Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Germany approves global minimum corporate tax

by Wanda Rich
0 comment
2023 11 10T141327Z 1 LYNXMPEJA90GM RTROPTP 4 HEALTH CORONAVIRUS GERMANY LOCKDOWN

Germany approves global minimum corporate tax

BERLIN (Reuters) – The German parliament on Friday approved the implementation of a global minimum corporate tax, as part of an international deal to ensure large companies pay a minimum tax rate of 15%.

Multinational firms will have to pay that level of tax on all of the profits they make worldwide, regardless of where the profits are generated.

In 2021 almost 140 countries agreed to an Organisation for Economic Cooperation and Development deal they are meant to implement from next year to prevent big companies like Alphabet’s Google or Amazon avoiding taxation by transferring profits to low-tax countries.

This will apply to all such companies and large-scale domestic groups with turnover above 750 million euros ($800 million) per year.

The increase is expected to raise $220 billion globally for governments strapped for cash after the COVID-19 pandemic and struggling to ride out a cost-of-living crisis, although the ratification process has hit hurdles in various countries.

Last December the European Union member states agreed on a common directive to ensure uniform implementation of the tax within the EU, and that directive must be passed into national law in all EU countries by the end of the year.

The law was approved in Germany with the support of all the coalition parties and the main opposition party.

The Ministry of Finance estimated earlier this year that additional tax revenue of 910 million euros could be expected in Germany from 2026. In 2027 and 2028, the tax is forecast to bring in 535 and 285 million euros, respectively.

($1 = 0.9362 euros)

(Reporting by Maria Martinez; Editing by Hugh Lawson)