Chinanews, June 6th, a comprehensive report, the G7 member states issued a statement on June 5th, promising to set the world's lowest corporate tax rate at at least 15%.
This move is designed to allow multinational companies, especially technology giants, to pay more taxes to government finance departments that have been hit hard by the new crown pandemic.
Data map: US Treasury Secretary Yellen.
Photo by China News Agency reporter Deng Min
The two-day G7 finance ministers’ meeting will be held in London, England starting June 4.
The participating countries reached a consensus on the common minimum tax rate, which aims to prevent countries from competing to reduce corporate tax, and decided to strive to keep it above 15%.
As the financial situation of all countries is very severe due to the response to the new crown epidemic, the idea of ensuring a certain amount of tax has prompted all countries to unify their pace on this issue.
If a company pays taxes in a place with a lower tax rate, it will have to pay an additional tax difference.
This US-led proposal mainly aims to establish a globally consistent minimum corporate tax rate and to change the special rules for company tax payment percentages and tax payment locations.
According to reports, the world’s lowest tax rate will only be imposed on the 100 largest and most income-generating companies in the world.
This move aims to end what the US Treasury Secretary Yellen called "30 years of competition on corporate tax rates," because in the past many countries have competed with low tax rates just to attract multinational companies.
German Finance Minister Scholz said in a statement that "this is very good news for tax justice and solidarity, and bad news for tax havens around the world", and companies can no longer evade their tax obligations.
In addition to tax issues, the G7 also stated that they are determined to help "low-income and vulnerable countries" cope with the new crown epidemic, support the allocation of US$650 billion in special drawing rights, and promised that they will adopt The "New Crown Vaccine Implementation Plan" (COVAX) shares vaccine doses.