G7 finance ministers make some progress on tax deal, UK says

Britain’s Chancellor of the Exchequer Rishi Sunak arrives at The Solar’s Who Cares Wins Awards in London, Britain September 14, 2021. REUTERS/Might James

LONDON, Sept 29 (Reuters) – Finance ministers from the Group of Seven mentioned they made some progress on Wednesday at reaching a joint place on a landmark international company tax deal, days earlier than it must win over a wider worldwide viewers.

“A typical understanding was reached on a number of the necessary open points to assist reaching remaining political settlement throughout the OECD Inclusive Framework in October,” the U.S. Treasury Division mentioned in an announcement.

Britain – which chairs the G7 this yr – brokered an overview settlement in June on a world minimal company tax fee of 15% and measures to squeeze extra money out of tech giants similar to Amazon, Google and Fb.

Subsequent week the Organisation for Financial Co-operation and Growth, which has been attempting to shepherd via tax reform for years, desires to get full settlement on detailed proposals from 139 negotiating nations.

“Right this moment’s assembly of finance ministers evidences the continued ambition and collaboration of G7 nations in reaching historic international tax reform and making certain that firms pay their fair proportion of tax within the nations they do enterprise,” Britain’s finance minister Rishi Sunak mentioned.

A British finance ministry spokesperson mentioned the G7 finance ministers had reached “a standard understanding … on some necessary remaining points” earlier than OECD and G20 tax conferences subsequent week.

Earlier, Japanese finance minister Taro Aso mentioned there had been settlement on “some factors” underneath dialogue. French Finance Minister Bruno LeMaire additionally cited progress on key negotiating factors. learn extra

A sticking level beforehand has been how precisely massive multinationals must be taxed, with the US involved the measures would divert tax income from tech giants to Europe moderately than their U.S. headquarters.

Irish finance minister Paschal Donohoe – who attended the G7 assembly in his capability as chair of a bunch of euro zone finance ministers – mentioned he anticipated the OECD to provide up to date proposals within the coming days.

“Subsequent week will probably be a important second for the negotiations which have been underway for years and can present whether or not an settlement is feasible by the tip of subsequent week,” Donohoe mentioned.

Eire, which has a company tax fee of simply 12.5%, has thus far declined to enroll to OECD proposals.

Reporting by David Milliken, modifying by Andy Bruce and Lincoln Feast.

Our Requirements: The Thomson Reuters Belief Ideas.

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