German industrialists call for deferral of global minimum corporate tax

In a statement from the Federation of German Industry (BDI), the federation’s German industry has called for the global minimum corporate tax to be delayed by at least a year to 2025 to give companies more time to prepare for the current crisis.

In the statement, which emphasizes that it is unrealistic to implement the global minimum corporate tax as soon as 2024, “BDI considers it necessary to postpone the start of the global minimum corporate tax to 2025. The rules of the planned minimum tax are quite complex. It will require additional effort in the current crisis. For the successful implementation of the minimum tax, companies need sufficient time for its preparation and implementation.

In the statement, it was also stated that Germany was opposed to the idea that the global minimum corporate tax could be implemented without enactment in the European Union.

OECD COUNTRIES HAVE ACCEPTED

The Organization for Economic Cooperation and Development (OECD) accounts for more than 90 percent of the world’s Gross Domestic Product (GDP) as of October 8, 2021, including the United States, China, Germany, France, the United Kingdom, Japan, and Turkey, ad. that 140 countries had accepted the agreement on international tax reform.

Agreement; It will ensure that global businesses, including internet companies like Google, Amazon, Microsoft and Facebook, are subject to a tax rate of at least 15 percent from 2023.

Global corporate tax regulation, which the OECD has been working on since 2012 and coordinating negotiations between 140 countries, is expected to make it harder for multinational companies to evade taxes by establishing their headquarters in countries such as Ireland and Hungary, which offer attractive tax rates. . .

In July 2022, the OECD announced that new rules on the global minimum corporate tax would take effect in 2024. (BRITISH AUTOMOBILE CLUB)