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Taxation Of Multinationals: France Will Propose A European Directive

he subject of the taxation of multinationals, France will propose a European directive during its presidency of the EU in the first half of 2022 in the event of an agreement this summer on the subject at the OECD, its Minister of the Economy Bruno said on Thursday. The mayor. “We will propose that a directive be applied at European level for the implementation of minimum taxation on corporate tax,” the minister said during a press conference call.

“This directive, if ever there was an agreement at the OECD, could be adopted under the French presidency in the first half of 2022,” he said. “It is a real tax revolution which is on the table”, according to Bruno Le Maire, who added however that “we have had enough cold showers in recent years to remain cautious”.

The American proposal, “an interesting starting point”

If the positions of France, Germany and other OECD countries are aligned with that of the United States on setting a minimum corporate tax rate of 12.5%, the proposal of the American Secretary of the Treasury Janet Yellen on taxation according to the countries where the profits are made, which concerns in particular the digital giants, also constitutes “an interesting starting point”, estimated the French minister.

“The scope that Janet Yellen projects is wider than that retained by the OECD”, which wanted to separate digital activities from other activities for the same company, noted Bruno Le Maire who stressed that the agreement had to be global, that is to say take into account these two pillars (minimum and digital taxation). “There is a fiscal convergence which is being created between the developed countries”, welcomed the Minister, who hopes that it “will result in fiscal stability” in order to “promote recovery”.

“I absolutely do not believe that France is out of step” by lowering its corporate tax rate to 25% in 2022, explained Bruno Le Maire, because “there is a convergence between the tax cut that we have initiated and increased taxation in a number of developed states such as the United States and the United Kingdom ”. “Tax dumping is poison for Europe” according to the minister, for whom “the paradox is that we will perhaps achieve fiscal harmonization, not thanks to European will but thanks to will of the OECD ”.


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