EU officials target a breakthrough for the 15% global tax deal
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Valdis Dombrovskis is Executive Vice President at the European Commission for An Economy That Works for People.
BERND VON JUTRCZENKA – AFP | AFP | Getty Images
PARIS — A deal global on corporate taxes could be reached before the month ends, CNBC’s top trade official told CNBC Wednesday.
The G-7 and G-20 nations have participated in hard negotiations to get a small number of countries on board with an international corporate tax agreement. The G-7 and G-20 nations backed an agreement earlier in the summer that, if implemented, would force multinationals to pay tax where they operate — and not just where they have their headquarters – and impose a minimum corporate rate of 15%.
Some nations such as Ireland and Hungary where the corporate tax rate is less than 15% raised questions about this agreement. The Organization for Economic Cooperation and Development seems to have made some progress in the negotiations.
We hope to have the OECD agreement finalized by October. CNBC was also informed Wednesday by Valdis Dombrovskis (Vice President of the European Commission for Trade), that we are working closely with EU members to ensure all parties are in agreement regarding the international tax accord.
“And we’re ready to make legislative proposals for uniform execution of this agreement throughout the EU.
CNBC also heard Tuesday from Pierre Gramegna, Luxembourg’s Finance Minister: “We are very near to.” [a]All countries are expected to compromise in the next few days.
Ireland made it clear that the recent modifications to the accord were welcomed over the past 48-hours. The Financial Times reported that Leo Varadkar was the deputy prime minister of Ireland and that the revised text addressed “a lot, but not all, of our concerns”.
Eamon, Ireland’s Environment Minister, said that he believes and is confident that Ireland can be part of this solution. Paschal Donohoe was the finance minister of the country and said that he will be discussing the amended tax agreement at a cabinet meeting in Luxembourg on Thursday. He would then express his opinions.
The agreement has yet to be approved by Hungary and Estonia, despite comments made by Ireland.
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