Global minimum tax rate unlikely to be decided at G-7 meeting: Japan

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A Group of Seven meeting this week is unlikely to result in a rate Minimum corporate tax, Japanese Finance Minister Taro Aso said, warning before he and his counterparts meet in London.

Expectations of a preliminary agreement between the richest economies in the world have rose after the United States made proposals on both a minimum rate and rules to reallocate the tax revenues of the largest multinationals. French Finance Minister Bruno Le Maire said last week that the June 4-5 meeting should give momentum to strike a global deal in mid-July.

Speaking to reporters on Tuesday, Aso said a deal is unlikely to move forward enough to allow a debate on the numbers for a minimum tax rate.

“I don’t think we’re going to be all about the numbers,” Aso said. “Where we might end up is in the realm of forecasting, and we can’t count the chickens until the eggs have hatched. We’re trying to raise the minimum tax rate to a certain level, but how much will we get along with is still in the realm of projection. “

This measured take from Japan comes a day after the Organization for Economic Co-operation and Development, which leads tax negotiations between around 140 countries, said a final deal is unlikely to be sealed. until October.

“I think we have a deal in sight and I hope it will happen this year,” outgoing OECD Secretary-General Angel Gurria said on Monday.

In addition to a minimum corporate tax, discussions are aiming to change the rules so that the world’s largest companies pay more where they operate. Negotiators are still working on criteria to determine which companies would fall within the scope of such a system, with Europeans insisting that all digital giants must be included if a deal is to be reached.

– With the help of Emi Urabe



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