It has become clear that the United States is showing plans to limit taxation to companies with high profit margins such as 15% and 20% in the creation of international rules to strengthen taxation on global companies.
At this level of return, Japanese companies are more likely to be exempt from taxation, so the whereabouts of negotiations will be watched.
The rule-making to strengthen taxation on global companies aims to distribute profits not only to the countries in which the companies are based but also to the countries in which they do business. A group of about 140 countries and regions is in the process of negotiations.
Regarding the companies subject to taxation, the United States has indicated a policy of about 100 companies with profits of a certain size or more, and among these, the ratio of profit to sales = the company with a high level of return such as 15% or 20% It turns out that it shows a plan to narrow down to.
If the taxable target is narrowed down with this high rate of return, while giant IT companies in the United States and major pharmaceutical companies in Europe are included, many Japanese companies are likely to be excluded.
While some countries are in favor of the US proposal, emerging economies also want to set lower profit margins and increase the number of taxable companies, so the future of negotiations will be watched.
Each country will continue negotiations aiming for an agreement at the G20, the finance ministers of the 20 major countries, and the central bank governor's meeting scheduled for July.