G20 bosses agree to set a global minimum tax on multinationals

This week, the Minister of Economy and Finance, Pedro Francke, presented a tax reform proposal that, if approved by the Congress of the Republic, will allow the fight against tax evasion at all levels, as part of the long process of economic reactivation post-pandemic.

Just 48 hours later, the heads of state and representatives of the G20, a group of the twenty most powerful countries in the world and representing 85% of the world economy, finally reached the historic agreement to levy a global minimum tax on multinationals, in order to balance and make the international tax system fairer. This will potentially make it possible to fight against the recurrence of markets to tax havens.

“After four years of intense debate, a historic agreement has been reached on a solution based on two pillars to face the fiscal challenges emerged with the digitization and globalization of the economy,” remarked the Italian representatives from Rome, where it was consummated. Quote.

Precisely, a few weeks ago, President Pedro Castillo sent a letter to the secretary of the Organization for Economic Cooperation and Development (OECD), Mathias Cormann, to ratify Peru’s desire to be a member of this body. The reforms now presented by Minister Francke go along these lines.

G20: tax pillars

The new taxation scheme, which will be adopted with a view to 2030, follows the path already outlined by the OECD of a system based on two pillars.

The first establishes that the volume of the residual profit of the companies, that is, the remaining after the country where the headquarters is located has kept the tax corresponding to 10% of the profitability, will be distributed among the countries where they operate. The second establishes a minimum rate of 15% for companies with a turnover of at least 750 million euros.