Business

Poland is the last EU objector to a 15 percent corporate tax treaty

blank

French Finance Minister Bruno Le Maire has failed to win Poland’s support for a minimum corporate tax rate of 15 percent.

After a heated exchange at a meeting of the bloc’s 27 finance ministers on Tuesday, Mr Le Maire said he was “unconvinced” by Poland’s arguments against a deal.

Poland is now the only EU holdout after Sweden, Estonia and Malta lifted their opposition to a deal at the meeting.

Poland’s Treasury Secretary, Magdalena Rzeczkowska, said her country could not support a 15 percent rate until a dual “pillar” of a recent global deal – targeting tech giants – is also in place.

Finance Minister Paschal Donohoe said he supports the French compromise, which would delay the entry into force of the 15 percent rate until the 2024 budget round.

“I think that’s a good idea because it gives us a little bit more time to make sure we get this bill enacted through our parliaments in a coordinated way,” Mr Donohoe said, adding that it’s a “very delicate one.” matter”. .

The bloc is negotiating legislation based on a global agreement reached by 137 countries at the Organization for Economic Co-operation and Development (OECD) last year.

This deal includes a 15 per cent rate for companies with global sales in excess of €750m per year, which would affect around 1,600 Irish based companies.

A second “pillar” of the deal would shift taxing rights for the world’s 100 largest (mostly technology) companies to the countries where they sell.

This part of the deal will be brought separately into EU law.

Ms Rzeczkowska said Poland was “fully committed” to the OECD deal but could not support the “separation” of its two pillars.

Mr Le Maire, who chairs EU finance ministers’ meetings under the bloc’s rotating presidency, said France had inserted a statement in the draft deal linking the two pillars.

“What reasons does Poland have for defying the consensus of all other member states?” he said.

Poland is one of several EU countries that agreed to end domestic taxes on digital giants in a bid to win the US’s support at the OECD last year.

But the US has since backed down, threatening to raise a domestic tax on US companies’ foreign income to 20 percent – which would hit here-based US multinationals – and raising doubts over when it will introduce the tax redistribution pillar will.

Mr Le Maire said on Tuesday that all “technical” problems had been ironed out with a 15 per cent rate and that only political problems remained.

“There are no technical difficulties,” he told reporters ahead of Tuesday’s meeting.

“Once again, if there is no compromise, it has nothing to do with minimum taxation. It will be on the basis of other difficulties.”

Last month, most EU countries gave their full support for a French compromise that would delay application of the rules until the 2024 budget round and give countries with fewer than 10 large multinationals a five-year opt-out.

https://www.independent.ie/business/irish/poland-the-last-eu-holdout-on-15pc-corporate-tax-deal-41522160.html Poland is the last EU objector to a 15 percent corporate tax treaty

Fry Electronics Team

Fry Electronics.com is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@fry-electronics.com. The content will be deleted within 24 hours.

Related Articles

Back to top button