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G20 to call for global tax deal to be finalised by October
The statement, which two sources said was expected to be released without changes, said the ministers also endorsed a recent deal among 131 countries on taxation of multinationals’ profits and setting a global minimum corporate tax rate of at least 15%.
G20 finance ministers are to push for unresolved issues in a proposed global corporate tax overhaul to be ironed out by October, and are urging holdouts to join the deal, according to the latest version of their statement from a meeting in Venice.
The statement, which two sources said was expected to be released without changes, said the ministers also endorsed a recent deal among 131 countries on taxation of multinationals’ profits and setting a global minimum corporate tax rate of at least 15%.
“We call on (countries involved in the global talks) to swiftly address the remaining issues and finalise the design elements within the agreed framework together with a detailed plan for the implementation of the two pillars by our next meeting in October,” the statement said.
“We invite all members (involved in the discussion) that have not yet joined the international agreement to do so.”
The pact to establish a minimum global corporate tax rate of at least 15% is an attempt to squeeze more money out of tech giants like Amazon and Google as well as other multinationals able to shop around for the most attractive tax base.
While tax campaigners point to loopholes in the proposals and wanted a more ambitious crackdown, the move is a rare case of cross-border coordination in tax matters and could strip many tax havens of their appeal.
Two sources said the statement was expected to be released at the end of talks on Saturday without changes.
Meanwhile, finance minister Nirmala Sitharaman on Friday urged world leaders to work together in boosting supplies of clean energy sources as well as the technology available to fight climate change.
Sitharaman made the appeal for a concerted approach on efforts to combat climate change at a virtual conference of the G20 nations. Finance ministry said in a twitter post that Sitharaman participated in the G-20 high level tax symposium on tax policy and climate change held ahead of the third meeting of finance ministers and central bank governors.
The minister emphasised on the role of technology in fighting climate change and called for “international cooperation to increase supply of alternative sources of energy and technologies for adaptation,” the ministry said in the tweet.
Sitharaman’s appeal for making technology available for adoption is significant given that many clean energy technologies are patent protected and are expensive, making it unaffordable for businesses in developing countries.
