ROME, March 13 — Italy’s finance minister expressed pessimism today at the chances of completing a global deal on taxing multinationals, given the slow pace of discussions at the level of the G7 and G20.
“I seriously fear the attempt to move towards fair taxation of multinationals on a global level will founder in the impossibility of completing the work,” Giancarlo Giorgetti, whose country holds the revolving G7 presidency this year, told a meeting in Rome.
“I don’t want to anticipate any news, but during the work of the G7 and G20 I had the feeling that this moral imperative will not be able to achieve the objective in the desired timeframe.”
More than 140 countries agreed at the end of 2021 to impose a minimum tax on multinational companies under the auspices of the OECD, to combat efforts by firms to shift profits to countries with low rates.
One pillar of the reform, a minimum global rate of 15 per cent, was implemented on January 1 by several countries, including the European Union.
But nations have yet to reach agreement on the other pillar, aimed at a fairer distribution of tax revenues of multinationals, notably US tech giants.
While waiting for a deal, the United States, France, Spain, Austria, Italy and the UK decided last month to extend a provisional compromise on taxing digital giants.
The five European states had before the 2021 deal already imposed an exceptional tax on leading tech firms operating on their territory, through national laws.
These countries, which continue to tax multinationals on a national basis, have committed to returning any overpayment to companies in the form of tax credits once the OECD accord is in place. — AFP
