It might carry tens of billions of euros annually into state coffers, now sheltered by multinationals in tax havens. Europe 1 explains how.

GAFA arrange their head places of work in tax havens

At present, many firms, significantly the largest and essentially the most worthwhile, particularly the well-known American GAFAs – Google, Apple, Fb and Amazon -, arrange their head places of work the place taxation may be very low. However these are international locations wherein these firms make little or no turnover, resembling, to quote solely the European examples, Eire or Luxembourg.

But when this reform passes, the apply turns into a lot much less attention-grabbing, since there can be a tax in all international locations – the concept being to make firms pay taxes wherever they make large income. If this measure enters into power, the GAFA will thus be obliged to pay taxes on the truth of what’s actually offered in France, and in all places else, which modifications every part.

Tens of 1000’s of euros could possibly be recovered

And such a tax would have an effect on all companies, not simply digital ones. It might, for instance, be a game-changer for the Starbucks group, which has additionally performed loads lately on tax optimization. Put finish to finish, tens of billions of euros might go into the coffers and represent a small support to assist pay the invoice for the Covid-19 – that is what additionally made it attainable to advance this reform.

However beware, a number of obstacles stay to be overcome for this reform to enter into power – particularly, the speed of this general tax should be outlined. On the OECD aspect, they are saying they hope to carry the venture to fruition by autumn.

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