Taxes: Towards the End of a Global Corporate Tax Battle?

Taxes: Towards the End of a Global Corporate Tax Battle?

Soon the end of fiscal dumping, this method which consists for a country in lowering its taxes to welcome foreign companies? Joe Biden’s United States is calling for a minimum international tax, and the idea seems to appeal to Europeans.

Taxes: Towards the End of a Global Corporate Tax Battle?

What if all countries in the world applied a minimum corporate tax? All companies in the United States, Brazil, France or even India could indeed, in the future, pay a minimum base tax. This idea is defended by the American administration. “We are working with the G20 countries to agree on a minimum corporate tax rate, which could end this race to the bottom“, Says Janet Yellen, US Secretary of the Treasury.

New resources for states

The measure would allow Joe Biden in particular to finance his colossal stimulus plan, but also to bring more tax justice. Harmonization is already attracting Germany … soon France? “It will make it possible to lighten the weight of the debt of the States, recognizes Pascal de Lima, economist. We find new resources, and that ensures greater tax justice, by forcing large digital companies to pay taxes, which they do very little. ” The measure promises to be delicate, however, because a common rate must be set for all countries. Currently, the corporate tax rate is 13% in Ireland, 19% in the UK and 27% in France. The subject is to be discussed on Wednesday April 7 by videoconference by the members of the G20.