An online meeting was started on the night of the 1st of Japan time, where groups formed by Japan and other member countries of the Organization for Economic Co-operation and Development (OECD) discuss the rules of taxation on companies.
The focus is on the introduction of minimum tax rates that will put an end to the long-standing competition for corporate tax cuts, and the general agreement to strengthen taxation on global companies.
This meeting was held by a group of about 140 countries and regions, mainly Japan and other OECD member countries, to review international tax rules, and started around 8 pm Japan time.
The two pillars of the debate are "introduction of a minimum tax rate" and "strengthening taxation on global companies" to stop the competition for corporate tax reduction that has been fought by each country in order to attract companies.
Of these, the "minimum corporate tax rate" is the same as the policy of G7 = 7 major countries including Japan to be "15% or more" last month, but at this meeting, the countries that have attracted companies at a low tax rate and The focus is on whether we can reach a broad agreement, including the region.
On the other hand, "strengthening taxation on global companies" is mainly aimed at enabling companies that develop businesses across national borders, such as online distribution of videos and music, to be taxed even in countries that do not have headquarters or bases. We are aiming to reach an agreement on the terms and conditions of the company.
The background to the review of taxation rules is that the financial situation of each country is becoming severe due to the response to the new coronavirus.
Japan and others are aiming for an agreement at the G20 = 20 major countries' finance ministers and central bank governors' meeting scheduled for this month, but before that, countries and regions with various circumstances will reach a broad agreement. The focus will be on whether you can.