EU finance ministers will call on G20 countries to finalize global corporate tax reforms that would hit international companies such as US tech giants Google, Amazon and Apple, according to a document obtained by POLITICO .
The EU’s “terms of reference”, drawn up by National Treasury officials, will form the basis of the bloc’s negotiating position at a meeting of ministers and central bank governors from the world’s biggest economies at the end of the month in São Paulo, Brazil. . The three-page document puts pressure on the US administration to keep its promise to implement reforms.
The initiative is based on two “pillars”, which G20 leaders approved without discussion in autumn 2021. The first pillar introduces a global levy for the 100 largest global companies. The second aims to set a minimum corporate tax rate at 15 percent – already enshrined in European law.
But progress has been slow around the world. The idea is particularly controversial in Washington, where Republicans fear the rules will unfairly target American digital giants.
The Organization for Economic Cooperation and Development, which negotiated the reforms, had to repeatedly delay the signing ceremony for the global levy. The new schedule hopes that more than 140 countries will sign the global treaty, called the Multilateral Convention, in four months.
“Finalizing the remaining work needed to implement the two-pillar agreement on the review of international tax rules is a top priority,” the EU says in its document. “The G20 should insist… that the Multilateral Convention (MLC) on Pillar 1 is ready for signature by the end of June 2024 at the latest and call for its rapid ratification. »
“We congratulate the members of the OECD/G20 Inclusive Framework who have started the implementation of Pillar 2,” the document adds. “We call on other countries to follow quickly. »