Union proposes a law for the implementation of OECD and global minimum corporate tax

Union proposes a law for the implementation of OECD and global minimum corporate tax ...

BRUSSELS, 22 Dec. - The European Commission proposed a law on Wednesday that would implement a global deal agreed with the 20 largest economies of the world to a minimum tax rate for enterprises.

The proposal of the Commission includes a set of rules to calculate the effective tax rate of 15 %, fully agreed on in the US.

"In October of this year, 137 countries supported a multilateral agreement to transform global corporate taxation," said Paolo Gentiloni, economic secretary of the EU.

"The directive we have pressed will ensure that the new 15 percent minimum effective tax rate for large corporations is applied to complete compliance with EU law," says the president.

Gentiloni said the Commission should propose a second law in 2022 to implement the other part of the OECD and G20 agreement on the reallocation of taxing rights.

The EU's minimum corporate tax law applies to a company, in and out of the country, with total revenues of 750 million euros per year, on the city level of the United States.

To reduce the impact of real economic activities on enterprises, companies can exclude from tax calculations a sum equal to 5 % of the value of tangible assets and 5 % of the pay, the Commission said.

For a ty-year period of 10-years, exclusions will be higher - starting at 8% of tangible assets and ten percent of payroll that will slowly fall every year.

To get the proposed law into effect, the EU will have to agree and it will also need to be consulted with the European Parliament.

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