G-7 countries agree to tax multinational companies, including Google, Face book and Amazon.

 

British Finance Minister Rishi Sonak said the deal was "a great gift for British taxpayers". British Finance Minister Rishi Sonak has announced that the so-called G7 group of developed economies has agreed on a "historic" agreement to tax multinational companies. At a meeting of G-7 finance ministers in London, participants agreed on a minimum corporate tax rate of 15%. Big technology companies like Amazon and Google could be among those affected by the tax. The taxes that will result from this agreement could generate billions of dollars for the governments of these countries to repay the government loans taken during the economic crisis caused by the Code-19 epidemic. The agreement between the United States, Britain, France, Germany, Canada, Italy and Japan will also put pressure on next month's summit of 20 other rich nations to decide whether to allow multinational or multinational companies to do the same. Rishi Sonak said that the corporate tax system has been set up in such a way that global companies have to pay the same tax rate all over the world. "After years of debate, the G-7 finance ministers have agreed on a landmark agreement to reform the global tax system so that it can be redesigned in today's digital age," he said. can go.'Governments have long considered how to levy and collect corporate taxes on multinational corporations operating globally. However, with the rise of big companies like Amazon and Face book, the issue has become even more important. That these multinational companies set up their headquarters in countries where corporate tax rates are slightly lower and they declare their profits in those countries. Because tax rates are lower in these countries, these companies pay less tax, while the profits of these companies come from doing business in another country. In this way, it becomes legal to pay less tax, and this is what large multinational corporations are usually doing. The British finance minister, Rishi Sonak, said the corporate tax system was designed to allow global companies to pay the same taxes worldwide.

What is agreed in this agreement? 

The agreement reached between the finance ministers of the G-7 countries aims to prevent this from happening in two ways. The first is that the G-7 countries want to set a minimum tax rate globally so that there is no race to bring these companies home. To go Second, the terms and conditions set out in the agreement stipulate that these companies will instead pay taxes in the countries where they are registered, and will pay taxes in the countries where they are performing their services. Or they are selling their products. The agreement also stipulates that in the country where these companies are doing business, 10 percent of their profits will be taxed. This is called the "first pillar" principle. According to the G-7 announcement, more than 20% of the company's first ten percent of profits will be counted from the country in which it is doing business to the country where it is registered. Because of this agreement, if a company is already doing business in the UK, it will pay higher taxes here, which will help repay government debts. According to the second pillar of the agreement, all countries will not tax less than 15%. The agreement will now be discussed at a meeting of G-20 finance ministers and heads of their central banks in July. The Minister of Finance of the Republic of Ireland, Pascal Donohue, whose country currently imposes a corporate tax of 12.5 per cent on these companies, said: But the interests of small and large countries and developing and developed countries should be taken care of on an equal footing.