The chief financial officers of the Group of Seven industrialized countries deepened discussions on a global minimum corporate tax rate at a two-day meeting in London that ends on Saturday.
The first face-to-face talks on G-7 finances since July 2019 came as momentum builds to implement a common minimum tax rate for corporations operating globally, with the goal of bringing them into being. prevent their profits from shifting to low-tax jurisdictions, following a recent US proposal for a corporate income tax of at least 15%.
British Chancellor of the Exchequer Rishi Sunak (back C) and US Treasury Secretary Janet Yellen (C, R) at a meeting of G7 finance ministers at Lancaster House in London on June 4, 2021 . (Pool / Getty / Kyodo)
CFOs are expected to issue a statement after the meeting.
Discussions on international taxation are part of multinational negotiations taking place under a project led by the Organization for Economic Co-operation and Development and the Group of 20 Major Economies, involving nearly 140 countries.
Member countries aim to reach broad agreement at face-to-face meeting of chief financial officers from G-20 countries, including China, India and Russia as well as the G-7, to be held in July in Italy, according to sources familiar with the matter.
Consensus is expected from the G-7 economies of Britain, Canada, France, Germany, Italy, Japan and the United States as well as the European Union can lead to broader support for the OECD and G-20 negotiations.
The US proposal for a 15 percent floor was presented at a meeting of an OECD steering group dealing with international tax issues in mid-May, according to the US Treasury Department.
The plan has been welcomed by some G-7 countries, including Japan, France and Germany. Great Britain, which has overseas tax havens, and Ireland, an EU member with one of the lowest effective corporate tax rates of 12.5% in the world, have not yet supported the US proposal.
Members of the International Tax Project also discussed rules allowing governments to impose fees on global tech giants offering digital services, such as Google LLC and Apple Inc., based on their local income, even if they are not physically present in their country.
Along with global taxation, “continued support for vulnerable countries” recovering from the impact of the virus and “joint action to ensure the fight against climate change” were also among the topics of the London meeting, according to the government. British.
The results of the CFOs talks will be discussed at a face-to-face summit of G-7 leaders scheduled for three days from June 11 in Cornwall, southwest Britain.