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PARIS – The global agreement on corporate taxes could be completed by the end of this month, the European Union’s top trade chief told CNBC on Wednesday.
Global governments are engaged in difficult negotiations to bring in a handful of nations in line with international agreements on corporate taxes. The G-7 and G-20 nations backed an agreement earlier this summer that, if implemented, would force multinationals to pay taxes where they operate आणि and not where they are headquartered आणि and impose corporate rates of at least 15%.
Some nations, particularly Hungary and Ireland, where corporate taxes are less than 15%, had raised doubts about the agreement. However, discussions led by the Organization for Economic Co-operation and Development seem to be bearing fruit.
PARIS – The global agreement on corporate taxes could be completed by the end of this month, the European Union’s top trade chief told CNBC on Wednesday.
Global governments are engaged in difficult negotiations to bring in a handful of nations in line with international agreements on corporate taxes. The G-7 and G-20 nations backed an agreement earlier this summer that, if implemented, would force multinationals to pay taxes where they operate आणि and not where they are headquartered आणि and impose corporate rates of at least 15%.
Some nations, particularly Hungary and Ireland, where corporate taxes are less than 15%, had raised doubts about the agreement. However, discussions led by the Organization for Economic Co-operation and Development seem to be bearing fruit.
“We hope that the OECD agreement will be finalized by October. “We are working with EU member states to ensure that all parties are on board in terms of international agreements,” Valdis Dombrowski, vice-president of trade for the European Commission, told CNBC on Wednesday.
“And we are ready to put forward legal proposals to ensure the uniform implementation of this agreement throughout the European Union.”
On Tuesday, Luxembourg Finance Minister Pierre Gramegna also told CNBC: “We are very close to a [a] compromise, in a few days, it will involve all countries.”
Ireland has signaled in the last 48 hours that recent changes to the agreement are welcome. Deputy Prime Minister Leo Varadkar said the new text “responds very well if our country does not have all the concerns”, according to the Financial Times.
Meanwhile, Ireland’s Environment Minister Eamonn Ryan said he was optimistic and confident that Ireland would be part of the solution in this regard. The country’s finance minister, Pashchal Donoho, said in Luxembourg that he would discuss the revised tax agreement at a cabinet meeting on Thursday and then express his views.
Despite Ireland’s comments, Estonia and Hungary are among the group of nations that have not yet ratified the agreement.
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