EU proposes law to implement deal

BRUSSELS:

The European Commission proposed a law on Wednesday that would implement in Europe a global deal struck among the 20 biggest world economies (G20) on a minimum tax rate for companies. The Commission proposal includes a common set of rules on how to calculate the globally agreed 15% effective tax rate, so that it is consistently applied across the EU. “In October of this year, 137 countries supported a historic multilateral agreement to transform global corporate taxation,” EU Economic Commissioner Paolo Gentiloni told a news conference. “The directive we are putting forward will ensure that the new 15% minimum effective tax rate for large companies will be applied in a way that is fully compatible with EU law,” he said. Gentiloni said the Commission would propose a second law in the middle of 2022 to implement the other part of the OECD and G20 agreement on the reallocation of taxing rights. 

Published in The Express Tribune, December 23^rd, 2021.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.