# G20 to back global corporate tax deal, says French finance minister
Author: Pal sinha, Barnali
Author URL: https://startupobserver.com/author/pal-sinha-barnali/
Published: 2021-07-06
Category: Finance
Category URL: https://startupobserver.com/category/finance/
Meta Title: G20 to Endorse Major Global Tax Overhaul Proposal
Meta Description: French Finance Minister Bruno Le Maire expects G20 support for new tax rules on multinational companies. Details on minimum tax rate and exemptions to be finalized.
URL: https://startupobserver.com/g20-to-back-global-corporate-tax-deal-says-french-finance-minister/

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qsrmdo0032wirgrt84jr62/images/2021-07-06t170619z1lynxnpeh6511rrtroptp4global-economy-g20-france-1737045843566-compressed.jpg)

PARIS (Reuters) – French Finance Minister Bruno Le Maire said on Tuesday his G20 counterparts are poised to give [political](https://startupobserver.com/uk-becoming-less-attractive-for-investment-manufacturers-warn-2/) endorsement of a proposed overhaul of how multinational companies are taxed during a meeting this week.

Last week, 130 countries backed the biggest changes to cross-border corporate tax in more than a generation with new rules on where companies are taxed and a tax rate of at least 15%.

The package goes next to G20 finance ministers to give [political](https://startupobserver.com/uk-becoming-less-attractive-for-investment-manufacturers-warn-2/) endorsement at a meeting on Friday and Saturday in Venice.

“We now must reach a political accord based on the technical agreement reached by the OECD (Organisation for Economic Co-operation and Development) steering group,” Le Maire told journalists.

Key details about a proposed global minimum corporate tax rate and exemptions from the agreement will then have to be cleared up before the next G20 [meeting](https://startupobserver.com/boohoo-urges-revolution-beauty-to-call-general-meeting-over-board-changes/) in October, he said.

In addition to the technical aspects that remain to be ironed out, there are a number of potential political pitfalls ahead before the overhaul can take effect as planned in 2023.

One such issue is plans from the European Commission to this month propose a digital service levy that risks antagonising Washington, which already considers that an existing national digital service tax in some European countries discriminates against U.S. Silicon Valley firms.

Le [Maire](https://startupobserver.com/france-could-tax-food-industry-over-high-prices-finance-minister/) said he understood U.S. concerns but that the digital levy had nothing to do with taxing the big tech companies and had a much wider application that would mostly affect European companies’ online sales.

“There is nothing against Americans (in the plan) and I hope that we can remove the Americans concerns,” Le Maire said, adding the issue would be clarified with U.S. Treasury Secretary Janet Yellen at a meeting with her euro zone counterparts on Monday.

Le Maire also said France would push at the G20 [meeting](https://startupobserver.com/boohoo-urges-revolution-beauty-to-call-general-meeting-over-board-changes/) for $100 billion to be made available to low-income countries by allowing rich countries to make their unneeded IMF special drawing rights available to them.

(Reporting by Leigh Thomas; Editing by David Goodman and Bill Berkrot)


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---