G20 finance ministers discuss global minimum corporate tax in Venice

Venice, Jul 9 (EFE).- Finance ministers and central bank chairs of the G20 inaugurated a two-day summit in Venice Friday.

A proposal for a 15% minimum global corporate tax favoured by the Organisation for Economic Cooperation and Development (OECD) will be discussed.

Ministers and bankers are expected to back the global corporate tax, which has the support of 130 countries and jurisdictions of the OECD/G20 Inclusive Framework’s 139 members.

This international tax reform aims to put a floor on competition over corporate income tax by introducing a universal minimum rate.

It would also re-allocate some taxation rights over multinational companies from their home countries to the markets where they operate, regardless of their physical presence there.

Bruno Le Maire, French minister of the economy, announced he will advocate for a higher rate than the suggested 15%.

Host Italian Minister of Economy Daniele Franco opened the session stressing that other important fiscal matters are also on the agenda, including climate change.

In a statement, United States Secretary of the Treasury Janet Yellen emphasised the climate crisis, advocating for regulatory measures, standards, public investments and subsidies to incentivize decarbonization.

“G20 countries are responsible for more than 80% of global carbon emissions and thus it is our responsibility to take action and do so immediately,” she said.

She announced that the US is considering establishing an “implicit price on carbon,” and encouraged others to follow along and make progress towards a zero emissions target. EFE