Paris:
French President Emmanuel Macron on Saturday hailed the “historic” agreement of 136 nations on setting a minimum tax price for multinationals as a significant advance in fiscal justice.
The OECD-brokered deal, which sets a international tax price of 15 %, is aimed at stopping international corporations from slashing tax bills by registering in nations with low prices.
The international push for a minimum international tax on massive corporations moved closer to reality on Friday as one of the last holdouts, Hungary, agreed to join a reform that now counts 136 nations.
Hungary’s announcement came a day right after yet another important opponent, Ireland — whose low tax price has attracted the likes of Apple and Google — relented and agreed to join the international work.
Estonia also joined the reform on Thursday.
The 136 nations now on board represent 90 % of international gross domestic item.
Under the deal they will be capable to create about 150 billion euros $175 billion) in further income from 2023.
“For four years, we have been working for fair taxation of multinationals and digital giants,” Macron stated Saturday.
“The tax agreement reached at the OECD is historic. Every multinational company will have to pay a minimum of 15 percent tax. This is a major step forward for tax justice,” the French president tweeted.
Some NGOs and economist think about the tax move insufficiently ambitious, and argue it will make inequalities amongst wealthy and establishing nations.
According to Oxfam, the poorest nations will acquire much less than 3 % of the supplementary tax receipts.
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