Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

‘Historic’ global tax deal on multinationals delayed until 2024

‘Historic’ global tax deal on multinationals delayed until 2024

Some doubt the OECD-brokered agreement, which would levy more tax on the world’s largest firms, will ever be implemented
An international deal that would force the world’s biggest multinational companies to pay a fair share of tax has been delayed until 2024 amid fresh wrangling over the painstakingly negotiated agreement.

Mathias Cormann, the secretary-general of the Organisation for Economic Co-operation and Development (OECD), told the World Economic Forum in Davos, Switzerland, that there were “difficult discussions” taking place that meant the deal could not come into force in 2023, as previously hoped.

Cormann said he remained confident an agreement would eventually be implemented to let countries levy more tax on the world’s largest firms based on the sales generated within their borders.

But the US billionaire investor, David Rubenstein, co-chairman of the Carlyle group, said he doubted whether the OECD-brokered deal would ever happen. “Global tax deals sound great but getting them implemented is very difficult,” he told a Davos session before Cormann’s comments.

The deal – which Cormann called “historic and very important” – has two parts. Pillar 1 involves the reallocation of some profits from major multinationals such as US tech companies to countries where they made their sales, while Pillar 2 brings in a global minimum corporation tax rate of 15%.

Cormann said there were “still some difficult discussions under way with relation to the technical aspects” of Pillar 1.

“We deliberately set a very ambitious timeline for implementation to keep the pressure on and we think that has helped keep the momentum going.

“But I suspect it is probably most likely that we will end up with a practical implementation from 2024 onwards.”

Pillar 1 is facing opposition in the US Congress from Republican senators, and analysts have suggested the deal could fall if the Democrats lose control of the House of Representatives in November’s midterm elections. Rubenstein said he thought the agreement would not happen even if the Democrats keep control of the House.

Cormann refused to comment on political issues, but said the OECD deal would be better for US multinational companies than a proliferation of different tax regimes overseas if countries tried to individually make them pay a fair share.

He was also “very encouraged by the progress” on Pillar 2, and hopeful that EU members will agree to back it. Pillar 1 requires an international treaty to be agreed, while Pillar 2 is implemented through domestic legislation.

Cormann said that once there was a critical mass of countries imposing a minimum level of corporate tax on profits generated in their jurisdictions, it would be very hard for other countries not to follow.

He explained: “Essentially you leave money on the table for other countries to collect, if you don’t align yourself to that global standard.”

James Murray MP, Labour’s shadow financial secretary to the Treasury, said news of the delaywas “incredibly disappointing”.

“Without this deal being in place, we risk missing out on the chance to bring billions of pounds currently lost to large multinationals’ tax dodging back to Britain,” he added.

“The Chancellor needs to use his position to urgently get people back round the negotiating table, and do all he can to make sure this landmark deal is delivered.”

Poland has been holding back support for the EU’s directive to implement Pillar 2, but French finance minister, Bruno Le Maire, said on Tuesday he was confident an agreement would be reached.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
U.S. and Hungarian Officials Talk About Economic Collaboration and Sanctions Strategy
Technology Giants Activate Lobbying Campaigns Against Strict EU Regulations
Pope Francis Admitted to Hospital in Rome Amid Increasing Speculation on Succession
Zelensky Calls on World Leaders to Back Peace as Tensions Rise with Trump
UK Leader Keir Starmer Calls for US Security Guarantee in Ukraine Peace Deal
NATO Chief Urges Higher Defense Expenditure in Europe
The negotiation teams of Trump and Putin meet directly, establishing the groundwork for a significant advancement.
Rubio Touches Down in Riyadh Before Key U.S.-Russia Discussions
Students in Serbian universities Unite to Hold Coordinated Protests for Accountability.
US State Department Removes Taiwan Independence Statement from Website
Abolishing opposition won't protect Germany from Nazism—this is precisely what led Germany to become Nazi!
Transatlantic Gold Rush: Traders Shift Bullion in Response to Tariff Anxieties and Market Instability
Bill Ackman Backs Uber as the Company Shifts Towards Profitability
AI Titans Challenge Nvidia's Supremacy in Light of New Chip Innovations
US and Russian Officials to Meet in Saudi Arabia Over Ending Ukraine Conflict. Ukraine and European leaders – who profit from this war – excluded from the negotiations.
Macron Calls for Urgent Summit as Ukraine Conflict Business Model is Threatened
Trump’s Defense Secretary: Ukraine Won’t Join NATO or Regain Lost Territories
Zelensky Urges Europe to Bolster Its Military in Light of Uncertain US Backing
Chinese Zoo Confesses to Dyeing Donkeys to Look Like Zebras
Elon Musk is Sherlock Holmes - Movie Trailer Parody featuring Donald Trump's Detective
Trump's Greenland Suggestion Sparks Sovereignty Discussions Amid Historical Grievances
OpenAI Board Dismisses Elon Musk's Offer to Acquire the Company.
USAID Uncovered: American Taxpayer Funds Leveraged to Erode Democracy in Europe Until Trump Put a Stop to It.
JD Vance and Scholz Did Not Come Together at the Munich Security Conference.
EU Official Participates in Discussions in Washington Amid Trade Strains
Qatar Contemplates Reducing French Investments Due to PSG Chief Investigation
Germany's Green Agenda Encounters Ambiguity Before Elections
Trump Did Not Notify Germany's Scholz About His Ukraine Peace Proposal.
Munich Car Attack Escalates Migration Discourse Before German Elections
NATO Allies Split on Trump's Proposal for 5% Defense Spending Increase
European Parliament Advocates for Encrypted Messaging to Ensure Secure Communications
Trump's Defense Spending Goal Creates Division Among NATO Partners
French Prime Minister Bayrou Navigates a Challenging Path Amid Budget Preservation and Immigration Discourse
Steering Through the Updated Hierarchy at the European Commission
Parliamentarian Calls for Preservation of AI Liability Directive
Mark Rutte Calls on NATO Allies to Increase Defence Expenditures
Dresden Marks the 80th Anniversary of the World War II Bombing.
Global Community Pledges to Aid Syria's Political Transition
EU Allocates €200 Billion for AI Investments, Introduces €20 Billion Fund for Gigafactories
EU Recognizes Its Inability to Close the USAID Funding Shortfall Due to Stalled US Aid
Commission President von der Leyen Missing from Notre Dame Reopening Due to Last-Minute Cancellation
EU Officializes Disinformation Code for Online Platforms, Omitting X
EU Fails to Fully Implement Key Cybersecurity Directives
EU Under Fire for Simplification Discussions Regarding Corporate Sustainability Reporting
Shein Encountering Further Information Request from the EU During Ongoing Investigation
European Commission Initiates Investigation into Shein as It Aims at Chinese E-Commerce Regulations
German Officials Respond to U.S. Proposal for Peace Talks with Russia
Senate Approves Robert F. Kennedy Jr. as Secretary of Health and Human Services.
Trump and Putin Engage in Discussions on Ukraine Peace Negotiations Amid Worldwide Responses
Honda and Nissan End Merger Talks
×