At the G7 = Finance Ministers' Meeting of the Seven Major Countries held in the United Kingdom until the night of the 5th of Japan time, it was agreed to aim for a common minimum tax rate of 15% or more to stop the competition for corporate tax reduction. ..

The unity of the G7 countries is likely to give momentum to an agreement at a negotiation meeting held by about 140 countries and regions centered on the member countries of the OECD = Organization for Economic Co-operation and Development at the end of this month. is.

The G7 Finance Ministers' Meeting was held in London, England, from the 4th to the 2nd, and was attended by Deputy Prime Minister and Finance Minister Aso from Japan.



Countries have agreed to aim for a common minimum tax rate of 15% or higher to put an end to the focus on corporate tax cut competition.



As the financial situation of each country becomes tighter due to the response to the new coronavirus, we are in line with the desire to secure a certain amount of tax revenue.



Regarding the strengthening of taxation on global companies, which was another focus, we agreed to target companies with high profit margins and aim to introduce rules to tax a part of profits and distribute them fairly in each country. ..



About 100 companies are subject to taxation, and it is expected that most of them will be American companies.

The review of international tax rules will be held at the negotiation meeting held at the end of this month, centered on OECD member countries, and at the G20 next month (July), as the G7 countries have shown unity. It looks like it will give momentum to the agreement.

Developed countries compete to reduce corporate tax rates

Developed countries have been competing to reduce corporate tax rates in order to attract companies and strengthen the competitiveness of their own companies.



For example, the United Kingdom has gradually reduced its corporate tax, which was 28% in 2010, to 19%, the lowest level in developed countries.



The United States dropped the Trump administration from 35% to 21% in 2018.



In response to these movements, Japan has gradually reduced its effective tax rate from 34.62% in 2014 to 32.11% in 2015, 29.97% in 2016, and 29.74% from 2018.



In this way, each country has been competing to reduce the corporate tax rate, but the effect was not as expected in terms of attracting companies, and the financial situation deteriorated due to the response to the new coronavirus. Some countries are switching tax cuts.



Following Britain's announcement to raise it from the current 19% to 25% next year, the United States has also announced plans for the Biden administration to change the policy of the previous administration and increase taxation on businesses.

"Continuing cooperation to recover from the new corona"

In this G7 statement, we will continue to provide policy support as long as necessary, stating that the global economy will "continue to work together to improve a strong and sustainable recovery from the pandemic of the new coronavirus." It was a match.



On the other hand, he pointed out that "if the recovery is certain, it is necessary to ensure long-term fiscal sustainability for the benefit of future generations," and he also showed an attitude of giving consideration to fiscal consolidation. It was.



Regarding requesting companies in each country to disclose their management strategies and risks related to climate change, which was one of the focal points, "Greening the global financial system so that climate is taken into consideration in financial decision-making." "We emphasize the need to do so," and supported the mandatory disclosure in line with the recommendations of the "TCFD = Task Force on Climate-related Financial Information Disclosure" and the respective domestic regulations.



In addition, regarding the electronic legal tender "digital currency" that the central banks of each country are researching, "Our purpose is to ensure transparency, the rule of law, and a long-standing commitment to sound economic governance." As a result, we agreed to create a common principle and publish it later this year.