International tax deal ‘within reach’: EU finance ministers

London, Jun 4 (EFE).- A new international corporate tax deal is “within reach” as finance ministers from the G7 member states kick off two-day talks in London on Friday ahead of the G7 Summit which will be held in Cornwall from June 11-13.

The deal foresees a minimum corporate tax rate backed by the United States.

US President Joe Biden has proposed a minimum rate of 15%. The rate would be applied to the 100 most profitable companies and if a company pays a lower rate, it will have to pay top-up taxes.

In a joint letter to The Guardian, France, Germany, Italy and Spain expressed their interest in the deal and said a critical moment had been reached to fight tax evasion.

“For more than four years, France, Germany, Italy and Spain have been working together to create an international tax system fit for the 21st century. It is a saga of many twists and turns. Now it’s time to come to an agreement,” the letter read.

“We are confident it will create the momentum needed to reach a global agreement at the G20 in Venice in July,” it added.

Even though Spain is not a member of the G7, as one of the EU´s four biggest economies, finance minister Nadia Calviño also signed the letter.

The four ministers believe the Covid-19 pandemic has increased already existing inequalities by encouraging multinationals and tech giants to avoid paying corporation tax.

“The crisis has exacerbated inequalities. It is urgent to put in place an international tax system that is efficient and fair,” they said.

“Fiscal dumping cannot be an option for Europe, nor can it be for the rest of the world,” they added.