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Berlin and Paris support US proposal for 21% minimum tax for multinationals


This is the first time that the two governments have spoken of their support for such a floor rate.

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“People are fed up that big companies don’t pay their fair share of taxes”. In an interview published Tuesday, April 27 by the German and French press, the French and German finance ministers support the United States’ proposal to establish a global minimum tax on corporate profits at 21%.

This is the first time that the two governments have spoken of their support for such a floor rate. France had recently mentioned a tax rate of 12.5%, Bruno Le Maire reminded the weekly Die zeit and at Figaro. But if the 21% rate suggested by Washington “was the result of negotiations, we would agree”, he added.

His German counterpart Olaf Scholz declared for his part that he had “nothing personally” against the American proposal. The two ministers said they were confident about an agreement “this summer” on the subject at the OECD.

Negotiations are underway within the OECD to achieve a system of minimum international taxation of companies and to put an end to the fiscal dumping that they engage in in the world. The project has been supported for several weeks by the United States, which is seeking to raise their corporate taxation to finance a massive infrastructure plan.

The goal is above all to increase the contribution of digital companies, accused of evading tax thanks to the differences in taxation between countries.

If the negotiations at the OECD are successful, France has already said that it would adopt a European directive on the subject in the first half of 2022, during the French presidency of the Union. The minister also warned that he “would withdraw” the Gafa tax in the event of successful negotiations.



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