Another great victory of Donald Trump. The G7 found an agreement on Global Minimun Taxwith a “parallel solution” for the United States, starting from the “Side-by-Side” proposal advanced by the States, which provides for the exemption from the rule on inclusion of income and by the rule on profits under taxed, in recognition of current US minimum tax rules.
The decision was welcomed by Washington and other countries, and will now be the subject of comparison within theOcsethe international organization that four years ago had promoted the introduction of a global minimum rate to counter tax avoidance and artificial transfer of profits to low -tax jurisdictions. “The agreement will facilitate further progress towards the stabilization of the international tax system”, reads a note released by the Canadian presidency of the G7, which also speaks of a “constructive dialogue” for the protection of the tax sovereignty of individual countries.
According to the general secretary of the OECD, Mathias Cormann, the decision represents “an important stage in international fiscal cooperation”. The comment of Manal Corwin, head of the organization division of the organization, according to which the G7 declaration has no binding value and any changes must be approved by the other 147 members, as happened in 2021, is more prudent. “The G7 alone cannot make this decision”, clarified Corwin.
Satisfaction was expressed by the Italian Minister of Economy Giancarlo Giorgetti which defined the agreement an “honorable compromise”. According to the minister, the agreement protected Italian companies from possible American retaliation linked to the so -called “Revenge Tax”, a measure introduced in the United States during the Trump administration that provided for sanctions against the countries held responsible for discriminatory taxation to American companies.
The Canadian presidency specified that the US Treasury Secretary, Scott Besent, had already expressed concerns about some rules provided for by the so-called “second pillar” of the OECD-G20 agreement, in particular those relating to the inclusion of profits and the taxation of profits not subjected to taxes. Washington has therefore proposed an alternative system that exempts US control groups from some rules, by virtue of the regime already existing in the United States regarding minimum taxation.
Dice, all the truth: but is Trump seriously?
For the US administration, the new agreement represents a significant result: according to estimates, American companies they would save up to 100 billion dollars in foreign taxes. Previously, President Donald Trump, a great protagonist on the international scene, had attacked the European Union on Digital Tax, accusing Brussels of wanting to penalize US companies. “It will not end well for the EU, as it did not end well for Canada,” he said, criticizing the Ottawa government hard. Now yet another triumph.
TheVermilion.com is also on WhatsApp. Simply click here to register for the channel and always be updated (free).
