14/03/22

INTERNATIONAL TAX: France looks to overcome some EU members' opposition to global minimum tax.

As published on uk.finance.yahoo.com, Monday 14 March, 2022.

France aims to use a meeting of EU finance ministers on Tuesday to overcome lingering political opposition to plans for implementing a global minimum corporate tax reform across the 27-nation bloc, Finance Minister Bruno Le Maire said.

Nearly 140 countries backed plans in October for minimum corporate tax rate of 15% as part of an international deal to stop multinationals from booking profits in low-tax countries.

Le Maire, one of the staunchest supporters of the reform, wants to get a deal on implementing the agreement at the European Union level during France's six-month EU presidency, which runs until the end of June.

Le Maire said he had spoken in recent days with counterparts from Hungary, Sweden, the Czech Republic, Poland and Ireland with a view to reaching a deal at an EU finance ministers meeting on Tuesday. Tax issues require unanimous approval within the EU.

"There are still one or two political obstacles, but I'm not without hope that we can reach an consensus among the 27 (countries)," Le Maire told journalists ahead of the meeting in Brussels, which he will preside over.

The Organisation for Economic Cooperation and Development, which has shepherded global negotiations on the deal from the start, said last month that it was "still on track" but would need political compromise to take effect next year as planned.