The global minimum tax threatens to fail – even in the United States

Things are not going well for the global minimum tax. Last Friday, the Hungarian government vetoed the EU plan. But it is not only here that the grand scheme of international tax law comes up against opposition. It may also fail in the United States. If it’s not taxed this summer, it shouldn’t be a problem for at least the next two years.

Last fall, 137 countries agreed to introduce a global minimum tax of 15% on the profits of multinationals selling more than $50.750 million. In addition, companies with a turnover of more than 20 billion and profits above 10% must pay higher taxes where the sales actually take place and less where the head office is located. The project was originally started by Amazon, Alphabet & Co. Was the digital tax to be taxed most efficiently. Switzerland is participating in the project and around two hundred companies in the country have been affected.

Hungary opposes

From now on, the reform must be enshrined in national law before it can enter into force in 2024. But it is not possible to reach this deadline. Within the EU, Poland was the first country to express its concerns. However, the French EU presidency managed to convince the country – with the support of US Treasury Secretary Janet Yellen – to use $35.4 billion in credits and loans to officially defeat the epidemic.

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