With the support of the USA, a fairer taxation of globally active corporations is within reach.
Olaf Scholz is confident before the meeting with US Treasury Secretary Yellen.
Washington - Federal Finance Minister Olaf Scholz (SPD) sees “colossal progress” on the way to more tax justice worldwide.
Scholz said in Washington that 130 countries had agreed within the framework of the Organization for Economic Cooperation and Development (OECD) that they wanted to guarantee minimum taxation for companies. These countries represented more than 90 percent of the world’s national product. "Therefore this is an actual, really massive change that we will see for the next few years and decades." The tax race to the bottom is over.
At the beginning of June, the finance ministers of the G7 countries agreed on a global tax reform. At the end of next week, the finance ministers of the G20, including China, then want to nail their heads. In addition to a minimum tax of 15 percent, it should also be ensured that large corporations will in future pay taxes where they make their sales. This is aimed at large digital corporations, for example.
Scholz said so far, large companies are finding ways to pay almost no taxes at all.
"The big digital platform companies have been particularly eager to avoid paying taxes." Many would have talked themselves out of sticking to the rules.
“They will do that in the future - only they will then pay taxes, also in Germany.
Overall, we will benefit from this understanding that is achieved there. "
The minister said he wanted to "capture" the agreement in Washington.
Scholz will meet US Treasury Secretary Janet Yellen on Friday.
Yellen spoke on Thursday of a “historic day” for economic diplomacy with a view to the OECD.
So far, countries have undercut each other in dealing with the corporations.
“No country won this race,” said Yellen.
"Lower tax rates have not only failed to attract new business, they have also deprived countries of funding for critical investments in infrastructure, education and fighting the pandemic."
At the beginning of April, Yellen spoke out in favor of a global minimum tax, thus giving new tailwind to efforts with the power of the world's largest economy.
The former US administration of then President Donald Trump had rejected efforts to establish a global minimum tax rate.
She feared that this would put international US corporations in a worse position.
dpa
