London — The Group of Seven (G-7) Treasury Minister will reach a joint position in global corporate tax transactions on Wednesday, a few days before it needs to reach a larger international audience. He said he had made some progress.
In a statement, the U.S. Treasury shared a common understanding of some of the key open issues to help reach a final political agreement within the OECD Comprehensive Framework in October. “.
The UK, which chairs the G7 this year, broke a general agreement in June with a global minimum corporate tax rate of 15% and measures to squeeze more money from big tech companies like Amazon, Google and Facebook.
Next week, the Organization for Economic Co-operation and Development (OECD) has been trying to promote tax reform for many years and wants to get full agreement on detailed proposals from 139 negotiating countries.
“Today’s Finance Ministers’ Meeting demonstrates the continued ambition and cooperation of G-7 countries in achieving historic global tax reforms and ensuring fair tax burdens in the countries in which businesses operate. “We do,” said UK Treasury Minister Rishi Sunak.
A spokesman for the UK Treasury said the G7 Finance Minister had reached “a common understanding of some important remaining issues” before next week’s OECD and G-20 tax meetings.
Earlier, Japanese Finance Minister Taro Aso said there was an agreement on “some points” being discussed. France’s Treasury Minister Reno Lemer also cited the progress of key negotiation points.
The focus so far has been on how to tax large multinational corporations. The United States was concerned that this measure would divert tax revenues from tech giants to Europe instead of US headquarters.
Ireland’s Finance Minister Paschal Donohoe, who attended the G7 meeting as chair of the Eurozone Finance Ministers’ Group, said he hopes the OECD will make the latest proposals in the coming days.
“Next week will be a decisive moment for years of ongoing negotiations and will show if an agreement is possible by the end of next week,” Donoho said.
Ireland, which has a corporate tax rate of only 12.5%, has so far refused to register for the OECD proposal.
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