Finance ministers from some of the world’s richest nations have reached a “historic deal” to combat tax abuse by the internet giant. They introduce a minimum global corporate tax rate of 15 percent. Social Media Giant Facebook says that it could pay more tax after G7 tax agreement. Facebook said that it is a historical agreement Vice President of Facebook Nick Clegg.
US Treasury Secretary Janet Yellen praised the “unprecedented commitment”. He said in a statement that the global minimum tax “will end the downward race in corporate taxation.”
Facebook welcomed the Group of Seven’s progress on the minimum tax rate. Facebook acknowledged that it could mean the social network pays more taxes in different locations, global affairs director Nick Clegg said on Saturday.
“We want the international tax reform process to be successful. We recognize that this could mean Facebook paying more taxes in a different place.”
G7 on Tech Companies
On Saturday, the G7 group of countries agreed to keep 15 percent as the minimum tax rate for companies. It is understandable that the decision was made with multinational companies in mind, especially technology companies.
The proposal will be presented to an enlarged group of 20 countries at their financial meeting in July.
Facebook has even taken that step, although the social media giant faces paying more taxes . While NGOs say it’s not going far enough.
The G7 is also working to require companies to report on the climate impacts of their investments.
With regard to tax liability, the UK Treasury notes that “the largest and most profitable multinational corporations pay taxes in the countries in which they operate, not just where they are located.”
The London meeting also paves the way for a G7 summit of G7 heads of state. The government starting Friday in Cornwall, southwest England, which Biden will attend.
US o G7 Finance Ministers Deals
The momentum behind US-led plans to limit the ability of multinational companies. These tech giants toy with the tax system to boost profits has grown. Especially at a time when the world economy is shaking under the effects of the coronavirus epidemic.
The Silicon Six — Microsoft, Amazon, Facebook, Google owners Alphabet, Netflix and Apple — have long accused of evading billions of fewer taxes on trillions of dollars of annual revenue over the past decade, according to Guardian Near.
In negotiations with the Organization for Economic Cooperation and Development and the G20. Biden called for a uniform minimum tax rate of 15 percent.
OECD Secretary General Matthias Corman called the G7 agreement “an important step towards the global consensus needed to reform the international tax system”. British charity Oxfam said the agreed minimum level was not high enough.
Facebook Vice President of Global affairs Nick Clegg told to Insider through email, “Facebook has long called for global tax reform and we applaud the important progress made at the G7. Today’s agreement is an important first step towards corporate security and strengthening public confidence in the global tax system. We want the international tax reform process to be successful. We recognize that this may mean Facebook paying more taxes in a different place. “