Global tax still far from becoming reality – MENAFN.COM

Global tax still far from becoming reality – MENAFN.COM

After the accolades, an agreement among the world's wealthiest countries to set a global minimum tax on the biggest companies now faces a long, bumpy road to implementation. The path is complicated even among the Group of Seven rich nations that endorsed the plan, with US President Joe Biden having to convince recalcitrant members of Congress. In recent years countries have previously clashed over taxing the overseas profits of big companies, especially US tech giants. But the mood has changed as governments look for new sources of revenue after spending huge sums to protect their economies during the coronavirus crisis. The agreement between the US and its G7 partners Britain, France, Japan, Italy, Germany and Canada in London at the weekend is only the first step in a long process. "There is still quite a long road to go," Elke Asen, a policy analyst at the Tax Foundation think tank in Washington, told AFP. The reform now goes to finance ministers of the Group of 20 developed and emerging countries at a July meeting. The "more difficult part", Asen said, will be the next step: Negotiations between 139 nations under the aegis of the Organisation for Economic Co-Operation and Development