The global minimum tax is a step forward, but there is still a long way to go

On June 5, the G7 finance ministers committed to one Global minimum tax 15%, on a “country by country” basis is significant but still far from a real solution. It is undoubtedly a step forward that, after difficult years, brings out buds of cooperation, signifies a clear change in the US position and also in the availability of the digital giants and bodes well. But the light is accompanied by several shades and some critical points.

Agree on prices, but it should extend to the tax base and its national distribution. Defining the rule is still an unresolved problem and has retained an extensioncomprehensive framework of committed OECD. It is clear from the press release of the G7 agreement that practical implications must be determined. As always, the devil is in the details.

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The 15% profit tax rate is very low, it should be at least 25%, but better than nothing 15. The rate should be close to the minimum personal tax rate, which in many OECD countries approaches 25% (in Italy 23), for obvious reasons to harmonize the two taxes.

The fundamental problem remains the distribution of tax bases between countries, which must be “correlated with sales (revenue) data at the national level”, perhaps the only solution for a good regional location. To determine the tax base, there are also a myriad of technical issues: the definition of earnings, and their operating rules Transfer pricing (What goods does it apply to? How is it The untouched? patents, copyrights, software, etc.?) to end with the criterion of geographical distribution of the base.

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The reason for the web tax Europeans are not in retaliation against big digital companies, but rather the result of the awareness that tax rules have changed profoundly. There is a clear reason to consider The untouched and digital activities in an original way, as they intensify the new tax rules of the economy the web. We’re not saying that specific digital platforms should be taxed (in technical terms, no duel); We are just saying that as the number of digital economies increases, it is necessary to adjust tax systems to this current dimension, adapting taxes to the new tax rules – wouldn’t data transmission constitute a new tax rule? Doesn’t it create added value?

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