As we wrote, the G7 nations made the historic decision today to agree to a global minimum corporate tax of 15% – and countries can’t set a lower tax rate.
Ireland, whose low corporate tax rate plays an important role in its economic model and thus is the headquarters of many companies that do not even have a real business there, has argued that the minimum tax rate should be less than 15%.
Ultimately, today’s deal was answered by Ireland’s finance minister, who implicitly criticized the G7 nations for agreeing to a higher tax rate. Pascal Donohue wrote on Twitter that he is looking forward to talks with OECD countries, where 139 countries will have a say,
And where the views of small countries must be taken into account.
This is hard to explain other than the sharp comment which is meant to be an agreement among the seven major advanced economies. German Finance Minister Olaf Schulz, who is also the SPD’s advisor in the German parliamentary elections in September, responded in a similarly euphemistic fashion:
If there is a level playing field, I am sure that a country like Ireland, which has succeeded in attracting foreign companies that provide good jobs, will also start out on good ground under the new conditions in the coming years.
– said Schulze, adding that he was convinced that the agreement would eventually benefit low-tax countries, such as Ireland. The G20 countries will meet in July to discuss the final form of the agreement.
Cover Photo: Getty Images
