# G20 to back global corporate tax deal, says French finance minister
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-07-06
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: G20 Leaders Set to Approve Global Tax Overhaul
Meta Description: French Finance Minister Bruno Le Maire discusses potential changes to multinational company tax at G20 meeting.
URL: https://financedigest.com/g20-to-back-global-corporate-tax-deal-says-french-finance-ministerhtml

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PARIS (Reuters) – French Finance Minister Bruno Le [Maire](https://www.financedigest.com/france-could-tax-food-industry-over-high-prices-finance-minister.html) said on Tuesday his G20 counterparts are poised to give political 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://www.financedigest.com/global-political-volatility-is-leading-to-heightened-levels-of-political-violence-and-political-risk.html) endorsement at a [meeting](https://www.financedigest.com/g7-leaders-arranging-emergency-summit-after-poland-missile-strike-kyodo.html) 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](https://www.financedigest.com/global-economic-crisis-strangling-progress-for-poor-warns-u-n-development-chief.html "Global economic crisis strangling progress for poor, warns U.N. development chief")) 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](https://www.financedigest.com/whats-coming-next-in-the-clearing-and-settlement-world.html "What’s coming next in the clearing and settlement world?") G20 meeting 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](https://www.financedigest.com/zara-owner-inditexs-first-half-sales-surge-ahead-of-potential-slowdown.html "Zara owner Inditex’s first-half sales surge ahead of potential slowdown") 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](https://www.financedigest.com/self-employed-taxpayers-and-making-tax-digital.html "Self-employed taxpayers and Making Tax Digital") in some European countries discriminates against U.S. [Silicon Valley](https://www.financedigest.com/hsbc-acquires-british-arm-of-stricken-silicon-valley-bank.html "HSBC acquires British arm of stricken Silicon Valley Bank") firms.

Le Maire 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](https://www.financedigest.com/jaguar-land-rover-opens-three-european-self-driving-tech-hubs.html "Jaguar Land Rover opens three European self-driving tech hubs") 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](https://www.financedigest.com/euro-zone-economic-sentiment-rises-in-january-to-seven-month-high.html "Euro zone economic sentiment rises in January to seven-month high") counterparts on Monday.

Le Maire also said France would [push at the G20 meeting for $100 billion](https://www.financedigest.com/ikea-plans-new-u-s-stores-in-2-2-billion-push-to-challenge-walmart-and-wayfair.html "IKEA plans new U.S. stores in .2 billion push to challenge Walmart and Wayfair") 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)


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