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EU delays deal on 15pc corporate tax until April

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EU finance ministers have delayed a new 15pc corporate tax deal while they are working through the thorny issues.

The bloc is negotiating a law based on a global accord that 137 countries reached last year at the Organization for Economic Cooperation and Development (OECD).

Ireland backs the deal, but opposition from Poland, Sweden, Malta and Estonia means EU officials will have to redraft the text before next month’s meeting.

Issues of entry dates, the option to temporarily deny entry to smaller countries and the link to a parallel agreement to transfer taxing rights to the world’s 100 largest companies have been brought to an agreement in meeting of EU finance ministers in Brussels on Tuesday.

Most EU countries are in full support of the French compromise text delaying the application of the rules until the 2024 budget round and allowing a five-year waiver for countries with fewer than 10 multinationals. big family.

A parallel agreement on the redistribution of taxing power is still being negotiated at the OECD, with the EU statutory in July. The Finance Ministry estimates that part of the deal could wipe out 2 billion euros in tax revenue a year.

Finance Minister Paschal Donohoe said the text was a “reasonable and good compromise” and was in line with the OECD text.

Germany, Spain, Italy and the Netherlands supported the text in its entirety, while Hungary and Cyprus reversed their earlier objections.

French Finance Minister Bruno Le Maire, who chaired Tuesday’s meeting, said he was “convinced” that there would be a deal in April.

EU Economic Commissioner Paolo Gentiloni said an agreement was “of particular importance” to increase public revenue, especially as the economy is dealing with the shock of the Russia-Ukraine war.

The EU also wants to use some of the additional corporate tax revenue to fill its budget.

The goals of the agreement require companies with combined group revenues of at least €750 million a year to pay a tax rate of at least 15pc in each country in which they operate or face additional taxes. supplement in other countries.

The Treasury Department estimates it will apply to 1,600 companies here, 56 of which are Irish.

An EU deal is being worked on despite concerns from US lawmakers and companies about foreign governments eating into US tax revenues.

It is unclear when and how the United States will adopt the measures it signed off on last year, as they are part of President Joe Biden’s stalled Build Back Better plan of 1.7. billion dollars.

https://www.independent.ie/business/personal-finance/tax/eu-delays-deal-on-15pc-corporate-tax-until-april-41449063.html EU delays deal on 15pc corporate tax until April

Fry Electronics Team

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