According to the initial agreement, this is not a new tax – but the imposition of a minimum rate, in order to avoid the so-called ‘tax havens’
The commitment of the G7, a group that brings together the seven richest countries, to establish a tax global minimum of at least 15% for the top 100 companies is viewed with caution by experts. According to the initial agreement, it is not about a new tax, but about the imposition of a minimum rate, in order to avoid the so-called “tax havens”. According to tax lawyer Igor Mauler Santiago, the imposition of charges tends to be positive for most nations. “To the extent that these large, aggressive, transnational tax planning systems cease to be interesting. And that income that was income to be taxed in Brazil, the US or any other country and was transferred to a tax haven will no longer be. And then it will be taxed again in that state, which will have the revenue gain.” For the group of the world’s seven largest economies, the historic agreement will reform the global tax system and make it fit for the digital age.
The authorities want to ensure a fairer mechanism, so that “the right companies pay taxes in the right places”. For the international law partner of Martinelli Advogados Thiago Santos, if put into practice, the measure could attract large companies back to their countries of origin. However, according to the expert, the creation of this tariff will be difficult to implement. “Countries have to create a minimum tax. And how we are going to make the countries create a tax collection is something that is not clear, today the traditional tax agreements are mostly bilateral. And the model that has been adopted for 60 years limits how much it can charge, it limits value jurisdiction. And it does not require a minimum amount.” G7 officials have yet to decide whether the final minimum rate will in fact be 15% or whether the rate will just be a basis for final agreement. The topic should be discussed at the G20 summit scheduled for July in Venice, Italy.
*With information from reporter Nanny Cox