Three EU member states have not signed the international agreement reached on Thursday to introduce a minimum corporate tax rate of 15 percent. The EU Commission hopes to persuade the three objectors Ireland, Hungary and Estonia to do so through negotiations.
Ireland’s hesitation is understandable, as it has created an attractive tax framework to attract companies like Amazon, Apple and Facebook that have set up their European headquarters there.
130 countries from all over the world, which represent 90 percent of the global economy, have welcomed the agreement reached within the framework of the Organization for Economic Cooperation and Development (OECD) as a major step forward. Multinational companies should pay a fair tax rate. China, India, Russia and the USA support the 15 percent minimum rate. For the OECD, the agreement is thus in the towel.
In a tweet, EU Economic Affairs Commissioner Paulo Gentiloni described the agreement as a historic step that the G20 will surely support at a meeting in Venice next weekend. Further details should be worked out before October.
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