The global minimum tax rate: will it happen?
09 June 2021
The global minimum tax rate: will it happen?
With the recent landmark G7 accord, the idea of a global minimum tax rate is having something of a renaissance; Ian Borman and James Mastracchio give the lowdown
Ian Borman (L) and James Mastracchio (R) Images courtesy of Winston & Strawn Members of the G7, which include Canada, France, Germany, Italy, Japan, the UK and the US, have reached an agreement that a global minimum tax should be implemented and the respective treasuries will support a broader global effort. While the reported rate would be 15% and the digital tax of the individual countries would cease, the details of how the minimum tax would be imposed, on which corporations and on what terms is unknown.
June 10, 2021 00:15 IST
Updated:
June 10, 2021 00:15 IST
Updated:
June 10, 2021 01:24 IST
The political will shown by G7 to ensure fairness in revenue sharing is a good augury
Share Article
AAA
The political will shown by G7 to ensure fairness in revenue sharing is a good augury
The Finance Ministers of the G7 nations appear to have heeded the advice to ‘never let a good crisis go to waste’ when they agreed last week to set a global minimum tax of at least 15%. With the COVID-19 pandemic having caused the world economy to shrink by an estimated 3.5% in 2020 and forced most countries to dip into their coffers to mitigate the fallout, the seven richest nations opted to use the opportune moment to plug a key loophole in the international tax regime. In a communique, the G7 Ministers stressed that as part of efforts to secure a ‘Safe and Prosperous Future for All’ they would strongly back the broader efforts under way through the G20/OECD to address tax challenges arisin
IoM to engage closely with partners following G7 tax deal Finance ministers agree global minimum corporation tax rate of 15%
The Isle of Man government says it will engage closely with partners following a meeting between G7 finance ministers, agreeing a global minimum corporation tax rate.
The new rules aim to close loopholes which let technology giants avoid taxes.
The deal agreed in principle that multinational companies pay a minimum rate of at least 15 per cent in each country they operate.
The move has been acknowledged by the Isle of Man Government, however it puts a question mark over the future of the Island s long-standing zero-ten tax regime.