Tech giants actively respond to the G7 minimum corporate tax agreement: a welcome step forward

The Finance Association (Shanghai, editor Bian Chun) reported that at the Group of Seven (G7) meeting in London on Saturday, the finance ministers of various countries supported setting the minimum corporate tax rate at 15%. Although this means that technology giants will have to pay more taxes in the future, they still expressed support for this international agreement.

On Saturday (June 5) local time, the Group of Seven countries reached an agreement on the taxation rules of multinational companies, agreeing to impose at least 15% corporate tax on multinational companies. The G7 includes the United States, Canada, France, Germany, Italy, Japan, and the United Kingdom.

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 is mainly aimed at establishing a globally consistent minimum corporate tax rate, thereby combating low-tax competition and preventing tax avoidance by large multinational companies.

U.S. Treasury Secretary Yellen stated that compliance with the G7 agreement “will include those “large and lucrative” companies, such as Amazon and Facebook. She said this move will “by providing a level playing field for companies Encourage countries to compete on a positive basis and help the global economy to flourish.”

At present, some technology giants have responded positively to the G7’s minimum corporate tax agreement.

Facebook: Welcome to the important progress made by G7

Nick Clegg, Facebook’s vice president of global affairs, tweeted on Saturday that the company “has been calling for reform of global tax rules for a long time, and we welcome the important progress made by the Group of Seven.”

“We hope that the international tax reform process will be successful, and realize that this may mean that Facebook will pay more taxes in different places.” He wrote.

Amazon: G7 agreement is “a gratifying step forward”

An Amazon spokesperson also called the agreement “a welcome step forward.” He said in an email to the media that the company supports being led by the larger Organization for Economic Cooperation and Development (OECD). Process. The OECD currently has 38 member states.

“We believe that the process of creating a multilateral solution led by the OECD will help bring stability to the international tax system,” he said.

OECD member countries include countries with lower tax rates such as Ireland. According to the American Chamber of Commerce Ireland (American Chamber of Commerce Ireland), Ireland attracts hundreds of American companies with a 12.5% ​​corporate tax. These companies have invested US$444 billion in Ireland alone, and Ireland may not be willing to bear the risk of losing these investments in order to meet higher tax rates.

Google: “strongly” supports the update of international tax rules

A Google spokesperson also said in a statement to the media that the company “strongly” supports the update of international tax rules. “We hope that all countries will continue to work together to ensure that a balanced and lasting agreement is reached as soon as possible,” he said.