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Germany welcomes U.S. name for a 15% international minimal tax fee – Information by Automobilnews.eu

Germany welcomes U.S. name for a 15% international minimal tax fee


German Finance Minister and Vice-Chancellor Olaf Scholz speaks to the media upon his arrival for a casual assembly of the Eurogroup on Might 21, 2021.

CARLOS COSTA | AFP | Getty Photographs

LONDON — Germany has warmly welcomed a United States proposal that calls for firms world wide to pay a minimum of a 15% tax on their earnings.

The U.S. Treasury Division launched its plans on Thursday, saying that worldwide negotiations ought to be formidable — which means that in the end the determine might be larger than 15%. The company tax fee within the U.S. is at present 21%, however President Joe Biden has plans to boost it to twenty-eight% and desires larger charges in the remainder of the world.

“That is actually an enormous progress,” German Finance Minister Olaf Scholz mentioned Friday morning relating to the U.S. announcement. “I’m now, at this morning, very joyful.”

“We’re joyful that it seems very very similar to we may have an answer in the summertime this 12 months. And the brand new administration in the US makes a distinction as a result of they mentioned it’s possible to do it,” Scholz informed reporters in Lisbon, Portugal.

“That is the perfect likelihood for having a worldwide tax reform which (will combat) towards the race to the underside,” he added.

The problem might be controversial inside the European Union, the place numerous member states cost completely different company tax charges and may entice big-name corporations by doing so. Eire’s tax fee, for instance, is 12.5%, whereas France’s might be as excessive as 31%.

Talking in April, Irish Finance Minister Paschal Donohoe mentioned smaller nations ought to be allowed to have decrease tax charges provided that they do not have the identical capability for scale because the bigger economies do, the U.Ok.’s Guardian newspaper reported.

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Germany welcomes U.S. name for a 15% international minimal tax fee – Information by Automobilnews.eu
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