A global tax deal that would impose a minimum 15% tax on the profits of big international tech companies could be given the green light ahead of the G7 summit in Cornwall next month, as the UK government pushes for a deal. But the UK is among several nations to call for a global tax to end a “race to the bottom” that has encouraged countries to compete on corporation tax rates to attract multinational businesses. The Biden administration joined the project with a proposal for a minimum 21% tax rate, but later dropped this call following strong lobbying from countries with low corporation tax rates. Ireland has said it fears being a less attractive destination for foreign business investment if it agrees to increase its 12.5% corporation tax charge on US tech companies that have based themselves in the country. “Our consistent position has been that it matters where tax is paid and any agreement must ensure digital businesses pay tax in the UK that reflects their economic activities.

Source: The Guardian May 27, 2021 10:38 UTC