Scholz Pushes for Global Tax Reform
The German Finance Minister sees an opportunity for swift agreement on a global tax reform for internationally active corporations – with minimum and digital taxes.
Berlin (dpa) – Finance Minister Olaf Scholz (SPD) is pushing for a swift agreement on a global tax reform for internationally active corporations. “It just has to succeed this year,” the vice chancellor said on Tuesday before a video conference of the finance ministers of the leading economic nations (G20).
His main objective is to tax the digital economy, Scholz said. “This agreement can be reached this summer.” Following the latest proposal by US Treasury Secretary Janet Yellen, a minimum tax rate for companies has now also become realistic, he said.
While former US President Donald Trump had rejected the digital tax in particular, the new administration of US President Joe Biden is more open and is hoping for a compromise solution within the framework of the Organisation for Economic Co-operation and Development (OECD) negotiations. Yellen had recently campaigned for a worldwide minimum tax for corporations and criticised international tax competition.
The OECD is seeking a tax reform agreement by mid-year. The reform as a whole could yield additional taxes of up to 100 billion dollars (about 84 billion euros) annually worldwide. Among other things, the planned global tax reform entails a global minimum tax.
The second element is a digital tax that would require internet giants like Amazon, Google or Apple to pay taxes not only in the countries where they are domiciled, but also in those where they generate their revenues.