Madrid. This is the conclusion we can draw from the G7 meeting where the first topic discussed was the taxation of large corporations. Procedure to normalize taxes paid in countries where income is generated, instead of what was usual: When taxes are generally paid from a country in which the car company is registered, or what is the same, in Europe and more specifically in Ireland.
The seven member states of the Group of Seven unanimously supported the proposal for a minimum tax rate of 15% for all large companies. But there is a trick, since only 20% of the profits made will go directly to taxes in the country in which the business is established, There is still another 80% left that will still be taxed in…Ireland?
This metric is sold – though fiscal – as a social metric, because it is expected that the benefits generated in the countries in which the income is generated will lead to the corresponding taxes in those same countries. On the other hand, as this measure will affect large US technology companies, which are already taxed by the famous “Google rate”, would generate double taxation. However, some countries such as the United Kingdom have already announced that they will abolish that tax in order to create the only equal financial standard for all countries to which the G7 members have committed.
In any case, we will have to wait for the July meeting to see if the G20 is also unanimous on this decision. So far, Only the great Facebook that publicly announced through its CEO Mark Zuckerberg – and his head of global affairs, Nick Clegg – emphasized that this measure “would give certainty and transparency to digital businesses in Europe.”“.
Essentially, we can translate this statement into that big tech companies can agree to pay more taxes in general terms if – thanks to this action – The lawsuits they face due to complaints of unfair competition, oligopoly or monopoly are reduced or even eliminated.
Image reputation above all.
Dario Garcia is an analyst at XTB
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