The Limited Times

Now you can see non-English news...

Martín Guzmán will propose to the G20 to raise the global tax on multinationals from 15% to 'at least' 21%

2021-06-29T06:17:05.066Z


The minister said it today. He even raised that the best thing would be to bring it to 25%.


06/28/2021 2:20 PM

  • Clarín.com

  • Economy

Updated 06/28/2021 2:20 PM

Minister Martín Guzmán will propose

to the G20 to bring the global tax on multinationals from 15% initially thought to 21%.

It is an initiative promoted by the world's largest countries to raise funds to combat inequalities.

"It is a historical debate. But the 15% tax is very low, very insufficient.

We defend no less than 21% and, if it were 25%, it

would be even better," Guzmán said in a teleconference debate organized by the NGO Independent Commission for the Reform of International Corporate Taxation.

The Group of Seven (G7), of rich countries, has announced "

a historic agreement

to reform the taxation of multinationals in order to ensure that the digital giants pay their fair share and introduce a global minimum tax to end the race to the bottom, "said the organization.

But the Argentine minister upped the ante.

"We need fiscal and structural reforms

. Greater asymmetries are being seen between advanced economies and the rest of the countries due to the pandemic. We must advance with regulations that resolve the asymmetries," said Guzmán.

The Organization for Cooperation and Development (OECD) will bring together delegates from 139 countries this week to discuss the initiative that will be presented to the G20 finance ministers

between July 8 and 10 in Venice.

The NGO pointed out that "worldwide,

tax evasion diverts 40% of foreign profits

from companies to tax havens."

Nigerian Finance Minister Zainab Ahmed participated in the debate.

Argentina and Nigeria make up the Group of 24 (G24), a group of countries from the Global South.

"

The pandemic deepened inequalities

and asymmetries between advanced countries and the rest, and the need to solve the problem of tax avoidance of multinationals is even greater. Today, collecting taxes from multinational corporations is a necessity," said the minister. .

"The global minimum corporate rate of 15% is too low. There is a substantial risk that it will actually end up being the maximum rate. From Argentina we consider that

a rate of 21% would be better, one of 25%, even better,

" he said.

He also indicated that "we are also promoting at a global level

an adaptation in the credit lines of multilateral organizations

that adapt to current challenges that require long-term solutions. For Argentina, within the framework of the current multilateral commitment, it will be imperative to discuss a reasonable way to consider the application of unilateral tax measures ".

"There is an opportunity to achieve something historic, this is the moment. We see asymmetries between countries, especially in times of pandemic, in terms of the capacity for structural transformation. And how can we finance that transformation? With more tax revenue solving the problems of evasion and avoidance by multinationals ", he pointed out.

"If a multilateral compromise is achieved, it will be imperative for Argentina to find a reasonable way to consider the application of unilateral tax measures. This simply responds to a question of power relations, which is why it is so important for developing countries to unite," he said. Guzman.

AQ

Look also

The blue dollar falls to $ 173, but the cash with liquid rises and is close to $ 170

There will be a "controlled" devaluation after the elections, according to former president of the Central Bank

Source: clarin

All business articles on 2021-06-29

You may like

Business 2024-03-17T05:17:29.829Z

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.